plan petrobras londres

8/6/2019 Plan Petrobras Londres

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Jos Sergio Gabrielli

CEO

August, 2011

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This presentation may contain forward-lookingstatements. Such statements reflect only theexpectations of the Company's managementregarding the future conditions of the economy,

the industry, the performance and financialresults of the Company, among other factors.Such terms as "anticipate", "believe", "expect","forecast", "intend", "plan", "project", "seek","should", along with similar expressions, areused to identify such statements. Thesepredictions evidently involve risks and

uncertainties, whether foreseen or not by theCompany. Consequently, these statements donot represent assurance of future results of theCompany. Therefore, the Company's futureresults of operations may differ from currentexpectations, and readers must not base theirexpectations solely on the information presented

herein. The Company is not obliged to updatethe presentation and forward-looking statementsin light of new information or futuredevelopments. Amounts informed for the year2011 and upcoming years are either estimatesor targets.

The United States Securities and Exchange

Commission permits oil and gas companies,in their filings with the SEC, to discloseproved reserves that a company hasdemonstrated by actual production orconclusive formation tests to be economicallyand legally viable under existing economicand operating conditions. We use certainterms in this presentation, such as

discoveries, that the SECs guidelines strictlyprohibit us from including in filings with theSEC.

Cautionary statement for U.S. investors:

DISCLAIMER

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62%38%

Brasil

Outros

New Discoveries 2005-2010

(33,989 million bbl) Deep-Water

Discoveries

Source: PFC Energy

BRAZIL LEADERSHIP IN RECENT DISCOVERIESDeep-water discoveries in Brazil represent 1/3 of the worldwide discoveries in the last 5 years

In the last 5 years, more than 50% of the new discoveries (worldwide) were made in deep waters

The development of these reserves will demand additional capacity from the supply chain

Expansion of the oil and gas chain in Brazil is in line with this perspective

Petrobras expects to double its proved reserves until 2020, keeping the discovery cost around US$2/boe

Other Discoveries Deep-Waters

Brazil

Other

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INCREASE IN SALES VOLUMES

Sales Volume (thousand boe/day)

652 718731 899

706699 586

231312 320

480

542593 634125

136 147

290

401

1,078

1,3151,2041,097

1,4531,739

997

2,317

436

738

906

9494 97

106

141

1717 17

38

79

3,4643,773 3,848

4,958

7,142

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2009 2010 2011 2015 2020

Fertilizers

Electric Energy

Biofuels

International Sales(*)

Natural Gas

Exports

Other Di stribui tors

Sales to BR

BP 2011-15 - Petrobras Total Sales Volume

6.6% p.y.

5.6% p.y.

(*) international area sales and offshore trading operations free from eliminations

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Investment Program

2011-15

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2010-14 Business Plan

53%

33%

2% 1%1% 2%

8%

2,9

E&P RTC

Gs,Energia & Gs Qumica Petroqumica

Distribuio Biocombustveis

Corporativo

5% of investments will be made overseas, 87%

of which in E&P

HSEE (US$ 4.2 bi), IT (US$ 2.7 bi), Technology (US$ 4.6bi), Logistics (US$ 17.4 bi), Maintenance & Infrastructure

(US$ 20.6 bi)

2011-15 Business Plan

US$224.7 billionUS$224 billion

65,5

14,7

4,1

3,24,2

2,3

65,5

14,7

4,1

3,24,2

2,4

2011-2015 INVESTMENTS

Stable investments, greater focus on E&P

57%31%

6%2%

1%1% 2%

(*) US$22.8 billion in Exploration

(*)

Biofuels

Gas, Energy & Gas Chemicals

Distribution

Corporate

E&P

Petrochemicals

RTM

118.8

73.6

17.8

5.1

2.43.5

2.9

127.570.6

13.2

3.8

3.14.1

2.4

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Maintained

New

US$ billion

Excluded

192,6213,2

10,8

(R$ 419.7 billion)

BP 2011-15BP 2010-14

82,9

37%

141,1

63%

90,6

40%

134,1

60%

Total in Foreign Currency

Total in Local Currency

32,1

INVESTMENTS BP 2011-15 VS. BP 2010-14

Increase from new E&P projects and FX rate offset by downstream deferrals

0,3%

-9,7%

(R$ 388.9 billion)

Maintained

US$ 224 billion US$ 224.7 billion

Changes in:

FX rate 8.6

Budget 1.5

Schedule (23.7)

Business model (0.6)Scope (6.4)

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Exploration & Production

+ US$8.7 billion

New Projects

Transfer of Rights

New Pre-Salt Units (Lula)

Infrastructure

New Discoveries and R&D

Excluded, Revised and/or

Postponed Projects

Projects discontinued afterunsuccessful exploratory phase

Revision of Development Projects

KEY CHANGES IN PORTFOLIO

Reassignment of E&P investments

Gas & Energy

- US$4.6 billion

Supply(includes Petrochemicals)

- US$4.3 billion

New Projects TPP Barra do Rocha I TPP Bahia II

Projects concluded in 2010

Gas pipelines: Gasene, Pilar-

Ipojuca, Gasduc III and Gasbel II


Postponed Projects

Postponement of projects: UFN IV,

UFN V, GTL Paraffins and Gas FSO

Exclusion of Catu-camaari gaspipeline and Ecomp Itajupe

Exclusion of TPP projects (from

2010 auctions)

New Projects

New Comperj units

Oil Logistics

Projects concluded in 2010

Braskem capital contribution

Fuels quality investment


Postponed Projects

Postponement of Premium IRefinery

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75,7

224,751,0

41,4

33,5

5,4 4,113,5

0

50

100

150

200

250

Aprovados

at 2009

2010 2011 2012 2013 2014 Ps 2014 Total

275 projetos

95 projetos

104 projetos

112 projetos39 projetos

22 projetos 41 projetos

34%

23%

18%

15%6% 2% 2%

US$ billion

INVESTMENTS AND PROJECT APPROVAL TIMELINE

2011-15 Period

US$224.7 billion

688 projects

Approved

until 2009

After 2014

95 projects

104 projects

112 projects39 projects

22 projects 41 projects

275 projects

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ROCE

-5%

0%

5%

10%

15%

20%

25%

30%

35%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Companhias Integradas Companhias de E&P Companhias de Refino

E&P Investments (57% of total) ensure production growth and high IRR

Other investments (43% of total) add value to the chain, generating returns equal or higher than the cost of

capital

Investments in quality are a legal requirement

Total investments (BP 2011-2015) with attractive IRR Petrobras is an integrated company ready to speed up production growth

Reduced cost due to a higher business integration and a leading position in a large and growing market

CONSOLIDATED RETURNS

E&P drives results

Source: selected company data

Integrated companies

deliver better returns

Integrated Companies Downstream CompaniesE&P Companies

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Funding Needs

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Based on 2011-2012 forecasts: Banks (Source: Bloomberg)

Based on 2013-2015 forecasts: PIRA, DOE, CERA, WoodMackenzie, IEA

0

25

50

75

100

125

150

175

200

225

250

2010 2011 2012 2013 2014 2015

PetrobrasScenarios

95

80

US$/bbl

OIL PRICE

Oil price assumptions within market's expectations

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Oil price

Foreign Exchange Rate

Brazilian Market Growth

Average Realization Price (ARP) Brazil

International Parity

International margins per product

Oil and oil products exports and imports

Investment Program

Divestments and business restructuring

Third-party funding

AssumptionsNo Equity Issue in the period

Investment grade maintenance

Key variables for Cash Generation and Investment Level

VARIABLES

Key variables that impact the cash flow and funding needs

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125,0

148,9

224,7 224,7

91,4

67,0

31,4 30,9

26,1 26,1

13,6 13,6

Scenario A Scenario B

US$ 256.1 US$ 255.6US$ 256.1 US$ 255.6 Key assumptions

Scenario A Scenario B

Exchange rate

(R$/US$)1.73 1,73

Brent (US$/bbl)

2011 110 2011 110

2012 80 2012 95

2013 80 2013 952014 80 2014 95

2015 80 2015 95

Leverage (Average) 29% 26%

Net Debt/EBITDA

(Average) 1.9 1.5

ARP (R$/bbl) 158 177Debt Amortization

Investments

Divestment and Restructuring

Cash

Third-Party Resources (Debt)

Operating Cash Flow (After Dividends)

Sources Use Sources Use

CASH GENERATION AND INVESTMENTS

Divestment and traditional funding sources adequate for Plan needs

40% of capex in dollar in comparison to 37% in the

previous Plan

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Exploration & Production

US$127.5 billion

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Increase oil and gas reserves and production, in a sustainable manner, and be

recognized for its excellence in E&P operations, placing the Company among the worlds

five largest oil producers

2011-15 Business Plan Highlights:

65% of Capex allocated to production development

19 large projects, adding capacity of 2.3 million bpd

Drilling of more than 1,000 offshore wells, of these 40% is exploratory and 60% is production

development

In 2020, the pre-salt production will correspond to 40.5% of the oil production in Brazil

STRATEGY

Sustainable development of hydrocarbon reserves

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Annual investments of more than US$ 4 billion in exploration Investments of US$ 12.4 billion related to the transfer of

rights areas in 2011-15

In the BP 2010-2014, the forecasted investment for the Pre-Salt was of US$33 billion

Pre-Salt

US$ 53.4 billion

Post-Salt

US$ 64.3 billion

17%

65%

ProductionDevelopment

18%

Exploration

Infrastructure68%

Other areasTransfer of

Rights

26%

Pre-salt

6%

Exploration

Production Development

Pre-salt

37%

Transfer of Rights

Other areas

48%

15%

E&P investments in Brazil: US$117.7 bn

E&P INVESTMENTS IN BRAZIL 2011-15 BUSINESS PLAN

Note: Pre-salt includes Basins in Santos, Campos and Esprito Santo

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18Note: Does not include Non-Consolidated International Production.

Pre-salt and Transfer of Rights will represent 69% of

the additional capacity up to 2020

Pre-Salt participation in the total production will

enhance from the current 2% to 18% in 2015 and

40.5% in 2020

PRODUCTION

Petrobras can more than double production in the next decade

1.855 1.971 2.004

321 317334

435

618

1.120

111 132144

141

180

246

2.100

99 9693 96

125

142

2008 2009 2010 2011 2015 2020

Oil Production- Brazil Natural Gas Production - Brazil Oil Production - International Natural Gas Production - International

2,386 2,516

6,418

3,993

1,148543

Pre-Salt000boe/day

2,772

845

Transfer of Rights13

+10 Post-Salt Projects

+8 Pre-Salt Projects

+1 Transfer of Rights

+ 35 Systems

Added Capacity

Oil: 2,300,000 bpd

2,575

3,070

4,910

3,907

2.004

2.980

144

176

623

334

128

93

2010 2014

+ 9 Post-Salt Projects

+ 5 Pre-Salt Projects

Business Plan 2010-14

2,575

Added Capacity

Oil: 1,800,000 bpd

Business Plan 2011-15

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112 211230 21475

400 292189

749

1,601

42

0

400

800

1200

1600

2000

1980 1990 2000 2010

Deep water

Shallow water

Onshore

187

2,004

1,271

653

10%10% p.yp.y over the last 30 yearsover the last 30 years

ThousThous. bpd. bpd

123 offshore units (45 floating and 78 fixed)

25 new units installed over the last 5 years

P-56P-57

PRODUCTION

Long history of implementing offshore projects in Brazil

Onshore Shallow Water Deep WaterDeep & Ultra-Deep Water

Pre-Salt

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3.070

2.1002.004

0

500

1000

1500

2000

2500

3000

2010 2011 2012 2013 2014 2015

Thous.

bpd

Lula Pilot

FPSO BW Cidade

Angra dos Reis

100.000 bpd

Cachalote and

Baleia Franca

FPSO Capixaba

100.000 bpd

Marlim Sul

module 3

SS P-56

100.000 bpd

Jubarte

FPSO P-57

180.000 bpd

Baleia Azul

FPSO Cidade de

Anchieta

100.000 bpd

(FPSO Espadarte

reallocation)

Roncador

module 4

FPSO P-62

180.000 bpd

Roncador

module 3

SS P-55

180.000 bpd

Papa-Terra

TLWP P-61 &

FPSO P-63

150.000 bpd

Guar (North)FPSO

150.000 bpd

Parque dasBaleias

FPSO P-58

180.000 bpd

Tiro/SidonFPSO Cidade de

Itaja

80.000 bpd

Tiro Pilot

SS-11

Atlantic Zephir

30.000 bpd

Mexilho

Jaqueta

HG

EWT Guar

FPSO Dynamic

Producer

30.000 bpd

ESP/Marimb

FPSO

40.000 bpd

Urugu

FPSO Cidade de

Santos

35.000 bpd

AruanFPSO

100.000 bpd

Guar Pilot 2

FPSO Cidade de

So Paulo

120.000 bpd

Lula NE

FPSO Cidade de

Paraty

120.000 bpd

Maromba

FPSO

100.000 bpdSiri

Jaqueta eFPSO

50.000 bpd

Cernambi

South

FPSO

150.000 bpd

FPSO P-67

Replicant 2

150.000 bpd

BMS-9 our11

4 EWTs

Pre-salt

FPSO P-66

Replicant 1

150.000 bpd

BMS-9 or 11

Baleia Azul

FPSO

60.000 bpd

Juru NG

Tamba

FPSO Cidade

de Santos

NG

EWTs

EWTs Lula NE

e Cernambi

FPSO BW

Cidade So

Vicente30.000 bpd

EWT Carioca

FPSO Dynamic

Producer

30.000 bpd

Franco 1

Transfer of

Rights

FPSO

150.000 bpd

3 EWTs

Pre-salt

5 EWTs

Pre-salt5 EWTs

Pre-salt

NEW PROJECTS

Large projects drive the increase in production Pre-Salt and Transfer ofRights Projects

NG Projects

Post-Salt ProjectsDocumento

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0

4

8

12

16

20

P-43 P-48 P-50 P-52 P-54 P-53 P-51 FPSO

CAPIXABA

P-57

Para atingir 50% capacidade

Para atingir 75% capacidade

Months

2004 20062005 2007 2007 2008 2009 2010

Water Depth 2006 2008 2010

Up to 1,000 meters 6 11 111,000 to 2,000 meters 19 19 21

Over 2,000 meters 2 3 15

From 2007 to 2012 Petrobras will double its fleet of contracted drilling rigs, focusing on modern, recently built drilling rigs

with capacity to operate in the Pre-salt layer

2011 2012 2013

+2 +1 +1

+10 +13 +1

2010

Forecast

NEW PROJECTS

Higher number of drilling rigs will enable a faster ramp-up of the new platforms

P-56: 1 producing well and 1 injection well at the start-up (3Q11). 4 connected wells by end of 2011

To reach 50% capacity

To reach 75% capacity

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34

3

5 5

41

4

1

2011 2012 2013 2014 2015

TLD - Pr-Sal e Cesso Onerosa TLD - Outras reas

Stable production

Restriction due to flaring limitation

Good reservoirs behavior

Good lateral communication

No oil flow issues

Results obtained during EWTs

PRE-SALT RESULTS

EWT results and learning curve from drilling show improving economics

Average drilling time of wells completed during the year

(versus combined average time for 2006/7)

5 wells

4 wells

5 wells

6 wells

EWT Schedule

EWT Pre-Salt and Transfer of

Rights

EWT Other areas

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COST-BENEFIT ANALYSIS

Capital investments required by Plansal 45% lower, increasing NPV

Investment

Ne

tPresentValue

ConcessionAreas

ConcessionAreas

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Key Assumptions:

150,000 bpd FPSO

Production of 500,000 BOE

Ramp-up in line with industry Historic decline rate

Oil value = 95% Brent

Does not include exploration andacquisition costs

The graph illustrates the cost-benefit ratio of a standard production development in Brazil, using assumptions

based on previous experiences

Case 3 US$12/boe Capex / US$5/boe Opex without Special Participation (such as Transfer of Rights)

Case 1 US$12/boe Capex / US$5/boe Opex

Case 2 US$15/boe Capex / US$7/boe Opex

(expected scenario)

PROFITABILITY

New E&P projects generate attractive returns

US$/ bbl

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E&P PROFITABILITY IN BRAZIL

E&P profitability strongly correlated to oil price

Production in Brazil: 86% oil and 14% gas

Higher net profit per barrel yields better returnthan its peers

Stable regulatory environment allows for

capturing the benefits of the increase in oil prices

Peers: BP, CVX, XOM,RDS, TOT

E&P ROCE

E&P Net Income ($/boe)Brent vs. Net income per Barrel

Profitability of oil Production in Brazil fully exposed to oil prices

Petrobras

Peers

Petrobras

Peers

Brent (Average in dollars)

Netincomepe

rBarrel(US$)

Source: PFC Energy

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VARREDURA PROJECT

Technological development and exploratory optimization

Additional recoverable volume from discoveries:

Post-salt: Marimb, Marlim Sul and Pampo:

1,105 MM boe

Pre-salt: Barracuda, Caratinga, Marlim, Marlim

Leste, Albacora and Albacora Leste: 1,130 MM

boe*

Well productivity exceeds 20,000 bpd

Between 2011 and 2015 67 exploratory wells will be drilled in current production

areas in Campos basin

Varredura Project

*No volumes have been announced regarding the Marlim Leste and Albacora Leste discoveries.

Descobertas do Pr -salna Bacia de Campos2009/10 (VARREDURA)

Discoveries in Pre-salt

Campos Basin 2009/10

(Varredura)

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NEW TECHNOLOGIES

Applications enhance recovery, slow decline rates and increase production

VASPS

Technological Solution Technology Status

Subsea Pumping

Systems

Subsea BCS In Operation

Subsea Pumping Model In Operation (Jubarte e Golfinho)

Skid BCS Prototype in TLD ESP 23 (Oct/11)

Subsea Multiphase Pump BMSHA Prototype in Barracuda (Dec/11)

Gas/Liquid Subsea

SeparationVASPS Prototype Tested in P-08 (2011)

Oil/Water Subsea

SeparationSSAO Prototype in Marlim (End of 2011)

Raw water injectionSRWI Prototype in Albacora (End of 2011)

Subsea electric

transmission and

distribution

Under qualification Prototype scheduled to 2015

Underwater Electric

Pump in SkidRaw water injection Oil/Water Subsea

Separation

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NEW VESSELS AND EQUIPMENTS

Resources required for production growth

39 rigs contracted, 28 more to be built by 2020:39 rigs contracted, 28 more to be built by 2020:

o Until 2013: 16 rigs contracted before 2008 and 2 rigs relocated from international operations; +15 newrigs contracted in 2008, +1 in 2009, +1 in 2010 and +4 in 2011 through international bidding

o 2015-2020: From the 28 rigs to be built in Brazil, EAS won the bid for the first package - constructionand chartering of seven drilling rigs to be built in Brazil. A new bid was open for the remaining 21

Critical Resources Current Situation(Dec/10)

Delivery Plan (to be contracted)

Accumulated Value

By 2013 By 2015 By 2020

Drilling Rigs Water Depth Above 2.000 m 15 39 37 (1) 65 (2)

Supply and Special Vessel 287 423 479 568

Production Platforms SS e FPSO 44 54 61 94

Others (Jacket and TLWP) 78 80 81 83

Production

Platform (FPSO)Drilling RigsSupply Vessel

(1) Two rigs reallocated from international operations, expire in 2015, so it is not considered in the 2020 accumulated value

(2) The demand for long-term will be adjusted as new demand assessments are made.

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Development

Duration: 4 yearsExtendable for 2 more years

Variable, according toDevelopment Plan

Total Duration: 40 years, extendable for 5 more years according to specific criteria

TRANSFER OF RIGHTS

Development of the areas fully under way

Declaration of Commerciality

Exploration Production

Area 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Franco

lara surroundings

Florim

NE of Tupi

South of Guar

South of Tupi

Resources already

available for:

7 Exploratory wells

1 contingent Exploratory

well

1 EWT

2 contingent EWTs

3D Seismic

First 4

production

units

undergoing

contracting

(*)

New technologies

and definition ofresource allocation

* Conversion at the Inhama shipyard

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THE TRANSFER OF RIGHTS

Mechanisms for the revision allow for fair valuation

The revision will be completed after the declaration of commerciality (4 years period)

Revision based on technical reports and on assumptions provided in the contract

Assumptions for price revision:

Changes in oil price

Production curve

Cost assumptions update

No changes in the discount rate and same appraisal base-date

Higher Lower Petrobras pays the difference to the Federal

Government

(or) Petrobras requests a reduction involumes corresponding to the difference

Federal Government pays the differenceto Petrobras

Finalvalue

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BENEFITS FROM THE DEVELOPMENT OF THE LOCAL INDUSTRY


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Suppliers investing in Brazil

Flexible pipes - Wellstream and Prysmian

Pumping Units Weatherford

Valves Cameron

Turbine generators Rolls-Royce

2 FPSOs fully built in Brazil

6 Platforms under construction in Brazil

Construction of 8 hulls for replicant FPSOs (65% Local

Content)

Contracting of 7 drilling rigs at competitive cost and

21 being leased (55%-65% Local Content)

BENEFITS FROM THE DEVELOPMENT OF THE LOCAL INDUSTRY

Source: Sinaval

Platforms built in Brazil with competitive cost

30 x

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Refining, Transportation &

Marketing (RTM),

Including Petrochemicals

US$74.4 billion

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DOWNSTREAM INVESTMENTS


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US$70.6 billion

Refining Capacity Expansion: Abreu e Lima

Refinery, Premium I and II, and Comperj

Quality & Conversion: Modernization,

conversion, and hydrodesulphurization projects

Operational improvement: maintenance &

optimization, HSE, and R&D

Fleet Expansion

Logistics for Oil: oil supply to refineries and oil

exports infrastructure

1.1%

4.5%

26.4%

0.8%15.2%

Logistics for Oil

International

Fleet Expansion

Quality and Conversion

Refining Capacity Expansion

Operational improvement

1.0%

23.9%

13.9%

4.9%

Petrochemical Investments amount to US$3.8 billion

DOWNSTREAM INVESTMENTS

New refineries, fuel quality and modernization account for 74% of RTM investments

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DOWNSTREAM EXPANSION


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DOWNSTREAM EXPANSION

Reduced dependence on imports of oil products

* Source: IEA 2010 World Energy Statistics** Without considering Capacity Expansion

2006 2007 2008 2011E2009 2010

Brazil (2020)**

IndonesiaMexico

Spain

JapanChina

Germany

France

Brazil (2010)USA

Net Imports as a percentage of total demand (%)*

000 bpd

Increase in import levels will lead to higherlogistical costs...

... and to high levels of exposure tointernational supply

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PRODUCTION DOWNSTREAM AND DEMAND IN BRAZIL


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Oil and NGL Production Brazil Total crude oil processed Brazil Oil Products Market (2 scenarios)

PRODUCTION, DOWNSTREAM AND DEMAND IN BRAZIL

Construction of new refineries to meet the demands of the local market

1,8

11

2,2

05

3,2

17

1,9

71

2,0

04

2,1

00 3

,070

4,9

10

1,7

92

1,7

98

1,9

33

2,1

47

2,2

08

0

1,000

2,000

3,000

4,000

5,000

2009 2010 2011 2015 2020

,000 bpd

Abreu e Lima

Refinery (RNE)230,000 bpd

(2012)

COMPERJ

(1st phase)

165,000 bpd

(2013)

PREMIUM I

(1st phase)300,000 bpd(2016)

PREMIUM I(2nd phase)300,000 bpd

(2019)

PREMIUM II300,000 bpd

(2017)

COMPERJ(2nd phase)165,000 bpd

(2018)

2,536

3,0952,643

3,327

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ivia.co

REFINERY EXPANSION 2011-15


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Capacity: 230,000 bpd

Stage: Implementation

Startup: 2012

REPRE I

Comperj

Abreu e Lima Refinery


Stage: Implementation

Startup: 2013 and 2018


Stage: Preliminary License issued

Startup: 2017

REPRE II

RNE

Comperj


Stage: Earthworks

Startup: 2016 and 2019

Premium I Refinery Premium II Refinery

60s50s 70s 80s 90s 00s

RL

AM

RE

CAP

RP

BC

RE

MAN

RE

DUC

RE

GAP

RE

FAP

RE

PLAN

RE

PAR

RE

VAP

RN

EST

CO

MPERJ

10s

32 years

Petrobras Refineries

Learning curve from Abreu e Lima and Comperj will reduce Premium refineries CAPEX

REFINERY EXPANSION 2011 15

First construction of greenfield refineries in 32 years

PR

EMIUM

I

PR

EMIUM

II

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PRODUCT DEMAND


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Market in 2015Market in 2010

Product deficits in the northeast determine location of new refineries

Increased demand in Central-West, Northeast, and North regions explains the investments in the Northeast

Tax incentives and environmental restrictions (in other regions) contribute to these investments assignments

552

Deficit

-416

Demand

968

Capacity

1.652

Deficit

-23

Demand

1.675

Capacity

299

-464

763

82

1.466

1.384

DeficitDemandCapacity

SurplusDemandCapacity

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PRODUCTS


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21%

4%

7%

10%

Light

36%

6%

9%

21%

Medium Distillated

43%

5%

38%

Others

Fuel OilSpecialNaphtha

LPGGasoline

Jet FuelDiesel

Intermediary

4%

15%

19%

4%11%

15%

65%

15%

50%

Existing refineries output 2020

LightMedium Distillated Others

New refineries output 2020

Higher global demand for medium-distillates products tends to lead to an increase in these prices

New refineries will produce higher value-added oil products

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PREMIUM REFINERIES


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Design competition project based on the lowest cost

Hiring of UOP - international company with wide experience

Unique design integrating both on-site and off-site

Designer involved from conceptual design to technicalassistance when the start up

Economy of Scale (Train: 300kbpd modules)

Standardization of equipments

Age (years)

Scale (000 bpd)

Positive returns based on scale, standardization and design

Current downstream cost

(US$ / bbl in 2010)

Lower refining cost due to designquality and scale

Economies of scale and new implementationstrategies to reduce Capex, including:

Documento

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carburosBolivia.co

INVESTMENT LEVEL


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US$ 16 billion

1.01.0

3.2

4.9

5.9

7.0

4.5

2.3

1.1

0.20.1

15141312111098765

-15%p.y.

Decreasing investments in quality after the segments modernization stage

US$16 billion in 2011-15 Reduction in sulfur content

Avg. Sulfur content Diesel (ppm)

Documento

descargado

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carburosBolivia.co

MARKET IN BRAZIL


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Free market follows international prices in the long term

20

40

60

80

100

120

140

160

2011201020092008200720062005200420032002

US$/bbl2002-2011

ARP Brazil

ARP USA

Documento

descargado

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Natural Gas, Electric Energy

and Fertilizers

US$13.2 billion

Documento

descargado

enwww.Hidro

carburosBolivia.co

GAS, ENERGY, AND GAS-CHEMICALS; 2011-2015

US$ 13 2 billion in gas pipelines LNG regasification power and fertilizers


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US$ 13,2 billion in gas pipelines, LNG regasification, power and fertilizers

2011-15 Investments

US$13.2 billion

Investment cycle in the expansion of the

transportation network to be completed by

2011

New city gates and negotiation with distribution

companies aiming to increase the sales and

establish different contract types

Investment in thermal power generation

Investment in LNG for the pre-salt gas

production transportation and to supply the

thermal power market

investment in natural gas conversion into urea,

ammonia, methanol and other gas-chemicalsproducts

3,4

5,9

0,30,8 26%

21%

45%

2%6%

3,4

2,8

5,9

0,30,8

3,4

2,8

Network Electric Energy

Gas-chemicals plants(Nitrogenized)

International

LNG

Documento

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2ND INVESTMENT CYCLE: MONETIZATION OF THE PRE-SALT RESERVES


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UFN III (Sep/14)

Regs Bahia

(Jan/14)

New NG TPPs

Urucu-Manaus

Gasbel II

Gasduc III

Gastau

Gasene

Gaspal II

Gasan II

Pilar-Ipojuca

Atalaia-Itaporanga

Cacimbas-Vitria

Catu-Pilar

Japeri-Reduc

Gascav

Gascar

LNGPecm

LNGBGUA

TPP Biofuel Conversion

Termoau

Cubato

Ammonia Sulfate (May/13)

ARLA 32 (out/11)

NG Comps + City gates + Network Maintenance

UFN IV (Jun/17)

Acquisition TPPs

UPGN Cabinas

2nd Route Pre-Salt(Aug/14)

Adjustment of the Gas Pipeline Network (US$ 3.34 bi)

New NG TPPs (US$ 1.82 bi)

LNG regasification (US$ 0.74 bi)

Chemical Transformation of NG (US$ 5.85 bi)

TPP Commitments (US$ 0.94 bi)

Renewable Energy: Wind Power and Biomass (US$ 0.02 bi)

Natural Gas Liquefaction (US$ 0.10 bi)

%o

ftotalinvestment

UFN V (Sep/15)

1st Investment Cycle

COMPLETED

2nd Investment Cycle2nd Investment Cycle

20112011--2015 BP2015 BP

45

Documento

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INCREASING DEMAND


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Generation CapacityFertilizer Production

420420

581

6,6946,098

8,894

34

30

44

-1,000

1,000

3,000

5,000

7,000

9,000

11,000

2011 2015 2020

MW

0

10

20

30

40

50

60

70

UTE Renewable Natural Gas Consumption

Millioncm/d

7,114

9,475

6,518

Millioncm/day

New units to consume higher natural gas production

UFN III (Sep/2014)

UFN IV (Jun/2017)

UFN V (Sep/2015)

Brazil currently imports 53% of its total ammonia consumption and will be self-sufficient in 2015

Brazil currently import 53% of the total urea consumed. This amount will reduce to 28% in 2015, 16% in 2017 and

22% in 2020

813813

291

2,936

2,271

1,109

13

3

6

0

1.000

2.000

3.000

4.000

2011 2015 2020

Thous.

ton

/year

-

5

10

15

20

25

30

Ammonia Urea Natural Gas Consumption

Documento


carburosBoli

via.co

SUPPLY & DEMAND (MILLION M3/D)

Increasing supply of associated domestic gas and flexible demand


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TotalDemand

Thermal Power Plants Demand: Petrobras + Third parties

Increasing supply of associated domestic gas and flexible demand

Firm

Flexible30

24

30

24

30

24

202020152011

TotalSupply

173149106 20015196

Downstream

UPGN

Fertilizers61

32

16

39

25

17

Petrobras Demand: Downstream + Fertilizers

Non-thermal power

LDC Demand

202020152011

2011 2015 2020

2011 2015 2020

2011 2015 2020

Guanabara Bay

Pecm

Bahia41

20

1441

20

1421

14

Bolivian Supply

Domestic NG Supply

Supply via LNG Regasification Terminals

Inflexible

Flexible40

13

3725

2011 2015 2020

To be contracted (5.5 GW

76

(15.1 GW)59

(10.7 GW)38

(6.7 GW)

DEMANDPCS 9.400 kcal/m

4969

936

9

9 North Region

Other Regions

55

78

102

SUPPLY

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Biofuels

Distribution

International

US$18.2 billion

Documento


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via.co

BIOFUEL INVESTMENTSPriority for ethanol in partnership with private companies


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Priority for ethanol in partnership with private companiesINVESTMENTS

US$ 4.1 billion

Ethanol

Ethanol Logistics

Biodiesel

R&D

273%

1.5

Pbio + Partners

5.6

16%

735

855

Pbio + Partners

Market Share Pbio+Partners:

2011: 28%

2015: 26%

Biodiesel supply (000 m)

2011 2015

Ethanol supply (million m)

2011 2015

Market-share Pbio+Partners:

2011: 5.3%

2015: 12%

47%

7%

32%

14%

1.9

1.3

0.6

0.3

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Final Considerations

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TECHNOLOGY MANAGEMENT

Complete integration with suppliers research institutions and other oil companies


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Other operatorsOther operators

International Research

Centers

International Research

Centers

SuppliersSuppliers

Brazilian Universitiesand Research CentersBrazilian UniversitiesBrazilian Universitiesand Research Centersand Research Centers

Four R&D centers of Petrobras suppliers under construction

In order to meet local content requirements, several companies will develop technological centers

in Brazil

Expenditures: US$1.3 billion / year

Complete integration with suppliers, research institutions and other oil companies

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plan petrobras londres

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