Oil and Gas Resources on the Brazilian

Continental Margin

Oil and Gas Resources on the Brazilian

Continental Margin

Jeferson Luiz DiasJeferson Luiz DiasPetrobras/E&PPetrobras/E&P

November, 2008 Rio de Janeiro, BrazilNovember, 2008 Rio de Janeiro, Brazil

Seminar on Marine Mineral Resources of the South and Equatorial Atlantic Ocean Seminar on Marine Mineral Resources of the South and Equatorial Atlantic Ocean

Brazil: General InformationBrazil: General Information

Area : 8,514,877 km2

Coastline: 7,370 km

Population: 187 million (2007)

Gross Domestic Product (2007): US$ 796 billion

GDP/capita (2007): US$ 4,420

Domestic Oil/Gas Production (2007): 2 million barrels per day

Area : 8,514,877 km2

Coastline: 7,370 km

Population: 187 million (2007)

Gross Domestic Product (2007): US$ 796 billion

GDP/capita (2007): US$ 4,420

Domestic Oil/Gas Production (2007): 2 million barrels per day

EcuadorEcuador

ColombiaColombia

VenezuelaVenezuela

GuyanasGuyanas

PeruPeru

BoliviaBolivia

ParaguaiParaguai

Chi

leC

hile

UruguaiUruguai

Arg

enti

naA

rgen

tina

BrasiliaBrasilia

Rio de JaneiroRio de Janeiro

BrazilBrazil

Brazil: Energetic Matrix

WORLDWORLD

B R A Z I LB R A Z I L

CoalCoal

CoalCoal

Natural GasNatural Gas

OilOil

OilOil

NaturalNaturalGasGas

HydraulicHydraulic

BiomassBiomass

Energetic Matrix Evolution and Forecast Energetic Matrix Evolution and Forecast

Estamos aquí

NAKICENOVIC, GRÜBLER E MACONALD, 1998.

0

10

20

30

40

50

60

70

80

90

100

1850 1900 1950 2000 2050 2100 years

%

Coal Coal

OthersOthers

Oil Oil Natural Gas Natural Gas

HydraulicHydraulicNuclearNuclear

SolarSolar

ModernBiomassModernBiomass

2008

Fossil - 87%

Brazilian Sedimentary BasinsBrazilian Sedimentary Basins

Exploration Concessions

• Total...: 302,9 M km2 (4,7%)- Petrobras...: 151,5 M km2

- Other Companies: 151,8 Mkm2

Brazilian Sedimentary Area

• TOTAL: 6.4 MM km2

• Onshore: 4.9 MM km2

• Offshore: 1.5 MM km2

Offshore (0/400m): 0.78 MM km2

Offshore (400/3,000m): 0.74 MM km2

Petrobras: An Integrated Company Petrobras: An Integrated Company

Income from Operations (%)2007 Summary Financials (US$ billions)

ServicesInternationalDownstreamUpstreamGas & EnergyFinance

- Net Income: 13.1 - Net Income: 13.1

- Investments: 21- Investments: 21

- - Net Revenue: 87.7 Net Revenue: 87.7

500.000500.000 investors in Brazil and abroad investors in Brazil and abroadGovernment w/ 55% voting sharesGovernment w/ 55% voting shares

Total Employees:Total Employees: 68.931 68.931

Downstream

16%

Domestic

E&P

81%

Distribution

3%

Petrobras: International Outlook Petrobras: International Outlook

CORE AREASCORE AREAS

Tr.&Tob.

USA

MEXICO

VENEZUELACOLOMBIA

PERU

ECUADOR

BOLIVIA

PARAGUAY

CHILE

ARGENTINA

BRASIL

HEADQUARTERS

E&P

Refining

Trading

Representative Office

TURKEY

IRANLYBIA

NIGERIA

EQUATORIAL GUINEA

ANGOLA

TANZANIA

MOZAMBIQUE

New York

UK

SINGAPORE

CHINA JAPAN

PORTUGAL

INDIA

1414

1212

1010

88

66

44

22

00

13,7513,75

6060 6262 6464 6666 6868 7070 7272 7474 7676 7878 8080 8282 8484 8686 8888 9090 9292 9494 9696 9898 0000 0202 06060404

Bi bbl Bi bbl (eq.)(eq.)

OnshoreOnshore

Shallow watersShallow waters

Deep waters (> 400m)Deep waters (> 400m)11,0111,01

Petrobras: Oil and Gas Reserves Petrobras: Oil and Gas Reserves

Oil Consumption & Production Forecast in Brazil (thousand bpd)Oil Consumption & Production Forecast in Brazil (thousand bpd)

52%52%52%52% 91%91% 9595%%9595%%Production/

ConsumptionProduction/

Consumption 112%112%112%112%70%70%

(*) Petrobras' estimate considering an average growth of 2.6 % per year

8691004

1132

12711336

1500 1540 1493

1686 1722 1769 1806 1802 17611700

2374

2117

0

500

1000

1500

2000

2500

1997 1998 1999 2000 2001 2002 2003 2004 2005 2011

1783

1684

20062006

Self-sufficiency

Petrobras’ Production Brazilian Consumption

Petrobras´ Exploration Drilling and Completion/Production evolution

OTCOTC19921992

OTCOTC20012001

2.590

944596

8441.098

1.5912.024

3.609

564

1.4481.770

4.007

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Recoverable Oil (Eq.) and Exploratory Success RatioRecoverable Oil (Eq.) and Exploratory Success Ratio

MM bblMM bbl

20%20%24%24% 23%23%

39%39%

50%50%55%55%

49%49%59%59%

Success RatioSuccess Ratio

Campos BasinHeavy Oil & Light Oil Campos BasinHeavy Oil & Light Oil

Santos BasinLight Oil & Natural GasSantos BasinLight Oil & Natural Gas

Espírito Santo BasinLight Oil & Natural GasEspírito Santo BasinLight Oil & Natural Gas

Sergipe-Alagoas BasinLight OilSergipe-Alagoas BasinLight Oil

Recent Discoveries - 2002/2007Recent Discoveries - 2002/2007

Proved Reserves...............: 3,80 B boeProved Reserves...............: 3,80 B boeProb + Poss Reserves.......: 4,50 B boeProb + Poss Reserves.......: 4,50 B boeEvaluation Areas (2007)..: 4,70 B boeEvaluation Areas (2007)..: 4,70 B boe

~ 13.0 B boer (2002-2007)

Domestic E&P ProfileDomestic E&P Profile

Offshore Oil and Gas PotencialOffshore Oil and Gas Potencial

9%9%

17%17%

68%68%

EXPLORATORY WELLS 2008-2012

Potiguar (88) onshore: 70offshore: 18

Potiguar (88) onshore: 70offshore: 18

SEAL& REC & TUC (90)onshore: 70offshore: 20

SEAL& REC & TUC (90)onshore: 70offshore: 20

Bahia Sul (26) Bahia Sul (26)

Esp.Santo (85)onshore: 45offshore: 40

Esp.Santo (85)onshore: 45offshore: 40

Campos (74) (74)Campos (74) (74)

Santos (80) (80)Santos (80) (80)

Ceara & Potiguar AP (8)Ceara & Potiguar AP (8)

Pelotas (2) (2)Pelotas (2) (2)

Equatorial Margin (12)Equatorial Margin (12)

Solimões (23)Solimões (23)

São Francisco (4)São Francisco (4)

Exploration: US$ 13.8 billion

PetrobrasOther Companies

Domestic Production Targets and Projection: 2007-2011-2015Domestic Production Targets and Projection: 2007-2011-2015

0

500

1000

1500

2000

2500

3000

3500

4000

1998 2000 2002 2004 2006

8,5%/year8,5%/year

8,0%/year8,0%/year(Thousand boe/d)(Thousand boe/d)

1,0041,004

179179

1.1801.180

2.0542.054

1.8121.812

2011Target2011

Target

2.9252.925

2,374

551

2015Forecast

1,5001,500

252252

276276

551551

724724

2.8122.812

3.5363.536OilOil

GasGas

2.3742.374

1,7781,778

Shallow Water Oil/Gas discoveries 1974-1984Shallow Water Oil/Gas discoveries 1974-1984

Deep Water Oil/Gas discoveries 1984-2002Deep Water Oil/Gas discoveries 1984-2002

Deep Water Oil/Gas discoveries 2003-2006Deep Water Oil/Gas discoveries 2003-2006

Ultra-deep water Oil/Gas discoveries 2006-2008Ultra-deep water Oil/Gas discoveries 2006-2008

Cluster Blocks

Ultra-deepwater Exploratory Blocks

Intra rift section

SAGBase of Salt

Top of Salt

Top of Albian

K section.

5 10 15 20 km0

Basement

W E

Rift section

Pre-Salt: Seismic Section in depth (meters)Pre-Salt: Seismic Section in depth (meters)

Pre-Salt New Frontier

Tupi Extended Well TestTupi Extended Well TestTupi Extended Well TestTupi Extended Well Test

FPSO

FPSO – 30,000 bopd

1 well

Water Depth: 2.170 m

Oil density: 28 – 42º API

Flare capacity: 1MM m3

ReservoirReservoir

N

1st oil: March/2009

WellWell

FPSO

Tupi Production PilotTupi Production PilotTupi Production PilotTupi Production Pilot

FPSO – 100,000 bopd and 4MMm3/day

Water Depth: 2.145 m

5 production wells, 2 water injectors and 1 gas injector

WellsWells

ReservoirReservoir

N

1st oil: Dec/2010

UTGCA

UGNRPBC

TEFRAN

TUPI Area

URGPMXL

PMLZ-1

170 Km

248 Km

212 Km

145 Km

To service the Pilot

Planned

Existing

Under Construction

Gas Pipeline for Tupi Pilot SystemGas Pipeline for Tupi Pilot SystemGas Pipeline for Tupi Pilot SystemGas Pipeline for Tupi Pilot System

HIGH REWARDHIGH REWARD

HIGH RISKSHIGH RISKS

HIGHHIGHINVESTMENTSINVESTMENTS

HIGHLYHIGHLYTRAINEDTRAINED

PROFESSIONALS PROFESSIONALS

TECHNOLOGYTECHNOLOGY

Petrobras/E&P

TECHNOLOGICAL INTEGRATION

R&D CENTER

Types: Contracts and agreements with Universities

and Research Centers with internal financial support

Contracts with external financial support Networks of excellence

Over 120 Brazilian Institutions

Types: Joint Industry Projects Cooperating Research Strategic Alliances Technology Interchange

Over 70 International Institutions

Petrobras Research Center (CENPES)

Thank You !Thank You !

Seminar on Marine Mineral Resources of the South and Equatorial Atlantic Ocean Seminar on Marine Mineral Resources of the South and Equatorial Atlantic Ocean