"petrobras america inc. “business strategy and results"

PETROBRAS AMERICA INC.BUSINESS STRATEGY AND RESULTS

Presentation toGlobal Energy Conference

Merrill Lynch NYC – October 06

Renato T Bertani rbertani@petrobras-usa.com713 917 3718

Note: Includes International

31.0

12.41.0

1.0

49.3

23.07.5

3.32.31.8

E&P Downstream G&EPetrochemical Distribution Corporate

9%4%

3% 26%

56%

3%

Business Plan 2007-2011US$ 87.1 billion

86%

14%

Brazil International

US$ 12.1 bi

US$ 75.0 bi

PETROBRAS GROUP Investment Plan

49,3

23,0

7,53,32,21,8

2 , 3 7 42 , 8 1 2

5 5 1

7 2 4

7 4 2

1 8 5

2 7 8

3 8 3

2 0 1 5

F o r e c a s t

1 , 6 8 4 1 , 8 8 01 , 5 4 0 1 , 4 9 3

2 5 0 2 6 5 2 7 4

2 8 9

1 3 3

1 6 1 1 6 81 6 3

8 5

1 0 1

9 49 6

2 0 0 3 2 0 0 4 2 0 0 5 T a r g e t 2 0 0 6

O i l a n d N G L - B r a z i l N a t u r a l G a s - B r a z i l

O i l a n d N G L - I n t e r n a c i o n a l N a t u r a l G a s - I n t e r n a c i o n a l

2,036 2,020 2,217 2,403

3,493

4,556Thousand boed

7.8% p.a.

7.5% p.a.

T a r g e t 2 0 1 1

PETROBRAS GROUP UpstreamProduction targets – Oil & NGL and Natural Gas

(*) Domestic Imports and Private Refineries

International Production383

Brazilian Production2.374

383 584+

1.710

Imports309

584

Brazilian Throughput 1.877

Brazilian Oil ProductsConsumption 2.099

Oil 167

Oil Products (*)142

International Sales967

80

Liquid products flow

Thous. bpd

STRATEGIC DRIVERS FOR INVESTMENTSIN THE USA

• INVESTMENT OPPORTUNITIES • PETROBRAS EXPERTISE AND TECHNOLOGY• PORTFOLIO DIVERSIFICATION• LONG TERM GROWTH OPTIONS• MARKET POSITION• OIL (AND BIO FUELS) SURPLUS

EXPLORATION AND PRODUCTIONEXPLORATION AND PRODUCTION

SMALL PLAYERSHALLOW WATERS

LEADING PLAYERLARGE RESERVESNEW FRONTIERS

INNOVATIONTECHNOLOGY

RISK MITIGATION• OPTIONALITY• MATERIALITY• REPEATABILITY

UNITED STATES

MEXICO

HoustonNew Orleans

Cascade

ChinookSt Malo

PRODUCING FIELDSDISCOVERIESPROSPECTS

Coulomb NorthZion

Bryce Sedona

Hadrian

Hadrian S

Monte Belo

Claudius

Flavian

Aurelian

Aransas

Goliad

Big Bend

• New frontier, new province

Deep Shelf Gas Prospects

• New frontier, mature province

Aquarius

CentaurusAndromeda

Cygnus

Crater

Aquila

Pegasus

Scorpio

• Challenging paradigms, inactive province

Cottonwood

• Improving seismic resolution, active province

SEA LEVEL

Williams TowerWilliams TowerHeight 901 ftHeight 901 ft

The Lower Tertiary Play

CASCADE AND CHINOOK

DEVELOPMENT

FIRST OIL:

2009CascadeCascade

ChinookChinook

FPSOShuttle Tanker

FSHR

Tree

ControlUmbilical

PowerUmbilical

Flowline

Gas ExportPipeline

ManifoldCascadeCascade

ChinookChinook

FPSOShuttle Tanker

FSHR

Tree

ControlUmbilical

PowerUmbilical

Flowline

Gas ExportPipeline

Manifold

T u r re t

F la re b o o m

T o p s id e P ro c e s s in g

O ff lo a d in g

L iv in g Q u a r te rs

T u r re t

F la re b o o m

T o p s id e P ro c e s s in g

O ff lo a d in g

L iv in g Q u a r te rs

T u r re t

F la re b o o m

T o p s id e P ro c e s s in g

O ff lo a d in g

L iv in g Q u a r te rs

BLACKBEARD WELL

• Interrupted before target at 30,070ft• Confirmed geological model• Extreme P&T• Technological challenges

MEGAMATA WELL

• Drilling, 21,000ft• $ 18 MM• TARGET REACHED!!!

ANDROMEDAWELL PROJ.

TVD=22.000’

LOW. MIOC.

TOP OLIG. (?)

A A’NW SE

6.000’

9.000’

12.000’

16.000’

20.000’

Andromeda ProspectAndromeda Prospect

• ON BUDGET• ON SCHEDULE (FIRST OIL 1Q 2007)• PRODUCTION RATE: 20 KBOE/D

Megamata, AndromedaDeep gas, WGoM Expl2006

Devel (first oil 1Q07)Cottonwood2005

ProducingCoulomb2004

Appr/DevelChinook, St Malo2003

Appr/DevelCascade2002

RESULTS

ASSETS• 6 Producing fields• 1 field under development• 3 discoveries under app/devl• 30-40 prospects inventory• 2 expl wells drilling

4 FOCUS AREAS320 LEASES• 170 operated• 200 deep and ultra deep water

LEASE POSITION

UPSTREAM SUMMARY

INVESTMENTS & EBITDA

0

200

400

600

800

1000

1200

1400

2006 2008 2010 2012 2014

MM

USD

DEVELOPMENT

EXPLORATIONEBITDA

PRODUCTION

0

20

40

60

80

100

120

140

160

2006 2008 2010 2012 2014

MB

OE/

day

EXPL

APPRAISALFIELDS

PETROBRAS ANNOUCES PURCHASE OF 50% OF TOTAL SHARES OF

PASADENA REFINERY SYSTEM

PRSISTRATEGIC LOCATION

LAND FOR EXPANSIONSHIP CHANNELINDUSTRIAL AREAMAIN PRODUCT PIPES

REFINING INVESTMENTS & EBITDA

0

50

100

150

200

250

300

350

400

2006 2008 2010 2012

MM

US

D

EXPANSION REVAMP

EBITDA

• Investments 2007 - 2011:US$ 1072mm

• Investments 2007 - 2011:US$ 1072mm

REFINING THROUGHPUT

0

20

40

60

80

100

120

2006 2008 2010 2012 2014

MB

OE/

day

HEAVY CRUDE

LIGHT CRUDE

UPSTREAM TAX POSITION

-600

-400

-200

0

200

400

600

800

1000

20062008

20102012

2014

MM

US$

Taxable Rev Tax Credits

REFINING TAX POSITION

0

20

40

60

80

100

120

140

160

2006 2008 2010 2012 2014

MM

US$

Taxable Rev Tax Credits

FISCAL SYNERGIES

The ride is rough...but it may be rewarding!

THANK YOU VERY MUCH