The document provides an overview of Petrobras' 4th quarter and full year 2011 results, highlighting a 16.41 billion barrel increase in proven oil reserves, a 2% increase in total oil and gas production to 2.62 million barrels per day, and investments of R$73 billion in 2011, 47% of which went to exploration and production activities. Petrobras also discussed its exploration successes in 2011, production outlook for 2012, and progress made in developing pre-salt fields in the Campos and Santos basins.

1. 4th Quarter
and Year End
2011 Results
(IFRS)
Conference Call / Webcast
Almir Guilherme Barbassa
CFO and Investor Relations Officer
February 14th 2012

2. Disclaimer
FORWARD-LOOKING STATEMENTS:
DISCLAIMER
The presentation may contain forward-looking statements We undertake no obligation to publicly update or
about f
b future events within the meaning of Section 27A of
h h f f revise any forward-looking statements, whether as
the Securities Act of 1933, as amended, and Section 21E a result of new information or future events or for
of the Securities Exchange Act of 1934, as amended, that any other reason. Figures for 2012 on are
are not based on historical facts and are not assurances of estimates or targets.
future results. Such forward-looking statements merely
reflect th C
fl t the Company’s current views and estimates of
’ t i d ti t f
future economic circumstances, industry conditions, All forward-looking statements are expressly
company performance and financial results. Such terms qualified in their entirety by this cautionary
as "anticipate", "believe", "expect", "forecast", "intend", statement, and you should not place reliance on
"plan", "project", "seek", "should", along with similar or any forward-looking statement contained in this
analogous expressions are used to identify such forward
expressions, forward- presentation.
t ti
looking statements. Readers are cautioned that these
statements are only projections and may differ materially
from actual future results or events. Readers are referred NON-SEC COMPLIANT OIL AND GAS RESERVES:
to the documents filed by the Company with the SEC,
specifically the Company’s most recent Annual Report on
Company s CAUTIONARY STATEMENT FOR US INVESTORS
Form 20-F, which identify important risk factors that could We present certain data in this presentation, such
cause actual results to differ from those contained in the as oil and gas resources, that we are not permitted
forward-looking statements, including, among other to present in documents filed with the United
things, risks relating to general economic and business States Securities and Exchange Commission (SEC)
conditions,
conditions including crude oil and other commodity under new Subpart 1200 to Regulation S-K because
prices, refining margins and prevailing exchange rates, such terms do not qualify as proved, probable or
uncertainties inherent in making estimates of our oil and possible reserves under Rule 4-10(a) of Regulation
gas reserves including recently discovered oil and gas S-X.
reserves, international and Brazilian political, economic
and social developments, receipt of governmental
approvals and licenses and our ability to obtain financing.
2

3. 2011 HIGHLIGHTS
» 16.41 billion boe (SPE/ANP criterion)
Proven Reserves » Reserve replacement ratio = 148%
» Reserve/Production (R/P) = 18.5 years
»Total Oil and Gas Production: 2.62 million boe per day (up 2 %)
Production » Brazilian oil and NGL production: 2.02 million bpd (up 1%)
p p ( p )
» Delivery of Brazilian Natural gas: 214 thousand boe per day (up 18%)
»P d i i
Production increase f from 71 thousand b d i J to 133 thousand b d i D *
h d bpd in Jan h d bpd in Dec
Pre‐Salt » Lula Pilot, Lula NE and Carioca NE EWTs and Lula‐Mexilhão pipeline
»Declaration of Commerciality for Guará Area (Sapinhoá) ‐ 2.1 billion of boe
» Petrobras’s oil products sales in the domestic market increased 9% in 2011, reaching
Oil Products Sales 2,131 thousand bbl/d
Investments » R$ 73 billion, 47% in E&P
* Oil only. Petrobras’ stake 3

4. Proven Reserves (ANP/SPE Criterion)
Proven Reserves 2011
16.4 Bi boe
Ultradeep Water
p
(>1.500m)
International
Deep Water
Brazil 4% 96% (300‐1.500m)
(300 1 500m)
Shallow Water
Onshore
O h
Proven Reserves in Brazil (billion boe) RRR in Brazil above 100% for the 20th
consecutive year
15,71
15,28 » 2011 Reserve Replacement Ratio = 152%
5.3 % p.y.
53%py » Reserve/Production = 19 2 years
19.2
14,17
» Proven reserves incorporatedn in 2011: 1.242 bi boe
» Pre‐salt = 0.978 bi boe
2009 2010 2011 » Highlights: Sapinhoá (Santos Basin)
Albacora (Campos Basin)
4

5. Exploratory Activity
2011 Discoveries
Success Index Espírito
Campos
p Santos
S t
Santo
57% 59% Post‐salt Post‐salt Post‐salt
40% Guanabara Patola
Malombe
Tucura
Brigadeiro Pre‐salt
Pre‐salt Abaré
Pé‐de‐moleque
Gávea
2009 2010 2011 Biguá
Quindim Forno
Exploratory Wells
p y » Since 2007 total estimated recoverable volume was higher
Since 2007, total estimated recoverable volume was higher
than 2.5 billion boe/year
2011 2012
» Finding costs in 2011 of US$1.56/boe. Business Plan 2011‐
» Onshore – 76 » Offshore 66
» Offshore – 66 2015 forecasts finding costs around US$ 2/boe
2015 forecasts finding costs around US$ 2/boe
» Offshore – 47 » Campos (16) » In 2011, R$ 9 billion invested in exploration. In 2012, R$
» Pre‐salt (17) » Santos (18) 10.1 billion estimated
» Espírito Santo (11)
5

6. Production in Brazil
4Q11 vs. 3Q11 ( 3 6%)
(+3,6%):
» Marlim field stoppages (-24 thous bpd in 4Q11 vs -79 thous in
3Q11)
» Pre-Salt wells (average Dec/11): 133 thous bpd
Pre Salt
» The “Varredura” wells averaged 46 thous bpd in Dec/11
Oil » In 4Q11, start-up of 9 producing wells, versus total of 16 that had
Thous. bpd been planned
2,044 2,049
2,030
2,018 2011 vs. 2010 (+1%):
» Planned and unplanned maintenance reduced production by 67
thous bpd of which 33 thous bpd unplanned
bpd,
1,978
» 2011 production also affected by delays in new wells
4Q10 1Q11 2Q11 3Q11 4Q11
Natural Gas
» Principal concessions contributing to growth: Mexilhão, Uruguá
p g g , g
and Lula
» Flare reduction of 26% YoY
6

7. 2012 Production
CONTRIBUTIONS FROM FPSO RAMP‐UPS
Operational 2011 Average
Projects 2012 Estimates
Start Up Production
P 57
P‐57 4Q10 151 thous. bpd
151 thous. bpd 80 thous.
80 thous. bpd
Lula Pilot 4Q10 44 thous. bpd 28 thous. bpd
P‐56 3Q11 105 thous. bpd 17 thous. bpd
7 wells by
FPSO Cid. Anchieta 3Q12 25 thous. bpd
the end of 2012
the end of 2012
3 wells by
FPSO Cid. Itajaí 3Q12 11 thous. bpd
the end of 2012
» Additionally, discoveries in ring fence of Varredura: 5 production wells currently planned, contributing estimated
average of 31 thous. bpd during 2012
7

8. Santos Basin Pre-salt
2011 ACOMPLISHMENTS Petrobras’ Wells : drilling, completion or testing (Dec/11)
» Production Start up of Lula Pilot (Dec/2011): 65.000 bpd Franco 2 NW
(with integrated production wells)
( i h3i d d i ll )
Concession
» Declaration of Commerciality for Guará Sapinhoá Field
(BM‐S‐09) Transfer of Rights
» 17 wells drilled, totaling 37 wells in Santos Basin Pre‐salt
» Start
St t up of L l NE EWT
f Lula
» Start up of Carioca NE EWT Iara Oeste
Iara Oeste
» 4 hulls already contracted to be converted to the first
FPSOs for the Transfer of Rights areas Nordeste de Tupi
Lula Alto ADR
Piloto Lula IWAG‐
Piloto Lula IWAG‐5
2012 ACTIVITIES Carcará
Piloto Lula P8H
Piloto Lula P8H
Carioca Sela
Carioca Sela
» Start up of FPSO in Sapinhoá (BM‐S‐09) – Cid. de Lula Sul
Guará Norte
São Paulo: end of 2012
» Start up of Franco EWT (Transfer of Rights): end of
2012
» EWTs in Cernambi South, Sapinhoá North and
another one to be defined
» 10 drilling rigs operating in the cluster. Forecast to
double the number by the end of 2012
8

9. Campos Basin Pre-Salt
Status on Dec/11
» Jubarte: 14 000 bpd (ESS 103)
14.000 (ESS‐103)
» Baleia Franca: 21.500 bpd (BRF‐1 + BRF‐6)
» Brava: 6.500 bpd (MRL‐199D)
» Carimbé: 19.000 bpd (CRT‐43)
Discoveries » Tracajá: 20.000 bpd (MLL‐70)
» Total: 81.000 bopd
2012 activities
2012 activities
» 9 ring‐fence exploratory wells (post‐
salt and pre‐salt)
» New production wells in Barracuda,
Marlim Leste and Albacora Leste (total
potential of 35 thousand bpd)
* Petrobras’ production + partners 9

10. Drilling Rigs
FLOATING RIGS UNDER CONTRACT
(2,000 m – 3,000 m)
Estimates of
+15
19 New Rigs
13
5
3
2008 2009 2010 2011 2012
Demand for Rigs Construction of 33 rigs in Brazil
» Medium term rig needs are now adequately » Average daily rates in line with international
supplied by contracted rigs prices
» Petrobras permanently analyzes and revises its » Governmental support with financing,
future rigs needs, based on production plans
future rigs needs, based on production plans guaranties, and tax benefits
guaranties, and tax benefits
that are continuously updated by actual results » Local content index between 55% and 65%
» Petrobras continuously monitors the rig market » Deliveries contracted for 2015 and beyond to
to ensure availability for future needs meet long‐term demand
10

11. E&P Economics
Breakdown of realization price per boe produced i B il
B kd f li i i b d d in Brazil
R$ per barrel realization price % share of realization price
180
160 100%
140 25%
31% 33%
R$ 52 80%
120
R$ 39 22%
100 60% 21% 21%
R$ 26 R$ 34
80
R$ 26 13%
R$ 22 40% 16%
60 R$ 27 17%
R$ 13 R$ 20
23%
40 18%
R$ 25 20% 16%
R$ 24 R$ 22
20
R$ 21 17% 14% 13%
R$ 17 R$ 18
0 0%
2009 2010 2011 2009 2010 2011
Lifting Cost Exploratory costs + DD&A + Others * Income Tax Govt take Net Income
» I relative t
In l ti terms, stable costs
t bl t
» In nominal terms, net income per barrel doubled in the last two years
*Others include tax expenses, R&D, SG&A 11

12. Prices
Oil Prices (US$/bbl) Average Realization Price (R$/bbl)
Average 2011
240 Petrobras ARP: 167.87
117 113 USA ARP 194.46
120
105 109
100 109 190
86 103 103
75 76 78 94
80 77
80 140
73 74 72 4Q11: spread decrease
60 70 Average 2010
Light/heavy oils Petrobras ARP: 158.43
b
90
40 USA ARP: 150.48
20 40
4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11
Petrobras Oil (average) Brent USA ARP Petrobras ARP
» Gasoline and diesel price increases in Nov 2011
» USA Average Realization Price increased in 4Q11, in Reais, due to an average depreciation of the Real by 10%
12

13. Domestic Refining and Sales
PRODUCTION SALES
2,208 2,229
1,910
1 910 1,886
1 886 1,949 2,052
,
rrels / day
448
Thous. barr / day
435
552 479
570 511 235 224
rels
219
Thous. bar
134 133 141
488 547
378 406 389 414
828 836 866 940 1,050 1,010
4Q10 3Q11 4Q11 4Q10 3Q11 4Q11
Diesel + Jet Fuel Gasoline LPG Other Diesel+Jet Fuel Gasoline LPG Other
» Increase in domestic production of diesel and gasoline in the existing refineries in 2011
refineries,
» 9% growth on oil products sales in year over year comparison:
» 24% increase in gasoline volumes due to more attractive prices relative to ethanol and an increase in the
vehicles fleet
» 9% increase in diesel volumes due to the growth of economic activity and agroindustry
» 18% drop on fuel oil sales (included in ‘Other') due to the substitution for natural gas
13

14. Highlights - Downstream
2011 ACHIEVEMENTS
» Records in processed feedstock (+4%) and production of oil products (+3%)
» Utilization Factor of 92%
» 14 new units completed and operational, largely to improve product quality
» Distribution of S‐50 diesel in 56 additional municipalities in the states of São Paulo and Rio de Janeiro
2012 PERSPECTIVES
» Conversion: Start up of REPAR’s Coke + HDT
Start‐up REPAR s
» Diesel Quality Portfolio : RLAM and REPAR
» Additional sales volume of 500.000 m3/month of lower sulfur diesel
» PROMEF I and II: 2 Suezmax, 3 product carriers and 1 Bunker carrier
, p
MAJOR ONGOING PROJECTS
» RNEST: FIrst train in June 2013 and Second train in January 2014
» COMPERJ: First train in September 2014
» Approximately 90% of investments in quality and conversion will be
completed during 2013
completed during 2013
14

15. Highlights - Gas & Power
Natural Gas: Demand Natural Gas: Supply
70
62 62 70 62 62
60 8 2
12 60 7
Million m3/d
d
50
Million m3/d
d
14 50
13 27
40
40 27
30 +7%
30 +18%
20 37 40
37 40 20 34
34
10 28 28
10
0
0
2010 2011
Non Thermoeletric Internal Supply Thermoeletric 2010 2011
National
a o a Bolívia
o a LNG Imports
G po s
2011 HIGHLIGHTS AND 2012 PERSPECTIVES
» Completion of natural gas pipeline infra‐structure
» Start‐ups: Gastau, Gaspal II, Gasan II and Variante do Nordestão
» 2012 M i i
Main investments:
» Baixada Fluminense Thermoeletric Unit
» Três Lagoas Fertilizer Plants– UFN III
» LNG Terminal: Bahia
l h
» Natural Gas processing unit : Cabiúnas (Pre‐salt route 2)
Note: Internal Supply: Intersegment (Downstream) and G&P consumption (Fertilizers plants and Thermoeletrics) 15

16. Operating Income 2010 vs 2011
(R$ million)
( $ ll )
32,334 (31,322)
46,394 (1,238) (765) 45,403
2010 Sales COGS Selling, Other 2011
Operating Revenue general and expenses Operating
Income adm. Income
» Higher sales revenues due to the domestic market growth (+6%) and higher oil and oil product prices (Brent: +40%;
Petrobras Average Realization Price: +6%)
» Increase in COGS reflected higher imports of oil and oil products, higher international prices on imports and higher
production taxes
» Increase in operational expenses due to higher exploratory costs and R&D
16

17. Net Income 2010 vs 2011
(R$ million)
( $ ll )
35,189 (991)
(2,498) 895 33,313
(199) 131 786
2010 Operating Financial Equity Income Employees Taxes Minority 2011
Net Income Income Results Participation Interest Net Income
» Lower net financial results from the depreciation of the Real in 2011 (13%) versus an appreciation in 2010 (4%),
reduced net incomefits of R$ 2.5 billion
17

18. Operating Income 3Q11 vs 4Q11
(R$ million)
( $ ll )
1,703 (4,465)
12,372
12 372
(306) (1,552)
7,752
3Q11 Sales COGS SG&A Other 4Q11
Operating Revenue expenses Operating
Income Income
» Increase in diesel and gasoline prices in Nov/11 contributed to higher revenues
» Increase in COGS due to:
» GGrowth on sales volume with hi h share of i
th l l ith higher h f imports
t
» Foreign exchange effect (+10%) in costs in dollars
» Change in the special participation tax rate due to production growth
» Higher depreciation recognized from as a result of more assets to be amortized and retroactive
amortization
» Increase in expenses with impairment and dry hole costs
18

19. Net Income 3Q11 vs 4Q11
(R$ million)
( $ ll )
492 (43) (1,508)
5,627
6,336
6 336 (4,620) (1,235)
5,049
3Q11 Operating Financial Equity Income Employees´s Taxes Minority 4Q11
Net Income Income Results Participation Interest Net Income
» Better financial results due to a lower FX rate depreciation in 4Q11 (2%), compared to 3Q11 (19%)
» Due to the adoption of CPC 19, the results of jointly controlled companies were registered as Equity Income, with
no effect on Net Income
19

20. Potential factors deviating from market
expectations
R$ million
Operating
Variation 4Q11 vs 3Q11*
Income EBITDA
Average FX rate effect on costs 2,609 2,609
Share of imports in the sales mix (from 28% to 32%) 1,163 1,163
Inventories formed abroad 738
738 738
738
Deconsolidation of jointly controlled companies (CPC 19) 736 1.069
Dry hole costs 693 693
Impairment 690 ‐
Extemporaneous depreciation 670 ‐
* Estimates 20

21. E&P 3Q11 vs 4Q11
(R$ million)
( $ ll )
Operating Income
3,150
3 150 168 (2,245)
(2 245)
(78) (1,118)
15,729 15,606
3Q11 Price effect on Volume effect on Effect average Volume Effect on Operational 4Q11
Operating Income revenue revenue cost in COGS COGS Expenses Operating Income
» Revenue volume effect doesn´t fully reflect production growth (4%) due to increase in inventories
» Production increase in fields with higher Special Participation tax rate
» Impairment and dry wells account for higher operating expenses
21

22. Downstream 3Q11 vs 4Q11
(R$ million)
( $ ll )
Operating Income
1,584 (1,118)
(4,086)
(3,350) 1,047 (579)
(
(6,502)
)
3Q11 Revenue Price Revenue Volume Average Cost Volume Effect on Operational 4Q11
Operational
O ti l Effect
Eff t Effect
Eff t Effect on CPV
Eff t CPV CPV Expenses
E Operational
O ti l
Result Result
» Increase in diesel and gasoline prices did not offset the 10% average FX rate depreciation in 4Q11
» Higher share of imports in the sales volume, especially gasoline
» Increase of average internal transfer prices
» Negative revenue volume effect due to ongoing exports in 4Q11
22

23. Investments
2012 INVESTMENT BUDGET 2011 INVESTMENTS
R$ 87.5 Billion R$ 72.5 Billion
5% 5%
5%
48%
38%
E&P Downstream G&P International Other
» E&P: focus on increasing production capacity and development of the pre‐salt
» Downstream: modernization and expansion of refining capacity, improved quality of oil products and
petrochemical assets
» G&P: completions of the 1st cycle of investments (infrastructure and logistics of natural gas)
» Average FX rate appreciation of 5% in 2011 contributed to reduce investments when expressed in R$
23

24. Capital Structure
Net Debt/EBITDA Net Debt./Net.Cap
50%
5,5
40%
4,5
, 24%
22%
% 30%
3,5 16% 17% 17%
20%
2,5 1.66 10%
1.41
1,5 1.03 1.03 1.07 0%
0,5 ‐10%
‐0,5 ‐20%
4Q10 1Q11 2Q11 3Q11 4Q11
R$ Billion 12/31/11 12/31/10
Short-term Debt 19.0 15.1
» Funding of $ 18 billion in 2011, with $ 9.6
g $ , $
Long-term Debt 136.6 100.9 billion in bonds issuances, including Euro and
Total Debt 155.6 116.0 Sterling
(-) Cash and cash equivalents * 52.6 55.0 » Feb/2012 issuance of $ 7 billion in four
= Net Debt 103.0 61.0 tranches of 3, 5, 10 and 30 years, helping to
reduce the cost of capital
US$ Billion 12/31/11 12/31/10
Net Debt 54.9 36.6
* Includes tradable securities (maturing in more than 90 days) 24

25. Information:
Investor Relations
+55 21 3224-1510
petroinvest@petrobras.com.br
25