petrobras at a glance
TRANSCRIPT
PETROBRAS AT A GLANCE
January, 2014
DISCLAIMER
The presentation may contain forward-looking statementsabout future events within the meaning of Section 27A ofthe Securities Act of 1933, as amended, and Section 21Eof the Securities Exchange Act of 1934, as amended, thatare not based on historical facts and are not assurances offuture results. Such forward-looking statements merelyreflect the Company’s current views and estimates offuture economic circumstances, industry conditions,company performance and financial results. Such termsas "anticipate", "believe", "expect", "forecast", "intend","plan", "project", "seek", "should", along with similar oranalogous expressions, are used to identify such forward-looking statements. Readers are cautioned that thesestatements are only projections and may differ materiallyfrom actual future results or events. Readers are referredto the documents filed by the Company with the SEC,specifically the Company’s most recent Annual Report onForm 20-F, which identify important risk factors that couldcause actual results to differ from those contained in theforward-looking statements, including, among otherthings, risks relating to general economic and businessconditions, including crude oil and other commodityprices, refining margins and prevailing exchange rates,uncertainties inherent in making estimates of our oil andgas reserves including recently discovered oil and gasreserves, international and Brazilian political, economicand social developments, receipt of governmentalapprovals and licenses and our ability to obtain financing.
We undertake no obligation to publicly update orrevise any forward-looking statements, whether asa result of new information or future events or forany other reason. Figures for 2013 on areestimates or targets.
All forward-looking statements are expresslyqualified in their entirety by this cautionarystatement, and you should not place reliance onany forward-looking statement contained in thispresentation.
NON-SEC COMPLIANT OIL AND GAS RESERVES:
CAUTIONARY STATEMENT FOR US INVESTORS
We present certain data in this presentation, suchas oil and gas resources, that we are not permittedto present in documents filed with the UnitedStates Securities and Exchange Commission (SEC)under new Subpart 1200 to Regulation S-K becausesuch terms do not qualify as proved, probable orpossible reserves under Rule 4-10(a) of RegulationS-X.
FORWARD-LOOKING STATEMENTS
2
PETROBRAS TODAYFully integrated across the hydrocarbon chain
• 2.4 mm boed production
• 293 production fields
• 96% of Brazilian production
• 34% of global DW and UDW production
Exploration and Production
• 12 refineries (Brazil)
• 2.0 mm bpd refining capacity
• Oil products sales in Brazil: 2,285 Kbpd
• Oil products output in Brazil: 1,997 Kbpd
Downstream
• 7,641 service stations
• 38,1% of market share
• 20% share of service stations
Distribution
• 9,190 km of gas pipelines in Brazil
• NG Supply: 74.9 million m³/d
• 3 LNG Regasificationterminals by 2013 with 41 MMm³/d capacity
• 7,028 MW of generation capacity
Gas and Power
• 24 countries
• 0.7 Bn boe of 1P (SPE)
• 243 th. boed production
• 231 th. bpd refining capacity
International
• 3 Biodiesel Plants
• Ethanol: opening new markets
• Largest domestic producer of biodiesel
• 3rd producer of ethanol in Brazil
Biofuels
(1) Adjusted according average exchange rate. Excludes Corporate and Elimination.
2013 Proven Reserves (SPE Criteria) - Brazil
3
Adjusted EBITDA per Segment (US$ bn) (1)
2009 2010 2011 2012
19.3
30.5
43.4 42.011
4.2
-6.9
-15.6
0.91.7
3.62.0
1.1
2.2
3.03.2
E&P RTM G&P Distribution International
1.1
1.3
1.31.6
OnShore8%
Shallow Water (0-300m)
6%
Deep Water (300-1,500m)
45%
Ultra-Deep Water
(> 1,500m)41%
15.97 Billion boe
COMPETITIVE ADVANTAGESUniquely positioned to integrate upstream and downstream operations
• Leader in deep-water production, with access to abundant oil reserves
• New exploratory frontier, adjacent to existing operations
• Dominant position in growing market, far from other refining centers
• Balance and integration between production, refining and demand
• Fully developed infrastructure for processing and transportinggas
• Integration accross full energy and hydrocarbon chain in Brazil
Exploration & Production Downstream Gas & Power/ Biofuels/Petrochemicals
Abundant reserves 300 km away from the market
4
5
Under Implementation
US$ 207.1 Billion
Under Evaluation
US$ 29.6 Billion
+=Total
US$ 236.7 Billion
All E&P projects in Brazil and projects of the remaining segments in phase IV
Projects for the remaining segments, excluding E&P, currently in phase I, II and III.
770 projects 177 projects947 projects
62.3%(US$ 147.5 Billion) 27.4%
(US$ 64.8 Billion)
1.0%(US$ 2.3 Billion)
1.4%(US$ 3.2 Billion)
1.1%(US$ 2.9 Billion)
2.2%(US$ 5.1 Billion)
4.2%(US$ 9.9 Billion)
0.4%(US$ 1.0 Billion)
71.2%(US$ 147.5 Billion) 20.9%
(US$ 43.2 Billion)
1.1%(US$ 2.3 Billion)
1.4%(US$ 2.9 Billion)
0.5%(US$ 1.1 Billion)
1.5%(US$ 3.2 Billion)
2.9%(US$ 5.9 Billion)
0.5%(US$ 1.0 Bililon)
73.0%(US$ 21.6 Billion)
1.0%(US$ 0.3 Billion)
13.5%(US$ 4.0 Billion)
6.4%(US$ 1.9 Billion)
6.1%(US$ 1.8 Billion)
Phase I: Opportunity Identification; Phase II: Conceptual Project; Phase III: Basic Project ; Phase IV: Execution
* Pbio = Petrobras Biofuel │ETM = Engineering, Technology and Materials │Other Areas = Financial, Strategy and Corporate
International ETM* Other Areas*Pbio*E&P DistribuitionDownstream G&E
2013-2017 BMP INVESTMENTSProjects Under Implementation x Under Evaluation
6
E&P INVESTMENTS
Production DevelopmentUS$ 106.9 Billion
Post-SaltPre-Salt
Transfer of Rights
ExplorationUS$ 24.3 Billion
16%(24.3)
73%16%
Infrastructure and Support
Exploration
Production Development
2013-2017 PeriodUS$ 147.5 Billion
11%
70%24%
6%
32%
43%
25%
Aside from Exploration and Production Development, E&P infrastructure investments total US$ 16.3 Billion.
95% 93% 69% 58%44%
5% 7%30% 35%
31%1%
7%
19%
6%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Post-salt Pre-salt (Concession) Transfer of Rights New Discoveries*
PRODUCTION CURVE IN BRAZIL - OIL AND NGLPost-Salt, Pre-Salt and Transfer of Rights
Th
ou
san
d b
pd
(*) Includes new opportunities in blocks where discoveries have already been found (**) Total capacity added considering only Petrobras´́́́ stake
2014Sapinhoá Norte (Cid. Ilhabela)
Iracema Sul(Cid. Mangaratiba)
2016
Lula Alto
Lula Central
Lula Sul(P-66)
Franco 1 (P-74)
Carioca
Lula Norte (P-67)
Franco SW (P-75)
2012
Baleia Azul(Cid. Anchieta)
2013Sapinhoá Pilot (Cid. São Paulo)
Baúna(Cid. Itajaí)
Lula NE Pilot (Cid. Paraty)
Papa-Terra (P-63)
Roncador III (P-55)
Norte Pq. Baleias (P-58)
Papa-Terra (P-61)
Roncador IV (P-62)
2015
Iracema Norte (Cid. Itaguaí)
2017
Lula Ext. Sul(P-68)
Lula Oeste(P-69)
Franco Sul(P-76)
Tartaruga Verde e Mestiça
Iara Horst (P-70)
Parque dos Doces
Franco NW (P-77)
2020
Espadarte III
Florim
2019
Júpiter
Bonito
Franco Leste
2,022
2,500
4,200
7
2,750
2,0221,980
(±±±± 2%)
��
�
2018NE de Tupi(P-72)
Iara NW (P-71)
Deep Waters Sergipe
Sul Pq. Baleias
Maromba
Espadarte I
Carcará
Entorno de Iara(P-73)
�
Total**365 kbpd
Total**840 kbpd
�
�
8
2013 Production – Oil and NGL in BrazilConclusion of 6 new units in the 4Q13
» 2H13 production will be lower than expected due to:� P-63 / Papa-Terra: late identification of corals led to changes in the subsea arrangement;� FPSO Cidade de São Paulo / Sapinhoá: Subsea 7 delay in building, delivering and installing the Decoupled Buoyancy
Supported Risers System (monobuoy); and� Limited availability of PLSVs due to the difficulties of contracting in Brazil between 2010 and 2011, which has delayed well
connections.»The reservoirs of producing fields have been performing above expectations. Natural Decline observed during the last 12 months
was below the projected range of 10-11%.»The delivery of 6 new units in the 4Q13 will contribute to the sustained production growth during 2014.
2.050
2.250
2.300
2.200
2.150
2.100
2.000
1.950
1.900
1.850
50
1.979
1.9081.888
1.979
1.8921.924
1.846
1.920
1.965
2.0321.968
1.940
1.843
1.9281.9401.960
1.9891.961
1.993
2.0982.110
Thousand bpd3Q12
Average 1,9042Q13
Average 1,9313Q13
Average 1,924Jan/5
FPSO Cidade de Itajaí (Baúna)
Feb/16
FPSO Cid. São Paulo(Sapinhoá)
FPSO Cid. Paraty (Lula NE Pilot)Jun/6
4Q13
2012
FPSO Cid. De Anchieta(Baleia Azul)
Sep/10
2013
TAD (Papa-Terra)
P-63 (Papa-Terra)
P-58 (Parque das Baleias)
P-55 (Roncador)
P-61 (Papa-Terra)
P-62 (Roncador)
Mar-13Jan-13Dec-12 Feb13Nov-12Jun-12 Aug-12 Sep-12Jul-12May-12 Oct-12 Aug-13Jul-13 Sep-13Jun-13May-13Apr-13Apr-12Mar-12Feb-12Jan-12
Project Capacity 1st Oil Hull Top Side /Integration
Local ContentBid
Round Commit. Target
Sapinhoá Pilot FPSO Cid. São Paulo 120 kbpd 01/05/2013 Cosco Shipyard
ChinaSchahin/Modec
Brasfels 2 30% 65%
Baúna and PiracabaFPSO Cid. Itajaí 80 kbpd 02/16/2013 Jurong
CingapuraOdebrecht and Teekay
Cingapura 5 60% 81%
Lula NE Pilot FPSO Cid. Paraty 120 kbpd 05/28/2013 Keppel Shipyard
CingapuraQGOG/SBM
Brasfels 2 30% 65%
Papa-TerraP-63 140 kbpd 11/11/2013 Cosco Shipyard
ChinaQuip
Rio Grande 0 0% 65%
Roncador Module III P-55 180 kbpd 12/31/2013 EAS
BrasilQuip
Rio Grande 0 0% 65%
Parque das BaleiasP-58 180 kbpd 1Q 2014 Queiróz Galvão
Rio GrandeQueiróz Galvão
Rio Grande 0 0% 63%
Papa-TerraP-61
TLWP load out to P-63 1Q 2014 Floatec
BrasfelsFloatecBrasfels 0 0% 65%
Roncador Module IV P-62 180 kbpd 1Q 2014 Camargo Corrêa/IESA
EASCamargo Corrêa/IESA
EAS 0 0% 63%
Sapinhoá Norte FPSO Cid. Ilhabela 150 kbpd Sep/2014 QGOG/SBM
ChinaQGOG/SBMSBM/BRASA 2 30% 65%
Lula - Iracema SulFPSO Cid. Mangaratiba 150 kbpd Nov/2014 Cosco Shipyard
China Not define 2 30% 65%
NEW PRODUCTION UNITS - 2013-2014New platforms built domestically and abroad will contribute to production
* Note: “FPSO Cid. XX” = Leased / “P-XX” = Owned 9
2006-2012
• Petrobras has installed, on average, 5 platforms per yearfrom 2006 to 2011.• Ramp up of these units was delayed due to limitedavailability of drilling rigs2: (2006: 2, 2011: 26)
1 - Does not include installation of Extended Well Tests / 2 - Over 2,000 meters waterdepth / 3 - Petrobras’ Total Interest in capacity added to produce oil
2013-2016
• Between 2013 and 2016 we expect to install an average of 4units per year.• Petrobras will have around 40 drilling rigs² available during thenext 5 years.
PROJECT INSTALLATIONPetrobras has a strong track record of platforms installation per year
10
SEILLEANGOLFINHO
30mbpd
PPER-Phase 12.7MMm³/d
P-34 JUBARTE60mbpd
P-50180mbpd
FPSO-CAPIXABA100mbpd
FPSO-PIRANEMA
30mbpd
P-52180mbpd
P-54180mbpd
Manati8MMm³/d
FSO Cid. DeMacaé
FPSO-Cid. RJ100mbpd
FPSO-CIDADE DE VITÓRIA100mbpd
2008 2009 2010 2011
PRA-1
FPSO Cid. Rio Das Ostras
30mbpd
P-53 – MLL180mbpd
PPER-Phase 2Δ5.3MMm³/d
FPSO Cid. Niteroi MLL
100mbpd
FPSO Cid São Mateus
Camarupim10MMm³/d
Frade100bpd
FPSO E.S. PQ DAS CONCHAS
100mbpd
P-51 – MLSMód. 2180bpd
2012 2013
FPSO Cidade deAngra dos Reis
100bpd
FPSO Cidade deSantos
10MMm³/d
P-57180mbpd
SS-11TIRO/SIDON
20mbpd
FPSO Capixaba(reallocation)
100bpd
Mexilhao15MMm³/d
P-56100mbpd
Cid. Anchieta100mbpd
Cid. Itajaí80mbpd
Cid. São Paulo120mbpd
P-55180mbpd
P-61 & P-63140mbpd
Cid. Paraty120mbpd
2006 2007
P-58180mbpd
To be installedInstalled
8 units840 kbpd
Units and Oil Capacity 1-3 added per year
1 unit100 kbpd
2 units100 kbpd
5 units400 kbpd
5 units480 kbpd
4 units210 kbpd
7 units590 kbpd
5 units370 kbpd
P-62180mbpd
OPERATIONAL EFFICIENCYPROEF - Program to recover and maintain operational efficiency in Campos Basin
PROEF Targets
92
9087
8588
80
71 72
76
81
8890
94 95
94 939696
93 92
93 94 94 94
65
70
75
80
85
90
95
100
2009 2010 2011 2012 2013 2014 2015 2016
Operational Efficiency - E&P Operational Efficiency - UO-BC Operational Efficiency - Without UO-BC Operational Efficiency - UO-RIO
E&P Recent Operational Efficiency (%)
Older Fields
+ 30UO-B
CUO
-RIO
• PROEF aims to improve operational efficiency levels and integrity of production systems
• Program impacts 2 of the 3 Operational Units (UO) in Campos Basin: UO-BC and UO-RIO
• Actions: Workover | Well Intervention | Top Side Maintainance
Formula
OperationalEfficiency =
Oil Production
Potential
New Fields
7
Production
450 kbpd
Production
900 kbpd
PROEF Actions
Corrective
PROEF Actions
Structuring/Preventive
PROEF Goals•Improve Efficiency Levels •Improve Production Systems Integrity
PROEF Goals•Reach Sustainable Levels of Efficiency•Reduce Risk of Loss of Efficiency
Capex/Opex
US$ 5.6 Bn
Capex/Opex
US$ 710 M
11
A parte de imagem com identificação de relação rId7 não foi encontrada no arquivo.
DRILLING RIGSNeeds now largely met, with increasing utilization for production development
12
Drilling rigs in operation (Number)(Greater than 2000 meters)
7 816
2633
40 40
2008 2009 2010 2011 2Q12 2012 3Q13
+7 drilling rigs
� 7 new rigs have entered into operation since the second quarter of 2012. Of these, 6 have been allocated to production development and one to exploration
� New exploration policy: migration of drilling rigs from exploration to production development. Movement away from areas of higher risk
13
PRE-SALT PRODUCTION IS A REALITYProduction reached 390 thousand barrels of oil per day in January 14th, 2014
Pre-Salt Production Data
� Oil Production reached 390 kbpd (Petrobras +
Partners);
� This level was reached with only 19 producing wells, 6
in Santos Basin and 13 in Campos Basin;
� Level reached only 7 years after discovery:
• Campos Basin: 11 years
• US Gulf of Mexico: 17 years
• North Sea: 9 years
Technological Challenges Surmounted
� High Resolution Seismic: higher exploratory success
� Geological and numerical modelling: better
production behaviour forecast
� Reduction of well construction time from 134 days
in 2006 to 70 day in 2012: lower costs
� Selection of new materials: lower costs
� Qualification of new systems for production
gathering: higher competitiveness
� Separation of CO2 from natural gas in deep waters
and reinjection: lower emissions and increase in
recovery factor
14
EXPLORATION AND APPRAISALSubstantial efforts already undertaken to understand pre-salt reservoirs
West Orion Rig
67 Wells Drilled - up to April 2013
41 DSTs
6 EWTs
23 Discoveries
1.443 m Coring
72 Conventional Logs
57 Production Logs
23 Discoveries
Numbers
15
PRODUCTION ACCELERATIONSeries of fast-tracked pilot units now producing and gathering information
Lula Pilot
On stream since Oct/2010
FPSO Cidade de Angra dos Reis
Baleia Azul
On stream since Sep/2012
FPSO Cidade de Anchieta
Sapinhoá Pilot
On stream since Jan/2013
FPSO Cidade de Sáo Paulo
Lula NE
On stream since May/2013
FPSO Cidade de Paraty
16
PRODUCTION ACCELERATIONExisting units connected to pre-salt wells in the Campos Basin
P-48
FPSO Capixaba
P-27
P-53Brava (1 well)Carimbé (1 well)
Baleia Franca (2 wells) Tracajá (2 wells)
17
PRE-SALT – WHAT IS NEXT24 New Production Units by 2020
Curitiba
Florianopolis
Vitória
ES
MG
SC100 km
Rio de Janeiro
RJ
PR
São Paulo
SP
Santos Basin
Campos Basin
2Parque das
Baleias
1Carcará
1Carioca
1Sapinhoá
8Lula
Iracema
1NE Tupi
2Iara
1Florim
5Franco
1Entornode Iara
1Jupiter
18
Block Consortium Field Discoveries Declaration ofCommerciality
RecoverableVolume
BM-S-8BR (66%)
PTG (14%)QG (10%)
BARRA(10%)
• Bem-te-vi• Carcará• Biguá
* ND
BM-S-9BR (45%) BG (30%)
RPS (25%)
Sapinhoá (former Guará) 12/29/2011 2.1 billion boe
Lapa (former Carioca) 12/31/2013 ND
BM-S-10 BR (65%)BG (25%) PAX (10%)
• Parati 03/12/2016 ND
BM-S-11 BR (65%)BG (25%)
PTG (10%)
Lula (former Tupi) 12/29/2010 6.5 billion boe
Cernambi (former Iracema) 12/29/2010 1.8 billion boe
• Iara 12/31/2013 3-4 billion boe
BM-S-21 BR (80%)PTG (20%) • Caramba 04/30/2015 ND
BM-S-24 BR (80%)PTG (20%) • Júpiter 02/28/2016 ND
* Requested extension in the deadline of the Discovery Assessment Plan (PAD)
SANTOS BASIN PRE-SALTPartnership
Development
Duration: 4 yearsExtendable for 2 more years
Variable, according to Development Plan
Total Duration: 40 years, extendable for 5 more years according to specific criteria
TRANSFER OF RIGHTS ACQUISITION (5 BILLION BARRELS) 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 Guará
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 of
resource allocation
19
• Average Price per barrel: US$ 8.51 (Total value: US$ 42.5 billion)
NEW PRODUCTION UNITSPlatforms under construction or already contracted will meet mid-term needs
• Oil Production Capacity: 150,000 bpd per unit
• Installation in Transfer of Rights areas
• Hulls under construction at Rio Grande Shipyard
• Contracts signed for the construction and integration of the topside modules of the six first units: DM/TKK, IESA, Tome/Ferrostaal, Mendes Jr/OSX, Keppel-FELS and Jurong
• The two remaining topside modules and integration package contracts are expected to be awarded by the end of 2013 with the same companies.
• P67 was moved to China (Cosco Shipyard)
• Installation in Transfer of Rights Areas (Franco)
• Conversion will be made at the Inhauma Shipyard
• All units will be converted from 2013 to 2016
• Next ongoing stage: modules construction and integration bidding
• P75, P76 and P77 were moved to China (Cosco Shipyard)
20
8 Replicant FPSOs for Pre-Salt
4 VLCCs Conversion to FPSOs
21
BRASFELS SHIPYARD - RJ
1
2 3
View of BrasFels Shipyard, in Angra dos Reis – RJ (08//3112).(1) P-61 (LC:65%): Construction of the HULL of the TLWP and integration of TOPSIDE (deckbox
and modules constructed in Singapore). (2) FPSO Cidade de São Paulo (LC:65%): Conversion of the HULL in China and integration of 15
modules, constructed in Brasfels (5 mod), Enaval (1 mod), Thailand (8 mod) and China (2 mod). (3) FPSO Cidade de Paraty (LC:65%): Conversion of the HULL and integration of 15 modules
constructed in (5), Nuclep (4), Enaval (2) and Singapore (4).
• Onwnership /Technology: Keppel FELS – Singapore (in Brazil since 2000)
On location
22
RIO GRANDE SHIPYARD – ERG1 - RS
View of Rio Grande Shipyard ERG1 – RS (09/03/12).(1) Steel plates of Ecovix; (2) Sub-blocks of the Hulls of the replicants of Ecovix; (3) QUIP modules for Topside and integration of P-55; (4) Modules of the IESA; (5) Pre edification area, withdetails for the yellow blocks of the Goliath crane type of the Konecranes (biggest crane in the world: 210m high and capacity of 2 thousand ton) delivered in Aug/12; (6) Work integration of P-55; (7) Work construction of Rio Grande Shipyard ERG 2, where will be constructed 3 Drilling Rigs of Setebrasil (NS Cassino, NS Curumim e NS Salinas)
1
2
3
4
5
6
7
22
• Rio Grande - Partners: Ecovix and Engevix (created in 2010) • QUIP - Partners: Queiroz Galvão, UTC Engenharia and Iesa (in Brazil since 2005)
• P-55 as of Dec 2013: On location
ATLÂNTICO SUL SHIPYARD – PE
Atântico Sul Shipyard (Ipojuca-PE): Construction of Zumbi dos Palmares ship in drydock and integration of the P-62 on the dock of the shipyard (08.29.12).(1) P-62: Integration of the FPSO to 15 modules, including 3 built in EAS, 7 in the UTC and 5 in the Nuclep construction sites.(2) SHIP Zumbi dos Palmares of Suezmax (2nd ship of PROMEF 1) in drydock, (3) Panel manufacturing workshops and pre-assembly of blocks; (4) Future area for construction of 6 Setebrasil drilling rigs; (5) Future area for Promar Shipyard, responsible for the construction of 8 gas tankers for Promef Phase 2. 23
1
2
3
4
5
• Partners: Camargo Corrêa and Queiroz Galvão (in Brazil since 2005)
• Technology Partner: Ishikawajima (IHI)
RESEARCH & DEVELOPMENTEstablishing research centers enhances long term future of Brazil as hub
Companies with R&D centers in operation, construction or plans for Brazil:
• Schlumberger
• Baker Hughes
• FMC Technologies
• Halliburton
• General Electric
• Vallourec & Mannesman
• Usiminas
• TenarisConfab
• Cameron
• IBM
• Technip
• Weatherford
• Wellstream
Petrobras’ partnerships with more than 120 universities and research centers have led Brazil to have a prominent worldwide applied research complex
24
Technological Park
25
DOWNSTREAM INVESTMENTS
� Refining capacity expansion on the Under
Implementation Portfolio: RNEST (Pernambuco)
and COMPERJ 1st Phase (Rio de Janeiro)
� Refining capacity expansion in design phase:
Premium I (Maranhão), Premium II (Ceará) and
COMPERJ 2nd Phase (Rio de Janeiro)
� Diesel and Gasoline Quality Portfolio: REPLAN,
RPBC, REGAP, REFAP and RLAM
� Fleet expansion: PROMEF – 45Oil and Oil Products transportation vessels
2013-2017 HIGHLIGHTS
Projects Under ImplementationUS$ 43.2 billion
CorporateEthanol LogisticsFleet Expansion Petrochemical
Logistics for OilQuality and ConversionOperational ImprovementRefining Capacity Expansion
11%(4.9)
21%(9.2)
45%(19.4)
6%(2,8)
6%(2.4)
1%(0.4)
1%(0.3)
Projects Under EvaluationUS$ 21.6 billion
64%(13.8)
16%(3.5)
3%(0.5)
7%(1.5)
2%(0.5)
6%(2.8)
9%(3.7)
8%(1.7)
26
2020 Total Crude Oil Processed may vary depending on Projects Under Evaluation2012 Oil Products Market considers Petrobras’ sales (not total demand).* Crude Throughput considers utilization factor.
Oil Production, Crude Throughput* And Domestic Market
Domestic oil products demand is expected to grow 50% until 2020, but Brazil will be a material net exporter
181
1,323
2,004 1,980
2,750
4,200
1,3931,641
1,798 1,944
2,320
2,3201,036
1,814
2,147 2,255
2,933
3,380
20001980 2020201720122010
Total Crude Oil Processed
Market gap for new refining projects
Oil and NGL Production
Oil Products Demand
DEMAND WILL CREATE ADDITIONAL DEFICIT UNTIL 2020Products’ supply gaps and abundant oil production will create opportunity for refining
RNEST(Abreu e Lima)115 kbpd Nov/14115 kbpd May/15
COMPERJ(1st Phase)165 kbpdAug/16
PREMIUM I(2st phase)300 kbpd
Oct/20
PREMIUM I(1st phase)300 kbpd
Oct/17
PREMIUM II300 kbpdDec/17
COMPERJ(1st Phase)300 kbpdJan/18
Projects Under Implementation
kbpd
Projects Under Implementation
3,380
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TRADE BALANCERapid demand growth in the last 4 years has led to a shift in the trade balance
2,000
2,300
2,600
2,900
3,200
3,500
3,800
4,100
4,400
4,700
5,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Thou
sand
m³
+24%
+24%Diesel Sales
1,000
1,300
1,600
1,900
2,200
2,500
2,800
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Thou
sand
m³
+3%
+65%Gasoline Sales
364 346
18
184
433
-249
478 397
81
227
152
75
Balance
-231
Balance
156
195
421
-226
195
377
-182Oil Oil Products
ImportsExports
27
-408Balance
ImportsExports ImportsExports
2009 2012 9M2013
(thou
s. b
pd)
705
549 548
779
390
798
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OPERATION PERFORMANCE IN BRAZIL – DOWNSTREAMRefining throughput, product output and sales, and costs
� Stable total output in 3Q13 vs 2Q13, with higher diesel and gasoline production
802 864
436 512
788 752
+5%
3Q13
2,128
3Q12
2,026
Diesel
Gasoline
Others
Oil Products Output in Brazil (kbpd) Oil Products Sale in Brazil (kbpd)
984 1.031
569 587
797 804
+3%
3Q13
2,422
3Q12
2,350
Diesel
Gasoline
Others
Throughput (kbpd) and Utilization (%)
� Diesel (+5%): Higher demand due to economic growth (especially retail) and increase of sugar cane and corn harvest.
� Gasoline (+3%): Larger flex-fuel vehicles fleet, associated with gasoline price advantages against ethanol in some states.
1.611 1.690
364 382
97% 96%
0
0
0
1
1
1
3Q13
2,072
3Q12
1,974
Domestic Oil + NGL
Imported OilUtilization
� Higher volume of domestic oil throughput, despite lower total
throughput resulting from scheduled maintenance in REDUC,
REVAP and REGAP in 3Q13.
28
A parte de imagem com identificação de relação rId7 não foi encontrada no arquivo.GASOLINE AND DIESEL INTERNATIONAL PRICESTaxes account for significant share of pump price in Brazil
Brazil Chile China Japan Germany
Gasoline Retail Prices2012 Average
Diesel Retail Prices2012 Average
Brazil Chile China Japan Germany
Disttribution MarginTaxationRefinery Gate Price Anhydrous Alcohol
USAUSA
The refinery gate price for gasoline is currently 37% of the retail price
while for diesel it is 61%
29
30
Domestic and International Price ComparisonReal devaluation and higher Brent price widened the price differential
» Price differential increased in 3Q13 due to Real
devaluation (11%) and higher international oil prices
(+8% in Dollars).
Average Brazil Price* x Average USGC Price**
0
100
200
300
400
500
600
700
800
900
1.000
1.100
240
210
180
150
120
Pric
es (R
$/bb
l)
Average Sales Price Brazil Jun 25th
Adjustments
Diesel ImportsGasoline Imports
Losses
Adjustments
Jan 30th
Mar 6th
Imported Volum
es (Thousand bbl / d)
Jul 16th
+11%
3Q13
2,29
2Q13
2,07
3Q12
2,03
+13%
Exchange Rate (R$/US$)
+8%
110
102
110
+0,3%
Brent (US$/bbl)
* Considers Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil.** USGC price with domestic market prices.
Average Sales PriceUSGC
Sep/13Aug/13Jul/13Jun/13Apr/13Mar/13Feb/13Jan/13Dec/12Nov/12Oct/12Sep/12 May/13Aug/12Jul/12Jun/12May/12Apr/12Mar/12Feb/12Jan/12
3Q132Q133Q12
Natural Gas Demand and SupplyThermoelectric demand lower in 3Q13
» Thermoelectric demand reduced 16%, 3Q13 vs 2Q13 due to higher levels of water in hydroelectric reservoirs. Natural gasthermoelectric generation remained in a high level of 5.7 GW average in 3Q13.
» Lower LNG demand.
» Net income of G&E: -R$ 0.2 billion in 3Q13 x R$ 0.6 billion in 2Q13, mainly due to lower generation volume and energyprice (PLD).
39,9
million m³/day
Domestic
Bolivia
LNG
Non-thermoelectric
Thermoelectric
Downstream E&P/Fertilizers
SUPPLYDEMAND
40,2
37,0
38,611,7
39,3
+18% +18%
-7%
3Q13
84.1
30.3
40.9
2Q13
90.1
30.4
41.4
3Q12
71.5
24.6
39.6
71.0
18.6
40.3
-6%
83.6
32.1
39,6
89.4
38.0
39.3
3Q132Q133Q12
32
NATURAL GAS SUPPLY AND DEMAND (M
illion
m³/d
)
Financial Considerations
34
2013-2017 Period
• Investment Grade Rating maintenance:
− Leverage lower than 35%
− Net Debt/EBITDA lower than 2.5x
• No new equity issuance
• Convergence with International Prices (Oil Products)
• Divestments in Brazil and, mainly, abroad
* Pbio = Petrobras Biofuel │ETM = Engineering, Technology and Materials │Other Areas = Financial, Strategy and Corporate
Financiability Assumptions
28%
International ETM* Other Areas*Pbio*E&P DistribuitionDownstream G&E
27.4%(US$ 64.8 bi)
71.2%(US$ 147.5 Billion) 20.9%
(US$ 43.2 Billion)
1.1%(US$ 2.3 Billion)
1.4%(US$ 2.9 Billion)
0.5%(US$ 1.1 Billion)
1.5%(US$ 3.2 Billion)
2.9%(US$ 5.9 Billion)
0.5%(US$ 1.0 Bililon)
US$ 207.1 Billion 770 projects
PROJECTS UNDER IMPLEMENTATIONFinanciability Assumptions
35
FINANCIAL PLANNING ASSUMPTIONSFinancing analysis only incorporates projects under implementation
Main assumptions for cash flow generation and investment levels
2013-17 BMP is based on constant currencies from 2013.
Brent prices (US$/bbl) US$ 107 in 2013, declining to US$ 100 in the long term
Average exchange rate (R$/US$) R$ 2.00 in 2013, strengthening to R$ 1.85 in the long term
Leverage Limit: < 35% │ Maximum leverage in 2013 and 2014 (34%), declining after 2015
Net debt /EBITDA Limit : < 2.5x │ Limit will be surpassed in 2013 and will fall below 2.0x after 2015
Oil product prices in Brazil Convergence to international prices
Divestments US$ 9.9 billion
Returns on new E&P projects Pre-salt projects breakeven between US$ 40-45/barrel Big post-salt projects have returns similar to pre-salt’s
No equity issuance Investment grade maintenance
36
OPERATING CASH FLOW AND FUNDING NEEDS
Divestments and restructuringsCash utilizationThird-party resources (Debt)Operating cash flow (after dividends)AmortizationInvestments
� Free cash flow, before dividends, by 2015.
Annual borrowing needs (2013-2017)
Gross – US$ 12.3 billion │Net – US$ 4.3 billion
US$
Billio
n246.9
61.3
10.79.9
Sources
165.0
Uses
207.1
39.8
246.9
PRODESIN – Divestment Program:
� 2010/2011 Accomplishment: US$ 1.3 billion
� 2012 Accomplishment: US$ 3.4 billion
� 2013 Accomplishment: US$ 7.4 billion� Sale of 27.3% interest in Edesur company (Argentina)� Sale of 20% interest of block 6/06 (Angola)� Sale of Financial Securities of BR Distribuidora as a guarantee to Petros. � Sale of 20% interest in Gila asset (EUA)� Sale of 50% in blocks in Africa (Agbami, Akpo, Egina and Block 2/85) � Sale of 100% of Brasil PCH� Sale of 100% of Pertroquímica Innova S.A. for US$ 372 million� Sale of 35% stake in block BC-10 in Campos Basin to Shell (23%) and ONGC
Videsh (12%) for US$ 1.636 billion� Sale of 20% of voting capital of Companhia Energética Potiguar (CEP) for
US$ 16 million� Farm-out contracts in US Gulf of Mexico for US$ 185 million (stakes of 33% in
Coulomb, 100% in Cottonwood, 60% in EW910 fields)� Sale of 100% of Petrobras Colombia for US$ 380 million� Sale of participation in Blocks 3 and 4 in Punta del Este Basin (Uruguay) for
US$ 17 million� Sale of 100% of shares issued by the subsidiary Petrobras Energia Peru (PEP)
for US$ 2.6 billion
37
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33,737,3
27,6 28,4
2010 2011 2012 LTM
EBITDAGrowing and stable cash flow generation
30,6
43,4 42,0 37,9
4,1
-6,9-15,6
-10,7
1,4
3,62,0
2,11,3
1,31,6
1,72,1
3,03,2
3,1
E&P RTM G&P Distribution International
2010 2011 2012 LTM
(*) IFRS
(**) Adjusted according average exchange rate. Excludes Corporate and Elimination
Adjusted EBITDA (US$ bn)* Adjusted EBITDA Breakdown per Segment (US$ bn)**
37
38
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0
10.000
20.000
30.000
40.000
50.000
OCF LTM Capex 2011 Capex 2012 Capex 2013 Capex 2017
E&P Downstream Gas & Energy Others
US$ MM
45,078
27,230
CAPEX AND CASH FLOWFree cash flow turns positive with completion of downstream projects
43,164
Capex vs. Operating Cash Flow
Approx.
$49 billion
• 2013 - 2017 Business and Management Plan Assumptions:
• Capex: Downstream projects not currently under implementation only proceed supported by cash flows and balance sheet strength
• Operating Cash Flow: Oil production increases by 750 thous. bpd, generating additional operating cash flow. Import parity would eliminate downstream losses
Approx.
$39 billion
39
1) Net Debt / (adjusted EBITDA 9M13/3 x 4). Adjusted EBITDA= EBITDA excluding earnings of equity-accounted investments and impairments2) Net debt / (Net Debt + Shareholders Equity)3) Includes tradable securities maturing in more than 90 days
CAPITAL STRUCTUREIncrease in Net Debt in 3Q13
R$ Billion 09/30/13 06/30/13
Short-term Debt 18.2 18.2
Long-term Debt 232.7 230.8
Total Debt 250.9 249.0
(-) Cash and Cash Equivalents 3 57.9 72.8
= Net Debt 193.0 176.3
US$ Billion
Net Debt 86.5 79.6
2,422,77
2,32 2,573,05
28%31% 31% 34% 36%
-20%
-10%
0%
10%
20%
30%
40%
0,0
1,0
2,0
3,0
4,0
5,0
3Q12 4Q12 1Q13 2Q13 3Q13
Net Debt/EBITDA Net debt / Net Capitalization 2
» Increase in net debt in 3Q13 due to lower cash
provided by operating activities (R$ 14.4 bi) and
use of cash (R$ 19.6 bi) for investing activities.
1
DEBT PROFILEDiversification and long term
2014 2015 2016 2017 2018 and after
Long Term Debt Amortization Schedule
40
By Maturity By Category By Currency By Rate
Total Debt (US$ 112.5 billion as of 9/30/2013)
Brazilian StateBanks26%
Financial Institutions
21%
Intl Capital Markets
38%
Others2%
Fixed 49%
Floating 51%Long term
93%
Short term7%
Real20%
Dolar71%
Euro 6%
Others3%
ECA´s + Develop. Banks 13%
41
PETROBRAS RATINGSConsolidated Investment Grade position
Petrobras Rating: Baa1Brazil: Baa2 (1 notch below PB)Outlook: Negative
Petrobras Rating: BBBBrazil: BBBOutlook: Negative
Petrobras Rating: BBBBrazil: BBBOutlook: Stable
• Investment grade rating by all three rating agencies;
• Same rating as Sovereign in S&P and Fitch; 1 notch above Sovereign in Moody’s;
• Petrobras’ consolidated investment grade position is strongly supported by the sovereign rating:
• Company’ size and dominant position in Brazil warrants support from the government;
• Maintaining investment grade rating is essential for the feasibility of the BMP 2013-17, as it reduces financing cost.
DIVIDEND POLICY
42
� The application of Petrobras policy and by-laws resulted in the following declarations of dividends
based on 2012 Adjusted Net Income:
Note: 1 ADR = 2 shares
� PN/PBR.A received a higher dividend for 2012 results because of the requirement of a minimum
distribution, based on corporate by-laws, of 3% of the book value of shareholder equity
Petrobras policy is to pay a minimum of 25% of adjusted net income to each class of shares
SHARE ADR
PN – PBR.A R$ 0.96 R$ 1.92
ON – PBR R$ 0.47 R$ 0.94
� According to Brazilian Corporate Law, companies with two classes of shares must pay a minimum
amount equal to 25% of net income
� Regarding Petrobras By-Laws, minimum payable to non-voting shares (PN/PBR.A) is the higher of:
� 25% of Adjusted Net Income
� 3% of the PN’s proportional book value of shareholder’s equity
� 5% of the PN’s proportional paid-in capital
� Non-voting shares have priority rights to distribution of dividends
Petrobras By-Laws Consistent with Brazilian Corporate Law
43
Information:
Investor Relations
+55 21 3224-1510
www.petrobras.com.br/ir