DEEP AND ULTRADEEP WATER

PRODUCTION IN BRAZIL

a high value knowledge base — Solange Guedes Petrobras Head of Exploration & Production

2

PREVENTIVE

VISION

Reduction of

36% In the Total Recordable Injury

Frequency Rate (TRIFR*)

BEHAVIOR & ATTITUDES

PROCESS SAFETY & ASSET INTEGRITY

Safety is our most important value

Safety First

* TRIFR = number of reportable injuries per million man-hours

TO

1.4

in 2018

FROM

2.2 in 2015

3

In our journey, we went through four production expansion cycles Each cycle represented a new technological frontier

0,0

0,5

1,0

1,5

2,0

2,5

1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 9M16

Ne

t o

il p

rod

uct

ion

in B

razi

l, M

Mb

bl/

d

Shallow water Garoupa

Deepwater Marlim

Ultra-deepwater Marlim Sul

Pre-salt Lula

Onshore Buracica

Shallow water

Deep water above 300m

Ultradeep water Above 1500m

Presalt

Onshore

PROVED RESERVES 2015

13.3 bi boe (ANP/SPE criteria) 10,5 bi boe (SEC criteria)

4

These cycles were carried out through a learning curve And the knowledge base was crucial to create opportunities and overcome challenges

Opportunity &

Challenge

Technology development

Availability Production

Knowledge base

• Partnership with universities, operators and service companies

• Supply chain development

• Cost optimization

• Scalability

• Standardization

• Operational safety & asset integrity

• Production growth

• Recovery improvement

• Lessons Learned

• Increasing expertise

Value generation

• Portfolio risk management

5

1953

Our story began in 1953 and 15 years later we went offshore after important oil discoveries

1970 Garoupa Field

Discovery

WD 105m

FPS w/FSO

Spread Mooring System

Enchova

Deepest and 1st

Tower-Yoke FPSO in

the world with

atmospheric well-

heads and manifolds

at seabed

Carmópolis

discovery Creation of

Petrobras

Buracica field

discovery

Bonito Field

Template

1979

1977 1968

1953

1959 1982

1963 1985 1974

Guaricema: our first

offhore discovery

Water depth 28m

Canto do

Amaro

discovery

6

1990

In the 80’s, we started a deep water technology development program, turning Campos Basin into a real lab

1985

1984

1992

1986

1994

1993

1996

1995

1998

1997

Albacora field

discovery

Marlim field

discovery

Layaway subsea tree

connection system in

Albacora field – 475m

OTC

Distinguished

Achievement

Award

Open Innovation

Subsea tree

Interfaces

Standardization

First Wet

Completion

ESP in the

world

Carapeba

Albacora

Manifold

diverless

installation at

620m

Vertical Direct

connection – 610m

Albacora

First Full

Polyester

Mooring System

Vertical Direct

connection – 610m

Albacora

7

2000

In collaboration with the academia and suppliers, we built breakthrough solutions…

1999

1996

2002 2005 2007

2006

Roncador field

discovery

Roncador

production with

Drill Pipe Riser

and DP unit

Horizontal trees for 2,500m

Roncador and Marlim Sul

ESP above subsea tree

Drill Pipe Riser

Production - Jubarte

2003

2001

First horizontal well

with column and lines

of large diameter

Marlim Sul

Jubarte field

discovery

Golfinho field

discovery

First Torpedo Piles

Installation Albacora

Leste

Pendular Manifold

Installation

Roncador

Free Standing

Hybrid Riser

Roncador

Downhole High Power ESP and ROV Intervened

subsea tree cap - Jubarte

8

…and thus we reached the awarded technologies applied in the Pre-Salt

2011

2006

Pre-salt

dIscovery

Intelligent Completion in Ultra-

deepwater Satellite Wells with High

Potential for Carbonate Scaling

Water Alternating Gas

Injection Method in Ultra-

deepwaters

2015 2012

2014

Carbonate Rocks

Characterization

Pre-Salt

First CO2 Separation from Associated

Natural Gas in Ultra-deepwater with CO2

Re-injection

Deepest Offshore Well 2,173 m –

Injecting Gas with CO2

Buoy Supporting Risers

Sapinhoá

First Steel Catenary

Risers with lined pipes

Deepest Offshore Well 2,173 m –

Injecting Gas with CO2

Buoy Supporting Risers

Sapinhoá

Deepest Steel Lazy Wave Riser

First Application of Flexible Risers with Integrated

Tensile Armor Wire Monitoring System

9

Petrobras accumulated a large experience throughout the years…

1) To be reached by the end of 2016 2) Campos basin excluding pre-salt

Gross Accumulated Oil Production

PRE-SALT CAMPOS BASIN² OTHER BASINS

1.0 Bi bbl

11.0 Bi bbl

4.5 Bi bbl

0

100

200

300

400

500

600

700

800

900

1.000

1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526

Years since first oil

9 years¹ 15 years 26 years

Gross accumulated oil production (MMbbl)

>130 Production units

>1000 Subsea trees

> 7.5 mil km Flexible lines

> 600 Offshore horizontal wells

10

…with relevant performance in different scenarios

PRE-SALT CAMPOS BASIN OTHER BASINS

LULA MARLIM URUCU

Giant oil field with very competitive production cost

Giant mature oil field with recovery factor of around 50%

Environment friendly unit producing very light oil

Producing since 2006 Producing since 1991 Producing since 1986

11

Internal studies for each critical item

… to achieve costs reduction and operational efficiency

... seeking actions to intensify experience effects...

Original experience curve

Metallurgy for tubing

Reservoir Testing

Drilling Systems

Subsea Trees

Rig Performance

Logistics

Intensification

of experience effects

Increase slope Translate curve

311

228

190 185 151

129

89

Until

2010

2011 2012 2013 2014 2015 2016

Well construction time days/well

3x faster

The Campos Basin legacy: how does a learning curve work? Acceleration process and proper management system delivered outstanding results in pre-salt areas

12

Leading us to the Pre-salt, our most profitable play

• Pre-salt Recovery Factor

• Operational Efficiency

• Production Projects Reengineering

• Libra@35

• Well cost reduction

• Subsea / Logistics Optimization

• Zero base budgeting

• Standardization

• Contracts Renegotiation

Cost optimization initiatives

Onshore and

shallow

Deep and

Ultradeep water

Pre-salt

Higher Profitability (Ebitda/boe)

1.9x

1.5x

… and the cycle of expansion of production being resumed

13

We have access to large potential to be developed in the next decades

Production Sharing

* BG E&P Brasil Ltda – a subsidiary of Royal Dutch Shell plc

Post-Salt Concession

Concession

Transfer of Rights

SANTOS BASIN • CONCESSION

7

3

Producing

Fields

Exploratory

Blocks

*

*

SANTOS BASIN • PRODUCTION SHARING

1 Exploratory

Block

SANTOS BASIN • TRANSFER OF RIGHTS

10 Producing

Fields (100%)

CAMPOS BASIN • CONCESSION

7

2

Producing

Fields

Exploratory Blocks

operated by other

Companies

(100%)

14

Petrobras has developed a knowledge base that allows the company to access resources and produce them in competitive cost

0,0

0,5

1,0

1,5

2,0

2,5

1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 9M16

Ne

t o

il p

rod

uct

ion

in B

razi

l, M

Mb

bl/

d

Shallow water Garoupa

Deepwater Marlim

Ultra-deepwater Marlim Sul

Pre-salt Lula

Onshore Buracica

Shallow water

Deepwater above 300m

Ultra- deepwater Above 1500m

Presalt

Onshore

2.77 MMbbl/d

2021

0

5

10

15

14.6 12

11 9.6

Lifting Cost (US$/boe)

15

The repetition of learning cycles allow

Petrobras develop a robust

knowledge base and deliver value to

shareholders, as well as opportunities

to industrial development to the

country in a competitive basis.

In a nutshell ...

Obrigada! (Thanks!)

24 – 27 October Rio de Janeiro - Brazil