4th itaú bba latam commodities conference
DESCRIPTION
Maria das Graças Silva Foster Petrobras’ CEO September 26th, 2012TRANSCRIPT
Maria das Graças Silva Foster
Petrobras’ CEO
September 26th, 2012
4th Itaú BBA LATAM Commodities Conference
2
DISCLAIMER
The presentation may contain forward-looking statements about
future events within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, that are not based on historical facts and
are not assurances of future results. Such forward-looking
statements merely reflect the Company’s current views and
estimates of future economic circumstances, industry conditions,
company performance and financial results. Such terms as
"anticipate", "believe", "expect", "forecast", "intend", "plan", "project",
"seek", "should", along with similar or analogous expressions, are
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. Readers are referred
to the documents filed by the Company with the SEC, specifically the
Company’s most recent Annual Report on Form 20-F, which identify
important risk factors that could cause actual results to differ from
those contained in the forward-looking statements, including, among
other things, risks relating to general economic and business
conditions, including crude oil and other commodity prices, refining
margins and prevailing exchange rates, uncertainties inherent in
making estimates of our oil and gas reserves 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.
We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new
information or future events or for any other reason. Figures
for 2012 on are estimates or targets.
All forward-looking statements are expressly qualified in their
entirety by this cautionary statement, and you should not
place reliance on any forward-looking statement contained in
this presentation.
NON-SEC COMPLIANT OIL AND GAS RESERVES:
CAUTIONARY STATEMENT FOR US INVESTORS
We present certain data in this presentation, such as oil and
gas resources, that we are not permitted to present in
documents filed with the United States Securities and
Exchange Commission (SEC) under new Subpart 1200 to
Regulation S-K because such terms do not qualify as proved,
probable or possible reserves under Rule 4-10(a) of
Regulation S-X.
FORWARD-LOOKING STATEMENTS
3
Brazil: Economic and Social Development
Consumption Increase
INTEREST RATE
BRAZIL
Sources: Banco Central do Brasil, Meta Selic dez/00 e ago/12; Abiquim. http://www.abiquim.org.br/resinastermoplasticas/estatisticas_33.asp - acesso 29/ago/12; Pesquisa Mensal de Emprego, IBGE. Nova série histórica disponível apenas
de março/02 a maio/12; “De Volta ao País do Futuro: Projeções, Crise Européia e a Nova Classe Média”, FGV, março/12.; Comunicados do IPEA nº 63: PNAD 2009 Primeiras Análises: Distribuição de Renda entre 1995 e 2009. Out/10.
-8.25 p.p.
2012 2000
Sel
ic
(% p
.y.)
CONSUMPTION PER CAPITA OF THERMOPLASTIC RESINS
31
+35%
2010 2000
23
Co
nsu
mp
tio
n
Per
Cap
ita
(Kg
/ h
ab. y
ear)
RISE OF SOCIAL CLASSES
2011
+21.7 p.p.
2003
Cla
ss
A, B
an
d C
(% o
f p
op
ula
tio
n)
UNEMPLOYMENT -5.7 p.p.
2011 2002
Un
emp
loym
ent
Rat
e
(%)
Jobs generation contributing to increase the wage bill.
Income level of families is growing leading to social
mobility.
Reduction in interest rate stimulating productive
investment.
The consumption evolution is a consequence of the
economical growth and a higher power of consumption.
EXTREME POVERTY LEVEL -5.5 p.p.
2009 2001
Improvement in income distribution with poverty reduction.
Po
pu
lati
on
in
Ext
rem
e P
ove
rty
(%)
4
Brazil: Oil Products Market Grows Above World Average
GASOLINE CONSUMPTION
WORLD : +1.3% a.a.
BRAZIL: +3.7% a.a.
• Jan-Aug12 x Jan-Aug11: +23%
Between 2000 and 2011...
DIESEL CONSUMPTION
WORLD : +2.3% a.a.
BRAZIL: +3.3% a.a.
• Jan-Aug12 x Jan-Aug11: +6,7%
JET FUEL CONSUMPTION
WORLD: -0,2% a.a.
BRAZIL: +4,0% a.a.
• Jan-Aug12 x Jan-Aug11: +7,9%
315469
+49%
2011 2000
Gas
olin
e
Dem
and
(kb
pd
)
Die
sel
Dem
and
(kb
pd
)
626 896
+43%
2011 2000
Jet
Fu
el
Dem
and
(kb
pd
) 79
121
+53%
2011 2000
Oil
Fu
el
Dem
and
(kb
pd
)
18984
2011
-56%
2000
OIL FUEL CONSUMPTION
WORLD: -1,8% a.a.
BRAZIL: -7,1% a.a.
• Jan-Aug12 x Jan-Aug11: -5,4%
Sources: Petrobras for Brazil data and Woodmackenzie for international data.
2000
19,616
+15%
2011
22,533
WORLD BRAZIL
2000
20,220
+29%
2011
26,072
2000
6,506
-2%
2011
6,393
2000
9,675
-18%
2011
7,958
5
Petrobras Today:
Proved Reserves + Potential Recoverable Volumes: 31.5 bi boe
Petrobras’ Proved Reserves : 15.7 bi boe
Potential Growth: + 15.8 bi boe
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
2010
20
11
1970
1965
2005
2000
1995
1990
1985
1980
1975
Potential
Growth
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
15.71
Brasil Brasil 32%
19%
49%
• Added Reserves in 2011 = 1.24 billion boe.
• 2005-2010: more than 50% of new discoveries around the world were in deep
water, with Brazil representing 63% of these discoveries. (PFC Energy, jun/11)
• From 2005 to 2012 Petrobras declared 63 discoveries in pre-salt area and
189 in other areas to ANP. (Petrobras, aug/12)
• 2030: Brazil should present the highest growth production among the countries
that are not members of OPEC. (PFC Energy, jun/11)
Shallow-Water (0-300m)
Deep Water (300-1,500m)
Ultra-Deep Water (>1,500m)
Transfer of Rights
Concession – Potential Recoverable Volumes
• Pre-Salt Added Reserves: 1 billion boe. • Reserve/Production Ratio 19.2 year.
35,000
30,000
20,000
25,000
15,000
10,000
5,000
0
Million boe
5.0 bi
boe
10.8 bi
boe
1.3 bi boe 1.2 bi boe
7.9 bi boe
5.3 bi boe
Onshore
6
Oil
and
Nat
ura
l Gas
Pro
du
ctio
n
(mill
ion
bo
e/d
)
Production Increase and Breakdown of Oil and Gas Reserves of Major Companies: 2002 to 2011
PETROBRAS
+6%
2011 2002
-2%
2011 2002
-19%
2011 2002
+2%
2011 2002
16%84%
Gas Oil
53%47% 40%60% 56%44% 38%62%
Oil and Natural Gas Production (million boe/d)
EXXON MOBIL BP SHELL CHEVRON
Gas Oil Res
erve
s
Bre
akd
ow
n (
2010
)
Gas Oil Gas Oil Gas Oil
Fonte: Evaluate Energy e WoodMackenzie, set/12.
Reserves
Breakdown (2010)
0
1
2
3
4
5
2.6 +45%
2011
2.1
0.5
2002
1.8
1.5
0.3
Brazil
Overseas
7
Our Advantage:
The Value of Our Reserves and the Pre-Salt Reality
7
Oil and NGL Production (jan-jul/12): Total Brazil: 2.007 kbpd
Onshore: 210 kbpd
Offshore
• Post-Salt: 1.681 kbpd
• Pre-Salt: 116 kbpd* * Including partners: 148,3 kbpd
Record (incl. partners): 174,2 kbpd (jul/12)
8
Fundamentals of Business and Management Plan 2012-2016
• Management
focused in
accomplishing
physical and
financial targets
of each project
• To ensure
expansion with
solid financial
indicators
• Priority given
to exploration
and production
projects of oil
and natural gas
in Brazil
2012 2016
Financiability Assumptions
• Maintenance of Investment Grade
• There is no issuance of new shares
• Oil Products Import Price Parity
• Divestment of existing assets abroad
PERFORMANCE
CAPITAL
DISCIPLINE
PRIORITY
9
US$ 208.7 Billion US$ 27.8 Billion US$ 236.5 Billion
28%
** E&P abroad
RTM E&P Petrochemical Distribution Biofuel Corporate G&E
60.0%
(US$ 141.8 Billion)
27.7%
(US$ 65.5 Billion)
1.3%
(US$ 3.0 Billion)
1.6%
(US$ 3.8 Billion)
1.5%
(US$ 3.6 Billion)
2.1%
(US$ 5.0 Billion)
5.8%
(US$ 13.8 Billion
24.8%
US$ 51.7 Billion
1.4%
(US$ 3.0 Billion)
0.9%
(US$ 1.9 Billion)
1.7%
(US$ 3.5 Billion)
1.8%
(US$ 3.7 Billion)
3.7%
(US$ 7.8 Billion)
17% (**)
(US$ 4.6 Billion)
50%
(US$ 13.9 Billion)
21%
(US$ 6.0 Billion)
5%
(US$ 1.3 Billion)
0%
(US$ 0.1 Billion)
7%
(US$ 1.9 Billion)
Under Implementation Under Evaluation
+ = 2012-2016 BP Projects with construction
already started Projects in Phase I, II and III
833 projects 147 projects 980 projects
65.8%
(US$ 137.2 Billion)
Projects Under Implementation and Projects Under Evaluation
CONSTRUCTION
10
Business and Management Plan 2012-2016: US$ 236.5 Billion
INVESTMENTS UNDER IMPLEMENTATION
INVESTMENTS UNDER EVALUATION
6%(0,07)
90%
(1,05)
1%
(0,01)
3%
(0,03)
7%
(0,4)
85%
(5,1)
Corporativo
E&P
G&E
R&M Distribuição
Petroquímica
2%
(0,1)
4%
(0,2)
1%
(0,1)
1%
(0,1)
68%
(89,9)
19%
(25,4)
12%
(16,3)
E&P US$ 131.6 billion
+
Downstream US$ 55.8 billion
+
Gas & Power US$ 7.7 billion
+
Distribution US$ 3.2 billion
+
Biofuels US$ 1.2 billion
+
International US$ 6 billion
= US$
208.7 bi
E&P US$ -
+
Downstream US$ 15.8 billion
+
Gas & Power US$ 5.9 billion
+
Distribution US$ 0.1 billion
+
Biofuels US$ 1.4 billion
+
International US$ 4.7 billion
= US$
27.8 bi
G&E
E&P
97%
(US$ 4,6 Bi)
3%
(US$ 0,1 Bi)
6%
(0,5)
20%
(1,5)
32%
(2,5)
7%(0,6)
24%
(1,9)
10%
(0,7)
54%
(3,2)
22%(1,3)
8%
(0,5)
15%
(0,9)
57%
(0,8)
21%
(0,3)
21%(0,3)1%
(0,01)
9%
(4,8)
17%
(9,4)
20%
(11,0)
45%
(24,9)
1%
(0,5)5%
(2,9)
4%
(2,4)
37%
(5,8)
8%(1,2)
41%
(6,4)
3%
(0,5)7%
(1,1)5%
(0,8)
21%
(0,67)
43%
(1,39)
13%
(0,42)
21%
(0,70)
1%
(0,01)
100%
(0,10)
+
11
Appproval of
the Basic
EVTE¹ and
clearance for
execution
(work start)
Systematic Approval of Projects and Organizational Learning
Approval of
EVTE¹ Phase
I
Approval of
EVTE¹
Concptual
Included at
Petrobras
Portfolio
¹EVTE: Technical and Economic Feasibility Study
PROJECTS INITIATION AND PLANNING
PHASE I
Opportunity
Identification
PHASE II
Conceptual
Project
PHASE III
Basic Project
EXPERTISE
ACQUIRED Changes and improvements included in the next project
Normative
Documents Procedures
NORTEC Petrobras Technical
Normalization
MAGES Petrobras
Management Guide.
Projects under Implamentation Projects under Evaluation Projects under Operation
EXPERTISE ACQUIRED: GATHER KNOWLEDGES IN EACH PHASE OF PROJECTS DEVELOPMENT
SINAPSE Register,
Consultation and
interaction
Validation and
Approval of
Knowledge’s
Items
Platform P-57
GASTAU
Phase V
Start up &
Operation
Phase IV
Work
Execution
RNEST
UTE Baixada Fluminense
SINAPSE: Integrated environment that allows the record learning of workforce. Suports the record process, analyses, consolidation, recovery and, mainly, implementation of learned lessons.
12
Premium I and II – International Metrics Typical Chinese Projects
REVAP – São José dos Campos (SP)
Inaugurated in 1980: Project by Snamprogetti.
Site of RNEST – Ago/12
The experience acquired enable the conception of new refineries in MA, CE and RJ, within the international metrics of price, term and standardized technologies.
Capacity: 230 kbpd
Production of Diesel: 161 kbpd (70%)
Current Situation: in construction, 62% physical progress
Start up: November/2014
CAPEX: US$ 17 billions.
Jobs Generated: 43,500 jobs
Local Content: 91%
Place: Qinzhou, China
Capacity (Mbpd): 200
Construction time: 52 months
Start up: Sep/2010
Place: Huizhou, China
Capacity (Mbpd): 240
Construction time: 46 months
Start up: May/2009
First refinery constructed by Petrobras since 1980.
Expertise Acquired
13
2.022
4.200
2.500
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Iracema
Norte Z1
Espadarte III
Florim
Maromba
Bonito
Entorno de
Iara
Norte Pq.
Baleias (P-58)
Roncador IV
(P-62)
Sapinhoá Norte
(Cid. Ilhabela)
Iracema Sul
(Cid.
Mangaratiba)
Lula Alto
P-66
Lula Central
P-67
Lula Sul
P-68
Franco 1
P-74
Carioca Z2
Lula Norte
P-69
Franco 2
P-75
Lula Ext.
Sul P-70
Iara Horst
P-71
NE Tupi
P-76
Carimbé
Aruanã
Iara NW
P-72
Franco 3
P-77
Franco 4
Sul de
Guará
Júpiter
Carcará
P-73
Sul Pq.
Baleias
Franco 5
Espadarte I
Piloto Sapinhoá
(Cid. São Paulo)
Piloto Lula NE
(Cid. Paraty)
Papa-Terra
(P-61 e P-63)
Roncador III
(P-55)
Baleia Azul
(Cid. Anchieta)
Baúna e
Piracaba
(Cid. Itajaí)
Mexilhão
(PMXL-1)
Marlim Sul
(P-56)
Piloto Baúna
e Piracaba
(SS-11)
Cachalote e
Baleia Franca
(Capixaba)
Uruguá /
Tambaú
(Cid. Santos)
Piloto Lula
(Cid. Angra
dos Reis)
Jubarte
(P-57)
UEPs 19 btwn 2012 and 2016
38 btwn 2012 and 2020
Drilling Rigs
LDA > 2.000 m
24 btwn 2012 and 2016
49 btwn 2012 and 2020
The Challenge is Huge!
P-57 – Jubarte Field: Capacity of 180 kbpd Local Content (LC): 69%
Platform P-57 started operation in
December 2010, 3 months before
contractual term, with 69% of local
content and currently is producing
138 kbpd (1Q12) at Jubarte Field.
Jubarte (P-57)
P-62 – Roncador Module IV Start up in Mar/14 - LC 65%
Construction of P-62 180 kbpd of capacity – Ago/12
2.004
Expertise Acquired
14
jan/11 fev/11 mar/11 abr/11 mai/11 jun/11 jul/11 ago/11 set/11 out/11 nov/11 dez/11 jan/12 fev/12 mar/12 abr/12 mai/12 jun/12 jul/12
2Q11
average: 2,018
1Q12
average: 2,066 2Q12
average: 1,970
2.050
2.000
1.950
50
2.200
2.150
2.100
2012 2011 kbpd
5% decrease in production 2Q12/1Q12 (- 96 kbpd) as a result of:
• Operational stoppages(-54 kbpd), lower operational efficiency (-18 kbpd) and interruption of Frade (-15 kbpd).
• Decline of old systems´potential as expected, around 11% p.y. The average rate worldwide for big and giant fields in deepwater is between 10% and 15% p.y.
Start-up of 2 new systems in 2H12:
• FPSO Cidade de Anchieta (Baleia Azul), 100 kbpd capacity, started on 09/10/12, peak in Feb/13
• FPSO Cidade de Itajaí (Baúna e Piracaba), 80 kbpd capacity, built in Singapore, postponed from October to December.
• Authorization to operate production unit SS-11 untill 28/Feb/2013 requested to ANP.
Maintenance of 2012 oil production target (flat when compared to 2011, +/-2%):
• Production recovery only in 4Q12 (scheduled stoppages will continue on 3Q12).
Oil and NGL Production Curve in Brazil: 2011 and 2012
Target 2012: 2,022 kbpd (+/- 2%)
2,001
1,968
2,002
1,963
2,047
2,003 2,020
2,003
2,040
2,069
1,993
2,098
1,989
1,961
1,960
2,061
2,110
2,084
1,940
Feb/11 Mar/11 Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep11 Oct/11 Nov/11 Dec/11 Jan/11 Feb/12 Mar/12 Apr/12 May/12 Jun/12 Jul/12 Jan/12
15
Improve Campos Basin
Operational Unit
efficiency levels
Increase the oil curve delivery
reliability, provided
in 2012-2016 BP
PROEF
Objectives
Operational
efficiency
targets for
Campos
Basin Unit
(%)
Improve production
systems integrity
89 88
80
7174
76
81
8890
2008 2009 2010 2011 2012 2013 2014 2015 2016
Campos Basin Operational Efficiency – UO-BC
Executed
PROEF Targets
PROEF: Initiatives to Recover Operational Efficiency – UO-BC
Operational Efficiency
• Without UO-BC: 94% 95% 94%
• E&P Total: 90% 87% 86%
PROEF Disbursements:
• Well workovers, subsea systems and
platforms intervention through
maintenance units: US$ 5.1 Bi (2012-
16)
PROEF Estimated NPV:
• US$ 1.6 Bn - US$ 3.3 Bn
HC / PAD Fields
UO-BC Assets
16
Z1
Iracema
North
Espadarte III
CO9
(Florim)
Maromba
Bonito
CO8
(Iara
Surround)
Production Units
Construction
19 up to 2016
38 up to 2020
P-58
(Whales Park
North)
P-62
(Roncador
mod. IV)
Cid. Ilhabela
(Sapinhoá
North)
Cid.
Mangaratiba
(Iracema
South)
P-66
(Lula
High)
P-67
(Lula
Central)
P-68
(Lula
South)
P-74
(Franco 1)
Z2
(Carioca)
P-69
(Lula
North)
P-75
(Franco 2)
P-70
(Lula Ext.
South)
P-71
(Iara Horst)
P-76
(NE Tupi)
Afretada
(Carimbé)
Aruanã
P-72
(Iara NW)
P-77
(Franco 3)
CO5
(Franco 4)
CO6
(South of
Guará)
Júpiter
P-73
(Carcará)
Whales
Parq South
CO7
(Franco 5)
Espadarte I
38 Production Units: 2012 – 2020 Production Units: 2012-2013
Oil
and
NG
L P
rod
uct
ion
Cu
rve
(kb
pd
)
Oil Production, Brazil: 2,022 – 4,200 kbpd
Cid. São
Paulo
(Piloto de
Sapinhoá)
Cid. Paraty
(Piloto de Lula
NE)
P-61
P-63 (Papa-
Terra)
P-55
(Roncador
mod. III)
Cid.
Anchieta
(Baleia Azul)
Cid. Itajaí
(Baúna e
Piracaba)
23 Already Contracted
15 to Contract
(from nov/12 to apr/17)
17
FPSO Cidade de Anchieta – Baleia Azul Operating since sep/10/12
Production Ramp up
(bpd)
Sep/12 29,700
Oct/12 52,185
Nov/12 52,185
Dec/12 72,000
Peak (100 kbpd): Feb/13
Interconnection of
Producing Wells
1st Well sep/10/12
2nd Well sep/21/12
3rd Well sep/26/12
4th Well nov/12/12
5th Well nov/13/12
Local Content - Mandatory: 0% / Forecast Accomplishment : 44%
18
PHYSICAL PROGRESS OF THE PROJECT – S CURVE
Baleia Azul Project – FPSO Cidade de Anchieta (1st Oil: Sep/12)
Baseline Accomplished Forecast Baseline 2012-2016 BP
IMPLEMENTATION LANDMARKS
1 - Issuance of Preliminary License (LP) (P:Sep-08 / R:Sep-08)
2 – Conclusion of the Opportunity Evaluation Phase (Gate 1) (P:Dec-08 / R:Dec-08) (P: 100% / R: 100%)
3 – Conclusion of the Conceptual Project Phase (Gate 2) (P:Jul-09 / R:Jul-09) (P: 100% / R: 100%)
4 – Conclusion of the Basic Project Phase (Gate 3) (P:Dez-09 / R:Dez-09) (P: 100% / R: 100%)
5 – Beginning of the Construction of the 1st Well (P:Jan-11 / R:Feb-11)
6 – Issuance of the Instalation License (LI) (P:Dec-11 / R:Dec-11)
7 – Arrival of the Unit in the Local (P:Ago-12 / R:Aug-12)
8 – Beginning of Interconnection of the 1st Well (P:Aug-12 / R:Aug-12)
9 – Issuance of the Operating License (LO) (P:Aug-12 / R:Sep-12)
10 – Interconnection of the Last Well (P:Mar-13 / Proj:Mar-13)
Meeting of Critical Analysis (RAC) Monthly: CEO + E&P Director + Engineering, Technology and Materials Director
Fonte :SAP/PNG 12-16: 30/06/12. Data de Medição pela Diretoria de Exploração & Produção: 13/09/12.
Linha de Base: EVTE da Fase III, aprovado em 03/12/2009, Ata DE 4.787. / Projetado: Replanejamento realizado em Julho/12.
19
PHYSICAL PROGRESS OF THE PROJECT – S CURVE
Baúna e Piracaba Project – FPSO Cidade de Itajaí (1st Oil: Dec/12)
IMPLEMENTATION LANDMARKS
1 - Conclusion of the Opportunity Evaluation Phase (Gate 1) (P:Mar-10 / R:Mar-10) (P: 100% / R: 100%)
2 - Conclusion of the Conceptual Project Phase (Gate 2) (P:May-11 / R:May-11) (P: 100% / R: 100%)
3- Beginning of Construction of the 1st Well (P:Aug-11 / R:Jul-11)
4 - Conclusion of the Basic Project Phase (Gate 3) (P:Sep-11 / R:Sep-11) (P: 100% / R: 100%)
5 -- Issuance of Preliminary License (PL) (P:Jul-12 / Proj:Sep-12)
6 - Issuance of the Instalation License (LI) (P:Aug-12 / Proj:Sep-12)
7 - Issuance of the Operating License (OL) (P:Sep-12 / Proj:Nov-12)
8 - Arrival of the Unit in the Local (P:Sep-12 / R:Dec-12)
9 - Beginning of Interconnection of the 1st Well Baúna (P:Sep-12 / Proj:Dec-12)
10 – Beginning of Construction of the 1st Well Piracaba (P:Mar-13 / Proj:Jan-13)
11 – Beginning of Interconnection of the 1st Well Piracaba (P:Jun-13 / Proj:May-13)
12 - Interconnection of the Last Well (P:Aug-14 / Proj:Aug-14)
Baseline Accomplished Forecast Baseline 2012-2016 BP
apr
oct
apr
oct
apr
oct
apr
oct
apr
oct
apr
oct
apr
oct
Meeting of Critical Analysis (RAC) Monthly: CEO + E&P Director + Engineering, Technology and Materials Director
Fonte :SAP/PNG 12-16: 30/06/12. Data de Medição pela Diretoria de Exploração & Produção: 13/09/12.
Linha de Base: EVTE da Fase III, aprovado em 03/12/2009, Ata DE 4.787. / Projetado: Replanejamento realizado em Julho/12.
Local Content: Mandatory: 60% / Forecast Accomplishment : 81%
20
FPSO Cidade de São Paulo - Sapinhoá Pilot (1st Oil: Jan/13)
Hull Conversion - Cosco (China)
Modules Construction: BrasFels Shipyards– Angra dos Reis (RJ)
13. Arrival Risers Manifolds
14. Operation Cargo Area - 1S
15. Operation Cargo Area - 5S
16. Flare Chimney
Modules Construction: AIBEL (Thailand) 1. Main Gas Compression A
2. Main Gas Compression B
3. Gas Treatment - CO2 Removal
4. Gas Reinjection
5. CO2 Injection
6. Oil Processing – High Pressure
7. Oil Processing – Low Pressure
8. Utilities and Water Injection
Modules Construction: ENAVAL/VEOLIA – Niterói (RJ)
12. Salt Water Treatment
Local Content - Mandatory :30% / Forecast Accomplishment :50%
Modules Construction: BOOMESC (China)
9. Energy Generation
10. E-House MCC – Panels Room
11. Piperack
Enaval - Niteroi (RJ)
Integration: BrasFels Shipyards – Angra dos Reis (RJ)
Modules Integration from hull 1 to 16
Brasfels Shipyard – Angra (RJ)
21
FPSO Cidade de São Paulo
View of BrasFels Shipyard, in Angra dos Reis – RJ (08//31/12).
FPSO - Cidade de São Paulo: Modules Construction and Integration at BrasFels Shipyard
22
PHYSICAL PROJECT MONITORING – ‘S’ CURVE
FPSO Cidade de São Paulo – Sapinhoá Pilot (1st Oil: Jan/13)
IMPLEMENTATION LANDMARKS:
1 – Beginning of Construction of the 1st Well (P:mar-12 / R:feb-12)
2 – Issuance of Preliminary License (LP) (P:may-12/ R:sep-12)
3 – Issuance of the Instalation License (LI) (P:may-12 /Proj:sep-12)
4 – Basic Design Conclusion (Gate 3) (P:july-12 /Proj:oct-12) (P: 89% / R: 90%)
5 – Production Unit (PU) in the Site (P:nov-12 /Proj:nov-12)
6 – Operation License Issue (LO) (P:dec-12 /Proj:dec-12)
7 – 1st Well Interconnection Start (P:dez-12 /Proj:dez-12)
8 - Exports Gas Pipeline Interconnection (P:aug-13 /Proj:aug-13)
9 – Last Well Interconection (P:oct-15 /Proj:oct-15)
Start-Up
BP 12-16: Jan/13
Start-Up Forecast:
Jan/13
Start-Up EVTE:
Dec/12
Monthly Meeting of Critical Analysis (RAC) : CEO + E&P Director + Engineering, Technology and Materials Director
Fonte :SAP/PNG 12-16: 30/06/12. Data de Medição pela Diretoria de Exploração & Produção: 13/09/12.
Linha de Base: EVTE da Fase III, aprovado em 03/12/2009, Ata DE 4.787. / Projetado: Replanejamento realizado em Julho/12.
23
FPSO Cidade de Paraty – Lula NE Pilot (1st Oil: May/13)
Modules Construction: Keppel Shipyard - Singapore
1. Energy Generation BB
2. Energy Generation BE
3. Local Equipment Room
4. Maintenance and conversion areas, and moorings
5. Helipad
6. Burners
Modules Construction: BrasFels Shipyard – Angra dos Reis (RJ)
11. Oil A Processing
12. Oil B Processing
13. Gas A Compression
14. Gas B Compression
15. Gas B Treatment
Modules Construction: Nuclep Site Construction (EBSE) –
Itaguaí (RJ)
7. Manifold
8. Cargo Operation and Chemical Storage
9. Gas Injection and Compression
10. Gas A Treatment
Modules Construction: ENAVAL/VEOLIA – Niterói (RJ)
16. Salt Water Treatment
17. Utilities and Water Injection
BrasFels Shipyard - Angra (RJ)
Local Content - Mandatory: 30% / Forecast Accomplishment 30%
Integração: Estaleiro BrasFels – Angra dos Reis (RJ)
Modules Integration from hull 1 to 17
Hull Conversion: Keppel Shipyard - Singapore
Enaval - Niteroi (RJ)
Nuclep - Itaguaí (RJ)
24
1
2
3
4
5
6
FPSO Cid. de
Paraty Modules
FPSO - Cidade de Paraty: Modules Construction and Integration at BrasFels Shipyard
FPSO
Cid. de Paraty
View of BrasFels Shipyard, in Angra dos Reis – RJ (08/31/12).
FPSO Cidade de Paraty Modules: (1) TS072 – Main Gas B Compressor; (2) TS062 – Oil A Treatment; (3) TS063 – Oil B Treatment; (4) TS071 – Main Gas A Compressor; (5) TS075 – Gas B
Treatment; (6) TS073 –CO2 Compressor; (LC: Full modules package contracted attending 65% of Local Content).
25
Canteiro Nuclep - RJ Canteiro Nuclep - RJ
View of Nuclep Construction Site, in Angra dos Reis – RJ (08/31/12).
FPSO Cidade de Paraty (Hull – Singapore and Integration BrasFels): (1) Gas Injection and Compression (LC:65%); (2) Manifold (LC:65%).
11
1
2
FPSO - Cidade de Paraty: Modules Construction at Nuclep Construction
FPSO Cid. de
Paraty Modules
26
0
10
20
30
40
50
60
70
80
90
100
jan-
09
mar
-09
mai
-09
jul-0
9
set-
09
nov-
09
jan-
10
mar
-10
mai
-10
jul-1
0
set-
10
nov-
10
jan-
11
mar
-11
mai
-11
jul-1
1
set-
11
nov-
11
jan-
12
mar
-12
mai
-12
jul-1
2
set-
12
nov-
12
jan-
13
mar
-13
mai
-13
jul-1
3
set-
13
nov-
13
jan-
14
mar
-14
mai
-14
jul-1
4
set-
14
nov-
14
jan-
15
mar
-15
mai
-15
jul-1
5
set-
15
nov-
15
jan-
16
mar
-16
mai
-16
% A
cum
ulad
o
Linha de Base Linha Base - PNG 12-16 Realizado Projetado
Entrada em
Operação Projetada:
28/05/2013
Entrada em Operação
Prevista (PNG 12-16):
28/05/2013
Justif.2 (A)
1
5
2
3
4
67
10
8
Previsto PNG:Realizado:
29,1% 1,1%AcumuladoNo mês
31,8%1,1%
Referência: agosto/12
Justif.2 (B)
Entrada em Operação
Prevista (EVTE):
28/05/13
9
Fonte :SAP/PNG 12-16: 30/06/12. Data de Medição pela Diretoria de Exploração & Produção: 13/09/12.
Linha de Base: EVTE da Fase III, aprovado em 03/12/2009, Ata DE 4.787. / Projetado: Replanejamento realizado em Julho/12.
FPSO Cidade de Paraty – Lula NE Pilot (1st Oil: May/13)
IMPLEMENTATION LANDMARKS:
1 – Conclusion of Opportunity Evaluation Phase(Gate 1) (P:may-10/R:may-10) (P:100%/R:100%)
2 – Conclusion of Conceptual Project Phase (Gate 2) (P:jul-11/R:jun-11) (P:100%/R:100%)
3 - Beginning of Construction of the 1st Well (P:feb-12 / R:feb-12)
4 - Issuance of Preliminary License (LP) (P:aug-12 / R: sep-12)
5 - Basic Design Conclusion (Gate 3) (P:may-12/R:oct-12) (P:100%/R:95%)
6 - Issuance of the Instalation License (LI) (P:aug-12 /Proj: oct-12)
7 - Production Unit (PU) in the Site (P:mar-13 /Proj:mar-13)
8 - Operation License Issue (LO) (P:mar-13 / Proj:mar-13)
9 - 1st Well Interconnection Start (P:apr-13 / Proj:apr-13)
10 - Last Well Interconection (P:apr-16 / Proj:apr-16)
Monthly Meeting of Critical Analysis (RAC) : CEO + E&P Director + Engineering, Technology and Materials Director
PHYSICAL PROJECT MONITORING – ‘S’ CURVE
Operational
Start-Up Forecast
(EVTE): May/13
Operational
Start-Up Forecast:
May/13
Operational
Start-Up Forecast:
BP 12-16: May/2013
MTD Accrued
Forecast BP: 1.1% 29.1%
Accomplished: 1.1% 31.8%
Reference: Aug/12
% A
ccru
ed
Baseline Baseline BP 12-16
Accomplished Forecast
27
FPSO P-63 – Papa-Terra (1st Oil: Jul/13)
Modules: Construction Tekfen (Turkey)
9. Z90 Piperack
Modules: Construction QUIP Construction Site–Rio Grande Port
(RS)
10. EBSE – M11 High Separation System
11. EBSE – M12 Low Separation System
12. NATCO – M13 Oil Treatment
13. SULZER/TSL – M51 – Water Treatment and Injection Systems
14. VEOLIA – M52 – Sulphate Reduction Unit
15. QUIP – M-31 Flare Vases
16. QUIP – Flare Spare
17. SULZER/TSL – M83 Chemical Injection System
18. M60 Natural Gas Compression System
Rio Grande Port - Rio Grande (RS)
Local Content - Mandatory: 0% / Accomplished Forecast: 65% Hull: Conversion - Cosco (China)
Modules: Construction COSCO Shipyard (China)
1. M01 Offices, Accommodations and Helideck
2. M21/M22 Manifolds
3. M81 Utilities System
4. M82 Heaters
5. M32/42 Load and Unload Area
6. M41 Laboratory and Workshop
7. M90 Electric Panels
8. M91/92/93 Electricity Generation Systems
Integration: Rio Grande Port (RS)
Integration of Modules 1 to 18 to the hull
28
View of the Honório Bicalho Shipyard (QUIP Construction site), in Rio Grande Port – RS (03/sep/12).
P-63 Modules (Hull converted in China will arrive in Brazil in Dec/12): (1) M60 – Compression; (2) M52 – Sulphate removal; (3) M12 – Low pressure separator; (4) M11 – High pressure separator;
(5) M13 – Electrostatic treatment; (6) M51- Water injection and treatment; (7) F30 - P-63 Flare. (LC: Full package contracted with 65% LC).
1
2 3
4
5
6
7
P-63 – Modules Construction at Rio Grande Port
29
FPSO P-61 – Papa-Terra (1st Oil: Dec/13)
Modules Construction: SIEMENS – Indonesia
1. Electric Modules
Modules Construction: KeppelFELS - Singapore
2. Topside Integration
Local Content - Mandatory: 0% / Accomplished: 65%
Integration: BrasFels Shipyard – Angra dos Reis (RJ)
Topside / Hull Integration
Hull Construction: BrasFels Shipyard – Angra dos Reis (RJ)
BrasFels Shipyard - Angra (RJ)
30
P-61
View of Brasfels Shipyard, in Angra dos Reis – RJ (08/31/12)
P-61 (LC:65%): HULL Construction at TLWP and TOPSIDE Integration (deckbox and modules constructed in Singapore).
P-61: Hull Construction and Integration at BrasFels Shipyard
31
P-55 – Roncador Module 3 (1st Oil: Sep/13)
Modules and Deckbox: Construction of Rio Grande Shipyard –
ERG1 (RS)
3. QUIP - Topside and Integration
4. IESA - M09 – Water Treatment (Sulfate Removal)
5. IESA - M-04 A/B – Gas Compressor
6. IESA - Area 1 - High pressure separator
7. IESA - Area 2 - Low pressure separator
8. IESA - Area 5 - Eletrostatic module / hidrocyclone
9. Dresser-Rand - Area 12 – Power Generation
Modules: Construction Site UTC – Niterói (RJ)
1. UTC - M-07 – Booster compressor and Gas dehydration (T EG)
2. UTC - M-08 – Amines Unit
Rio Grande Shipayard (ERG1)
Atlântico Sul Shipyard (PE)
Local Content - Mandatory: 0% / Accomplished: 65%
Hull: Construction - Atlântico Sul Shipyard – EAS (PE)
Integration: Rio Grande Shipyard – ERG1 (RS)
Modules and deckbox integration from hull 1 to 9
Construction Site UTC
32
View of Rio Grande Shipyard ERG1 – RS (09/03/12)
P-55 (Hull constructed at EAS – PE): (1) Water treatment module; (2) Eletrostatic module; (3) Amines unit module; (4) High pressure separator; (5) Flare Tower; (6) Crane with
capacity of 600t; (7) workshop; (8) Utilities central of shipyard.
8
1
7
6
3 2
5
1
4
P-55 - Modules Construction and Integration at Rio Grande 1 Shipyard
33
0
10
20
30
40
50
60
70
80
90
100
mai
-05
ago-
05
nov-
05
fev-
06
mai
-06
ago-
06
nov-
06
fev-
07
mai
-07
ago-
07
nov-
07
fev-
08
mai
-08
ago-
08
nov-
08
fev-
09
mai
-09
ago-
09
nov-
09
fev-
10
mai
-10
ago-
10
nov-
10
fev-
11
mai
-11
ago-
11
nov-
11
fev-
12
mai
-12
ago-
12
nov-
12
fev-
13
mai
-13
ago-
13
nov-
13
fev-
14
mai
-14
ago-
14
nov-
14
% A
cum
ulad
o
Linha de Base Linha Base - PNG 12-16 Realizado Projetado
Entrada em
Operação
Projetada: set/13
Entrada em
Operação Prevista
(PNG): set/13
Justif.2 (A)
1
5
2
3
4
6
7
9
10
8
Previsto PNG:Realizado:
61,42%0,85 p.p.
AcumuladoNo mês
66,76%1,88 p.p.
Referência: agosto/12
15
13
11
12
Justif.2 (B)
14
Entrada em Operação
Prevista EVTE: jun/12
Justif.1 (A)
Source:SAP/BP 12-16: 06/30/12. Check Date by Exploration & Production Board: 09/13/12.
Baseline: Phase III EVTE, approved in 12/03/2009, Board Minute 4,787. / Forecast: Re-Planning elaborated in July/2012.
PHYSICAL PROJECT MONITORING – ‘S’ CURVE
IMPLEMENTATION LANDMARKS:
1 - Conceptual Designt Conclusion Phase (Gate2) (F:Nov-04 / A:June-05) (R: 100%) 2 - Basic Design Conclusion (Gate 3) (F:Sep-08 / A:Sep-08) (R:100%) 3 - Beginning of Construction of the 1st Well (F:July-10 / A:Apr-11) 4 - Issuance of Preliminary License (LP) ( F: - / A:Sep-11) 5 - Issuance of the Instalation License (LI) (F:July-10 / A:Sep-11) 6 - Manifolds installation Start (F:Apr-12 / A:May-12) 7 - 1
st Well Interconnection Start (F:Aug-12 / A:June-12)
8 - Platform Mating (F:Apr-12 / A:Julyt-12) 9 – Production Unit (PU) Exit from drydock (F:July-12 / Proj:Oct-12) 10 – PU Exit Release of Shipyard (F:May-13 / Proj: May13) 11 - Operation License Issue (LO) (F:Apr-12 / Proj:June-13) 12 - Production Unit Arrival at the Site (F:July-13 / Proj:July-13) 13 - 1
st Wel Interconnection Start (F: Sep-13 / Proj:Sep-13)
14 - 7
st Wel Interconnection Start (P: June-14 / Proj:June-14)
15 - Last Wel Interconnection (F: Dec-14 / Proj: Dec-14)
P-55 – Roncador Module 3 (1st Oil: Sep/13)
Meeting of Critical Analysis (RAC) Monthly: CEO + E&P Director + Engineering, Technology and Materials Director
Baseline Baseline BP 2012-2016 Accomplished Forecast
Start-Up Forecast:
(EVTE): Jun/12
Start-Up
Forecast:
Sep/13
Start-Up Forecast:
(BP): Sep/13
MTD Accrued
BP Forecast: 0.85 p.p. 61.42%
Accomplished: 1.88 p.p. 66.76%
Reference: August/2012
% A
ccru
ed
34
4.200
2.500
2.022
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Pacific Mistral
(PAD Iracema North)
Schahin Amazonia
(Iguape Drilling)
Schahin Cerrado
(PAD Júpiter
Northeast)
Ocean Rig Mykonos
(ADR LL Central)
Etesco Takatsugu J
(Franco SW)
P-59**
(Peroá)
Ocean Rig Corcovado
(Iracema High)
Deepsea Metro II
(Farfan Bloco BM-
SEAL-11)
Schaihn Sertão
(Roncador)
Sevan Brasil
(Sagitário)
Odn Delba III
(PAD Trachemys –
Quelônio)
P-60**
(Block BM-C-27)
Amaralina Star
(CO South of Tupi)
Odn I - Norbe X
(CO PAD Franco)
Odn II - Norbe XI
(CO Florim)
Odn Tay IV
(RF of Albacora)
Laguna Star
(CO PAD Franco)
Arpoador
(Lula North)
Copacabana
(Franco NE)
Urca
(Franco East)
Guarapari
(NE of Tupi)
Ondina
(Iara Horst)
Cassino
(Lula North)
Grumari
(Carcará 1)
TBN1*
Frade
(Júpiter)
Camburi
(South of
Guará)
Pituba
(Iara NW)
Ipanema
(Júpiter)
Bracuhy
(Carcará)
Itaoca
(Iara NW)
Curumim
(Exploration)
TBN2*
Leblon
(Franco East)
Portogalo
(Iara
Surround)
Salinas
(Exploration)
Boipeba
(Exploration)
Leme
(Franco East)
TBN3*
Mangaratiba
(Florim)
Itaunas
(Exploration)
Interlagos
(Exploration)
Marambaia
(Iara
Surround)
Botinas
(Florim)
Itapema
(Iara NW)
Siri
(Exploration)
TBN 4*
TBN 5*
Comandatuba
(Exploration)
Sahy
(Exploration)
50 New Drilling Rigs: 2012 - 2020
* Under negotiation, to be confirmed in the contracts signature; ** P-59 and P-60 drilling rigs were constructed in Brazil
Drilling Rigs
Construction
25 up to 2016
50 up to 2020
Oil Production, Brazil: 2,022 – 4,200 kbpd
Oil
and
NG
L P
rod
uct
ion
Cu
rve
(kb
pd
)
2,022
2,500
4,200
Drilling Rigs ( 38)
Semisubmersible (10)
Auto raising (2)
Bu
ilt in
Ch
ina,
Sin
gap
ore
an
d K
ore
a
Bu
it in
Bra
zil
55%
< L
oca
l Co
nte
nt
< 6
5%
28 Already Contracted
5 to contract
In the next months
35
Quarter Check-List in Order to Reduce the Risk in
Construction of Drilling
Estaleiro Atlântico Sul – Ipojuca (PE)
Enseada do Paraguaçu - Maragogipe (BA)
Jurong Aracruz - Aracruz (ES)
Estaleiro OSX – São João da Barra (RJ)
São Roque – São Roque do Paraguaçu (BA)
Superpesa – Niterói (RJ)
Mauá – Niterói (RJ)
Brasa – Niterói (RJ)
Canteiro UTC – Niterói (RJ)
Estaleiro BrasFels – Angra (RJ)
Canteiro Nuclep – Itaguaí (RJ)
Inhaúma – Rio de Janeiro (RJ)
DM/TKK Engenharia - Itajaí (SC)
Honório Bicalho - Rio Grande Port (RS) Rio Grande 1 – ERG1 (RS) Rio Grande 2 – ERG2 (RS)
Promar – Ipojuca (PE)
Tomé Engenharia/Ferrostaal (AL)
IESA – Charqueadas (RS)
Forthcoming instalation of new shipyards/construction sites: projects, construction and
capacity to construct of the shipyard to comply with deadlines set in contracts;
Instalation of current shipyards/construction sites: capacity to construct of the shipyard to
comply with deadlines set in contracts;
Contractual Management: participation of technological partner in the shipyard;
Legal Management: abscence of legal barriers to operate the shipyard;
Financial Management: corporate and financial guarantee that do not compromisse the
shipyard operation;
HSE: verification of the feasibility to attend the environmental licensing conditions;
Shipyards/construction site supply chain: capacity to provide critical equipments (ie.: drilling
package, propulsion and generation, and dynamic positioning);
Local Content: capacity to comply with requirements based on international metrics: price, term
and technical specifications.
36
Oil Products Outputs and Utilization Factor Growth
757 785
431441
2Q12
2.035
809
1Q12
1.967
779
Throughput and
Utilization Factor Oil Products Output (*)
(*) Includes Nafta, Jet Oil, Fuel Oil, LPG (with E&P production) and others.
Others*
Diesel
Gasoline
Th
ou
san
d b
bl/d
349 350
94,3%92,5%
0
400
800
1.200
1.600
2.000
2.400
2.800
0
10
20
30
40
50
60
70
80
90
100
%
+2%
2Q12
1.927
1.576
1Q12
1.883
1.534
Oil imported Utilization Factor Domestic Oil
Larger oil products outputs due to otimization in refining assets. Utilization factor above 94% in 2Q12
and records in throughput .
Th
ou
san
d b
bl/d
3%
0,4%
4%
2%
37
(kbpd)
Without new refineries, Brazil will import 35% of oil products demand
.
Brazil Oil Product Market
in 2020
Source: Petrobras
Projects Under
Implementation (Construction)
US$ 55.8 billion
9%
(4,8)
17%
(9,4)
20%
(11,0)
45%
(24,9)
1%
(0,5)5%
(2,9)
4%
(2,4)
Projects Under Evaluation (project)
US$ 15.8 billion
37%
(5,8)
8%(1,2)
41%
(6,4)
3%
(0,5)7%
(1,1)5%
(0,8)
Refining Expansion Importance:
Oil Products Supply and Demand Balance
Déficit
- 514
Demanda
Déficit
- 678
Demanda
1.230
2.166
N, NE e CO
S e SE
Capacidade de
Processamento
552
1.652
Capacidade de
Processamento
RNEST
Comperj
Trem 1
• Premium I – 1st Phase (300 kbpd - Oct/17)
• Premium II (300 kbpd - Dec/17)
• Premium I – 2nd Phase (300 kbpd - Oct/20)
• Comperj - 2nd Phase
(300 kbpd - Jan/18)
• Comperj – 1st Phase
Under Construction
(165 kbpd - Apr/15)
• RNEST
Under Construction
(1st Phase - 115 mil bpd - Nov/14
2nd Phase - 115 mil bpd – May/15)
Déficit
- 514
Demanda
Déficit
- 678
Demanda
1.230
2.166
N, NE e CO
S e SE
Capacidade de
Processamento
552
1.652
Capacidade de
Processamento
RNEST
Comperj
Trem 1
Déficit
- 514
Demanda
Déficit
- 678
Demanda
1.230
2.166
N, NE e CO
S e SE
Capacidade de
Processamento
552
1.652
Capacidade de
Processamento
RNEST
Comperj
Trem 1
Deficit
Déficit
- 514
Demanda
Déficit
- 678
Demanda
1.230
2.166
N, NE e CO
S e SE
Capacidade de
Processamento
552
1.652
Capacidade de
Processamento
RNEST
Comperj
Trem 1
Deficit Demand
N, NE and MW
S and SE
Biofuels
Petrochemical
Fleet Expansion
Refining Capacity Expansion
Logistics for Oil
Quality and Conversion
Operational Improvement
New Refineries under evaluation New Refineries
under construction
Processing
capacity
38
Fonte :SAP/PNG 12-16: 30/06/12. Data de Medição pela Diretoria de Exploração & Produção: 13/09/12.
Linha de Base: EVTE da Fase III, aprovado em 03/12/2009, Ata DE 4.787. / Projetado: Replanejamento realizado em Julho/12.
IMPLEMENTATION LANDMARKS
1-Subestation Entrance Energization (Offsite) (P:dec/12 / Proj:dec/12) (P: 94,1%) (R: 95,2%) 2-Conclusion of Atmospheric Dist. Unit - Train I (Onsite - Train 1) (P:apr/13 / Proj:apr/13) (P: 81.2% / R: 82.3%) 3- Integrated Control Center Start up (Infraestrutura) (P:sep/13 / Proj:sep/13) (P: 85,9% / R: 80,9%) 4- Industrial Waste Mngmt. Station Start up (Offsite) (P:dec/13 / Proj:dec/13) (P: 82,4% / R: 82,7%) 5- Construction Conclusion - Pipes extramural (P:jan/14 / Proj:jan/14) (P: 56,8% / R: 59,3%) 6- Water Treatment Station Start up (Offsite) (P:mar/14 / Proj:mar/14) (P: 89,5% / R: 92,3%) 7- Boiler FO Start up (Offsite) (P:apr/14 / Proj:apr/14) (P: 72,2% / R: 62,4%) 8- SNOX Start up (Onsite - Train 1) (P:out/14 / Proj:out/14) (P: 27,4% / R: 20,4%) 9- Phase 1 start up (Onsite - Train 1) (P:nov/14 / Proj:nov/14) (P: 54,2% / R: 52,6%) 10- Phase 2 start up (Onsite Train 2) (P:may/15 / Proj:may/15) (P: 44,7% / R: 44,4%)
Justif.1(A)
RNEST: Physical S Curve
Meeting of Critical Analysis (RAC) Monthly: CEO + Downstream Director + Engineering, Technology and Materials Director
PHYSICAL PROGRESS OF THE PROJECT – S CURVE
Baseline Accomplished Forecast Baseline 2012-2016 BP
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Financial • Improve cashflow generation in the BP 2012-2016
Operational • Increase productivity in operational acitivities from internal and external
benchmarks
Organizational • Implement management model focus on cost efficiency
Purpose
Purposes of PROCOP:
Cost Optimization Program
• US$ 32 billion: management costs of Petrobras in 2011
• Activities in Brazil: E&P, Downstream and Gas&Power
• Processes related to production and operational support: Oil and gas production, refining, oil and oil products logistics, natural gas logistic,
power generation, fertilizer production, IT, equipments supply, oil , oil products and
parts storage
Scope
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Preliminary view:
focus areas and reduction of
the potential I
Details, Quantification and
Accountability
Consolidation and
Communication III II
Work Plan 2012 – Focusing on Operational Processes: Production, Refining, O&G Logistics,
Power Generation, Fertilizers, IT, Equipments Supply and Oil, Oil Products and Parts Storage
June-July August-November December
Current Focus
Mapping areas of greatest
potential for optimization.
• Deviation of ~10-30% (in
some cases more) in relation
to internal and external
benchmarks
• ~20 focus areas selected for
Phase II
Work teams are deepening the
focus areas in order to define
concrete targets
• Implementation of targets
year over year (until 2016),
linked to operational
indicators
• Accountability, Milestones
and Schedule
• Multi-annual Plan of
Implementation
Optimization to be implemented
from January 2013 on
PROCOP Current status: Details and Quantifications
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Financial Indicators in 1H12:
Debt and Leverage
45,9 57,9
R$ billion
Total Debt
44,6
Cash and Cash Equivalent
Net Debt
2Q12
179.2
45.9
133.2
1Q12
164.1
57.9
106.2
2,46
1,61
2Q12 1Q12
Increase in Net Debt mainly due to FX rate devaluation (R$ 1.82/US$ in 1Q12
and R$ 2.02/US$ in 2Q12), besides raise fundings in the amount of R$ 7.6 bi in
2Q12.
2Q12 EBITDA mainly influenced by:
– Write-off dry and subcomercials wells;
– Lower oil exports and higher oil products demand in the domestic market
supplied by imports, mainly of gasoline and diesel; and
– Hgher LNG imports, to supply eletric power system.
Factors that influenced 1H12
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24
1Q12 2Q12
Net Debt/ EBITDA < 2.5x Leverage (%) < 35%
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Financial Planning Assumptions
Main assumptions for cash flow generation and investment levels
Brent prices (bbl) US$ 110.82 in 2012, declining to US$ 90 in the long term
Average exchange rate (R$/US$) R$ 1.90 in 2012, strengthening to R$ 1.73 in the long term
Leverage < 35%
Net debt / Ebitda < 2,5x
Oil products prices in Brazil International parity
Projects under implementation Incorporated in the financial planning
Projects under evaluation To be incorporated in the financial planning, contingent upon approval in
each phase
Divestments US$ 14.8 billion (the majority in 2012, the remainder in 2013)
Cash utilization US$ 15 billion
Third-party resources in the 2012-2016 period:
Gross - US$ 16 billion / Net - US$ 8.7 billion
No equity issuance Solid investment grade maintenance
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Business and Management Plan 2012-2016:
Management of Portfolio Projects
INVESTMENTS UNDER IMPLEMENTATION
INVESTMENTS UNDER EVALUATION
6%(0,07)
90%
(1,05)
1%
(0,01)
3%
(0,03)
7%
(0,4)
85%
(5,1)
Corporativo
E&P
G&E
R&M Distribuição
Petroquímica
2%
(0,1)
4%
(0,2)
1%
(0,1)
1%
(0,1)
68%
(89,9)
19%
(25,4)
12%
(16,3)
E&P US$ 131.6 billion
+
Downstream US$ 55.8 billion
+
Gas & Power US$ 7.7 billion
+
Distribution US$ 3.2 billion
+
Biofuels US$ 1.2 billion
+
International US$ 6 billion
= US$
208.7 bi
E&P
US$ -
+
Downstream
US$ 15.8 billion
+
Gas & Power
US$ 5.9 billion
+
Distribution
US$ 0.1 billion
+
Biofuels
US$ 1.4 billion
+
International
US$ 4.7 billion
= US$
27.8 bi
G&E
E&P
97%
(US$ 4,6 Bi)
3%
(US$ 0,1 Bi)
6%
(0,5)
20%
(1,5)
32%
(2,5)
7%(0,6)
24%
(1,9)
10%
(0,7)
54%
(3,2)
22%(1,3)
8%
(0,5)
15%
(0,9)
57%
(0,8)
21%
(0,3)
21%(0,3)1%
(0,01)
9%
(4,8)
17%
(9,4)
20%
(11,0)
45%
(24,9)
1%
(0,5)5%
(2,9)
4%
(2,4)
37%
(5,8)
8%(1,2)
41%
(6,4)
3%
(0,5)7%
(1,1)5%
(0,8)
21%
(0,67)
43%
(1,39)
13%
(0,42)
21%
(0,70)
1%
(0,01)
100%
(0,10)
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Thank You