SlideShare a Scribd company logo
BUSINESS PLAN 2010 - 2014
   Webcast




 José Sergio Gabrielli – CEO
 Almir Barbassa – CFO
STRATEGIC PLAN PETROBRAS 2020
                                1
DISCLAIMER
FORWARD-LOOKING STATEMENTS:
DISCLAIMER
The presentation may contain forward-looking statements          We undertake no obligation to publicly update or
about future events within the meaning of Section 27A of the     revise any forward-looking statements, whether as a
Securities Act of 1933, as amended, and Section 21E of the       result of new information or future events or for any
Securities Exchange Act of 1934, as amended, that are not        other reason. Figures for 2010 on are estimates or
based on historical facts and are not assurances of future       targets.
results. Such forward-looking statements merely reflect the
Company’s current views and estimates of future economic
circumstances, industry conditions, company performance          All forward-looking statements are expressly qualified
and financial results. Such terms as "anticipate", "believe",    in their entirety by this cautionary statement, and you
"expect", "forecast", "intend", "plan", "project", "seek",       should not place reliance on any forward-looking
"should", along with similar or analogous expressions, are       statement contained in this presentation.
used to identify such forward-looking statements. Readers
are cautioned that these statements are only projections and
may differ materially from actual future results or events.      NON-SEC COMPLIANT OIL AND GAS RESERVES:
Readers are referred to the documents filed by the Company
with the SEC, specifically the Company’s most recent Annual      CAUTIONARY STATEMENT FOR US INVESTORS
Report on Form 20-F, which identify important risk factors       We present certain data in this presentation, such as
that could cause actual results to differ from those contained   oil and gas resources, that we are not permitted to
in the forward-looking statements, including, among other        present in documents filed with the United States
things, risks relating to general economic and business          Securities and Exchange Commission (SEC) under
conditions, including crude oil and other commodity prices,      new Subpart 1200 to Regulation S-K because such
refining margins and prevailing exchange rates, uncertainties    terms do not qualify as proved, probable or possible
inherent in making estimates of our oil and gas reserves         reserves under Rule 4-10(a) of Regulation S-X.
including recently discovered oil and gas reserves,
international and Brazilian political, economic and social
developments, receipt of governmental approvals and
licenses and our ability to obtain financing.
 STRATEGIC PLAN PETROBRAS 2020
                                                                                                                           2
CHALLENGES TO WORLD OIL SUPPLY
Natural decline requires finding new reserves to meet world demand
  1
  20

  10
  1                                                  Scenario: Business as Usual

  1
  00

   90                                                 Scenario: Sustainable Development
                                                                                            Required Addition to Capacity
   80

   70                                                                                           2020: 43 – 48 MM bpd
   60                             Projected
                                  Decline
   50                                                                                           2030: 65 – 78 MM bpd
   40

   30

   20
   2000          2005           2010          2015   2020           2025             2030

   87% of needed supply must come from re-valuing existing reserves, or from reserves
   not yet discovered or declared commercial

                     13%
                                                     28%
                                                                   Production from reserves not yet discovered or without a
                                                                   development plan

                                                                   Production currently developed with operations in short
                                                                   and medium term


                                                                   Production from revaluation of existing reserves
                                                                   (increases to Oil in Place or the recovery factor )
                   59%
  STRATEGIC PLAN PETROBRAS 2020
   Source: Estimates using WoodMackenzies’ data                                                                               3
PRIMARY DEMAND FOR ENERGY
Despite growth of alternatives, oil will maintain its importance

                                                                                                    Average Annual Change

                                                                                                  Business as Usual   Sustainable
                                                                     17,324                                           Development
                                             17,236                                Traditional Biomass
                                                                       7%
                                                6%                     2%     1%
                                     1%                1%                                           +4.2% p.y.        +7.8% p.y.
                                                7%                     7%          Other
                                                                                   Renewable
                                                                       6%          sources
               12,974                           6%
                                                                                                    +5.2% p.y.        +6.1% p.y.
                                                            1.32%                  Biofuels
        0.5%      7%
        0.4%      6%            1.30%
                                               29%                    28%
                  6%                                                               Hydro


                                                                                   Nuclear
                 26%
MMTOE




                                               22%                    22%
                                                                                   Coal
                 22%

                                                                                   Gas

                                                29%                    28%
                 33%
                                                                                   Oil


                2008
               2008                             2008
                                               2030          2030      2030
                                        Business as Usual           Sustainable
                                                                    Development

           Aggressive growth in biofuels will only slow the rate of growth in
           the consumption of Petroleum products

        STRATEGIC PLAN PETROBRAS 2020
   * Aeolian, Solar and Geothermal                                                                                                  4
DEMAND FOR PETROLEUM
Developing country demand should exceed reduced OECD demand




                                        Per capita petroleum consumption

                                  30                                              Petroleum demand – 2009-2030 (variation million bpd)
  per capita - barrels per year




                                                          1980    2000     2009
                                  25


                                  20                                              OECD Europe

                                                                                       USA
                                  15
                                                                                    Middle East

                                  10                                                  Brazil


                                  5                                                    India

                                                                                      China
                                  0
                                       US   Japan OECD* Brazil   China   India            -2         0         2          4          6        8

                                                                                                  Transport   Eletrical Generation   Others

 •Considering France, Germany, Italy and UK




               STRATEGIC PLAN PETROBRAS 2020
               Source: BP                                                                                                                         5
OIL AND GAS PRODUCTION TARGETS: SUPERMAJORS AND PETROBRAS
Petrobras has the highest growth rate target of the industry

                      6000

                                                                                                                                 Petrobras: 3.9 MM boe/d in 2014
                      5500                                                                                                          and 5.4 MM boe/d in 2020

                      5000                                                                           ExxonMobil: Production
                                                                                                     growth rate ~3-4% in 2010;
                                                                                                     ~2-3% p.y. up to 2013
                      4500
     thousand boe/d




                                                                                                                                                BP: Production growth rate
                                                                                                                                                ~1-2% p.y. up to 2015
                      4000
                                                                                                                                      Shell: ~3.5 MM boe/d in 2012
                      3500                                                                                                            and ~3.7 MM boe/d in 2014


                      3000
                                                                                                                                      Chevron: production growth
                      2500                                                                                                            rate ~1% p.y. between 2010-
                                                                                                                                      2014 and 4.5% p.y. between
                                                                                                                                      2014-2017
                      2000

                      1500

                      1000

                       500
                             2000

                                    2001

                                           2002

                                                  2003

                                                         2004

                                                                2005

                                                                       2006

                                                                              2007

                                                                                     2008

                                                                                            2009

                                                                                                   2010

                                                                                                          2011

                                                                                                                 2012

                                                                                                                        2013

                                                                                                                               2014

                                                                                                                                        2015

                                                                                                                                               2016

                                                                                                                                                      2017

                                                                                                                                                             2018

                                                                                                                                                                    2019

                                                                                                                                                                           2020
   STRATEGIC PLAN PETROBRAS 2020
   Source: PFC Energy and Company reports                                                                                                                                         6
PETROBRAS CORPORATE STRATEGY to 2020
Integrated, profitable growth, on a sustainable basis

                                                          Commitment to Sustainable Development
                                       Integrated Growth                         Profitability             Social and Environmental Responsibility

                                     Expand operations in target markets for oil, oil products, petrochemicals, gas and energy, biofuels and
                                            distribution and to be recognized as a benchmark among integrated energy companies


                                 Grow oil and gas      Expand refining in           Consolidate leadership     Operate in the         Operate in Brazil
 Corporate Strategy




                                 production in a       Brazil, ensuring             in the Brazilian natural   petrochemical          and abroad in the
                                 sustainable manner,   sufficiency in domestic      gas market, and            sector in activities   biofuels sector in
                                 becoming one of the   supply and leadership        establishing an            that are integrated    activities that are
                                 five largest oil      in distribution, while       international presence     manner with the        integrated with the
                                 producers in the      developing export            and increasing the         other businesses of    Petrobras system,
                                 world                 markets for products,        domestic electricity       the Petrobras          and to do so on a
                                                       with emphasis in the         generation business        system                 sustainable basisl
                                                       Atlantic basin               and gas chemical,
                                                                                    emphasizing fertilizers

                                     Operational excellence, in management, in energy efficiency, in human resources and in technology
             Business Segments




                                      E&P              Downstream Distribution           Gas and Energy        Petrochemicals         Biofuels
                                                          (RTC)

                      STRATEGIC PLAN PETROBRAS 2020
                                                                                                                                                            7
BUSINESS PLAN 2010-14: US$ 224 BILLION
Increased investment for integrated operations in Brazil

                 Business Segment

                                       1% 2%
                                               1%
                                                                                Brazil and Abroad
                                 2%                            3.5
                         8%        5.1 3.5                                         International
                                     2.5 2.8                                          5%

                              17.8                                                    11.7




                                                       118.8
                                                                 53%
                                73.6                                                     212.3


               33%


                                                                                             95%
                                                                                               Brazil


E&P                  Downstream                G&E             Petrochemicals

Distribution         Biofuels                  Corporate



 STRATEGIC PLAN PETROBRAS 2020
                                                                                                        8
ADJUSTMENTS TO THE 2010-2014 PORTFOLIO
Increased spending on infrastructure, logistics, value chain in Brazil

                       31.6          (17.0)                                         10.3
                                                    (6.8)           19.2




                                                                                                  224
      186.6


  CAPEX 2010-2014    New           Projects    Change in           Change in        Change in   2010-2014
    in 2009-2013     Projects      Excluded    project timeline    project design   Stake       Business
   Business Plan                                                   and cost                     Plan


                                                                                       • New projects for pre-salt,
                                                                                         logistics, increased utilization
                                                          1%
                                                                                         of domestic oil, and
                                         21%                                             monetization of natural gas.
                                                            0.3
                                                            0.3
                    E&P
                                                   6.5
                                                    6.5
                    Downstream                                                         • Change in partnership
                                                                                         participation reflecting
                    Gas & Energy
                                                                  19.7
                                                                   19.7                  uncertainty about
                                                 5.1
                                               5.1
                    Corporate                                                            participation of partners in
                                   16%                                        62%        downstream projects

  STRATEGIC PLAN PETROBRAS 2020
                                                                                                                            9
APPROVAL STATUS OF 2010-2014 PORTFOLIO
Flexibility to adjust Capex for projects in Phases I and II
                              US$ 224 Billion
                                686 projects
                                     0.4%
                               0,9                 0,9

                                      0.9                26.5%
                                                                             Phase I
                                            59.4
                                                                             Phase II


                          122.6                                              Phase III
              54.7%                         122.6
                                                17.5
                      17.5                                  7.9%             Phase IV +
                                            23.6
                             23.6                                            Aquisitions

                                                   10.5%



         Phase I – Identification of Opportunity
         Phase II – In Conceptual Phase
         Phase III – In Basic Project
         Phase IV+ ‐ Authorization for Execution/Implementation/Operations

  STRATEGIC PLAN PETROBRAS 2020
                                                                                           10
LOCAL CONTENT PARTICIPATION 2010-2014
 Brazilian suppliers expected to provide nearly 70% of total needs

                                                               Capex in Brazil (US$ billion)
Distribution and
Biofuels (100%)
                                                                                     Purchased in   Brazilian
                                     100 %                            Investments
  Gas & Energy                                 Business unit                           Brazilian    content
                                                                        in Brazil
     (82%)                                                                              Market        (%)

Downstream and                        80 %     E&P                       108.2           57.8         53%

Corporate (80%)                                RTM and Petrochem          78.6           62.8         80%
                                      60 %     Gas & Energy               17.6           14.4         82%
        E&P                                    Distribution               2.3            2.3         100%
       (53%)
                                      40 %     Biofuels                   2.3            2.3         100%
                                               Corporate                  3.3            2.6          80%
                                               Total                     212.3          142.2        67%
                                      20 %


                                      0%                                         +
                      Brazilian Content                        US$ 46.4 billion from Partners


    • Petrobras purchases in Brazil of approximately $28 billion per year (versus $20 billion per year in
    prior plan)

    STRATEGIC PLAN PETROBRAS 2020
                                                                                                                11
Goals and Principal Projects




 STRATEGIC PLAN PETROBRAS 2020
                                 12
OIL AND GAS PRODUCTION TARGETS 2010-2020
  Domestic targets unchanged, international targets reduced

  • Production curve for domestic oil gas production consistent with prior Business Plan

  • Projected international production reduced as a result of decrease in investment

  • Production curve does not currently assume any contribution from Transfer of Rights                                                                5,382
                                                                                                                                                          120
                                                                                                                                                          203
                                                                                                                        7.1% p.y.
                                                                                                                                                         1109
                                                                                                                                    3,907
(Thous. boe/day)




                                                                                                                                     128
                                                       4.9% p.y.                                                         9.4% p.y. 176

                                                                                                   2,525
                                                                                                              2,723                  623
                                                                             2,301       2,400
                                                                                                                 93
                                                       2,217       2,297                             97
                                       2,020                                   110        100                   146
                             2,037                                 101                              141
                    1,810                 94            96                                124                   384
                              85                       163         142         126                  316
                      22                                           277         273        321                                                            3,950
                      35      161         168          274
                     252      251         265
                                                                                                                                    2,980

                                                                                                   1,971       2,100
                                                       1,684       1,778      1,792      1,855
                     1,500   1,540       1,493
                                                                                                                                                       1, 078
                                                                                                                                                                 Pre-Salt
                                                                                                                                     241
                     2002     2003       2004          2005        2006       2007        2008      2009        2010                 2014                2020
                                                                                                                                                       1.183
                             Oil Production - Brazil           Gas Production - Brazil       Oil Production - International    Gas Production - International
                                                                                                                                  152
                   STRATEGIC PLAN PETROBRAS 2020
                                                                                                                                                                      13
PRINCIPAL PROJECTS SCHEDULED DURING 2010-2014
Updated business plan added new projects

                  Mexilhão
                  Mexilhão         Marlim Sul
                                   Marlim Sul                               Guará Pilot FPSO
                                                                            Guará Pilot FPSO      Tupi NE Pilot
                                                                                                  Tupi NE Pilot
                    NG                                  Antecipation of
                                                        Antecipation of
                    NG                                                        120,000 bpd
                                                                              120,000 bpd            FPSO
                                                                                                      FPSO
                                    SS P-56
                                     SS P-56             Baleia Azul
                                                          Baleia Azul                             120,000 bpd
                                                                                                   120,000 bpd
                                    Module 3           FPSO Espadarte
                                                       FPSO Espadarte
             Uruguá/Tambaú
             Uruguá/Tambaú           Module 3
Th. bpd    FPSO Cidade de Santos   100,000 bpd           100,000 bpd
                                                         100,000 bpd
           FPSO Cidade de Santos   100,000 bpd
              NG/35,000bpd
              NG/35,000bpd
                                                                                                               2,980
                Tupi Pilot
                 Tupi Pilot
2800       Cidade de Angra dos
           Cidade de Angra dos
                  Reis
                   Reis
               100,000 bpd
               100,000 bpd

               Cachalote e
               Cachalote e
              Baleia Franca
              Baleia Franca
2400         FPSO Capixaba
             FPSO Capixaba                                Roncador
                                                          Roncador            Papa-Terra
                                                                              Papa-Terra           Roncador
                                                                                                    Roncador
              100,000 bpd
               100,000 bpd                                 SS P-55
                                                           SS P-55           TLWP P-61 &
                                                                             TLWP P-61 &          FPSO P-62
                                                                                                   FPSO P-62
                                                          Module 3
                                                           Module 3           FPSO P-63
                                                                              FPSO P-63            Module 4
                                                                                                    Module 4
                                                         180,000 bpd
                                                         180,000 bpd         150,000 bpd
                                                                              150,000 bpd         180,000 bpd
                                                                                                  180,000 bpd
          2,100
2000          Tupi NE EWT
              Tupi NE EWT            Jubarte
                                     Jubarte              Tiro/Sidon                              Whales Park
                                                          Tiro/Sidon                              Whales Park
               30.000 bpd
                30.000 bpd         FPSO P-57
                                    FPSO P-57               FPSO                                  FPSO P-58
                                                             FPSO                                  FPSO P-58
               Guará EWT
               Guará EWT           180,000 bpd
                                   180,000 bpd           100,000 bpd                              180,000 bpd
                                                         100,000 bpd                              180,000 bpd
            Dynamic Producer
            Dynamic Producer
               30,000 bpd
                30,000 bpd
                                                           Aruanã
                                                           Aruanã                                  Guaiamá
                                                                                                    Guaiamá
                Tiro EWT
                 Tiro EWT
1600              SS-11
                   SS-11
                                                            FPSO
                                                            FPSO                                     FPSO
                                                                                                     FPSO
                                                         100,000 bpd
                                                         100,000 bpd                              100,000 bpd
                                                                                                  100,000 bpd
               30,000 bpd
                30,000 bpd
              Aruanã EWT
               Aruanã EWT
           Cidade Rio das Ostras
           Cidade Rio das Ostras    4 EWT
                                     4 EWT                 4 EWT
                                                            4 EWT               3 EWT
                                                                                 3 EWT              2 EWT
                                                                                                     2 EWT
                15,000 bpd
                15,000 bpd          Pre-salt
                                    Pre-salt               Pre-salt
                                                           Pre-salt             Pre-salt
                                                                                Pre-salt            Pre-salt
                                                                                                    Pre-salt
1200
               2010                 2011                    2012                  2013                   2014

                                        Oil                     Pre‐salt            Natural Gas
   STRATEGIC PLAN PETROBRAS 2020
                                                 EWT = Extended Well Test                                              14
E&P-BRAZIL INVESTMENTS 2010-2014
Continued emphasis on Post-Salt acreage, growing spending on Pre-Salt

                   Pre-Salt                                              Post-Salt
             US$ 33.0 Billion                                      US$ 75.2 Billion
                     3%
                                 13%                                 15%                     18%
                     0.9                                             11.4
                           4.3                                                        13.7




                   27.8                                                        50.1



             84%                                                            67%


                                 Exploration   Development    Infrastructure

       • Annual expenditures for exploration of more than US$4 billion annually

       • Development capex in Pre-salt approaching 50% of Post-salt spending

  STRATEGIC PLAN PETROBRAS 2020
                                                                                                   15
NEW VESSELS AND PURCHASE OF NEW EQUIPMENTS
Petrobras critical resources demand will drive Brazilian and international industry
                                                                                                 Delivery Plan (to be contracted)
                                                                   Current Situation                   Accumulated Value
              Critical Resources                                       (Dec/09)
                                                                                              By 2013           By 2015              By 2020

          Drilling Rigs Water Depth Above 2.000 m                            5                   26                31                 53*


          Supply and Special Vessel                                        254                   465               491                504


          Production Platforms SS e FPSO                                    41                   53                63                  84

          Others (Jacket and TLWP)                                          79                   81                83                  85




                                                                                                                        Production
                                   Supply Vessel                              Drilling Rigs
                                                                                                                        Platform (FPSO)



                      26 RIGS CONTRACTED, 28 MORE TO BE BUILT BY 2020:
                       o Until 2013: 13 rigs contracted before 2008 and 1 rig relocated from international operations*;
                         +12 new rigs contracted in 2008 , through international bidding;
                       o 2013-2020: Bidding process in progress, to contract 28 rigs to be built in Brazil.


    STRATEGIC PLAN PETROBRAS 2020
* The rig reallocated from international operations, expire in 2015, so it is not considered in the 2020 accumulated value
                                                                                                                                               16
Market Demand, Goals and Principal Activities




                  RTM
    (Refining, Transportation and 
             Marketing)
        and PETROCHEMICALS



 BUSINESS PLAN PETROBRAS 2020
 STRATEGIC PLAN PETROBRAS 2020
                                     17         17
BRAZILIAN PRODUCTION, REFINING AND DEMAND
Long term plans to achieve greater balance and integration
                                                                                            124%
                                                  Production
                                                  as a % of
                                                  refining             132%

                                    110%



   kbpd         13%
                                                               2,980
                                                                                        3,950
                                  1,971
                                                                               2,356            3,196
                                                  1,933                2,260
                                          1,791                                                         2,794
                1,393
                        1,036


          181


                 1980                     2009                          2014E                   2020E
                            Production                Throughput               Oil Product Demand

  • Oil Production and the Brazilian market demand currently exceed refining capacity

  • By 2014, exports are projected to reach nearly 1 million bpd, even as refining capacity is
    expanded to process Brazilian production to meet demand

 STRATEGIC PLAN PETROBRAS 2020
                                                                                                                18
BRAZILIAN DEMAND AND REFINING CAPACITY
Strong Brazilian GDP growth projected to increase demand 3.4% p.y.

                                                                       PREMIUM I        PREMIUM I                      3,196
Thousand bpd           Clara                                           (1ª phase)        (2ª fase)
                                          RNE                         300 thou. bpd     300 thous.
3000                  Camarão        230 thous. bpd                      (2014)            bpd
                       2010              (2013)                                           (2016)        2,794
                       REPLAN
                                       COMPERJ
                       Revamp                                                          PREMIUM II
                      U200+PAM
                                       (1º phase)      2,356             2,260          300 thous.
                                     165 thous. bpd
                     33 thous. bpd                                                          bpd
                                         (2013)
                         (2010)
                                                                                          (2017)        1,155
2000     1,933
                     1,831
                                                       1,016                             COMPERJ
                                                                                         (2º phase)
                                                                                       165 thous. bpd
         826                                                                               (2018)




1000                                                                                                    1,187
                                                       937
         769


                                        ...            403
                                                                                          ...           452
         338
   0

        2009        2010                                       2014                                             2020
                             Gasoline         Diesel         Others               Throughput
  • Domestic production will represent 91% of refinery throughput by 2020

  • Comperj’s first phase is now a new refinery
  STRATEGIC PLAN PETROBRAS 2020
                                                                                                                               19
RTM AND PETROCHEMICALS INVESTMENTS 2010-2014
New refineries, fuel quality, and modernization account for 70% of capex

                       US$ 73.6 Billion
                                                             •   Additional capacity:
                            3% 1%                                  • Refinery NE
                       6%
                                                                   • Premium I
              11%                                                  • Comperj


                                                             •   Quality and conversion
                                                    50%           • Sulfur removal
                                                                   • Modernization
                                                                   • Upgrading (coker)

               29%
                                                             •   Operating improvement and logistics:
                                                                   • Maintenance
                                                                   • HSE
   Additional capacity              Quality and conversion
                                                                   • Logistics for oil and biofuels
   Operational Improvement          Fleet expansion
   Logistics for oil                International
                                                             • Investments of US$ 5.1 Billion in
                                                               Petrochemical (includes acquisition of
                                                               Quattor)

  STRATEGIC PLAN PETROBRAS 2020
                                                                                                        20
Demand, Goals and Principal Activities




  GAS, ENERGY AND GAS
        CHEMICAL




BUSINESS PLAN PETROBRAS 2020
STRATEGIC PLAN PETROBRAS 2020
 STRATEGIC PLAN PETROBRAS 2020
                                         21
NATURAL GAS MARKET AND POWER CAPACITY
Growth in natural gas demand, consolidation in Thermo Power capacity
                                                             Natural Gas Demand                                 130*

            Million m3/day                                                                                       32
                                                                                                                 4

                                                                                                                 41
                                                46
                                               14.4
                                                2.0                                                             53
                                               24.3
                                               5.3

                                              2009                                                              2014
                                 Electrical Generation               Industrial             Fertilizers               Other uses
                    * 2014 – Thermooelectrical generationa refers to full and simultaneous dispatch of plants

                                      Installed Capacity of Electrical Energy Generation (MW)

                                              7,227                          +9%                                 7,892
                                                                                                                 365
                                               137


                                              5,997                                                             6,437



                                              1,093                                                             1,090
                                           2010                                                              2014
                             International   Thermoelectrical and Co-generation                             Renewables Sources
  STRATEGIC PLAN PETROBRAS 2020
                                                                                                                                   22
NATURAL GAS BASED FERTILIZERS
Fertilizer plants to take advantage of available gas and infrastructure


                                                                          UFN III (sep/14)
                                                                                                      UFN IV
                                                                            Ammonia:
                                                                                                     (dec/15)
                                                                           81th. ton/year
                                                                                                   Urea 763 th.
                                                                          Urea 1.210 th.
                                                                                                     ton/year
                                                                             ton/year


                                                                                                   2,911
                                                                          Ammonia Plant
                                                                            (Dec/14)                      2,104
                                                                             519 th.
                                                                            ton/year
                                                          +160%
   Th. ton/year




                                                                           1,374
                              1,118                                              1,076
                                  844

                                                                                             807


                     274                                            298

                           2010                                           2014                     2015
                                                Ammonia                    Urea

                  • Manage total demand for gas by transforming natural gas into fertilizers needed by
                    Brazilian agriculture (substituting demand that is currently imported)
  STRATEGIC PLAN PETROBRAS 2020
                                                                                                                  23
GAS, POWER AND GAS CHEMICAL INVESTMENTS 2010-2014
Transition from investment in infrastructure to gas demand flexibility

          Investments 2010-14
             US$ 17.8 billion

                               15%
                                                  • Completion of the natural gas transport
        30%              2.7                        and processing infrastructure

               5.3                                • Consolidating investment in power
                                                    generation: thermo-electric, wind,
                               4.1   23%            biomass

                                                  • Presence in LNG chain for transport and
                 5.7                                distribution of pre-salt gas
                32%                               • Major investments in the conversion of
                                                    natural gas in to Urea and Ammonia



      LNG              Pipeline network
     Electrical Energy Chemical Gas Facilities 
                       (Fertilizers, ammonia)

  STRATEGIC PLAN PETROBRAS 2020
                                                                                              24
Goals and Main Projects




DISTRIBUTION      INTERNATIONAL    BIOFUELS




   BUSINESS PLAN PETROBRAS 2020
   STRATEGIC PLAN PETROBRAS 2020
                                              25
DISTRIBUTION INVESTMENTS 2010-2014
Leading the Brazilian market for distribution, increasing the market share
                          BR market share in the total and automotive market (%)


                                                    38.6                                      40.0
                                                                  30.6                                      33.6
           30.4
                         22.4




                  2004                                     2009                                      2014

         BR market share in total market in Brazil (%)              BR market share in automotive market in Brazil (%)

    Distribution CAPEX – Brazil
           US$ 2.5 Billion

                                                                         • 8 p.p. increase in the global and
   23%
                            27%                                            automotive market share in the last 5
                                          Gas station
                                                                           years.
                                          Wholesales consumers
                                                                         • We intend to continue leading the
                                          Operation and Logistics
                                                                           Brazilian distribution market of oil
                                                                           products and biofuels, increasing our
  24%                                     Liquigás + Others                share in the market.
                          26%

  STRATEGIC PLAN PETROBRAS 2020
                                                                                                                         26
INTERNATIONAL STRATEGY
Reduced allocation of capex, with focus on upstream

                                                              INTERNATIONAL PRODUCTION OF OIL AND GAS
 Ramp up of existing developments,                                         BP 2010 - 2014
  stable production in long term                       Thousand bpd

                                                       800
 Reduced investment and production a                                                                      632
                                                       600                                                          BP 2009-2013
  reflection of greater opportunities in                                                                               Target
                                                       400                            304                  323
  Brazil                                                              239                                  120         - 49%
                                                       200              93            128
                                                                       146             176                 203
                                                         0
                                                                      2010            2014                 2020
             INVESTMENTS 2010-2014:
                   US$ 11.5 bi                                               Oil and NGL     Natural Gas    BP 2009-2013 Target
            DISTRIBUTION
                221                    CORPORATE
                2%                         123 
           G&E                             1%    • Development focus: Gulf of Mexico, West Coast of Africa and
           186       RTCP
           2%         615                         Latin America
                       5%
                                                 • Exploration focus: Atlantic Project, West coast of Africa,
                                                   aligned with domestic E&P

                              E&P                • Reduced emphasis on refining
                             10,330 
                              90%
                                                 • Reduced emphasis on LNG, alignment with domestic Gas and
                                                   Power segment

  STRATEGIC PLAN PETROBRAS 2020
                                                                                                                               27
BIOFUEL TARGETS AND INVESTMENTS 2010-2014
Continued expansion and integration with oil products
                           Ethanol Production                     Production Capacity of Biodiesel in Brazil
   Thous. m³/year




                                                                     Thous. m³/year
                                                  2,600
                                                                                                  %     747
                                     3%                                                       +47
                                  +19
                                                                                       507

                          886



                                                                                      2010              2014
                          2010                    2014

                                                                                      INVESTMENTS 2010-2014:
                                  Ethanol Exports                                           US$ 3.5 Bi
                                                          1,055
                                                                                            0.7
                                             5%
                                          +13
         Thous. m³/year




                                 449
                                                                                      0.4
                                                                                                               2.0

                                                                                        0.4
                                 2010                     2014
                                                                   Ethanol                  Biodiesel   R&D          Logistics

  STRATEGIC PLAN PETROBRAS 2020
                                                                                                                                 28
Targets and Goals, HSE, Technology, and Research
and Developments




 RESEARCH & DEVELOPMENT




 BUSINESS PLAN PETROBRAS 2020
 STRATEGIC PLAN PETROBRAS 2020
                                               29
TECNOLOGICAL CHANGES
3 Key pillars
             Expanding Limits




 New Exploratory     Maximizing         Developing        Development of           Sediments and Solutions for        Operational      Middle distillate
    Frontier       recovery factor      Production,       new generation              other fuels     Natural Gas     Optimization      Maximization
                                      Operation and Pre   Sea and Subsea           characterization logistic in harsh
                                        Salt Logistic        Systems                of the pre salt environments
                                                                                      and other
                                                                                       complex
                                                                                      reservoirs



             Adding value and
           Diversifying Products
                                                                                                                      Sustainability


Fuel, Lubricants
  and special
   products                                                      Other Renewable            Water            CO2 and other
  innovation     Petrochemicals      Gas Chemic      Biofuels     sources Energy          management        gas management           Energetic
                                                                                                                                     Efficiency




   STRATEGIC PLAN PETROBRAS 2020
                                                                                                                                                     30
ENGINEERING CHALLENGES


                                                   Competitiveness/
                                                    Sustainability
                                                 Using international engineering
                                                 patterns and metrics in our
                                                 facility projects




      Simplification and
       Standardization                                    Brazilian Content
  Reduction in the complexity    Technological
  of   the    projects, using    & Engineering       Contributing for the consolidation
  standard solutions
                                    Drivers          of Brazil as a supplying hub with
                                                     international competitive level




 STRATEGIC PLAN PETROBRAS 2020
                                                                                          31
R&D INVESTMENTS ALLOW TECHNOLOGICAL LEADERSHIP WITH
FOCUS IN HSECORPORATIVA DE RESPOSTA CDA / BASES AVANÇADAS / ED
  ESTRUTURA


                          Investments in HSE, IT and R&D
                                    US$ 11.4 Billion

                                                    29%

                                                                  HSE
                       46%
                                                                  IT

                                                                  R&D



                                                25%



         • Continued spending of $1 billion per year on Research and Development

         • Continued focus on Health, Safety and Environment


  STRATEGIC PLAN PETROBRAS 2020
                                                                                   32
Cash generation and Funding needs




      PLAN FINANCING




 BUSINESS PLAN PETROBRAS 2020
 STRATEGIC PLAN PETROBRAS 2020
                                    33
FORECASTED OIL PRICE VERSUS Business PLAN 2010-2014
Petrobras base case planning price at lower end of forecast range




                                                                                                                       Forecasts: CERA,
   140
                                                                                                                       PIRA, WoodMackenzie, EIA e
   130                                                                                                                 IEA.
   120

   110
                                                                                          98
   100

    90                                                                                                                                            84
                                                                                                           78
    80                                                                               75
                                                                                                                          72
                                                                                69
    70
                                                                           59
    60                                                                                                                          Petrobras budget price
                                                                      42                       62
    50

    40   36                                                      33
           29                                       34
                                                         29 29
    30          27                26 24
                     23                        22
                          21 22
    20                                    16

    10

     0
     1990                  1995                 2000                   2005                         2010        2015     2020        2025           2030




  STRATEGIC PLAN PETROBRAS 2020
                                                                                                                                                           34
PRINCIPAL FINANCIAL INDICATORS 2009-2013 vs. 2010-2014
Stable cash flows with increasing investments

                  INDEX                                     2010-2014             2009-2013
                                                              Plan                  Plan
                  FX Rate (R$/US$)                               1.78                2.00
                                                             2010 – 76            2009 – 58
                                                             2011 – 78            2010 – 61
                  Brent for Funding (US$/bbl)                2012– 82             2011 – 72
                                                             2013 – 82            2012 – 74
                                                             2014 – 82            2013 – 68

                  Projected Investments                         224                  174
                  (US$ bn)
                  Projected Net Cash Flow                       155                  149
                  (After dividends) (US$ bn)

                  Net Total Capt. (US$ bn)                       58*                  23


                   Leverage                                Up to 35%              Up to 35%

                   Average Realization Price                    163                    160
                   (R$ barrel)
                   * Including Capitalization and excluding amortization of US$38 billion


  • Conservative assumptions: Despite higher assumed oil prices, stable realization price
  STRATEGIC PLAN PETROBRAS 2020
                                                                                              35
CASH GENERATION AND INVESTMENT
Profitable investments funded with cash flow, debt and equity capital

                                  PROJECTED Operating Cash Flow
                                          (2010 – 2014)


                          Cash                                   Amortization
                       US$ 11 billion                            US$ 38 billion
                         Funding
                      (debt + equity)
                      US$ 96 billion

                                                                  Investments
                                                                 US$ 224 billion
                                  OCF
                     (after dividends)
                      US$ 155 billion




                                         Sources       Uses



  • Plan requires additional debt and equity capital

  • Return on portfolio of approximately 14% on the aggregate of projects in the Plan
    substantially exceeds cost of capital
  STRATEGIC PLAN PETROBRAS 2020
                                                                                        36
CHALLENGES




    • Capacity to execute a huge portfolio project

    • Strength and reliability of supply chain

    • Resource management and efficiency

    • Human Resources challenges

    • Funding requirements


 STRATEGIC PLAN PETROBRAS 2020
                                                     37
Thank you




STRATEGIC PLAN PETROBRAS 2020
                                38

More Related Content

What's hot

Latibex 22 nov 07
Latibex 22 nov 07Latibex 22 nov 07
Latibex 22 nov 07
Petrobras
 
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães - Petrobras at a gla...
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a gla...Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a gla...
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães - Petrobras at a gla...
Petrobras
 
Iochpe-Maxion - 3Q08 Presentation
Iochpe-Maxion - 3Q08 PresentationIochpe-Maxion - 3Q08 Presentation
Iochpe-Maxion - 3Q08 Presentation
Iochpe-Maxion
 
wyeth UBS Global Life Sciences Conference
wyeth UBS Global Life Sciences Conferencewyeth UBS Global Life Sciences Conference
wyeth UBS Global Life Sciences Conference
finance12
 
Banco ABC - 3rd Quarter 2008 Results Presentation
Banco ABC - 3rd Quarter 2008 Results PresentationBanco ABC - 3rd Quarter 2008 Results Presentation
Banco ABC - 3rd Quarter 2008 Results Presentation
Banco ABC Brasil
 
Fact Sheet 2Q08
Fact Sheet 2Q08Fact Sheet 2Q08
Fact Sheet 2Q08
CPFL RI
 
Investor presentation
Investor presentationInvestor presentation
Investor presentation
Company Spotlight
 
Endeavour
EndeavourEndeavour
el paso Marketing_Summary
el paso  Marketing_Summaryel paso  Marketing_Summary
el paso Marketing_Summary
finance49
 
General Presentation
General PresentationGeneral Presentation
General Presentation
Petrobras
 
Intact Investor Presentation - March 2010
Intact Investor Presentation - March 2010Intact Investor Presentation - March 2010
Intact Investor Presentation - March 2010
Intact
 
Conferência btg pactual – fevereiro 2011
Conferência btg pactual – fevereiro 2011Conferência btg pactual – fevereiro 2011
Conferência btg pactual – fevereiro 2011
Braskem_RI
 
Super Returns Latin America 2011
Super Returns Latin America 2011Super Returns Latin America 2011
Super Returns Latin America 2011
Victor Carlos Casabona Filho
 

What's hot (13)

Latibex 22 nov 07
Latibex 22 nov 07Latibex 22 nov 07
Latibex 22 nov 07
 
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães - Petrobras at a gla...
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a gla...Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães -  Petrobras at a gla...
Julho-2008 Theodore M. Helms, Marcos Vinicius Guimarães - Petrobras at a gla...
 
Iochpe-Maxion - 3Q08 Presentation
Iochpe-Maxion - 3Q08 PresentationIochpe-Maxion - 3Q08 Presentation
Iochpe-Maxion - 3Q08 Presentation
 
wyeth UBS Global Life Sciences Conference
wyeth UBS Global Life Sciences Conferencewyeth UBS Global Life Sciences Conference
wyeth UBS Global Life Sciences Conference
 
Banco ABC - 3rd Quarter 2008 Results Presentation
Banco ABC - 3rd Quarter 2008 Results PresentationBanco ABC - 3rd Quarter 2008 Results Presentation
Banco ABC - 3rd Quarter 2008 Results Presentation
 
Fact Sheet 2Q08
Fact Sheet 2Q08Fact Sheet 2Q08
Fact Sheet 2Q08
 
Investor presentation
Investor presentationInvestor presentation
Investor presentation
 
Endeavour
EndeavourEndeavour
Endeavour
 
el paso Marketing_Summary
el paso  Marketing_Summaryel paso  Marketing_Summary
el paso Marketing_Summary
 
General Presentation
General PresentationGeneral Presentation
General Presentation
 
Intact Investor Presentation - March 2010
Intact Investor Presentation - March 2010Intact Investor Presentation - March 2010
Intact Investor Presentation - March 2010
 
Conferência btg pactual – fevereiro 2011
Conferência btg pactual – fevereiro 2011Conferência btg pactual – fevereiro 2011
Conferência btg pactual – fevereiro 2011
 
Super Returns Latin America 2011
Super Returns Latin America 2011Super Returns Latin America 2011
Super Returns Latin America 2011
 

Viewers also liked

Equakes Lecture (2)
Equakes Lecture (2)Equakes Lecture (2)
Equakes Lecture (2)
teufelsdroch
 
WorldWide Telescope
WorldWide TelescopeWorldWide Telescope
WorldWide Telescope
JacekKupras
 
world of churches
world of churchesworld of churches
world of churches
joopvandijk
 
Bullfrog 1
Bullfrog 1Bullfrog 1
Bullfrog 1
guest3346973
 
STARTup Live Athens #1 - Closing Speech
STARTup Live Athens #1 - Closing SpeechSTARTup Live Athens #1 - Closing Speech
STARTup Live Athens #1 - Closing Speech
Konstantina Zoehrer
 
Talentmanagement Finance kolom Achmea
Talentmanagement Finance kolom AchmeaTalentmanagement Finance kolom Achmea
Talentmanagement Finance kolom Achmea
Jasper de Weerdt
 
Matpresentation2
Matpresentation2Matpresentation2
Matpresentation2
teufelsdroch
 
Rio's Pact
Rio's PactRio's Pact
Rio's Pact
Joaquim Leao
 
Spectacled Caiman
Spectacled CaimanSpectacled Caiman
Spectacled Caiman
guest3346973
 
Orion – wielki łowca zimowego nieba
Orion – wielki łowca zimowego niebaOrion – wielki łowca zimowego nieba
Orion – wielki łowca zimowego nieba
JacekKupras
 
Los oscars Maria y Cecilia
Los oscars Maria y CeciliaLos oscars Maria y Cecilia
Los oscars Maria y Cecilia
Victoriano Parra
 
Roses For You 2009
Roses For You 2009Roses For You 2009
Roses For You 2009dliemtedis
 
ADM Grain Training 2008
ADM Grain Training 2008ADM Grain Training 2008
ADM Grain Training 2008
colenthegang
 
Types of infographics
Types of infographicsTypes of infographics
Types of infographics
krs1010
 
Coursework Introduction
Coursework IntroductionCoursework Introduction
Coursework Introduction
ATith
 
Edukacja z WorldWide Telescope cz. 3
Edukacja z WorldWide Telescope cz. 3Edukacja z WorldWide Telescope cz. 3
Edukacja z WorldWide Telescope cz. 3
JacekKupras
 
class 2009
class 2009class 2009
class 2009
johnsk13
 
Frederick Lipp Visits GESS
Frederick Lipp Visits GESSFrederick Lipp Visits GESS
Frederick Lipp Visits GESS
ranitasmart
 
Bullfrog( Complete )
Bullfrog( Complete )Bullfrog( Complete )
Bullfrog( Complete )
guest3346973
 
传递知识 分享成功
传递知识 分享成功传递知识 分享成功
传递知识 分享成功
luxiaofei
 

Viewers also liked (20)

Equakes Lecture (2)
Equakes Lecture (2)Equakes Lecture (2)
Equakes Lecture (2)
 
WorldWide Telescope
WorldWide TelescopeWorldWide Telescope
WorldWide Telescope
 
world of churches
world of churchesworld of churches
world of churches
 
Bullfrog 1
Bullfrog 1Bullfrog 1
Bullfrog 1
 
STARTup Live Athens #1 - Closing Speech
STARTup Live Athens #1 - Closing SpeechSTARTup Live Athens #1 - Closing Speech
STARTup Live Athens #1 - Closing Speech
 
Talentmanagement Finance kolom Achmea
Talentmanagement Finance kolom AchmeaTalentmanagement Finance kolom Achmea
Talentmanagement Finance kolom Achmea
 
Matpresentation2
Matpresentation2Matpresentation2
Matpresentation2
 
Rio's Pact
Rio's PactRio's Pact
Rio's Pact
 
Spectacled Caiman
Spectacled CaimanSpectacled Caiman
Spectacled Caiman
 
Orion – wielki łowca zimowego nieba
Orion – wielki łowca zimowego niebaOrion – wielki łowca zimowego nieba
Orion – wielki łowca zimowego nieba
 
Los oscars Maria y Cecilia
Los oscars Maria y CeciliaLos oscars Maria y Cecilia
Los oscars Maria y Cecilia
 
Roses For You 2009
Roses For You 2009Roses For You 2009
Roses For You 2009
 
ADM Grain Training 2008
ADM Grain Training 2008ADM Grain Training 2008
ADM Grain Training 2008
 
Types of infographics
Types of infographicsTypes of infographics
Types of infographics
 
Coursework Introduction
Coursework IntroductionCoursework Introduction
Coursework Introduction
 
Edukacja z WorldWide Telescope cz. 3
Edukacja z WorldWide Telescope cz. 3Edukacja z WorldWide Telescope cz. 3
Edukacja z WorldWide Telescope cz. 3
 
class 2009
class 2009class 2009
class 2009
 
Frederick Lipp Visits GESS
Frederick Lipp Visits GESSFrederick Lipp Visits GESS
Frederick Lipp Visits GESS
 
Bullfrog( Complete )
Bullfrog( Complete )Bullfrog( Complete )
Bullfrog( Complete )
 
传递知识 分享成功
传递知识 分享成功传递知识 分享成功
传递知识 分享成功
 

Similar to Petrobras Investments Webcast Pn 2010 2014

Presidente Jose Sergio Gabrielli de Azevedo. Apresentação durante o evento No...
Presidente Jose Sergio Gabrielli de Azevedo. Apresentação durante o evento No...Presidente Jose Sergio Gabrielli de Azevedo. Apresentação durante o evento No...
Presidente Jose Sergio Gabrielli de Azevedo. Apresentação durante o evento No...
Petrobras
 
Chevron Corporate Overview
Chevron Corporate OverviewChevron Corporate Overview
Chevron Corporate Overview
finance1
 
04.05.2009 presentation of petrobras america president, jose orlando azeved...
04.05.2009   presentation of petrobras america president, jose orlando azeved...04.05.2009   presentation of petrobras america president, jose orlando azeved...
04.05.2009 presentation of petrobras america president, jose orlando azeved...
Petrobras
 
2012-2016 Business Plan
2012-2016 Business Plan2012-2016 Business Plan
2012-2016 Business Plan
Petrobras
 
2Q12 Presentation
2Q12 Presentation2Q12 Presentation
2Q12 Presentation
Braskem_RI
 
Sustainable Renewable Energy Business
Sustainable Renewable Energy BusinessSustainable Renewable Energy Business
Sustainable Renewable Energy Business
Tausif Farooqui, MIET
 
Braskem presentation 2_q07_20091201_en
Braskem presentation 2_q07_20091201_enBraskem presentation 2_q07_20091201_en
Braskem presentation 2_q07_20091201_en
Braskem_RI
 
Press Release Business Plan 2011-2015 Presentation
Press Release Business Plan 2011-2015 PresentationPress Release Business Plan 2011-2015 Presentation
Press Release Business Plan 2011-2015 Presentation
Petrobras
 
Braskem 2 q08_cc_presentation_eng
Braskem 2 q08_cc_presentation_engBraskem 2 q08_cc_presentation_eng
Braskem 2 q08_cc_presentation_eng
Braskem_RI
 
Braskem 2 q08_cc_presentation_eng
Braskem 2 q08_cc_presentation_engBraskem 2 q08_cc_presentation_eng
Braskem 2 q08_cc_presentation_eng
Braskem_RI
 
Goldman Sachs Financial Services Conference
Goldman Sachs Financial Services Conference Goldman Sachs Financial Services Conference
Goldman Sachs Financial Services Conference
QuarterlyEarningsReports3
 
2Q09 Results
2Q09 Results2Q09 Results
Conference call presentation 3 q07 results
Conference call presentation   3 q07 resultsConference call presentation   3 q07 results
Conference call presentation 3 q07 results
Braskem_RI
 
Braskem presentation 3_q07_20091201_en
Braskem presentation 3_q07_20091201_enBraskem presentation 3_q07_20091201_en
Braskem presentation 3_q07_20091201_en
Braskem_RI
 
MBA Internship
MBA InternshipMBA Internship
MBA Internship
angshumanjob
 
18.03.2009 Presentation of E&P Coordinator, Eduardo Alessandro Molinari - P...
18.03.2009   Presentation of E&P Coordinator, Eduardo Alessandro Molinari - P...18.03.2009   Presentation of E&P Coordinator, Eduardo Alessandro Molinari - P...
18.03.2009 Presentation of E&P Coordinator, Eduardo Alessandro Molinari - P...
Petrobras
 
UBS - Latin America Emerging Market - One on One Conference”
UBS - Latin America Emerging Market - One on One Conference”UBS - Latin America Emerging Market - One on One Conference”
UBS - Latin America Emerging Market - One on One Conference”
Petrobras
 
2Q07 Results
2Q07 Results2Q07 Results
"10th Annual Latin American Conference"
"10th Annual Latin American Conference""10th Annual Latin American Conference"
"10th Annual Latin American Conference"
Petrobras
 
Santander campos jordao
Santander campos jordaoSantander campos jordao
Santander campos jordao
Petrobras
 

Similar to Petrobras Investments Webcast Pn 2010 2014 (20)

Presidente Jose Sergio Gabrielli de Azevedo. Apresentação durante o evento No...
Presidente Jose Sergio Gabrielli de Azevedo. Apresentação durante o evento No...Presidente Jose Sergio Gabrielli de Azevedo. Apresentação durante o evento No...
Presidente Jose Sergio Gabrielli de Azevedo. Apresentação durante o evento No...
 
Chevron Corporate Overview
Chevron Corporate OverviewChevron Corporate Overview
Chevron Corporate Overview
 
04.05.2009 presentation of petrobras america president, jose orlando azeved...
04.05.2009   presentation of petrobras america president, jose orlando azeved...04.05.2009   presentation of petrobras america president, jose orlando azeved...
04.05.2009 presentation of petrobras america president, jose orlando azeved...
 
2012-2016 Business Plan
2012-2016 Business Plan2012-2016 Business Plan
2012-2016 Business Plan
 
2Q12 Presentation
2Q12 Presentation2Q12 Presentation
2Q12 Presentation
 
Sustainable Renewable Energy Business
Sustainable Renewable Energy BusinessSustainable Renewable Energy Business
Sustainable Renewable Energy Business
 
Braskem presentation 2_q07_20091201_en
Braskem presentation 2_q07_20091201_enBraskem presentation 2_q07_20091201_en
Braskem presentation 2_q07_20091201_en
 
Press Release Business Plan 2011-2015 Presentation
Press Release Business Plan 2011-2015 PresentationPress Release Business Plan 2011-2015 Presentation
Press Release Business Plan 2011-2015 Presentation
 
Braskem 2 q08_cc_presentation_eng
Braskem 2 q08_cc_presentation_engBraskem 2 q08_cc_presentation_eng
Braskem 2 q08_cc_presentation_eng
 
Braskem 2 q08_cc_presentation_eng
Braskem 2 q08_cc_presentation_engBraskem 2 q08_cc_presentation_eng
Braskem 2 q08_cc_presentation_eng
 
Goldman Sachs Financial Services Conference
Goldman Sachs Financial Services Conference Goldman Sachs Financial Services Conference
Goldman Sachs Financial Services Conference
 
2Q09 Results
2Q09 Results2Q09 Results
2Q09 Results
 
Conference call presentation 3 q07 results
Conference call presentation   3 q07 resultsConference call presentation   3 q07 results
Conference call presentation 3 q07 results
 
Braskem presentation 3_q07_20091201_en
Braskem presentation 3_q07_20091201_enBraskem presentation 3_q07_20091201_en
Braskem presentation 3_q07_20091201_en
 
MBA Internship
MBA InternshipMBA Internship
MBA Internship
 
18.03.2009 Presentation of E&P Coordinator, Eduardo Alessandro Molinari - P...
18.03.2009   Presentation of E&P Coordinator, Eduardo Alessandro Molinari - P...18.03.2009   Presentation of E&P Coordinator, Eduardo Alessandro Molinari - P...
18.03.2009 Presentation of E&P Coordinator, Eduardo Alessandro Molinari - P...
 
UBS - Latin America Emerging Market - One on One Conference”
UBS - Latin America Emerging Market - One on One Conference”UBS - Latin America Emerging Market - One on One Conference”
UBS - Latin America Emerging Market - One on One Conference”
 
2Q07 Results
2Q07 Results2Q07 Results
2Q07 Results
 
"10th Annual Latin American Conference"
"10th Annual Latin American Conference""10th Annual Latin American Conference"
"10th Annual Latin American Conference"
 
Santander campos jordao
Santander campos jordaoSantander campos jordao
Santander campos jordao
 

More from Joaquim Leao

Profile
ProfileProfile
Profile
Joaquim Leao
 
Perfil cinza
Perfil cinzaPerfil cinza
Perfil cinza
Joaquim Leao
 
20120916 Cv Jpl Referees
20120916 Cv Jpl Referees20120916 Cv Jpl Referees
20120916 Cv Jpl Referees
Joaquim Leao
 
Heli bp strategy for a logistic company in brazil
Heli bp strategy for a logistic company in brazilHeli bp strategy for a logistic company in brazil
Heli bp strategy for a logistic company in brazil
Joaquim Leao
 
PecéM Cede
PecéM CedePecéM Cede
PecéM Cede
Joaquim Leao
 
Apres Camara270509
Apres Camara270509Apres Camara270509
Apres Camara270509
Joaquim Leao
 
Developed Studies, Business Development
Developed Studies, Business DevelopmentDeveloped Studies, Business Development
Developed Studies, Business Development
Joaquim Leao
 

More from Joaquim Leao (7)

Profile
ProfileProfile
Profile
 
Perfil cinza
Perfil cinzaPerfil cinza
Perfil cinza
 
20120916 Cv Jpl Referees
20120916 Cv Jpl Referees20120916 Cv Jpl Referees
20120916 Cv Jpl Referees
 
Heli bp strategy for a logistic company in brazil
Heli bp strategy for a logistic company in brazilHeli bp strategy for a logistic company in brazil
Heli bp strategy for a logistic company in brazil
 
PecéM Cede
PecéM CedePecéM Cede
PecéM Cede
 
Apres Camara270509
Apres Camara270509Apres Camara270509
Apres Camara270509
 
Developed Studies, Business Development
Developed Studies, Business DevelopmentDeveloped Studies, Business Development
Developed Studies, Business Development
 

Recently uploaded

Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 
Enabling Digital Sustainability by Jutta Eckstein
Enabling Digital Sustainability by Jutta EcksteinEnabling Digital Sustainability by Jutta Eckstein
Enabling Digital Sustainability by Jutta Eckstein
Jutta Eckstein
 
Easy Earnings Through Refer and Earn Apps Without KYC.pptx
Easy Earnings Through Refer and Earn Apps Without KYC.pptxEasy Earnings Through Refer and Earn Apps Without KYC.pptx
Easy Earnings Through Refer and Earn Apps Without KYC.pptx
Fx Lotus
 
Stainless Steel Conveyor Manufacturers Chennai
Stainless Steel Conveyor Manufacturers ChennaiStainless Steel Conveyor Manufacturers Chennai
Stainless Steel Conveyor Manufacturers Chennai
ConveyorSystem
 
Lukas Rycek - GreenChemForCE - project structure.pptx
Lukas Rycek - GreenChemForCE - project structure.pptxLukas Rycek - GreenChemForCE - project structure.pptx
Lukas Rycek - GreenChemForCE - project structure.pptx
pavelborek
 
MECE (Mutually Exclusive, Collectively Exhaustive) Principle
MECE (Mutually Exclusive, Collectively Exhaustive) PrincipleMECE (Mutually Exclusive, Collectively Exhaustive) Principle
MECE (Mutually Exclusive, Collectively Exhaustive) Principle
Operational Excellence Consulting
 
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
IPLTech Electric
 
Enhancing Adoption of AI in Agri-food: Introduction
Enhancing Adoption of AI in Agri-food: IntroductionEnhancing Adoption of AI in Agri-food: Introduction
Enhancing Adoption of AI in Agri-food: Introduction
Cor Verdouw
 
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
dpbossdpboss69
 
Truck Loading Conveyor Manufacturers Chennai
Truck Loading Conveyor Manufacturers ChennaiTruck Loading Conveyor Manufacturers Chennai
Truck Loading Conveyor Manufacturers Chennai
ConveyorSystem
 
Kirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip GEM Royalty TNR Gold Copper PresentationKirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip
 
Discover the Beauty and Functionality of The Expert Remodeling Service
Discover the Beauty and Functionality of The Expert Remodeling ServiceDiscover the Beauty and Functionality of The Expert Remodeling Service
Discover the Beauty and Functionality of The Expert Remodeling Service
obriengroupinc04
 
NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi_compressed.pdf
NewBase 20 June 2024  Energy News issue - 1731 by Khaled Al Awadi_compressed.pdfNewBase 20 June 2024  Energy News issue - 1731 by Khaled Al Awadi_compressed.pdf
NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi_compressed.pdf
Khaled Al Awadi
 
AI Transformation Playbook: Thinking AI-First for Your Business
AI Transformation Playbook: Thinking AI-First for Your BusinessAI Transformation Playbook: Thinking AI-First for Your Business
AI Transformation Playbook: Thinking AI-First for Your Business
Arijit Dutta
 
CULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for dukeCULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for duke
ZevinAttisha
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 
Adani Group Requests For Additional Land For Its Dharavi Redevelopment Projec...
Adani Group Requests For Additional Land For Its Dharavi Redevelopment Projec...Adani Group Requests For Additional Land For Its Dharavi Redevelopment Projec...
Adani Group Requests For Additional Land For Its Dharavi Redevelopment Projec...
Adani case
 
8328958814KALYAN MATKA | MATKA RESULT | KALYAN
8328958814KALYAN MATKA | MATKA RESULT | KALYAN8328958814KALYAN MATKA | MATKA RESULT | KALYAN
8328958814KALYAN MATKA | MATKA RESULT | KALYAN
➑➌➋➑➒➎➑➑➊➍
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results
 

Recently uploaded (20)

Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 
Enabling Digital Sustainability by Jutta Eckstein
Enabling Digital Sustainability by Jutta EcksteinEnabling Digital Sustainability by Jutta Eckstein
Enabling Digital Sustainability by Jutta Eckstein
 
Easy Earnings Through Refer and Earn Apps Without KYC.pptx
Easy Earnings Through Refer and Earn Apps Without KYC.pptxEasy Earnings Through Refer and Earn Apps Without KYC.pptx
Easy Earnings Through Refer and Earn Apps Without KYC.pptx
 
Stainless Steel Conveyor Manufacturers Chennai
Stainless Steel Conveyor Manufacturers ChennaiStainless Steel Conveyor Manufacturers Chennai
Stainless Steel Conveyor Manufacturers Chennai
 
Lukas Rycek - GreenChemForCE - project structure.pptx
Lukas Rycek - GreenChemForCE - project structure.pptxLukas Rycek - GreenChemForCE - project structure.pptx
Lukas Rycek - GreenChemForCE - project structure.pptx
 
MECE (Mutually Exclusive, Collectively Exhaustive) Principle
MECE (Mutually Exclusive, Collectively Exhaustive) PrincipleMECE (Mutually Exclusive, Collectively Exhaustive) Principle
MECE (Mutually Exclusive, Collectively Exhaustive) Principle
 
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
Sustainable Logistics for Cost Reduction_ IPLTech Electric's Eco-Friendly Tra...
 
Enhancing Adoption of AI in Agri-food: Introduction
Enhancing Adoption of AI in Agri-food: IntroductionEnhancing Adoption of AI in Agri-food: Introduction
Enhancing Adoption of AI in Agri-food: Introduction
 
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
Call 8867766396 Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian M...
 
Truck Loading Conveyor Manufacturers Chennai
Truck Loading Conveyor Manufacturers ChennaiTruck Loading Conveyor Manufacturers Chennai
Truck Loading Conveyor Manufacturers Chennai
 
Kirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip GEM Royalty TNR Gold Copper PresentationKirill Klip GEM Royalty TNR Gold Copper Presentation
Kirill Klip GEM Royalty TNR Gold Copper Presentation
 
Discover the Beauty and Functionality of The Expert Remodeling Service
Discover the Beauty and Functionality of The Expert Remodeling ServiceDiscover the Beauty and Functionality of The Expert Remodeling Service
Discover the Beauty and Functionality of The Expert Remodeling Service
 
NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi_compressed.pdf
NewBase 20 June 2024  Energy News issue - 1731 by Khaled Al Awadi_compressed.pdfNewBase 20 June 2024  Energy News issue - 1731 by Khaled Al Awadi_compressed.pdf
NewBase 20 June 2024 Energy News issue - 1731 by Khaled Al Awadi_compressed.pdf
 
AI Transformation Playbook: Thinking AI-First for Your Business
AI Transformation Playbook: Thinking AI-First for Your BusinessAI Transformation Playbook: Thinking AI-First for Your Business
AI Transformation Playbook: Thinking AI-First for Your Business
 
CULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for dukeCULR Spring 2024 Journal.pdf testing for duke
CULR Spring 2024 Journal.pdf testing for duke
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 
Adani Group Requests For Additional Land For Its Dharavi Redevelopment Projec...
Adani Group Requests For Additional Land For Its Dharavi Redevelopment Projec...Adani Group Requests For Additional Land For Its Dharavi Redevelopment Projec...
Adani Group Requests For Additional Land For Its Dharavi Redevelopment Projec...
 
8328958814KALYAN MATKA | MATKA RESULT | KALYAN
8328958814KALYAN MATKA | MATKA RESULT | KALYAN8328958814KALYAN MATKA | MATKA RESULT | KALYAN
8328958814KALYAN MATKA | MATKA RESULT | KALYAN
 
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan ChartSatta Matka Dpboss Kalyan Matka Results Kalyan Chart
Satta Matka Dpboss Kalyan Matka Results Kalyan Chart
 

Petrobras Investments Webcast Pn 2010 2014

  • 1. BUSINESS PLAN 2010 - 2014 Webcast José Sergio Gabrielli – CEO Almir Barbassa – CFO STRATEGIC PLAN PETROBRAS 2020 1
  • 2. DISCLAIMER FORWARD-LOOKING STATEMENTS: DISCLAIMER The presentation may contain forward-looking statements We undertake no obligation to publicly update or about future events within the meaning of Section 27A of the revise any forward-looking statements, whether as a Securities Act of 1933, as amended, and Section 21E of the result of new information or future events or for any Securities Exchange Act of 1934, as amended, that are not other reason. Figures for 2010 on are estimates or based on historical facts and are not assurances of future targets. results. Such forward-looking statements merely reflect the Company’s current views and estimates of future economic circumstances, industry conditions, company performance All forward-looking statements are expressly qualified and financial results. Such terms as "anticipate", "believe", in their entirety by this cautionary statement, and you "expect", "forecast", "intend", "plan", "project", "seek", should not place reliance on any forward-looking "should", along with similar or analogous expressions, are statement contained in this presentation. used to identify such forward-looking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. NON-SEC COMPLIANT OIL AND GAS RESERVES: Readers are referred to the documents filed by the Company with the SEC, specifically the Company’s most recent Annual CAUTIONARY STATEMENT FOR US INVESTORS Report on Form 20-F, which identify important risk factors We present certain data in this presentation, such as that could cause actual results to differ from those contained oil and gas resources, that we are not permitted to in the forward-looking statements, including, among other present in documents filed with the United States things, risks relating to general economic and business Securities and Exchange Commission (SEC) under conditions, including crude oil and other commodity prices, new Subpart 1200 to Regulation S-K because such refining margins and prevailing exchange rates, uncertainties terms do not qualify as proved, probable or possible inherent in making estimates of our oil and gas reserves reserves under Rule 4-10(a) of Regulation S-X. including recently discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing. STRATEGIC PLAN PETROBRAS 2020 2
  • 3. CHALLENGES TO WORLD OIL SUPPLY Natural decline requires finding new reserves to meet world demand 1 20 10 1 Scenario: Business as Usual 1 00 90 Scenario: Sustainable Development Required Addition to Capacity 80 70 2020: 43 – 48 MM bpd 60 Projected Decline 50 2030: 65 – 78 MM bpd 40 30 20 2000 2005 2010 2015 2020 2025 2030 87% of needed supply must come from re-valuing existing reserves, or from reserves not yet discovered or declared commercial 13% 28% Production from reserves not yet discovered or without a development plan Production currently developed with operations in short and medium term Production from revaluation of existing reserves (increases to Oil in Place or the recovery factor ) 59% STRATEGIC PLAN PETROBRAS 2020 Source: Estimates using WoodMackenzies’ data 3
  • 4. PRIMARY DEMAND FOR ENERGY Despite growth of alternatives, oil will maintain its importance Average Annual Change Business as Usual Sustainable 17,324 Development 17,236 Traditional Biomass 7% 6% 2% 1% 1% 1% +4.2% p.y. +7.8% p.y. 7% 7% Other Renewable 6% sources 12,974 6% +5.2% p.y. +6.1% p.y. 1.32% Biofuels 0.5% 7% 0.4% 6% 1.30% 29% 28% 6% Hydro Nuclear 26% MMTOE 22% 22% Coal 22% Gas 29% 28% 33% Oil 2008 2008 2008 2030 2030 2030 Business as Usual Sustainable Development Aggressive growth in biofuels will only slow the rate of growth in the consumption of Petroleum products STRATEGIC PLAN PETROBRAS 2020 * Aeolian, Solar and Geothermal 4
  • 5. DEMAND FOR PETROLEUM Developing country demand should exceed reduced OECD demand Per capita petroleum consumption 30 Petroleum demand – 2009-2030 (variation million bpd) per capita - barrels per year 1980 2000 2009 25 20 OECD Europe USA 15 Middle East 10 Brazil 5 India China 0 US Japan OECD* Brazil China India -2 0 2 4 6 8 Transport Eletrical Generation Others •Considering France, Germany, Italy and UK STRATEGIC PLAN PETROBRAS 2020 Source: BP 5
  • 6. OIL AND GAS PRODUCTION TARGETS: SUPERMAJORS AND PETROBRAS Petrobras has the highest growth rate target of the industry 6000 Petrobras: 3.9 MM boe/d in 2014 5500 and 5.4 MM boe/d in 2020 5000 ExxonMobil: Production growth rate ~3-4% in 2010; ~2-3% p.y. up to 2013 4500 thousand boe/d BP: Production growth rate ~1-2% p.y. up to 2015 4000 Shell: ~3.5 MM boe/d in 2012 3500 and ~3.7 MM boe/d in 2014 3000 Chevron: production growth 2500 rate ~1% p.y. between 2010- 2014 and 4.5% p.y. between 2014-2017 2000 1500 1000 500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 STRATEGIC PLAN PETROBRAS 2020 Source: PFC Energy and Company reports 6
  • 7. PETROBRAS CORPORATE STRATEGY to 2020 Integrated, profitable growth, on a sustainable basis Commitment to Sustainable Development Integrated Growth Profitability Social and Environmental Responsibility Expand operations in target markets for oil, oil products, petrochemicals, gas and energy, biofuels and distribution and to be recognized as a benchmark among integrated energy companies Grow oil and gas Expand refining in Consolidate leadership Operate in the Operate in Brazil Corporate Strategy production in a Brazil, ensuring in the Brazilian natural petrochemical and abroad in the sustainable manner, sufficiency in domestic gas market, and sector in activities biofuels sector in becoming one of the supply and leadership establishing an that are integrated activities that are five largest oil in distribution, while international presence manner with the integrated with the producers in the developing export and increasing the other businesses of Petrobras system, world markets for products, domestic electricity the Petrobras and to do so on a with emphasis in the generation business system sustainable basisl Atlantic basin and gas chemical, emphasizing fertilizers Operational excellence, in management, in energy efficiency, in human resources and in technology Business Segments E&P Downstream Distribution Gas and Energy Petrochemicals Biofuels (RTC) STRATEGIC PLAN PETROBRAS 2020 7
  • 8. BUSINESS PLAN 2010-14: US$ 224 BILLION Increased investment for integrated operations in Brazil Business Segment 1% 2% 1% Brazil and Abroad 2% 3.5 8% 5.1 3.5 International 2.5 2.8 5% 17.8 11.7 118.8 53% 73.6 212.3 33% 95% Brazil E&P Downstream G&E Petrochemicals Distribution Biofuels Corporate STRATEGIC PLAN PETROBRAS 2020 8
  • 9. ADJUSTMENTS TO THE 2010-2014 PORTFOLIO Increased spending on infrastructure, logistics, value chain in Brazil 31.6 (17.0) 10.3 (6.8) 19.2 224 186.6 CAPEX 2010-2014 New Projects Change in Change in Change in 2010-2014 in 2009-2013 Projects Excluded project timeline project design Stake Business Business Plan and cost Plan • New projects for pre-salt, logistics, increased utilization 1% of domestic oil, and 21% monetization of natural gas. 0.3 0.3 E&P 6.5 6.5 Downstream • Change in partnership participation reflecting Gas & Energy 19.7 19.7 uncertainty about 5.1 5.1 Corporate participation of partners in 16% 62% downstream projects STRATEGIC PLAN PETROBRAS 2020 9
  • 10. APPROVAL STATUS OF 2010-2014 PORTFOLIO Flexibility to adjust Capex for projects in Phases I and II US$ 224 Billion 686 projects 0.4% 0,9 0,9 0.9 26.5% Phase I 59.4 Phase II 122.6 Phase III 54.7% 122.6 17.5 17.5 7.9% Phase IV + 23.6 23.6 Aquisitions 10.5% Phase I – Identification of Opportunity Phase II – In Conceptual Phase Phase III – In Basic Project Phase IV+ ‐ Authorization for Execution/Implementation/Operations STRATEGIC PLAN PETROBRAS 2020 10
  • 11. LOCAL CONTENT PARTICIPATION 2010-2014 Brazilian suppliers expected to provide nearly 70% of total needs Capex in Brazil (US$ billion) Distribution and Biofuels (100%) Purchased in Brazilian 100 % Investments Gas & Energy Business unit Brazilian content in Brazil (82%) Market (%) Downstream and 80 % E&P 108.2 57.8 53% Corporate (80%) RTM and Petrochem 78.6 62.8 80% 60 % Gas & Energy 17.6 14.4 82% E&P Distribution 2.3 2.3 100% (53%) 40 % Biofuels 2.3 2.3 100% Corporate 3.3 2.6 80% Total 212.3 142.2 67% 20 % 0% + Brazilian Content US$ 46.4 billion from Partners • Petrobras purchases in Brazil of approximately $28 billion per year (versus $20 billion per year in prior plan) STRATEGIC PLAN PETROBRAS 2020 11
  • 12. Goals and Principal Projects STRATEGIC PLAN PETROBRAS 2020 12
  • 13. OIL AND GAS PRODUCTION TARGETS 2010-2020 Domestic targets unchanged, international targets reduced • Production curve for domestic oil gas production consistent with prior Business Plan • Projected international production reduced as a result of decrease in investment • Production curve does not currently assume any contribution from Transfer of Rights 5,382 120 203 7.1% p.y. 1109 3,907 (Thous. boe/day) 128 4.9% p.y. 9.4% p.y. 176 2,525 2,723 623 2,301 2,400 93 2,217 2,297 97 2,020 110 100 146 2,037 101 141 1,810 94 96 124 384 85 163 142 126 316 22 277 273 321 3,950 35 161 168 274 252 251 265 2,980 1,971 2,100 1,684 1,778 1,792 1,855 1,500 1,540 1,493 1, 078 Pre-Salt 241 2002 2003 2004 2005 2006 2007 2008 2009 2010 2014 2020 1.183 Oil Production - Brazil Gas Production - Brazil Oil Production - International Gas Production - International 152 STRATEGIC PLAN PETROBRAS 2020 13
  • 14. PRINCIPAL PROJECTS SCHEDULED DURING 2010-2014 Updated business plan added new projects Mexilhão Mexilhão Marlim Sul Marlim Sul Guará Pilot FPSO Guará Pilot FPSO Tupi NE Pilot Tupi NE Pilot NG Antecipation of Antecipation of NG 120,000 bpd 120,000 bpd FPSO FPSO SS P-56 SS P-56 Baleia Azul Baleia Azul 120,000 bpd 120,000 bpd Module 3 FPSO Espadarte FPSO Espadarte Uruguá/Tambaú Uruguá/Tambaú Module 3 Th. bpd FPSO Cidade de Santos 100,000 bpd 100,000 bpd 100,000 bpd FPSO Cidade de Santos 100,000 bpd NG/35,000bpd NG/35,000bpd 2,980 Tupi Pilot Tupi Pilot 2800 Cidade de Angra dos Cidade de Angra dos Reis Reis 100,000 bpd 100,000 bpd Cachalote e Cachalote e Baleia Franca Baleia Franca 2400 FPSO Capixaba FPSO Capixaba Roncador Roncador Papa-Terra Papa-Terra Roncador Roncador 100,000 bpd 100,000 bpd SS P-55 SS P-55 TLWP P-61 & TLWP P-61 & FPSO P-62 FPSO P-62 Module 3 Module 3 FPSO P-63 FPSO P-63 Module 4 Module 4 180,000 bpd 180,000 bpd 150,000 bpd 150,000 bpd 180,000 bpd 180,000 bpd 2,100 2000 Tupi NE EWT Tupi NE EWT Jubarte Jubarte Tiro/Sidon Whales Park Tiro/Sidon Whales Park 30.000 bpd 30.000 bpd FPSO P-57 FPSO P-57 FPSO FPSO P-58 FPSO FPSO P-58 Guará EWT Guará EWT 180,000 bpd 180,000 bpd 100,000 bpd 180,000 bpd 100,000 bpd 180,000 bpd Dynamic Producer Dynamic Producer 30,000 bpd 30,000 bpd Aruanã Aruanã Guaiamá Guaiamá Tiro EWT Tiro EWT 1600 SS-11 SS-11 FPSO FPSO FPSO FPSO 100,000 bpd 100,000 bpd 100,000 bpd 100,000 bpd 30,000 bpd 30,000 bpd Aruanã EWT Aruanã EWT Cidade Rio das Ostras Cidade Rio das Ostras 4 EWT 4 EWT 4 EWT 4 EWT 3 EWT 3 EWT 2 EWT 2 EWT 15,000 bpd 15,000 bpd Pre-salt Pre-salt Pre-salt Pre-salt Pre-salt Pre-salt Pre-salt Pre-salt 1200 2010 2011 2012 2013 2014 Oil Pre‐salt Natural Gas STRATEGIC PLAN PETROBRAS 2020 EWT = Extended Well Test 14
  • 15. E&P-BRAZIL INVESTMENTS 2010-2014 Continued emphasis on Post-Salt acreage, growing spending on Pre-Salt Pre-Salt Post-Salt US$ 33.0 Billion US$ 75.2 Billion 3% 13% 15% 18% 0.9 11.4 4.3 13.7 27.8 50.1 84% 67% Exploration Development Infrastructure • Annual expenditures for exploration of more than US$4 billion annually • Development capex in Pre-salt approaching 50% of Post-salt spending STRATEGIC PLAN PETROBRAS 2020 15
  • 16. NEW VESSELS AND PURCHASE OF NEW EQUIPMENTS Petrobras critical resources demand will drive Brazilian and international industry Delivery Plan (to be contracted) Current Situation Accumulated Value Critical Resources (Dec/09) By 2013 By 2015 By 2020 Drilling Rigs Water Depth Above 2.000 m 5 26 31 53* Supply and Special Vessel 254 465 491 504 Production Platforms SS e FPSO 41 53 63 84 Others (Jacket and TLWP) 79 81 83 85 Production Supply Vessel Drilling Rigs Platform (FPSO) 26 RIGS CONTRACTED, 28 MORE TO BE BUILT BY 2020: o Until 2013: 13 rigs contracted before 2008 and 1 rig relocated from international operations*; +12 new rigs contracted in 2008 , through international bidding; o 2013-2020: Bidding process in progress, to contract 28 rigs to be built in Brazil. STRATEGIC PLAN PETROBRAS 2020 * The rig reallocated from international operations, expire in 2015, so it is not considered in the 2020 accumulated value 16
  • 17. Market Demand, Goals and Principal Activities RTM (Refining, Transportation and  Marketing) and PETROCHEMICALS BUSINESS PLAN PETROBRAS 2020 STRATEGIC PLAN PETROBRAS 2020 17 17
  • 18. BRAZILIAN PRODUCTION, REFINING AND DEMAND Long term plans to achieve greater balance and integration 124% Production as a % of refining 132% 110% kbpd 13% 2,980 3,950 1,971 2,356 3,196 1,933 2,260 1,791 2,794 1,393 1,036 181 1980 2009 2014E 2020E Production Throughput Oil Product Demand • Oil Production and the Brazilian market demand currently exceed refining capacity • By 2014, exports are projected to reach nearly 1 million bpd, even as refining capacity is expanded to process Brazilian production to meet demand STRATEGIC PLAN PETROBRAS 2020 18
  • 19. BRAZILIAN DEMAND AND REFINING CAPACITY Strong Brazilian GDP growth projected to increase demand 3.4% p.y. PREMIUM I PREMIUM I 3,196 Thousand bpd Clara (1ª phase) (2ª fase) RNE 300 thou. bpd 300 thous. 3000 Camarão 230 thous. bpd (2014) bpd 2010 (2013) (2016) 2,794 REPLAN COMPERJ Revamp PREMIUM II U200+PAM (1º phase) 2,356 2,260 300 thous. 165 thous. bpd 33 thous. bpd bpd (2013) (2010) (2017) 1,155 2000 1,933 1,831 1,016 COMPERJ (2º phase) 165 thous. bpd 826 (2018) 1000 1,187 937 769 ... 403 ... 452 338 0 2009 2010 2014 2020 Gasoline Diesel Others Throughput • Domestic production will represent 91% of refinery throughput by 2020 • Comperj’s first phase is now a new refinery STRATEGIC PLAN PETROBRAS 2020 19
  • 20. RTM AND PETROCHEMICALS INVESTMENTS 2010-2014 New refineries, fuel quality, and modernization account for 70% of capex US$ 73.6 Billion • Additional capacity: 3% 1% • Refinery NE 6% • Premium I 11% • Comperj • Quality and conversion 50% • Sulfur removal • Modernization • Upgrading (coker) 29% • Operating improvement and logistics: • Maintenance • HSE Additional capacity Quality and conversion • Logistics for oil and biofuels Operational Improvement Fleet expansion Logistics for oil International • Investments of US$ 5.1 Billion in Petrochemical (includes acquisition of Quattor) STRATEGIC PLAN PETROBRAS 2020 20
  • 21. Demand, Goals and Principal Activities GAS, ENERGY AND GAS CHEMICAL BUSINESS PLAN PETROBRAS 2020 STRATEGIC PLAN PETROBRAS 2020 STRATEGIC PLAN PETROBRAS 2020 21
  • 22. NATURAL GAS MARKET AND POWER CAPACITY Growth in natural gas demand, consolidation in Thermo Power capacity Natural Gas Demand 130* Million m3/day 32 4 41 46 14.4 2.0 53 24.3 5.3 2009 2014 Electrical Generation Industrial Fertilizers Other uses * 2014 – Thermooelectrical generationa refers to full and simultaneous dispatch of plants Installed Capacity of Electrical Energy Generation (MW) 7,227 +9% 7,892 365 137 5,997 6,437 1,093 1,090 2010 2014 International Thermoelectrical and Co-generation Renewables Sources STRATEGIC PLAN PETROBRAS 2020 22
  • 23. NATURAL GAS BASED FERTILIZERS Fertilizer plants to take advantage of available gas and infrastructure UFN III (sep/14) UFN IV Ammonia: (dec/15) 81th. ton/year Urea 763 th. Urea 1.210 th. ton/year ton/year 2,911 Ammonia Plant (Dec/14) 2,104 519 th. ton/year +160% Th. ton/year 1,374 1,118 1,076 844 807 274 298 2010 2014 2015 Ammonia Urea • Manage total demand for gas by transforming natural gas into fertilizers needed by Brazilian agriculture (substituting demand that is currently imported) STRATEGIC PLAN PETROBRAS 2020 23
  • 24. GAS, POWER AND GAS CHEMICAL INVESTMENTS 2010-2014 Transition from investment in infrastructure to gas demand flexibility Investments 2010-14 US$ 17.8 billion 15% • Completion of the natural gas transport 30% 2.7 and processing infrastructure 5.3 • Consolidating investment in power generation: thermo-electric, wind, 4.1 23% biomass • Presence in LNG chain for transport and 5.7 distribution of pre-salt gas 32% • Major investments in the conversion of natural gas in to Urea and Ammonia LNG Pipeline network Electrical Energy Chemical Gas Facilities  (Fertilizers, ammonia) STRATEGIC PLAN PETROBRAS 2020 24
  • 25. Goals and Main Projects DISTRIBUTION INTERNATIONAL BIOFUELS BUSINESS PLAN PETROBRAS 2020 STRATEGIC PLAN PETROBRAS 2020 25
  • 26. DISTRIBUTION INVESTMENTS 2010-2014 Leading the Brazilian market for distribution, increasing the market share BR market share in the total and automotive market (%) 38.6 40.0 30.6 33.6 30.4 22.4 2004 2009 2014 BR market share in total market in Brazil (%) BR market share in automotive market in Brazil (%) Distribution CAPEX – Brazil US$ 2.5 Billion • 8 p.p. increase in the global and 23% 27% automotive market share in the last 5 Gas station years. Wholesales consumers • We intend to continue leading the Operation and Logistics Brazilian distribution market of oil products and biofuels, increasing our 24% Liquigás + Others share in the market. 26% STRATEGIC PLAN PETROBRAS 2020 26
  • 27. INTERNATIONAL STRATEGY Reduced allocation of capex, with focus on upstream INTERNATIONAL PRODUCTION OF OIL AND GAS  Ramp up of existing developments, BP 2010 - 2014 stable production in long term Thousand bpd 800  Reduced investment and production a 632 600 BP 2009-2013 reflection of greater opportunities in Target 400 304 323 Brazil 239 120 - 49% 200 93 128 146 176 203 0 2010 2014 2020 INVESTMENTS 2010-2014: US$ 11.5 bi Oil and NGL Natural Gas BP 2009-2013 Target DISTRIBUTION 221  CORPORATE 2% 123  G&E 1% • Development focus: Gulf of Mexico, West Coast of Africa and 186  RTCP 2% 615  Latin America 5% • Exploration focus: Atlantic Project, West coast of Africa, aligned with domestic E&P E&P • Reduced emphasis on refining 10,330  90% • Reduced emphasis on LNG, alignment with domestic Gas and Power segment STRATEGIC PLAN PETROBRAS 2020 27
  • 28. BIOFUEL TARGETS AND INVESTMENTS 2010-2014 Continued expansion and integration with oil products Ethanol Production Production Capacity of Biodiesel in Brazil Thous. m³/year Thous. m³/year 2,600 % 747 3% +47 +19 507 886 2010 2014 2010 2014 INVESTMENTS 2010-2014: Ethanol Exports US$ 3.5 Bi 1,055 0.7 5% +13 Thous. m³/year 449 0.4 2.0 0.4 2010 2014 Ethanol Biodiesel R&D Logistics STRATEGIC PLAN PETROBRAS 2020 28
  • 29. Targets and Goals, HSE, Technology, and Research and Developments RESEARCH & DEVELOPMENT BUSINESS PLAN PETROBRAS 2020 STRATEGIC PLAN PETROBRAS 2020 29
  • 30. TECNOLOGICAL CHANGES 3 Key pillars Expanding Limits New Exploratory Maximizing Developing Development of Sediments and Solutions for Operational Middle distillate Frontier recovery factor Production, new generation other fuels Natural Gas Optimization Maximization Operation and Pre Sea and Subsea characterization logistic in harsh Salt Logistic Systems of the pre salt environments and other complex reservoirs Adding value and Diversifying Products Sustainability Fuel, Lubricants and special products Other Renewable Water CO2 and other innovation Petrochemicals Gas Chemic Biofuels sources Energy management gas management Energetic Efficiency STRATEGIC PLAN PETROBRAS 2020 30
  • 31. ENGINEERING CHALLENGES Competitiveness/ Sustainability Using international engineering patterns and metrics in our facility projects Simplification and Standardization Brazilian Content Reduction in the complexity Technological of the projects, using & Engineering Contributing for the consolidation standard solutions Drivers of Brazil as a supplying hub with international competitive level STRATEGIC PLAN PETROBRAS 2020 31
  • 32. R&D INVESTMENTS ALLOW TECHNOLOGICAL LEADERSHIP WITH FOCUS IN HSECORPORATIVA DE RESPOSTA CDA / BASES AVANÇADAS / ED ESTRUTURA Investments in HSE, IT and R&D US$ 11.4 Billion 29% HSE 46% IT R&D 25% • Continued spending of $1 billion per year on Research and Development • Continued focus on Health, Safety and Environment STRATEGIC PLAN PETROBRAS 2020 32
  • 33. Cash generation and Funding needs PLAN FINANCING BUSINESS PLAN PETROBRAS 2020 STRATEGIC PLAN PETROBRAS 2020 33
  • 34. FORECASTED OIL PRICE VERSUS Business PLAN 2010-2014 Petrobras base case planning price at lower end of forecast range Forecasts: CERA, 140 PIRA, WoodMackenzie, EIA e 130 IEA. 120 110 98 100 90 84 78 80 75 72 69 70 59 60 Petrobras budget price 42 62 50 40 36 33 29 34 29 29 30 27 26 24 23 22 21 22 20 16 10 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 STRATEGIC PLAN PETROBRAS 2020 34
  • 35. PRINCIPAL FINANCIAL INDICATORS 2009-2013 vs. 2010-2014 Stable cash flows with increasing investments INDEX 2010-2014 2009-2013 Plan Plan FX Rate (R$/US$) 1.78 2.00 2010 – 76 2009 – 58 2011 – 78 2010 – 61 Brent for Funding (US$/bbl) 2012– 82 2011 – 72 2013 – 82 2012 – 74 2014 – 82 2013 – 68 Projected Investments 224 174 (US$ bn) Projected Net Cash Flow 155 149 (After dividends) (US$ bn) Net Total Capt. (US$ bn) 58* 23 Leverage Up to 35% Up to 35% Average Realization Price 163 160 (R$ barrel) * Including Capitalization and excluding amortization of US$38 billion • Conservative assumptions: Despite higher assumed oil prices, stable realization price STRATEGIC PLAN PETROBRAS 2020 35
  • 36. CASH GENERATION AND INVESTMENT Profitable investments funded with cash flow, debt and equity capital PROJECTED Operating Cash Flow (2010 – 2014) Cash Amortization US$ 11 billion US$ 38 billion Funding (debt + equity) US$ 96 billion Investments US$ 224 billion OCF (after dividends) US$ 155 billion Sources Uses • Plan requires additional debt and equity capital • Return on portfolio of approximately 14% on the aggregate of projects in the Plan substantially exceeds cost of capital STRATEGIC PLAN PETROBRAS 2020 36
  • 37. CHALLENGES • Capacity to execute a huge portfolio project • Strength and reliability of supply chain • Resource management and efficiency • Human Resources challenges • Funding requirements STRATEGIC PLAN PETROBRAS 2020 37