2012-2016 business and management plan

2012 – 2016 Business and

Management Plan

June 25, 2012

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 projectionsand 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 actualresults 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 andour 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

“Historically, Petrobras does not reach its production targets...”

Business Plan

Business Plan

3

Oil Production Targets(kbpd)

2003 2004 2005 2006 2007 2008 2009 2010 2011

2003-2007 BP 1,590 1,620 1,820 2,030 2,220

2004-2008 BP 1,550 1,780 1,940 2,140 2,370 2,330 2,300

2006-2010 BP 1,910 2,000 2,100 2,200 2,300

2007-2011 BP 1,979 2,061 2,195 2,368 2,374

2008-2012 BP 1,875 2,050 2,191 2,296 2,374

2009-2013 BP 2,050 2,250 2,430

2010-2014 BP 2,100 2,180

2011-2015 BP 2,100

Actual Production 1,540 1,493 1,684 1,778 1,792 1,855 1,971 2,004 2,022

Deviation from Target (78)

8 Business Plans: Targets Not Accomplished

E&P Planning based on ‘Aggressive Targets’ which proved themselves, year over year, to be unrealistic

4

Strategic Plan 1999, production target for 2005 was 1,850 kbpd

Strategic Plan 2001, production target for 2005 was 1,900 kbpd

In 2005, actual production was 1,684 kbpd due to delays on P-43, P-48 and P-50

“Historically, Petrobras’ projects delay...”

Business Plan

Business Plan

5

6

RNEST construction in the Suape Industrial Complex (Pernambuco)May/12

ApprovalsStart-up Dateof 1st Phase

Total Investment for the Refinery

(US$ billion)

Milestone 0(Sep/05)

Nov/11 2.3

Milestone 1(Dec/06)

Oct/11 4.1

Milestone 2(Nov/09)

Jul/12 13.4

Milestone 3(Mar/12)

Sep/13 17.1

Milestone 4(Jun/12)

Nov/14 20.1 (*)

Example: Abreu e Lima Refinery2 phases of 115 kbpd each

Project Schedule Delays and Cost Increases

1st Phase Milestones and Total

Investment for the Refinery

• Approval System not completed fulfilled

• Failures in physical and financial monitoring

* US$ 3.0 Billion in claims under discussion already included3

year

s of

del

ay

9 tim

es in

itial

cos

t

7

Business Plan

Business Plan“Local Content Policy causes project delays...”

8

Drilling Rigs Built Abroad: Zero Local Content

Drillings Rigs to be delivered in 2012 (Water Depth > 2.000m)1. Pacific Mistral – South Korea (83 days of delay)

2. Schain Amazônia – China (864 days of delay)

3. Ocean Rig Mykonos – South Korea (98 days of delay)

4. Schahin Cerrado – China (112 days of delay)

5. Etesco Takatsugu J – South Korea (147 days of delay)

6. Deepsea Metro II – South Korea (138 days of delay)

7. Ocean Rig Corcovado – South Korea (148 days of delay)

8. ODN Delba III – Emirates (683 days of delay) -> Marlim Sul

9. Schahin Sertão – South Korea (215 days of delay) -> Roncador

10. ODN Tay IV (481 days of delay) -> Ring-fence Albacora

11. Sevan Brasil – China (atraso de 91 dias) -> BM-S-41

12. ODN I – South Korea (344 days of delay) -> Transfer of Rights

13. ODN II – South Korea (380 days of delay) -> Transfer of Rights

14. Amaralina Star – South Korea (189 days of delay) -> Transfer of Rights

Drillings rigs already delivered and under operation Drillings rigs to be delivered soon. Already based in Brazil

Drilling Rigs delivered in 2011: 10 (542 days of delays)

• High Worldwide Demand for Goods and Services

• Brazilian Local Content compliance and execution timelines

will be shown later

9

Business Plan

Business Plan“Petrobras does not practice international parity for oil products...”

10

R$/

bbl

Imported Volum

nskbbl/ d

Gasoline ImportsARP USGC (with volumes sold in Brazil)

R$/

bbl

Long Term Oil Products Pricing Policy in Brazil

Jan-Apr/12

ARP BRAZIL* x ARP USGC **

Diesel ImportsARP Brazil

(*) Comprises Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil (**) USGC price weighted with volumes sold in the Brazilian market

2012: temporary gap between domestic and international prices combined with higher imports.

2009 and 2010: domestic prices were above international.

0

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2602008 2009 2010 2011

Losses

200720062005200420032002

Gains

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ARP: Average Realization PriceUSGC: US Golf Coast

11

Business Plan

Business PlanOur Differential: Discoveries in Brazil represent 63% of

worldwide deepwater discoveries in the last 5 years

Our Differential: Our reserves are located 300 km away from the domestic market

2005

+164%

2010

1991

7.53

1995

2000

13.23

Petrobras: Proven Reserves in Brazil (billion boe)

• Reserve/Production �� 19.2 years

• Reserves Incorporated in 2011

Total: 1.24 billion boe

Pre-Salt: 1 billion boe

PETROBRAS: Reserve Replacement Ratio > 100% for the 20th consecutive year

BRAZIL: Leadership in New Discoveries in Deep Waters

Brasil

• In the last 5 years, more than 50% of the new discoveries worldwide were made in deep waters. Brazil alone accounts for 63% of these discoveries.

• Projections indicate that as Brazil develops these newly discovered reserves, it will lead non-OPEC supply growth until 2030 (PFC Energy).

2011

Other Discoveries

Deep Waters

33,989 million bblN

ew D

isco

verie

s 20

05-2

010

Brazil

32%

19%

49%

12

15.71

+3%

Southeast Region represents:� 47% of oil product consumption� 62% of power consumption� 65% of natural gas consumption� 55 % of GDP

Our Differential: the value of our reserves300 km away from the market

13

Business Plan

Business Plan

Immediate Management Actions to Improve Results

14

4,910

3,070

2,022

0

1.000

2.000

3.000

4.000

5.000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Production Curve in Brazil – Production of Oil and NGL (kbpd)

First Initiative of the President with the New Executive Board (Feb/12): 2012 Forecasted Annual Oil Production Curve Review

REALISTIC TARGETS

PRAGMATIC VIEW BASED ON STANDARD, REAL PROJECTS

2011-2015 BP

?

REALISM

15

4,910

3,070

2,022

0

1.000

2.000

3.000

4.000

5.000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


REALISTIC TARGETS


REALISM

What’s the possible realistic production for 2012?

E&P revised projects schedules throughout 3 months

2011-2015 BP


16


REALISTIC TARGETS


REALISM

4.910

3.070

2.0222.500

4.200

0

1.000

2.000

3.000

4.000

5.000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

What’s the possible realistic production for 2012?

E&P revised projects schedules throughout 3 months

2011-2015 BP

2012-2016 BP

Up to -1.000 mbpdin some months


17

-17%-710 kbpd

18

Phase IOpportunity Identification

Phase IIConceptual

Project

Phase IIIBasic Project

Phase IV

Execution

Phase VClosing

Project Beginning and Planning

Entering Petrobras Portfolio

Start-up

EVTE approval Phase I

Conceptual EVTE approval

CAPITAL DISCIPLINE

Basic EVTE* Approval and liberation for

execution

Condition for Contracting

Investments in 2012-2016 BP

Exploration and Production Projects in Brazil:

Projects in Phases I, II and III may have the authorization to anticipate resources when this is shown to accelerate oil production

* Technical and economic feasibility study

Exception only for E&P Brazil

Second Initiative of the President with the New Executive Board: Compliance with the Project Management Approval System

PERFORMANCE

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Linha de Base Realizado Projetado

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ar-1

4m

ai-1

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l-14

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v-14

(US

$ M

ilhõe

s)

Linha de Base Realizado Proje tado

Physical Monitoring: ‘S’ Curve Financial Monitoring: ‘S’ Curve

Monthly Physical Progress Deviation

Term deviation

Entry into Planned Operation

Entry into Projected Operation

Projected Total Cost

Planned Total Cost

Cost Deviation

Critical Projects Measured Monthly by the Board of Directors and Executive Board

Explanations for delays

Base line Preformed Projected Base line Preformed Projected

Critical Projects Measured Monthly by the Board of Directors and Executive Board

Explanations for delays

Authorization for Budget Review

Recovery Plan, when necessary

Third Initiative of the President with the New Executive Board:Manage Projects Effectively

• All 2012-2016 BP projects under implementation and evaluation have an ‘S’ Curve as unique reference of management, planning, control and monitoring at Petrobras•Three new Executive Managers positions created inside the Engineering and E&P areas will be exclusively dedicated to the construction of drilling rigs and production systems

19

Integrated Portfolio Management

Fundamentals of 2012-2016 Business Plan

• ‘S’ Curves

• Management focused in

accomplishing physical and

financial targets of each project

PERFORMANCE

• To ensure expansion with solid financial

indicators

CAPITAL DISCIPLINE • Priority

given to exploration

and production projects of

oil and natural gas in

Brazil

• Realism in production

targets

PRIORITY

2012 2016

20

21

2012-2016 BP Investments: Approved by Petrobras Board of Directors in June 13, 2012

2012-2016 PeriodUS$ 236.5 Billion

*4.5% of investments abroad, 90% in E&P

• Parity with Imported Oil Products Prices

• Maintenance of Investment Grade:

- Leverage lower than 35%

- Net Debt/EBITDA lower than 2.5x

• There is no issuance of new shares

• Divestments of US$ 14.8 Billion, focusing on assets outside Brazil

Financiability Assumptions

28%

Distribution BiofuelRTM G&E PetrochemicalE&P Corporate

60.0%(US$ 141,8 Billion)

27.7%(US$ 65.5 Billion)

1.3%(US$ 3.0 Billion)





E&P

22

Investments during the 2012-2016 Period: Implementation Vs. Evaluation

US$ 208.7 Billion US$ 27.8 BillionUS$ 236.5 Billion

28%

** E&P abroad

RTME&P Petrochemical Distribution Biofuel CorporateG&E

60.0%(US$ 141.8 Billion)

27.7%(US$ 65.5 Billion)





5.8%(US$ 13.8 Billion

24.8%US$ 51.7 Billion






17% (**)(US$ 4.6 Billion)

50%(US$ 13.9 Billion)


5%(US$ 1.3 Billion)

0%(US$ 0.1 Billion)

7%(US$ 1.9 Billion)

Under Implementation Under Evaluation+=2012-2016 BP All E&P projects in Brazil and projects of the

remaining segments in phase IV*Projects for the remaining segments

currently in phase I, II and III.

833 projects 147 projects980 projects

* Includes budget already designated for projects under evaluation for RTM, G&E, Petrochemical, Distribution, Biofuels and Corporate

65.8%(US$ 137.2 Billion)

Under Evaluation: 147 Projects RTM, G&E, Petrochemical, Distribution and Biofuels

2012-2016 PeriodUS$ 27.8 Billion

* E&P abroad

17% (*)(US$ 4.6 Billion)



5%(US$ 1.3 Billion)

7%(US$ 1.9 Billion)

Corporate

Biofuel

Distribution

G&E

Petrochemical

RTM

International E&P

0%(US$ 0.1 Billion)

Change of phase for these projects will depend on:

a. Results of Viability Studies;

b. Resources Availability (Financiability);

c. Competition for financial capacity;

d. Alignment of new refineries costs to international standards;

e. Availability of domestic NG for fertilizer plants and new thermoelectrical units; and

f. Others.

Creativity � Simplicity � Cost ReductionCreativity � Simplicity � Cost Reduction

Composition:Competition for financial capacity

23

24

Program Initiatives for Business 2012-2016 BP

2012-2016 BP

US$ 236.5 Billion

Cost Optimization

Program

Increase of Operational

Efficiency Program in Campos Basin

Local Content Management

Program

Integrated Management of the Company’s Portfolio ��Safety and Environment

Human Resources: Workers engagement with the Plan will be valued

Greater weight given to performance assessment for targets aligned with the 2012-2016 BP

Planned Targets

Directors

Executive Managers

General Managers

Managers and their Teams

25

Biofuel Corporate Distribution G&E International Petrochemical RTME&P0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

2012 2013 2014 2015 2016 2017

Capacidade de Produção de Etanol no Brasil

2020

Nova Fronteira (Boa Vista), Guarani e Total

Projetos em Obra: Expansão de Nova Fronteira (Boa Vista), Guarani e Total

Projetos em AvaliaçãoFase I: Aquisição de projetos Brownfield

Em Operação

Mil m³ / ano

65,8%(US$ 1 37 ,2 B i )

1,4 %(US$ 3,0 Bi )

0 ,9%(US$ 1 ,9 B i )

1 ,7 %(US$ 3,5 B i)

1 ,8 %(US$ 3 ,7 Bi )

3,7 %(US$ 7,8 B i)

2 4,8 %

(US$ 5 1,7 Bi )

17,0% (*)(US$ 4,6 B i)

5 0 ,0 %

(US$ 1 3,9 B i)

2 1,0 %(US$ 6,0 B i)

5 ,0 %(US$ 1 ,3 Bi )

7,0 %

(US$ 1,9 B i)

0 ,0%(US$ 0 ,1 B i )

US$ 27,8 biEm Avaliação

US$ 208,7 biEm Implantação

4.210

2.460

2.022

1.000

2.000

3.000

4.000

5.000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Mil bpd

Pil oto Lula NE (Cid. Paraty)

Pil oto Sapinhoá(Cid. São Paul o)

Papa-Terra (P-61 e P-63)

Roncador II I (P-55)

Lul a Norte, Sul, Alto, Central

Franco 1 e 2

CariocaBaleia Azul(Cid. Anchieta)

Baúna e Piracaba(Cid. I tajaí)

Sapinhoá Norte (Cid. I lhabel a)

Iracema Sul (Cid. Mangarati ba)

Roncador IV (P-62)

Norte Pq. Baleias (P-58)

Iracema Norte

Aruanã

Iara NW, Horst

F ranco 3

NE Tupi

Júpi ter

Sul de Guará

Carcará

Franco 4 e 5

Espadarte I II

FlorimEntorno de Iara

Maromba

Boni to

Curva de Produção Brasil - Produção de Óleo e LGN

Em operação

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

2012 2013 2014 2015 2016 2020

Capacidade Instalada de Geração de EE no Brasil

Capacidade Instalada = 16 Termelétr icas Próprias (5.158 MW)

11 Participações em Termelétricas (690 MW)

Projetos em Obra: Baixada Fluminense

Projetos em AvaliaçãoFase I: Bahia I e Sudeste VI Fase II: Barra do Rocha I

Em Operação

MW

65,8%(US$ 1 37,2 B i)

1,4%(US$ 3,0 Bi )

0 ,9%(US$ 1,9 B i)

1,7%(US$ 3,5 Bi )

1 ,8%(US$ 3,7 B i)

3 ,7%(US$ 7 ,8 Bi )

24,8%(US$ 5 1,7 Bi )

17 ,0% (*)(US$ 4 ,6 Bi )

5 0 ,0 %(US$ 13,9 B i)

2 1,0 %(US$ 6,0 Bi )

5 ,0%(US$ 1 ,3 B i )

7,0 %(US$ 1 ,9 Bi )

0 ,0%(US$ 0 ,1 B i )



262

462

236

0

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Nigéria – Egina

Em Produção

Em ImplantaçãoEm Aval iação

Peru Lotes 57 e 58Argentina – Parva Negra

Angola –Ogonga

Tanzania– Bloco 5

Mil boe/dia

Curva de Produção Internacional - Produção de Óleo e Gás Natural

65,8%(US$ 1 37 ,2 Bi)

1,4 %(US$ 3,0 Bi )

0 ,9 %

(US$ 1,9 Bi )

1 ,7 %(US$ 3,5 Bi )

1,8 %

(US$ 3,7 Bi )

3 ,7 %

(US$ 7,8 Bi )

2 4 ,8%(US$ 51 ,7 Bi )

17,0% (*)(US$ 4 ,6 Bi)

50 ,0 %(US$ 1 3,9 Bi )

2 1 ,0%

(US$ 6 ,0 Bi)

5 ,0 %

(US$ 1 ,3 Bi)

7,0 %

(US$ 1,9 Bi )

0 ,0%

(US$ 0 ,1 Bi )



Mercado de DerivadosMercado de Derivados

Kbpd

2011 2016

901 1.142

8481.011

0

500

1.000

1.500

2.000

2.500

3.000 2.758

51293

2.302

46885

Gasolina DestiladosÓleo Combustível e BunkerOutros


Kbpd

2011 2016

901 1.142

8481.011

0

500

1.000

1.500

2.000

2.500

3.000 2.758

51293

2.302

46885


Plano de Negócios 2012-2016

US$ 236,5 bilhões = US$ 208,7 + 27,8 bilhões

Programa deOtimização de

Custos

Programa de Aumento daEficiência

Operacional da Bacia de Campus

Programa de Gestão de

Conteúdo Local

Gestão Integrada do Portifólio da Companhia e não mais por somatório dos projetos por Área de Negócio

Results

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

2012 2013 2014 2015 2016 2017

Capacidade de Produção de Etanol no Brasil

2020

Nova Fronteira (Boa Vista), Guarani e Total

Projetos em Obra: Expansão de Nova Fronteira (Boa Vista) , Guarani e Total

Projetos em AvaliaçãoFase I: Aquis ição de projetos Brow nfield

Em Operação

Mil m³ / ano

6 5,8 %(US$ 1 37 ,2 Bi )

1,4 %(US$ 3,0 Bi )

0 ,9%(US$ 1 ,9 Bi )

1 ,7 %(US$ 3,5 Bi)

1 ,8 %(US$ 3 ,7 Bi )

3,7 %(US$ 7,8 Bi)

2 4,8 %

(US$ 5 1,7 Bi )

1 7,0 % (*)(US$ 4,6 Bi)

5 0 ,0 %

(US$ 1 3,9 Bi)

2 1,0 %(US$ 6,0 Bi)

5 ,0 %(US$ 1 ,3 Bi )

7,0 %

(US$ 1,9 Bi)

0 ,0%(US$ 0 ,1 Bi )



4.210

2.460

2.022

1.000

2.000

3.000

4.000

5.000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Mil bpd

Pil oto Lula NE (Cid. Paraty)

Pil oto Sapinhoá(Cid. São Paul o)


Roncador II I (P-55)

Lul a Norte, Sul, Alto, Central

Franco 1 e 2

CariocaBaleia Azul(Cid. Anchieta)

Baúna e Piracaba(Cid. I tajaí)

Sapinhoá Norte (Cid. I lhabel a)

Iracema Sul (Cid. Mangarati ba)

Roncador IV (P-62)


Iracema Norte

Aruanã

Iara NW, Horst

F ranco 3

NE Tupi

Júpi ter

Sul de Guará

Carcará

Franco 4 e 5

Espadarte I II

FlorimEntorno de Iara

Maromba

Boni to

Curva de Produção Brasil - Produção de Óleo e LGN

Em operação

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

2012 2013 2014 2015 2016 2020

Capacidade Instalada de Geração de EE no Brasil

Capacidade Instalada = 16 Termelétr icas Próprias (5.158 MW)

11 Participações em Termelétricas (690 MW)

Projetos em Obra: Baixada F luminense

Projetos em AvaliaçãoFase I: Bahia I e Sudeste VI Fase II: Barra do Rocha I

Em Operação

MW

6 5,8 %(US$ 1 37,2 B i)

1,4 %(US$ 3,0 Bi )

0 ,9 %(US$ 1,9 B i)

1,7 %(US$ 3,5 Bi )

1 ,8%(US$ 3,7 B i)

3 ,7%(US$ 7 ,8 Bi )

2 4,8 %(US$ 5 1,7 Bi )

17 ,0% (*)(US$ 4 ,6 Bi )

5 0 ,0 %(US$ 13,9 Bi)

2 1,0 %(US$ 6,0 Bi )

5 ,0%(US$ 1 ,3 Bi )

7,0 %(US$ 1 ,9 Bi )

0 ,0%(US$ 0 ,1 Bi )



262

462

236

0

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Nigéria – Egina

Em Produção

Em ImplantaçãoEm Aval iação

Peru Lotes 57 e 58Argentina – Parva Negra

Angola –Ogonga

Tanzania– Bloco 5

Mil boe/dia

Curva de Produção Internacional - Produção de Óleo e Gás Natural

6 5 ,8 %

(US$ 1 37 ,2 Bi)

1,4 %(US$ 3,0 Bi )

0 ,9 %

(US$ 1,9 Bi )

1 ,7 %(US$ 3,5 Bi )

1,8 %

(US$ 3,7 Bi )

3 ,7 %

(US$ 7,8 Bi )

2 4 ,8%(US$ 51 ,7 Bi )

1 7 ,0 % (*)(US$ 4 ,6 Bi)

50 ,0 %(US$ 1 3,9 Bi )

2 1 ,0%

(US$ 6 ,0 Bi)

5 ,0 %

(US$ 1 ,3 Bi)

7,0 %

(US$ 1,9 Bi )

0 ,0%

(US$ 0 ,1 Bi )




Kbpd

2011 2016

901 1.142

8481.011

0

500

1.000

1.500

2.000

2.500

3.000 2.758

51293

2.302

46885



Kbpd

2011 2016

901 1.142

8481.011

0

500

1.000

1.500

2.000

2.500

3.000 2.758

51293

2.302

46885


Plano de Negócios 2012-2016

US$ 236,5 bilhões = US$ 208,7 + 27,8 bilhões

Programa deOtimização de

Custos

Programa de Aumento daEficiência

Operacional da Bacia de Campus

Programa de Gestão de

Conteúdo Local

Gestão Integrada do Portifólio da Companhia e não mais por somatório dos projetos por Área de Negócio

Biofuel Corporate Distribution Gas and Energy International Petrochemical RTME&P

2012-2016 BP

69%(US$ 89,9 Bi)

19%(US$ 25,4 Bi)

12%(US$ 16,3 Bi)

Infrastructure and Support

Exploration

Production Development

2012-2016 PeriodUS$ 131.6 billion*

Exploration & Production

26

* Not including International E&P investments

27

2012-2016 Period

E&P Investments

ExplorationUS$ 25.4 Billion

Production DevelopmentUS$ 89.9 Billion

8%(2)

69%(17.5)

24%(6)

Transfer of Rights

Post-Salt

Pre-Salt49%(43.7)

34%(30.2)

18%(16.3)

Besides Exploration and Production Development, E&P investments in infrastructure total US$ 16.3 billion

28

Gestão Integrada do Portfólio da Companhia e não mais por somatório dos projetos por Área de

Negócio

Prioridade para os

projetos de exploração e produção de óleo e gás natural no

Brasil

FOCO: Realismo

2012 2016

MAIN CAUSES OF DEVIATION

Projects with New Production Units (36%)a. Optimistic schedule b. Optimistic production curvesc. Delay in the arrival of imported new rigsd. Optimistic timing for well construction and interconnection

(unrealistic ramp ups)

Projects for Existing Production Units (20%)a. Optimistic timing for well construction and interconnection

Projects in Operation (23%)a. Efficiency decrease in some Campos Basin production

Assets (Campos Basin Operational Unit) b. Adjustment of the production potential for some producing

fields

New Discoveries (21%)a. Postponements due to low maturity level

Realism: New Projection for Oil Production in Brazil

Domestic Oil Curve – Production of Oil and LNG

2011-2015 BP(9.2% p.y.)

-17%-710 kbpd

2014-2016(4 - 6% p.y.)

2012-2013(+/– 2%)

Up to -1.000 mbpdin some months

Production Curve in Brazil – Post-Salt, Pre-Salt and Transfer of Rights

Pre-Salt (Concession)

5%

Post-Salt

95%

Transfer of Rights

1%Pre-Salt (Concession)

30%

Post-Salt69%

New Discoveries (*)

12%Transfer of Rights

19%

Pre-Salt (Concession)

28%

Post- Salt42%

Thousands bpd


Roncador IV (P-62)

Sapinhoá Norte (Cid. Ilhabela)

Iracema Sul(Cid. Mangaratiba)

Lula Alto

Lula Central

Lula Sul

Franco 1

Carioca 1

Lula Norte

Franco 2

Baleia Azul(Cid. Anchieta)

Baúna e Piracaba(Cid. Itajaí)

Piloto Sapinhoá(Cid. São Paulo)

Piloto Lula NE (Cid. Paraty)


Roncador III (P-55)

IracemaNorte

Lula Ext. Sul

Iara Horst

NE Tupi

Carimbé

Aruanã

Iara NW

Franco 3

Franco 4

Sul de Guará

Júpiter

Carcará

Sul Pq. Baleias

Franco 5

Espadarte I

Espadarte III

FlorimMaromba

Bonito

Entorno de Iara

Production Curve in Brazil – Oil and LNG Production

20112,022 kbpd

20162,500 kbpd

20204,200 kbpd

Production Units19 up to 2016

38 up to 2020

29(*) Includes new opportunities in blocks where discoveries have already been found

4242424140

26

16

875

Drilling Rigs Availability: Delivery DelaysDrilling rigs delivered to Petrobras in 2011 and 2012 were constructed outside Brazil

Imported Drilling Rigs: ZERO Local Content

Drilling rigs estimates for 2011: 16Drilling rigs delivered in 2011: 10 (542 days of delay) +1 +1

20142013

+1+2

2012

+8 +10

201120082007 2010

+14

2009Num

ber o

f Dril

ling

Rig

s (W

ater

Dep

th >

2.0

00m

)

Drillings Rigs to be delivered in 20121. Pacific Mistral – South Korea (83 days of delay)

2. Schain Amazônia – China (864 days of delay)

3. Ocean Rig Mykonos – South Korea (98 days of delay)

4. Schahin Cerrado – China (112 days of delay)

5. Etesco Takatsugu J – South Korea (147 days of delay)

6. Deepsea Metro II – South Korea (138 days of delay)

7. Ocean Rig Corcovado – South Korea (148 days of delay)

8. ODN Delba III – Emirates (683 days of delay) -> Marlim Sul

9. Schahin Sertão – South Korea (215 days of delay) -> Roncador

10. ODN Tay IV (481 days of delay) -> Ring-fence Albacora

11. Sevan Brasil – China (atraso de 91 dias) -> BM-S-41

12. ODN I – South Korea (344 days of delay) -> Transfer of Rights

13. ODN II – South Korea (380 days of delay) -> Transfer of Rights

14. Amaralina Star – South Korea (189 days of delay) -> Transfer of Rights

Drillings rigs already delivered and under operation Drillings rigs to be delivered soon. Already based in Brazil

2015 2016

Drillings to be a contracted

30

Drilling Rigs Availability: Meeting the mid/long term demandDrilling rigs delivered to Petrobras from 2016 on will be constructed in Brazil

7 Drillings Rigs from Sete Brasil (EAS Shipyard)• Contracts already signed• Technological partnership under negotiation (conclusion in Jul/12)

21 Drillings Rigs from Sete Brasil• Bidding concluded• Auditing services in progress on construction sites for upcoming contracts

• Estimates for approval of contracts: Jul/12, Aug/12 and Sep/12

5 Drillings Rigs from Ocean Rig• Under negotiation between Ocean Rig and Shipyard

• The shipyards provide monthly to Sete Brazil the physical and financial ‘S’ Curves of each unit to be constructed

• PETROBRAS ENGINEERING renders services of supervision of execution of constructions to Sete Brasil

• E&P/PGSU (Drilling Rigs and Production Units Investment Program )

• management of charter contracts along with SeteBrasil

• monitoring of construction progress• evaluation of ‘S’ curves feasibility• employ necessary actions to ensure the goals according to the Business Plan

33 new domestic drilling rigs from 2016 on: Local Content between 55% and 65%

Num

ber o

f Dril

ling

Rig

s (W

ater

Dep

th >

2.0

00m

)

+8

2018

+6+2

2020201920172012

+9

2016

CONTRACTING STRATEGY MONITORING

31

Baleia Azul Project: Development of pre-salt fields of Baleia Azul, Jubarte and Pirambu, through the drilling, completion and subsea interconnection of 10 wells. Construction and installation of FPSO Anchieta chartered

from SBM, transporting gas through South-North Capixaba pipeline.

Baleia Azul Project: 1st Oil in August/12FPSO Cid. Anchieta: 100 kbpd

Cid. Anchieta FPSO in Keppel Shipyard in Singapore - Mar/2012

LOCAL CONTENTANP Commitment : 0%Target: 44%

Production peak: Mar/13

PHYSICAL PROGRESSForecast: 77.9%Accomplished: 71.6%

32

Physical Monitoring S Curve: Baleia Azul - Stationary FPSO Anchieta Production Unit

0

10

20

30

40

50

60

70

80

90

100

fev-

10

mar

-10

abr-

10

mai

-10

jun-

10

jul-1

0

ago-

10

set-1

0

out-1

0

nov-

10

dez-

10

jan-

11

fev-

11

mar

-11

abr-

11

mai

-11

jun-

11

jul-1

1

ago-

11

set-1

1

out-1

1

nov-

11

dez-

11

jan-

12

fev-

12

mar

-12

abr-

12

mai

-12

jun-

12

jul-1

2

ago-

12

% A

cum

ulad

o


Exp 2: There is no deviation in the accrued physical accomplishment.

2012

IMPLEMENTATION LANDMARKS

Projected Operational Start-Up: Aug/12

Planned Operational Start-Up: Jul/12

1

3

54

Production Unit: Construction and integration monitoring of a chartered FPSO Anchieta, with a processing capacity of 100 kbpd of oil and 3.5 million m3/d of natural gas.

2

Exp 1: One-month delay in operational start-up due to delays in the FPSO adaptation and demobilization from the Espadarte field.

Exp 1Exp 2:

Accrued through April 30, 2012:

Forecast: 95.3%

Accomplished: 98.4%

Baseline Accomplished Forecast

% A

ccru

ed

33

1 - Beginning of FPSO adaptation constructions in Singapore (Aug/11)2 - Conclusion of the FPSO’s mechanical completion (May/12)3 – FPSO sail away to Brazil (May/12)4 –FPSO arrival in Brazil (Jul/12)5 - FPSO mooring (Aug/12)

Exp 1: There is no term deviation. Exp 2: Delay in physical accomplishment through April 30th, 2012 due to the rescheduling of the well campaign and delays in the pre-launch flexible pipeline campaign.

0

10

20

30

40

50

60

70

80

90

100

ago-1

0se

t-10

out-1

0no

v-10

dez-1

0jan

-11fev

-11mar-

11ab

r-11

mai-11

jun-11 jul-11

ago-1

1se

t-11

out-1

1no

v-11

dez-1

1jan

-12fev

-12mar-

12ab

r-12

mai-12

jun-12 jul-12

ago-1

2se

t-12

out-1

2no

v-12

dez-1

2jan

-13fev

-13mar-

13

% A

cum

ulad

o


1 - Conclusion of 1st production well completion (Feb/12)

2 - Conclusion of torpedo anchor installation (Mar/12)

3 - Conclusion of pre-launch of the 1st production well lines (Apr/12)

4 - Interconnection of the Sul-Norte Capixaba gas pipeline (Sep/12)

12

3

4

Wells and Interconnections: Drilling, completion and subsea interconnection of 7 production wells and 3 injection wells. Gas flow through Sul-Norte Capixaba pipeline.

IMPLEMENTATION LANDMARKS

Exp 2:

Well Campaign

Total wells: 10

Drilled: 8

To be drilled:

Jul/12: 1

Oct/12: 1Accrued through April 30, 2012:

Forecast: 69.4%

Accomplished: 59.7%

Physical Monitoring ‘S’ Curve: Baleia Azul – Wells and Interconnections


% A

ccru

ed

34

2012

1º oil: Aug/12

Baúna and Piracaba Project: Development of the Baúna (Tiro prospect) and Piracaba (Sídon prospect) fields. Drilling, completion and interconnection of 11 subsea wells. Construction and installation of an FPSO (Cidade de Itajaí)

chartered from OOG-TK (Odebrecht and Teekay), with a processing capacity of 80 kbpd of oil and 2 MM m3/d of gas to operate both fields.

Baúna and Piracaba Project: 1st Oil on October 2012Itajaí FPSO: 80 kbpd

FPSO Cidade de Itajaí at Jurong Shipyard in Singapore – Mar/2012

Production peak: Jan/14

LOCAL CONTENTANP commitment: 60%Target: 81%


35

Roncador Project Module III – 1st Oil on September/13SS P-55: 180 kbpd

Roncador Project /Module III: Implementation of Module III of the Roncador field (Post-salt), (100% Petrobras) through drilling and completion of 17 wells, collection and injection systems, construction and installation of a production unit (P-55) and installation of 2 oil pipelines and 1 gas pipeline underwater.

P-55 hull at the Rio Grande Naval hub, Brazil – May/2012

Production Peak: Apr/15



36

Sapinhoá Pilot Project: Drilling and completion of 13 wells and interconnection of 15 wells to an FPSO chartered to Schahin/Modec with a production capacity of 120 kbpd of oil and 5 MM m3/d of gas

Sapinhoá Pilot Project: 1st Oil on January 2013FPSO Cidade de São Paulo: 120 kbpd

FPSO Cidade de São Paulo at Brasfels Shipyard in Brazil – Feb/2012

Production peak: May/14



37

Lula NE Pilot Project – 1st Oil on May 2013FPSO Cidade de Paraty: 120 kbpd

Lula NE Pilot Project: Development of the northeastern section of the Lula field. Drilling and completion of 14 wells and interconnection of 15 wells to the FPSO Cidade de Paraty chartered from QGOG/SBM and construction of a 20 km gas pipeline to the Caraguatatuba Gas Treatment Unit.

FPSO Cidade de Paraty at Keppel Shipyard in Singapore – Mar/2012

Production peak: Feb/15

LOCAL CONTENTANP commitment : 30%Target: 30%


38

Papa-Terra Project: Development of Papa-Terra field through drilling and completion of 30 producers and injectors wells interconnected to P-61 - TLWP (Tension Leg Wellhead Platform) and to P-63 FPSO with the capacity of 140 kbpdof oil and 1 MM m³/day of gas

Conversion of P-63 hull at Cosco shipyard, China – Feb/2012


Papa-Terra Project : 1st Oil of P-63 on July/13FPSO P-63: 140 kbpd

Production peak: Oct/16

46


Papa-Terra Project: 1st Oil of P-61 on October/13FPSO P-61: 140 kbpd

Papa-Terra Project : Development of Papa-Terra field through drilling and completion of 30 producers and injectors wells interconnected to P-61 - TLWP (Tension Leg Wellhead Platform) and to P-63 FPSO with the capacity of 140 kbpdof oil and 1 MM m³/day of gas

Topside of P-61 at Keppel Fels shipyard, Singapore – Feb/2012

Production peak: Oct/16

LOCAL INFORMATIONANP commitment: 0%Target: 65%


40

Parque das Baleias Project: Development of Baleia Branca field (Pre and Post-Salt), Cachalote (Post-Salt), Jubarte(Pre-Salt), Baleia Azul (Pre-Salt), and Baleia Anã (Post-Salt) through the drilling, completion, and interconnection of 24 wells. Construction and installation of a production unit, type FPSO (P-58), owned, in Water Depth of 1,399 m with

a processing capacity of 180 kbpd of oil and 6 MM m³/day of gas

Hull Conversion of P-58 at the Rio Grande shipyard in Brazil - Mar/2012

Parque das Baleias Project: 1st Oil on January/14FPSO P-58: 180 kbpd

Production peak: Jan/15

LOCAL CONTENTANP Commitment: 0%Target: 58%


41

Berthing of the P-62: Atlântico Sul Shipyard in Brazil - Jan/2012

Roncador Project Module IV: Develop ment of the production of Module 4 of the Roncador field through the drilling and completion of 17 wells, collection system and injection, construction and installation of a

production unit (FPSO P-62) and installation of a subsea gas and oil pipelines

Roncador Project Module IV - 1st Oil on March/14FPSO P-62: 180 kbpd

Production peak: Jun/15



42

CORPORATE

Sapinhoá Norte Project: 1st Oil on September/14 FPSO Cidade de Ilhabela: 150 kbpd

Sapinhoá Norte Project: Drilling, completion, and interconnection of 15 wells (8 producers and 7 injectors) and the installation of a chartered production unit (Cidade de Ilhabela) with a processing capacity of 150 kbpd and compression

of 6 MM m³/day of gas.

Production peak: Mar/16

Hull of the Mangaratiba FPSO at the CSCC shipyard in China - May/2012



43

CORPORATE

Lula Project - Iracema Sul: 1st Oil on November/14 Cidade de Mangaratiba FPSO: 150 kbpd

Complete Project: Construction and interconnection of 15 wells (Big Bore-type), of which 8 producers and 7 injectors and installation of a chartered production unit with a processing capacity of 150 kbpd and compression of 8MM m³/day of gas

Production Peak: Feb/16


FPSO Mangaratiba hull at the Cosco shipyard, China – May/2012


44

Exploration Investments in Brazil:Focus on New Frontiers

Pre-salt24%(6.0)

69%(17.5)

Transfer of Rights

Post-salt

8%(2.0)

Investments focused on New Frontiers (Equatorial Margin and East Margin), to ensure a continued R/P ratio higher than 15 years, and on the consolidation and appraisal the Pre-salt and Transfer of rights areas

Con

solid

atio

n an

d A

ppra

isal

New

Frontiers

Finding Cost (US$ / boe)

Petrobras Costs Lower than the Majors

Majors (2007-2011): US$ 3.2 to 4.5 / boe

EquatorialMargin

East Margin

1.56Concession Areas

March, 2012

PetrobrasOther Companies

45

2012-2016 BP

US$ 236.5 Billion

Cost Optimization

Program



Local ContentManagement

Program

Integrated Management of Company Portfolio �� Safety and Environment

Structuring Programs for 2012-2016 BP

46

2012-2016 BP

US$ 236.5 Billion

Cost Optimization

Program



Local ContentManagement

Program

Integrated Management of Company Portfolio �� Safety and Environment

Structuring Programs for 2012-2016 BP

47

Operational Cost Optimization Program

Program objectivesProgram objectivesIdentify opportunities for cost reduction with significant and lasting impact in two views:

production assets (e.g. platforms, refineries and power plants) and lines of cost (e.g. stocks of materials and fuel, logistics and maintenance management ).

General view:Focus areas and potential

reductionDetailing and quantification ConsolidationIIII II

8 weeks(June-July)

16 weeks(August-November)

4 weeks(December)

• Structuring• Scope Definition• Initial evaluation of opportunities

• Definition of the Portfolio of initiatives • Implementation Plan (initiatives, responsibilities, milestones, targets and impacts)• Communication

Motivation:Motivation: Expenses subjects to management approval account for 30% of Petrobras annual disbursements.- Manageable costs reached US$ 32 billion in 2011, equal to our operational cash flow (US$ 33 billion) and 33% higher than the funds raised in that year (US$ 24 billion)

Program Schedule Program Schedule –– 2012 Action Plan2012 Action Plan

48

Primary Initiatives for the 2012-2016 BP

2012-2016 BP

US$ 236.5 Billion

Cost Optimization

Program


Program

Integrated Portfolio Management �� Safety and Environment



49

88

80

71 72

94 95 94 93

86879092

0

10

20

30

40

50

60

70

80

90

100

E&P: Operational Efficiency

1Q2012201120102009

Operational Efficiency – UO-BC

Operational Efficiency – without UO-BC

%

Operational Efficiency – E&P

HC Fields/PAD

UO_BC Assets

Transfer of Rights

50

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

88 90

2008 2009 2010 2011 2012 2013 2014 2015 2016

Campos Basin Operational Efficiency

Executed PROEF targets

Petrobras is implementing the PROEF in the E&P activities of Campos Basin PROEF: ‘Operational Efficiency Improvement Program’

51

PROEF: Initiatives to Recover Operational Efficiency

PROEFStructure

15 initiatives in wells, subsea systems and platforms…

... focusing on both short term efficiency increase (2012-13), through specific and supportive initiatives

... And ensuring long term performance (after 2013), through structuring

initiatives

Campaign to workover wells with incrustation

Increase availability of critical resources to producing units

Examples

Simplification and standardization of equipments

Substitution of Production Systems and revitalization projects

Examples

Resources and

Estimated NPV

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

52 52

2012-2016 BP

US$ 236.5 Billion

Cost Optimization

Program




Program

Integrated Portfolio Management �� Safety and Environment

Primary Initiatives for the 2012-2016 BP

53

Local Content Measurement and Monitoring Program

ObjectiveObjectiveMaximize the use of the Brazilian equipment and services industry capacity for 2012-2016 BP procurement demands, with schedules and costs aligned with best market practices

Minimum Local Content Planning of 2012 – 2016 BP

projectsLocal Content Monitoring Local Content MeasurementIIII II

• Information on Industry Capacity• Identification of imported goods and services• Identification of items for nationalization

• Implementation of Local Content Indicators• Monitoring of local content in projects• Actions for recovering occasional deviations in schedule and costs

• Preparation of Execution Reports of Local Content per project (forecast x executed)• Updating data base for future projects

Motivation:Motivation: Higher efficiency in maintenance and post-sales services, access to suppliers, logistics cost optimization, reduction on transportation and delivery time.

ActionAction PlanPlan

54

Long history of technological and operational efficiency inDeep waters

Global Offshore Projects

Petrobras: Dominant position in the global offshore industry

Source: PFC Energy Service Sector team, Jun/2012

Note: Includes offshore projects in conceptual phase, FEED, under bidding or under construction

• An increase in global

offshore capacity is

necessary to meet

Petrobras’ demands

• Constructions in Brazil:

scale gains and

standardizationOTHERS

Others

55

56

Local ContentOffshore Companies building capacity in Brazil

Products Projects in Brazil

Subsea Pipelines

• NKT Flexibles• New flexible pipe plant in Brazil in 2013.

• Technip• Installation of new plant.

• Wellstream• Current plant expansion in 2013 (60% capacity increase).

• Prysmian• Plant expansion to produce flexible pipes.

• Butting• Construction of a new plant for the production of line pipes.

Umbilicals

• Duco and Nexans• Ongoing discussions to establish new plants in Brazil.

• Oceaneering (MSD) • Current manufacturing capacity will double by early 2013.

• MFX • 80% expansion in manufacturing capacity by 2013.

Subsea Equipment

• Aker• Increase of manufacturing capacity.

• FMC• Increase of manufacturing capacity and construction of a technology center.

• GE• Expansion of the Jandira Plant and the construction of a new unit.

• Cameron• Industrial Expansion. 56

Products Projects in Brazil

Turbomachines

•. Rolls-Royce• Construction of new plant in Santa Cruz (Turbogenerators).

• Dresser-Rand• Construction of new unit in Santa Bárbara do Oeste(Turbocompressors).

Offshore cranes• MEP Pellegrini

• Working through partnerships, ongoing discussions to establish new plant in Brazil.

Drill pipes• V&M do Brasil

• Adapting current units to manufacture pipes.

CRA Tubing• V&M do Brasil

• Capacity to produce high corrosion-resistant alloys

High diameter pipes• USIMINAS

• Current units under qualification.

Offshore steel structures

• Metasa• Industrial expansion.

Automation• Emerson

• Industrial expansion to assemble equipments in Brazil.

57

Local ContentOffshore Companies building capacity in Brazil

57

Construction of research centers in Brazil

50 Thematic Networks

At the UFRJ technological complex, 9 P&D centers of important equipment and services suppliers are already in construction/operation:

Other Companies with development plans for technological centers in Brazil:

• Weatherford

• Wellstream

• FMC Technologies

• Usiminas

• TenarisConfab

• Schlumberger

• Baker Hughes

• Halliburton

• General Electric

• Vallourec & Mannesman

• Cameron• IBM• Technip

Source: E&P-CORP, May 25/2012 and CENPES, May 28/2012.

Petrobras partnerships with more than 120 universities and research centers have led Brazil to have a prominent worldwide applied research complex

CENPES expansion (Mar/2012)

58

Replicant FPSO (150 kbpd) – First Oil in Lula Alto - Jan/20168 FPSOs to be used as production units on pre-salt projects in the BMS-9 and BMS-11 blocks:Construction of the hulls and procurement of critical equipments – OKConstruction of the modules and integration of the production units – contracts to be signed by Jul/12

Replicant FPSO – Construction of the hull blocks at Rio Grande Shipyard – ECOVIX - Mar/12

LOCAL CONTENTANP commitment: 30%Target: 73%Integration + Package I

8x

Hull - ok

Critical Eqps Modules Packages

II+V III IVok

Critical Equipments:- Cranes - MEP- Turbogenerators – ROLLS ROYCE- Compressors – DRESSER- Printed circuit heat exchangers - MEGGIT- CO2 removal – UOP- Burner System - HAMWORTH

59

60

InternationalUnder Implementation + Under Evaluation

US$ 10.7 billion

90%(9.7)

Corporate

Distribution

Petrochemical

RTM

G&E

E&P

1%(0.1)

4%(0.4)2%

(0.2)

1%(0.1)

2%(0.2)

International – 2012-2016 Investments

Projects under implementationUS$ 6.0 billion

Projects under evaluation: US$ 4.7 billion

� Self-funded projects

� Positive cash flow to Petrobras

� Investments in high-return projects

� Complementarily with business in

Brazil

� 85% of the investments in E&P

projects

2012-2016 HIGHLIGHTS7%(0.4)

85%(5.1)

Corporate

E&P

G&E

RTM Distribution

Petrochemical

2%(0.1)

4%(0.2)

1%(0.1)

1%(0.1)

61

97%(US$ 4,6 Bi)

3%(US$ 0,1 Bi)

International: Oil and Natural Gas Production Profile

International Production Curve – Oil and Natural Gas Production

US$ 4.7 biUnder

evaluation

US$ 6 biUnder

implementation

85%(US$ 5,1 Bi)

1%(US$ 0,1 Bi)

2%(US$ 0,1 Bi)

4%(US$ 0,2 Bi)

1%(US$ 0,1 Bi)

7%(US$ 0,4 Bi)

62

0

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Projects under Implementation

Projects under Evaluation

Exploratory Projects

Kboe/d

230

168

236262

462

63

Gas & Energy

12%(1.6)

17%(2.3)

4%(0.5)

42%(5.7)

11%(1.5)

14%(1.9)

Other

Maintenance

Expansion – Gas Chemical

Expansion – Regasification

Expansion – Natural Gas Logistics

Expansion – Electric Energy Generation

Projects Under Implementation + Under EvaluationUS$ 13.5 Billion

� Conversion of Natural Gas into fertilizers and

other gas chemical products (UFN III)

� Natural Gas: expansion of processing and

transportation capacity

� Maintenance of industrial complex:

thermoelectric, fertilizer plants, natural gas

processing units, etc

� Energy Generation

� New LNG regasification terminal

HIGHLIGHTS 2012-2016

Gas & Energy - Investments - Business Plan 2012-2016

6%(0.5)

20%(1.5)

32%(2.5)

7%(0.6)

24%(1.9)

10%(0.7)

Projects Under ImplementationUS$ 7.7 Billion

Projects Under Evaluation: US$ 5.9 billion

Other

Expansion – Electric Energy Generation

Expansion – Natural Gas Logistics

Maintenance

Expansion – LNG Regasification

Expansion – Gas Chemical

64

G&E: Installed Capacity of Electric Power Generation using Natural Gas

Em operação

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

2012 2013 2014 2015 2016 2020

Installed Capacity of Electric Power Generation using Natural Gas in Brazil

Projects under implementation: Baixada Fluminense

Projects under EvaluationPhase I: Bahia II and Sudeste VI Phase II: Barra do Rocha I

Current Operations

MW

US$ 5.9 BiUnder

Evaluation

US$ 7.7 BiUnder Implementation

32%(US$ 2,5 Bi)

24%(US$ 1,9 Bi)

20%(US$ 1,5 Bi)

6%(US$ 0,5 Bi)

10%(US$ 0,7 Bi)

7%(US$ 0,6 Bi)

8%(US$ 0,5 Bi)

54%(US$ 3,2 Bi)

15%(US$ 0,9 Bi)

23%(US$ 1,3 Bi)

Installed Capacity = 16 Own Thermoelectric (5,158 MW)

Stakes in 11 Thermoelectric (690 MW)

65

Baixada Fluminense TP Plant: Construction of the Thermoelectric Power Plant Baixada Fluminense with an installed capacity of 530 MW. This plant will supply the National Interconnected System (SIN) selling a total of 344 MW from

beginning in Mar/14 and 430 MW beginning in Nov/14. The installation will consist of 2 gas turbine generators, 2 heat exchangers, and 1 steam turbine, combined cycle.

Thermoelectric Power Plant Baixada Fluminense : Start-up November/14

Construction of TE Power Plant Baixada Fluminense - Jun/2012

LOCAL CONTENT: 61%(Goods: 31%; Services: 96%)

PHYSICAL PROGRESSForecast: 6,1%Accomplished: 5,6%

66

Physical Monitoring ‘S’ Curve: TP Plant Baixada Fluminense

Exp 2: No accumulated deviation of physical

Construction of the Baixada Fluminense Thermal Power Plant with an installed capacity of 530 MW consisting of 2 gas turbine generators, 2 heat exchangers, and 1 steam turbine, combined cycle.

Exp 1: No deviation from schedule

0

10

20

30

40

50

60

70

80

90

100

jan-

10fe

v-10

mar

-10

abr-

10m

ai-1

0ju

n-10

jul-1

0ag

o-10

set-1

0ou

t-10

nov-

10de

z-10

jan-

11fe

v-11

mar

-11

abr-

11m

ai-1

1ju

n-11

jul-1

1ag

o-11

set-1

1ou

t-11

nov-

11de

z-11

jan-

12fe

v-12

mar

-12

abr-

12m

ai-1

2ju

n-12

jul-1

2ag

o-12

set-1

2ou

t-12

nov-

12de

z-12

jan-

13fe

v-13

mar

-13

abr-

13m

ai-1

3ju

n-13

jul-1

3ag

o-13

set-1

3ou

t-13

nov-

13de

z-13

jan-

14fe

v-14

mar

-14

abr-

14m

ai-1

4ju

n-14

jul-1

4ag

o-14

set-1

4ou

t-14

nov-

14de

z-14

jan-

15fe

v-15

mar

-15

abr-

15m

ai-1

5ju

n-15

jul-1

5ag

o-15

set-1

5ou

t-15

nov-

15de

z-15

2010 2011 2012 2013 2014 2015

% A

cum

ulad

o


1 - Start-up construction of the building site (Jan/12) 2 - Approval of supplies map (Feb/12)3 - Conclusion of basic proj. (Mar/12)4 - First stake UTE (Mar/12)5 - First stake SE/LT (Apr/12)6 - First stake of electrical building (Apr/12)7 - Start of first stake of the base of the TGV (Oct/12) 8 - End of the construction of the TGGs bases 1 and 2 (Dec/12)9 - Simple Cycle Commercial Operation (Mar/14)

IMPLEMENTATION MILESTONES

9

3 6 7

8

Start-up Date (Combined Cycle) -Forecast: Nov/14

Start-up Date (Combined Cycle) - Planned: Nov/14

Accrued by 04/30/2012:

Projected: 6,1%

Accomplished: 5,6%

% A

ccru

ed

Baseline Accomplished Projected

67

5

2

41

G&E: Installed Productive Capacity of Fertilizers – Urea

The installed capacity of urea in the existing plants discounts the volume consumed for the ARLA 32 production.

0

500

1.000

1.500

2.000

2.500

3.000

3.500

2012 2013 2014 2015 2016 2017

Installed Productive Capacity of Urea in Brazil

2020

2 Fertilizer Plants = Capacity of 1.109 thous ton / year

Projects under implementation: Unit of Nitrogen Fertilizers III (MS)

Projects Under EvaluationPhase III: UNF IV – Gas Chemical Complex (ES)

Current Operations

Kton / year

US$ 7.7 biUnder Implementation

32%(US$ 2,5 Bi)

24%(US$ 1,9 Bi)

20%(US$ 1,5 Bi)

6%(US$ 0,5 Bi)

10%(US$ 0,7 Bi)

7%(US$ 0,6 Bi)

US$ 5.9 biUnder

Evaluation

8%(US$ 0,5 Bi)

54%(US$ 3,2 Bi)

15%(US$ 0,9 Bi)

23%(US$ 1,3 Bi)

68

Unit of Nitrogen Fertilizers III: Implementation of a unit for the production of urea in Três Lagoas (MS) to meet the growing demand for nitrogen fertilizers in Brazil. Besides the production of 1.223 million metric ton/ year of urea, 70

mil t/year of ammonia will be produced.

Unit of Nitrogen Fertilizers III

LOCAL CONTENT: 67%(Goods: 47%; Services: 92%)

PHYSICAL PROGRESSForecast : 29,3%Accomplished : 24,4%

69

Physical Monitoring ‘S’ Curve:Unit of Nitrogen Fertilizers III

Exp. 2: The baseline does not include the planning of the contracts signed (on08/31/11 after approval of Phase III).

Implementation of a unit for production of urea in Três Lagoas (MS) for production of 1.223 thous metric tons a year of urea with a surplus of 70,000 t/year of ammonia to supply the market

Exp. 1: No deviation from schedule

0

10

20

30

40

50

60

70

80

90

100

jan-

09

mar

-09

mai

-09

jul-0

9

set-0

9

nov-

09

jan-

10

mar

-10

mai

-10

jul-1

0

set-1

0

nov-

10

jan-

11

mar

-11

mai

-11

jul-1

1

set-1

1

nov-

11

jan-

12

mar

-12

mai

-12

jul-1

2

set-1

2

nov-

12

jan-

13

mar

-13

mai

-13

jul-1

3

set-1

3

nov-

13

jan-

14

mar

-14

mai

-14

jul-1

4

set-1

4

nov-

14

jan-

15

mar

-15

mai

-15

jul-1

5

set-1

5

nov-

15

% A

cum

ulad

o


Start-up date Forecast: Sep/14

Start-up date Planned: Sep/14

1 - Earthwork and Land Drainage (Jan/12)2 - Start Assembly of metal structure of Reform Furnace (May/12)3 - Conclusion of Transmission Line (May/12)4 - Start of oper. of discharge pipe of liquid effluents (Jul/12)5 - Arrival of 1st equip. tagged from Consortium at site (Oct/12)6 - Conclusion of the manufacturing of the Ammonia turbocompressor(Dec/12)7 - Commission. and Start-up of the Ammonia Unit (Jun/14)8 - Commission. and Start-up of the Units of Urea Granulation (Jul/14)


12

3

4 56

7

8

Exp. 2

% A

ccru

ed


Accrued by 04/30/2012:

Forecast: 29,3%

Accomplished: 24,4%

70

71

72%(US$ 1.84 Bi)

Ethanol

Biodiesel

Agricultural Supply

Corporate

11%(US$ 0.28 Bi)

16%(US$ 0.41 Bi)

BiofuelsUnder Implementation + Under Evaluation

US$ 2.5 billion

0,4%(US$ 0.01 Bi)

Biofuels – 2012-2016 BP Investments

6%(0.07)

90%(1.05)

Projects under ImplementationUS$ 1.2 billion

Projects under Evaluation: US$ 1.4 billion

1%(0.01) 3%

(0.03)

Agricultural Supply

Corporate

Ethanol

Biodiesel

� Increase of ethanol production in Brazil

� Construction of Biodiesel Plant in Pará

� Operation of 2nd Generation Ethanol and

BioJetFuel Plant in 2015

� Construction of a greendiesel plant in Portugal

2012-2016 Highlights

72

Biofuels: Ethanol Production Capacity

Ethanol Production Capacity in Brazil

2020

Nova Fronteira (Boa Vista), Guarani and Total

Projects under construction: Expansion of Nova Fronteira (Boa Vista), Guarani and Total

Projects under EvaluationPhase I: Brownfield projects acquisition

In operation

Thousand m³ / year

US$ 1.4 biUnder Evaluation


57%(US$ 0.8 Bi)

21%(US$ 0.3 Bi)

21%(US$ 0.3 Bi)

1%(US$ 0.01 Bi)

90%(US$ 1.05 Bi)

6%(US$ 0.07 Bi)

3%(US$ 0.03 Bi)1%

(US$ 0.01 Bi)

73

74

Downstream

21%(15.2)

44%(31.2)

17%(12.1)

8%(5.6)

4%(2.9)

5%(3.5)

1%(1.0)

Projects Under Implementation + EvaluationUS$ 71.6 billion

Petrochemical

Fleet Expansion

Logistics for OilQuality and Conversion

Operational Improvement

Refining Capacity Expansion

Biofuels

Downstream – 2012-2016 Investments

5%(2.9)

9%(4.8)

4%(2.4)

17%(9.4)

20%(11.0)

45%(24.9)

0

2

4

6

8

10

12

14

16

201620152012 20142013

Biofuels

Petrochemical

Logistics for Oil

Fleet Expansion

Quality and Conversion

Operational improvement

Refining Capacity Expansion

Projects Under ImplementationUS$ 55.8 billion

Projects under evaluation: US$ 15.8 billion

2012-2016 Investments ProfileUS$ billion

1%(0.5)

� High utilization factor on the current assets,

combining flexibility to increase margins

� End of the first investment cycle in Quality

� RNEST and 1st Phase of COMPERJ coming online

� New refineries under evaluation (Phase I)

2012-2016 HIGHLIGHTS

75

0

400

800

1.200

1.600

2.000

2.400

2.800

3.200

3.600

4.000

2012 2013 2014 2015 2016 2020

Th. bbl/day

Downstream – Processing Capacity

Processing Capacity in Brazil

12 Refineries

=

2000 thousand bbl / day Capacity

Projects under implementation: RNEST refinery / Comperj 1st Phase

Phase I: Premium I RefineryPremium II RefineryComperj / 2nd Phase

Projects under evaluation(will not be finalized before 2017)

Current Operations

No new refinery will be built unless we are confident in reaching lower Capex and appropriate returns (aligned to international standards of cost and return)

US$ 15.8 biUnder Evaluation


17%(US$ 9,4 Bi)

9%(US$ 4,8 Bi)

5%(US$ 2,9 Bi)

17%(US$ 9,4 Bi)

20%(US$ 11,0 Bi)

45%(US$ 24,9 Bi)

9%(US$ 4,8 Bi)

5%(US$ 2,9 Bi)

4%(US$ 2,4 Bi)

0,9%(US$ 0,5 Bi)

37%(US$ 5,8 Bi)

8%(US$ 1,2 Bi)

41%(US$ 6,4 Bi)

5%(US$ 0,8 Bi)

7%(US$ 1,1 Bi)

3%(US$ 0,5 Bi)

76

Refining Complexity – Petrobras average(Solomon Index)

Middle Distillates Yield Fuel Oil YieldGasoline Yield (Diesel and Jet Fuel)

+1,38,3

9,6

+1,2

201620122006

7,1

Investments in Refining are adding complexity to the system resulting in a oil product mix output of higher added value.

Improvements in Oil Products Production Profile

77

50%+6pp

+3pp

2016

44%

1T122006

41%

-6pp

2006

+2pp

20%

16%

22%

20161T12

9%

2006

-3pp15%

-3pp12%

20161T12

Northeast Refinery (RNEST): Construction of a new refinery in the Suape industrial complex, in the Pernambuco State, to process 230 kbpd of oil. RNEST will be the operational unit with the greatest conversion rate of crude oil into diesel (70%).

Northeast Refinery (RNEST): 1st Phase in November/14

RNEST construction at the Suape Industrial Complex (PE)– May/2012

LOCAL CONTENTTarget: 75%Actual: 90%

PHYSICAL PROGRESSPlanned: 94.5%Actual: 57.5%

78

Physical Progress ‘S’ Curve: Northeast Refinery (RNEST)

Implementation of the Northeast Refinery, to process 230,000 bpd of heavy oil (16o API). RNEST will be the operating unit at Petrobras with the greatest conversion rate of crude oil into diesel (70%).

0

10

20

30

40

50

60

70

80

90

100

set-0

5

dez-

05

mar

-06

jun-

06

set-0

6

dez-

06

mar

-07

jun-

07

set-0

7

dez-

07

mar

-08

jun-

08

set-0

8

dez-

08

mar

-09

jun-

09

set-0

9

dez-

09

mar

-10

jun-

10

set-1

0

dez-

10

mar

-11

jun-

11

set-1

1

dez-

11

mar

-12

jun-

12

set-1

2

dez-

12

mar

-13

jun-

13

set-1

3

dez-

13

mar

-14

jun-

14

set-1

4

dez-

14

mar

-15

jun-

15

set-1

5

dez-

15

mar

-16

jun-

16

set-1

6

dez-

16

% A

cum

ulad

o


1

2

5

4

97

6Planned Start-up –1st Phase: Nov/14

Planned Start-up –1st Phase: Jul/12

8Exp. 1

Exp. 2

3

Forecast: 94.5%

Cumulative up to 04/30/2012:

Actual: 575%

Planned Start-up–2nd Phase: Apr/13

1 - Completion of construction on Pier (Apr/11)2 - Completion of installation of Raw Water tanks (Jul/11)3 - Energizing of the Incoming Sub-station (Dec/12)4 - Start-up of ETDI (Dec/13)5 - Start-up of ETA (Mar/14)6 - Start-up of Boilers OC (Apr/14)7 - Start-up of SNOX (Oct/14)8 - Start-up of Phase 1 (Nov/14)9 - Start-up of Phase 2 (May/15)


Exp 2: Delay in signing contracts for implementation due to the needof rebids because of excessive price (UDA, UCR, HDT, Pipelines, ETDI, Electricalconnections), impacts of rain and strikes (EVTE baseline does not consider impacts),performance lower than expected on baseline of contracts, delays in purchasingcritical equipment.

Exp 1: Delay in signing contracts for implementation due to the need of rebids because of excessive price (UDA, UCR, HDT, Pipelines, ETDI, Electrical connections) rain/strikes during 2011, delay in the acquisition of equipment by Petrobras, delay in implementation of interconnection pipelines, SNOX, Range Pipeline, ETDI, hydrorefinery, boilers OC (customs clearance and assembly). 79

Planned Start-up –2st Phase: May/15


Financial Monitoring ‘S’ Curve: Northeast Refinery (RNEST)

Exp 2: FX valuation, interest rate appropriation of BNDES financing – not forecasted on the Economic Feasibility Studies, contractual revisions – not forecasted on the Economic Feasibility Studies, signed addendum in the contracts – not forecasted on the Economic Feasibility Studies.

Installation of Northeast Refinery to process 230 kbpd of heavy oil (16º API). RNEST will be Petrobras’ operating unit with the greatest conversion rate of crude oil to diesel (70%).

Exp 1: FX Rate Change, payments for contracts revisions, unbudgeted scopes, signed addendum in the contracts, other impacts and gains with REPENEC and Ex-tarifario.

Total Planned Investment:

US$ 13,362 MM

Exp. 1

Exp. 2

Total Projected Investment:

US$ 17,116 MM

Expected: US$ 8,821.8 MM

Accumulated until 04/30/2012:

Actual: US$ 8,350.4 MM


Sep-

05

Dec

-05

Mar

-06

Jun-

06

Sep-

06

Dec

-06

Mar

-07

Jun-

07

Sep-

07

Dec

-07

Mar

-08

Jun-

08

Sep-

08

Dec

-08

Mar

-09

Jun-

09

Sep-

09

Dec

-09

Mar

-10

Jun-

10

Sep-

10

Dec

-10

Mar

-11

Jun-

11

Sep-

11

Dec

-11

Mar

-12

Jun-

12

Sep-

12

Dec

-12

Mar

-13

Jun-

13

Sep-

13

Dec

-13

Mar

-14

Jun-

14

Sep-

14

Dec

-14

Mar

-15

Jun-

15

Sep-

15

Dec

-15

Mar

-16

Jun-

16

Sep-

16

Dec

-16

80

Milestones DateInvestment

(US$ million)

Phase I 09/29/05 2,307

Phase II 12/21/06 4,056

Phase III 11/25/09 13,362

43 Claims totaling US$ 2,066.56 million

Official Claims

11 Claims totaling US$ 920.56 Million

Potential Claims

21%(US$ 0.7 Bi)

Automotive segment

Corporate and IT

Consumer segment

Subsidiaries andCapital Increases

Operations and Logistics

13%(US$ 0.4 Bi)

21%(US$ 0.7 Bi)

Under Implementation + Under EvaluationUS$ 3.3 billion

43%(US$ 1.4 Bi)

3%(US$ 0.1 Bi)

Distribution

81

Distribution – Investments 2012-2016 BP

21%(0.67)

43%(1.39)

13%(0.42)

21%(0.70)

Projects under implementationUS$ 3.2 billion

Projects under Evaluation: US$ 0.1 billion

1%(0.01)

Corporate and IT

Operations and LogisticsConsumer Segment

Automotive Segment

� Construction of 2 new distribution bases

(North and Mid-West)

� Expansion and Modernization of the Duque de

Caxias Lubricants Unit

� 1275 new BR Mania convenience stores

� Expansion of 142 km of piped gas in Espirito

Santo State

2012-2016 HIGHLIGHTS

Subsidiaries andCapital Increases

82

83

Distribution: Market Share (%)

BR Market Share (%)

US$ 0.1 biUnder

evaluation

US$ 3.2 biUnder

Implementation

21%(0,67)

43%(1,39)

13%(0,42)

21%(0,70)

1%(0,01)

100%(0,81)

39,139,039,4 40,339,539,1

0

10

20

30

40

50

2013 20142012 2015 20202016

34,233,032,831,9 33,2 33,4

%

Automotive segment Overall Market

83

84

FinancialConsiderations

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

No equity issuance Solid investment grade maintenance

Third-party resources in the 2012-2016 period:

Gross - US$ 16 billion / Net - US$ 8.7 billion85

136

209

80

1515

37

Sources Uses

Operating Cash Flow and Funding Needs

Divestments and restructuringsCash utilizationThird-party resources (Debt)Operating cash flow (after dividends)InvestmentsAmortization

US$

billi

on

Brent prices

US$ 5/bbl variation in the Brent price results in a R$ 4.3 billion variation in operating cash flow/year

Production

100 kbpd variation in oil production results in a R$ 3.3 billion variation in operating cash flow/year

Sensitivity Analysis:

By 2016, the company becomes free cash flow positive (before dividends)

US$ 246 US$ 246

86

10,594

23,95121,781

37,498

3,424

15,201

10,434

25,506

2009 2010 2011 2012 (Jan-May)

Gross Net

Yearly Proceeds from Borrowings

The required amount of yearly debt in the 2012-2016 period is in linewith the amount raised recently

Gross and net borrowings (US$ million)

12-16 BPnet debt:US$ 8.7 bi/year

12-16 BP gross debt:US$ 16 bi/year

Note: Net Borrowings: Borrowings – Repayment of principal. May/12 values are estimates 87

Debt profile: diversification, long term, largely linked to dollars

By Maturity By Category By Currency By Rate

Total debt (US$ 82 billion as of 12/31/2011)

BNDES23%

Debent.2%

ExportCredit6%

Financial Institutions35%

Intl Capital Markets

32%

Others2%

Dollar72%

Yen 2% Real

22%

GBP1%

Euro3%

Fixed 48%

Floating 52%Long term

89%

Short term11%

Long Term Debt Amortization Schedule

US$ 3.7 bi

88

2012 – 2016 Business and

Management Plan

June 25, 2012

2012-2016 business and management plan

Investor Relations

days of delay9

days of delay11

days of delay14

days of delays drillings

schahin serto south

pacific mistral south

amaralina star south

ocean rig mykonos south