press release business plan 2011-2015 presentation

1

Press Conference

José Sergio GabrielliCEO

July 25th, 2011

2

This presentation may contain forward-looking statements. Such statements reflect only the expectations of the Company's management regarding the future conditions of the economy, the industry, the performance and financial results of the Company, among other factors. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar expressions, are used to identify such statements. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Consequently, these statements do not represent assurance of future results of the Company. Therefore, the Company's future results of operations may differ from current expectations, and readers must not base their expectations solely on the information presented herein. The Company is not obliged to update the presentation and forward-looking statements in light of new information or future developments. Amounts informed for the year 2011 and upcoming years are either estimates or targets.

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally viable under existing economic and operating conditions. We use certain terms in this presentation, such as discoveries, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.

Cautionary statement for U.S. investors:

DISCLAIMER

3

Business Plan Context

4

INVESTMENT REQUIREMENT DUE TO GROWING WORLDWIDE OIL DEMAND

• Additional capacity required in 2020: 38 MM bpd

• Incorporation of new discoveries

• Alternative energy sources

• Increased energy efficiency

Source: WoodMackenzie

20

30

40

50

60

70

80

90

100

110

2000 2005 2010 2015 2020

20

30

40

50

60

70

80

90

100

110

2000 2005 2010 2015 2020

(Global Liquids Demand in MM bpd)LIQUIDS DEMAND SCENARIO

Probable and developing projects

Non-OPEC

OPEC Projected Decline

Projected Decline Non-OPEC

OPEC

Probable and developing projects, and new discoveries*

5Source: BP Statistical Review 2011

OECD oil consumption decreases 0,04% p.y.

5

BRAZIL IS THE SEVENTH LARGEST WORLD OIL CONSUMER

Brazil oil consumption grows 2.1% p.y.;

1.61.71.82.02.32.42.42.62.83.23.34.5

9.1

EUA

China

Japan

India

Russia

Saud

i Arabia

Brazil

German

South Co

rea

Canada

Mexico

Iran

France

United Kingdo

m

Total Oil Consumption per Country* – 2010 (MM bpd)

19,15

Above 3 MM bpd Between 2‐3 MM bpd Under 2 MM bpd

Total Oil Consumption(Índex 1999 = 100)

90

110

130

150

170

190

210

230

1999 2001 2003 2005 2007 2009

BrazilEUAWorldOECDIndiaChina

* Including Ethanol + Biodiesel

6

SUPPLIER CHAIN DEVELOPMENT POLICY

Sustainability Competitiveness

Health, Safety and

the Environment

Industrial Performance

Fiscal Policy

Financeability Regulation

Foment micro and small companies

Industrial Policy

Industrial Capacity

Professional Qualification

Technological Qualification

Qualification

Maximize Local Content

Strategic Guidelines

TechnologyStimulate Supplier

ChainIncrease in Demand

Phase I Phase II Phase III

• Industrial Reactivation

• Consolidation of Shipyards

• Establishment of Supplier Chain

• Professional Qualification

• Technological Research and Development

• Consolidation of Production Chain

Local ContentInternational

Competitive Level> Local Content

7

1.855 1.971 2.004

321 317 334 435

618

1.120

111 132 144141

180

246

2.100

99 9693 96

125

142

2008 2009 2010 2011 2015 2020

Oil Production‐ Brazil Natural Gas Production ‐ Brazil Oil Production ‐ International Natural Gas Production ‐ International

2,386 2,516

4.9% p.Y.

6,418

3,993

1,148543 Pre-Salt’0

00 boe

/day

2,772

845

Transfer of Rights13

+10 Post‐Salt Projects

+8 Pre‐Salt Projects

+1 Transfer of Rights

+ 35 Systems

Added Capacity

Oil: 2,300,000 bpd

2,575

Note: Does not include Non‐Consolidated International Production.

• Accomplishment of 30 EWTs from 2011 to 2015: 13 in the Pre‐Salt, 7 in the transfer of rights area and 10 in the post‐salt;

•Pre‐Salt participation in the total production will enhance from the current 2% to 18% in 2015 and 40.5% in 2020.

3,070

4,910

OIL, LNG AND NATURAL GAS PRODUCTION – BRAZIL AND INTERNATIONAL

8

INCREASE IN SALES VOLUMES

Sales Volume (thousand boe/day)

652 718 731 899

706 699 586231

312 320

480

542593 634125136 147

290

401

1,078

1,3151,2041,0971,453

1,739

997

2,317436

738

906

9494 97

106

141

1717 17

38

79

3,4643,773 3,848

4,958

7,142

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

*2009 *2010 2011 2015 2020

Fertil izers

Electric Energy

Biofuel s

International Sales(**)

Natura l Gas(***)

Exports

Other Dis tribuitors

Sa les to BR

BP 2011‐15 ‐ Petrobras Total Sales Volume

6.6% p.y.

5.6% p.y.

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

(***) Natural Gas was converted to boe/d.

(*) Accomplished

9

Investments Program

2011‐15

10

57%31%

6%2% 1%1% 2%

E&P RTC

Gás,Energia & Gás Química Petroquímica

Distribuição Biocombustíveis

Corporativo

2010‐14 Business Plan

• 5% of investments will be made overseas, 87% of which in E&P.

2011‐15 Business PlanUS$224.7 billionUS$224.1 billion

BP 2011‐2015 INVESTMENTS VS. BP 2010‐14

53%

33%

2% 1%1% 2%

8%

(*) US$22.8 billion in Exploration

Natural Gas, Energy and Gas Chemic

DownstreamCorporate

RTM

Petrochemicals

Biofuels

11

224,0

10,8 8,6

1,5

23,732,1

224,70,6

6,4

180,0

185,0

190,0

195,0

200,0

205,0

210,0

215,0

220,0

225,0

230,0

change in investments carried over

from 2010‐14 BP to 2011‐15 BP 192,6

213,2

2010‐14 BP Forex rate impact

Exclusions Change in Budget

Change in Schedule

New Projects

2011‐15 BPChange in Scope

Change in Business Model

(US$ billion)

MAIN CHANGES: BP 2010‐2014 VS. BP 2011‐2015

• 87% of new projects focused in E&P, highlight to the transfer of rights area (US$12.4 billion).

224.0 224.7

213.2

192.6

10.8

23.7

6.4

8.6

32.1

12

419.7

20.6

11.2 5.0

41.6

53.3

389.06.59.0

300.0

320.0

340.0

360.0

380.0

400.0

420.0

440.0

399.1

change in investments carried overfrom 2010‐14 BP to 2011‐15 BP

335.7

2010‐14 BP Forex rate impact

Exclusions Change in Budget

Change in Schedule

New Projects

2011‐15 BPChange in Scope

Change in Business Model

(R$ billion)

MAIN CHANGES: BP 2010‐2014 VS. 2011‐2015

13

Exploration & Production

+ US$8.7 billion

New Projects

• Inclusion of the Transfer of Rights

•New Pre‐Salt Units (Lula)

• Operating Infrastructure

• New Discoveries and R&D

Excluded, Revised and/or Postponed Projects

• Projects discontinued after unsuccessful exploratory phase

• Revision of Production Development Projects

KEY CHANGES IN PORTFOLIOReassignment of E&P investments

Gas & Energy

‐ US$4.6 billion

Supply (includes Petrochemicals)

‐ US$4.3 billion

New Projects

• New HPPs


• Revision of the construction of gas pipeline and compressor station

• Exclusion of HPP projects from 2010 auctions

New Projects

• Lubricants unit (Comperj)

• Pipelines

• Expansion of the monobuoyssystem (São Francisco do Sul)

• Revap's adequacy


• Fuel oil storage for thermal power plants

• Jet fuel logistics for Brasília

• Postponement of Premium I Refinery

14

Corporate Challenges

15

• Foment workforce education

• Maintenance of relations with universities and technical colleges

• Competitive remuneration

• Retention program

• Sustainable health and pension plan

• Foment workforce education

• Maintenance of relations with universities and technical colleges

• Competitive remuneration

• Retention program

• Sustainable health and pension plan

• Managerial development

• Training of new managers/succession

• Rotation of managers and specialists

• On‐site training

• Managerial development

• Training of new managers/succession

• Rotation of managers and specialists

• On‐site training

• Internal and external mobility

• Allocation of new employees

• Career plan

• Internal and external mobility

• Allocation of new employees

• Career plan

HR Policies HR Policies Service provider managementService provider managementCompetency managementCompetency management

• Dissemination of knowledge

• Petrobras Mentor

• Lessons learned

• Dissemination of knowledge

• Petrobras Mentor

• Lessons learned

Human Resources PlanningHuman Resources Planning

Attraction and retention

Attraction and retention

Training and development

Training and development

Career and movement

Career and movement

Knowledge management

Knowledge management

Culture and values Culture and values Commitment and

satisfactionCommitment and

satisfactionHR communicationsHR communications

Environmental ManagementEnvironmental Management

Union relationsUnion relations

HUMAN RESOURCES“To become an international benchmark for people management in the

energy sector, its employees being its greatest asset.”

16

HUMAN RESOURCES

In Jan/11

61.070 63.673 65.971 68.968 74.422

24.34725.528 26.722

27.98528.608

2011 2012 2013 2014 2015

Projeção de Efetivo do Sistema Petrobras

Controladora Outras Empresas do Sistema Petrobras

85.41789.201

92.69396.953

103.030

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

500

1000

1500

2000

2500

3000

Personnel Production

55%

E&PPe

rson

nel Production

(thous. bbl/d)

Estima

ted

• PN 2011‐2015 requires extra human resources

•51% of the personnel were admitted less than 10 years ago, while 46% work for Petrobras for over 20 years

• Upstream segment will be the main sponsor of the personnel increase, which follows production growth.

Human Resources Projection

17

COMMITMENT TO ENERGY EFFICIENCY AND REDUCING GHG EMISSIONS

Objective

Voluntary Commitments(2009‐2015)

Investments(2010‐2015)

Maximize energy efficiency and reduce the intensity of greenhouse gas (GHG) emissions

• Reduce the energy intensity of RTM and Gas & Power operations by 10% and 5%, respectively;

• Reduce the intensity of natural gas flaring in E&P operations by 65%;

• Reduce the intensity of GHG emissions in E&P, Refining and Thermal Power operations by 15%, 8% and 5%, respectively.

US$ 1.2 billion will be invested in:

• RTM energy efficiency (US$ 270 million)

• Reducing natural gas flaring in E&P operations (US$ 322 million)

• Conversion of thermal power plants into combined cycle plants (US$ 373 million)

• R&D (US$ 200 million)

18

TECHNOLOGICAL CHELLENGES

Other renewableenergy sourcesPetrochemicals Gas chemic

Fuels, lubricantsand special

productsinnovation Biofuels

CO2 and other gases management

Watermanagement Energetic

Efficiency

Adding value anddiversifying products

Expanding the limitsExpanding the limits

Sustainability

MaximazingRecovery Factor

Developingproduction,

operations and pre-salt logistics

Operationaloptimazation

Solutions for natural gas

logistic in harshenvironments

New ExploratoryFrontiers

Middle destillatesmaximization

Sediments andfluids

characterization ofthe pre-salt andother complex

reservoirs

Development ofnew generationsea and subsea

Productionsystems

19

Other operatorsOther operators

International Research InstitutionsInternational Research Institutions

SuppliersSuppliers

Universities and Brazilian Research Institutions

Universities and Universities and Brazilian Research Brazilian Research InstitutionsInstitutions

PETROBRAS TECNOLOGICAL MANAGEMENT

• 4 Petrobras suppliers’ R&D centers in construction;• To meet local content requirements several companies intend to develop technological centers in Brazil.

Expenses (investments and costs): US$ 1.3 bi / year

20

50 50 thematicthematic network network withwith 80 80 institutionsinstitutions

ANPANP

Scientific Scientific CommitteeCommitteeInstitutionInstitution

partnerpartner 11Institution Institution partner 5partner 5

InstitutionInstitutionpartnerpartner 22 InstitutionInstitution

partnerpartner 33

InstitutionInstitutionpartnerpartner 44

MCTMCTFINEPFINEPCNPqCNPq

-- Physical and Human infrastructurePhysical and Human infrastructure-- RH trainingRH training-- R & D ProjectsR & D Projects-- Technological ServicesTechnological Services

UNIVERSITIESUNIVERSITIES

INCUBATORINCUBATOR

Research CentersResearch Centers

SUPPLIERSSUPPLIERS

CENPESCENPES(manager)(manager)

STRATEGIC PARTNERS

21

Analysis of the Plan’s

Financeability

22Based on 2011‐2012 forecasts: Banks (Source: Bloomberg)

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

Petrobras’sOutlook

95

80

US$/bbl

OIL PRICE 2010‐2015

23

• Oil price

• Foreign Exchange Rate

• Growth of the Brazilian Market

• Average Realization Price (ARP) – Brazil»International Parity

»International margins per product

• Oil and products exports and imports

• Investment Program

• Disinvestment and business restructuring

• Raising of third‐party funds

Key variables for Cash Generation and Investment Level

KEY VARIABLES THAT IMPACT THE CASH FLOW AND FINANCEABILITY

Propositions

Not carry out new Capitalization

Keep the investment grade

24

125,0148,9

224,7 224,7

91,467,0

31,4 30,926,1 26,1

13,6 13,6

Scenario A Scenario B

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

Scenario A (Basis) Scenario B

Exchange rate (R$/US$)

1.73 1,73

Brent (US$/bbl)

2011 – 110 2011 – 110

2012 – 80 2012 – 95

2013 – 80 2013 – 95

2014 – 80 2014 – 95

2015 – 80 2015 – 95

Leveraging(Average) 29% 26%

Net Debt/EBITDA (Average)

1.9 1.5

ARP (R$/bbl) 158 177Debt AmortizationInvestments

Disinvestment and RestructuringCashThird‐Party Resources (Debt)Operating Cash Flow (After Dividends)

Sources Use Sources Use

CASH GENERATION AND INVESTMENTSDisinvestment and traditional funding sources that suit the Plan

25

Exploration & Production

US$127.5 billion

26

• Annual investments of more than US$ 4 billion in exploration;

• Investments of US$ 12.4 billion in the assignment agreement areas in 2011‐15

• In the BP 2010‐2014, the forcasted investment for the Pre‐Salt was of US$33 billion

Pre‐Salt

US$ 53.4 billion

Post‐Salt

US$ 64.3 billion

17%

65%

Production Development

18%

Exploration

Infrastructure68%

Other areasAssignment Agreement

26%Pre‐salt

6%

Exploration

Production Development

Pre‐salt37%

Assignment Agreement

Other areas48%

15%

E&P investments in Brazil: US$117.7 bn

TOTAL E&P INVESTMENTS IN BRAZIL– 2011‐15 BUSINESS PLAN

Note: Pre‐salt includes Basins in Santos, Campos and Espírito Santo

27

1.971 2.004 2.100

3.070

0

500

1000

1500

2000

2500

3000

2009 2010 2011 2012 2013 2014 2015

’000 bpd

Marlim LesteFPSO Cidade de

Niterói100,000 bpd26‐Feb‐09

Marlim SulModule 2SS P‐51

180,000 bpd24‐Jan‐09

Lula PilotoFPSO Cidade de Angra dos Reis100,000 bpd

Cachalote andBaleia Franca FPSO Capixaba100,000 bpd

Marlim SulSS P‐56Module 3

100,000 bpd

JubarteFPSO P‐57180,000 bpd

Baleia AzulFPSO Cid. de Anchieta

100,000 bpd

RoncadorFPSO P‐62Module 4

180,000 bpd

RoncadorSS P‐55Module 3

180,000 bpd

Papa‐Terra TLWP P‐61 &FPSO P‐63150,000 bpd

Guará (North) FPSO 150,000

bpd

Pre‐Salt Projects

LulaTLDFPSO BW Cidadede S. Vicente30,000 bpd01‐May‐09

FPSO Frade100,000 bpd20‐Jun‐09

Parque dasConchas

FPSO E. Santo100,000 bpd29‐Sept‐09

Parque das Baleias

FPSO P‐58180,000 bpd

FPSO Cid. de Itajaí

80,000 bpdTiro PilotoSS‐11

30,000 bpd

MexilhãoJaquetaNG

Guará TLDFPSO Dynamic

Producer30,000 bpd

ESP/MARIMBÁFPSO

40,000 bpd

UruguáFPSO Cidade de

Santos35,000 bpd

NG Projects

ARUANÃFPSO

100,000 bpd

Guará Piloto 2FPSO Cid. São

Paulo120,000 bpd

Lula NEFPSO Cid. de

Paraty120,000 bpd

MarombaFPSO

100,000 bpd

SIRI2 Jaquetas e

FPSO100,000 bpd

CernambiFPSO 150,000

bpd

Lula 3 Central FPSO

150,000 bpd

Franco 1 FPSO 150,000 bpd

Lula 4 Alto FPSO

150,000 bpd

BALEIA AZULPost‐SaltFPSO

60,000 bpd

Juruá NG

Post‐Salt Projects

TambaúFPSO Cidadede Santos

NG

Assignment Agreement Projects

LARGE PROJECTS SUSTAIN THE INCREASE IN PRODUCTION

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

• Additional recoverable volume from discoveries:

• Post‐salt: Marimbá, Marlim Sul and Pampo: 1,105 MM boe;

• Pre‐salt: Barracuda, Caratinga, Marlim, Marlim Leste, Albacora and Albacora Leste: 1,130 MM boe*.

•Well productivity exceeds 20,000 bpd

VARREDURA PROJECT: TECHNOLOGICAL DEVELOPMENT AND EXPLORATORY OPTIMIZATION

Descobertas do Pré-sal na Bacia de Campos2009/10 (VARREDURA)

Descobertas do Pré-sal na Bacia de Campos2009/10 (VARREDURA)

67 exploratory wells will be drilled between 2011 and 2015

Operation Sweep

New technologies generate E&P efficiency gains and lead to production growth between 2011 and 2015

Sea Water Capture and Injection

Underwater Oil/Water SeparationVASPS

Underwater Electric Pump in Skid

Multi‐stage Fractured Wells TLWP

Discoveries in Campos Pre-salt basin 2009/10 (Varredura)

29

Development Stage

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

DEVELOPMENT OF THE TRANSFER OF RIGHTS UNDER IMPLEMENTATION

Commerciality Statement

Exploration Stage Production Stage

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:

• 8 Exploratory wells• 2 contingent Exploratory wells • 1 EWT• 3 contingent EWTs• 3D Seismic

First 4

production

units

undergoing

contracting

(*)

New technologies and resource allocation

determination

* Conversion at the Inhaúma shipyard

30

Refining, Transportation & Commercialization (RTC),

and Petrochemicals

US$74.4 billion

31

US$70.6 billion

• Expansion of the downstream segment: Refinery in the NE, Premium I and II, and Comperj;

• Serving the local market: Modernization, conversion, and hydrodesulfurization;

• Operating improvement: maintenance and optimization of the industry, SMES, and R&D;

• Fleet Increase

• Allocation of the national oil: oil supply for refineries and infrastructure for oil exports.

1.1%4.5%

26.4%

0.8%15.2%

Allocation of the national oil

International

Fleet Expansion

Serving the local market

Expansion of the downstream segment

Operating improvement

1.0%

23.9%

13.9%

4.9%

Investments in Petrochemicals amount to US$3.8 billion

NEW REFINERIES, FUEL QUALITY AND MODERNIZATION SUM UPTO 74% OF RTM INVESTMENTS

32

• Investments in refining capacity expansion to support the Brazilian market growth

PRODUCTION, DOWNSTREAM AND DEMAND IN BRAZIL

1,81

1

2,20

5 3,21

7

1,97

1

2,00

4

2,10

0 3,07

0

4,91

0

1,79

2

1,79

8

1,93

3

2,14

7

2,20

80

1,000

2,000

3,000

4,000

5,000

2009 2010 2011 2015 2020

OIL and LNG Production ‐ Brazil Processed Feedstock ‐ Brazil Oil Product Market Scenario A

Thous bpd

Refinaria Abreu e Lima

(RNE)230 mil bpd

(2012)

COMPERJ(1º phase)165 mil bpd

(2013)

PREMIUM I(1ª phase)300 mil bpd

(2016)

PREMIUM I(2ª phase)300 mil bpd

(2019)

PREMIUM II300 mil bpd

(2017)

COMPERJ(2º phase)165 mil bpd

(2018)

2,536

3,0952,643

3,327

33

Capacity: 230,000 bpd

Stage: Implementation

Startup: 2012

REPRE I

Comperj

Nordeste Refinery


Stage: Implementation

Startups: 2013 and 2018


Stage: Preliminary License issued

Startup: 2017

REPRE II

RNE

Comperj


Stage: Earthworks

Startup: 2016 and 2019

Premium I Refinery Premium II Refinery

60’s50’s 70’s 80’s 90’s 00’s

RLAM

RECA

PRP

BC

REMAN

REDUC

REGAP

REFA

P

REPLAN

REPA

R

REVA

P

RNEST

COMPERJ

10’s

32 years

Launch of Petrobras’ Refineries

• Learning curve from the two new refineries (RNEST and Comperj) to reduce the CAPEX at the Premium refineries

INVESTMENTS IN DOWNSTREAM EXPANSION – 2011‐15 BP

PREM

IUM I

PREM

IUM II

34

2011 2012 2013 2014 2015

Regular Gasoline

Transition Regular Gasoline 0.005% S

RECAP Diesel and Gasoline

REFAP Gasoline

REGAP Gasoline

RLAM Gasoline

RPBC Gasoline

REPAR Gasoline

REPLAN Gasoline

REVAP Gasoline

2011 2012 2013 2014 2015

Diesel S-1800

Diesel S-500

Diesel S-50

Diesel S-10

RECAP Diesel and Gasoline

RLAM Diesel

REFAP Diesel

REPLAN Diesel

REGAP Diesel

RPBC Diesel

REGAP Revamp HDT

GASOLINE QUALITY DIESEL QUALITY

REDUC Gasoline

REDUC Diesel

INVESTMENTS IN OIL PRODUCT QUALITY AND CONVERSION PROGRAMS TOTALAPPROXIMATELY US$ 16 BILLION* IN 2011‐15 BUSINESS PLAN

*Includes investments in coking units

REPARDiesel

• Investments in oil product quality meet environmental and emission reduction regulations;

• Higher quality oil products lead to better margins.

35

Natural Gas, Electric Energy and Fertilizers

US$13.2 billion

36

6%

21%

45%

26%

2%

5,9

3,4

0,30,8

2,8

INVESTMENTS IN GAS, ENERGY, AND GAS‐CHEMICALS 2011‐2015

LNG

Network

Electric Energy

Gas‐chemicals plants (Nitrogenized)

2011‐15 InvestmentsUS$13.2 billion

International

• Cycle of investments in the expansion of the transportation network to be completed in 2011;

• Consolidated investment in thermal power generation;

• Operating in the LNG chain, and serving the thermal power market;

• Increased portion of investments allocated to the conversion of natural gas into urea, ammonia, methanol, and other fertilizers, and gas‐chemicals.

37

Adequação da Malha de Gasodutos UTEs Compromissos Novas UTEs a Gás NaturalEnergia Renovável: Eólica e Biomassa Regaseificação de GNL Liquefação de Gás NaturalTransformação Química do GN

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

UFN III (Sept/14)

UFN V (Dec/14)

Regás Bahia

(Sept/13)

New NG HPPs

Urucu‐Manaus

Gasbel II

Gasduc III

Gastau

Gasene

Gaspal II

Gasan II

Pilar‐Ipojuca

Atalaia‐Itaporanga

Cacimbas‐Vitória

Catu‐Pilar

Japeri‐Reduc

Gascav

Gascar

LNG Pecém

LNG BGUA

Conversion of Biofuel TPPTermoaçu

1st Investment CycleCOMPLETED

2nd Investment Cycle2nd Investment Cycle

20112011‐‐2015 BP2015 BP

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

Cubatão

Ammonium Sulfate (May/13)

ARLA 32 (October/11)

Gas FSO

(Dec/15)

Ecomps + Delivery Spots + Network Maintenance

Acquisition TPPs

UPGN Cabiúnas –Route 2 Pre‐Salt

(Aug/14)

Adaptation of the Gas Pipelines Network (US$3.3 billion)New TPPs run on Natural Gas (US$1.7 billion)

LNG regasification (US$0.8 billion)

Chemical Transformation of NG (US$5.5 billion)

TPP Commitments (US$0.9 billion)Renewable Energy: Wind Power and Biomass (US$0.02 billion)

Natural Gas Liquefaction (US$1.8 billion)

% of T

otal In

vestmen

t

UFN IV (Dec/17)

38

813813

291

2,936

2,271

1,109

13

3

6

0

1.000

2.000

3.000

4.000

2011 2015 2020

Thou

s.to

n /y

ear

-

5

10

15

20

25

30

Ammonia Urea Natural Gas Consumption

Generation Intalled CapacityFertilizer Production

420420

581

6.6946.0988.894

3430

44

-1.000

1.000

3.000

5.000

7.000

9.000

11.000

2011 2015 2020

MW

0

10

20

30

40

50

60

70

UTE Renewable Natural Gas Consumption

Million

cm/d

7,114

9,475

6,518

Million

cm/day

NEW ASSETS USING HIGHER NATURAL GAS PRODUCTION

UFN III (Sep/2014)

UFN IV (Jun/2017)

UFN V (Sep/2015)

• Brazil currently imports 53% of the total ammonia consumption in the country. Will be self‐sufficient in 2015;

• We currently import 53% of the total urea consumed. This amount will reduce to 28% in 2015, 16% in 2017 and 22% in 2020.

39

Total

Demand

Demand from Thermal Power Plants: Petrobras + Third parties

NATURAL GAS SUPPLY & DEMAND BALANCE (MILLION M3/D)

Firm

Flexible30

24

30

24

30

24

202020152011

Total

Supply173149106 20015196

Downstream

UPGN

Fertilizers61

32

1639

2517

Petrobras’ Demand: Downstream + Fertilizers

Non‐thermal power

Demand from NG Distributors

202020152011

2011 2015 2020

2011 2015 2020

2011 2015 2020

Guanabara BayPecém

Bahia41

20

1441

20

1421

14

Bolivian Supply

National NG Supply to the Market

Supply via LNG Regasification Terminals

Inflexible

Flexible40

13

3725

2011 2015 2020

To be contracted (5.5 GW

76(15.1 GW)

59(10.7 GW)38

(6.7 GW)

DEMANDPCS 9.400 kcal/m³

4969

936

9

9 Northern Region

Other Regions

55

78

102

SUPPLY

40

Distribution

US$ 3,1 billion

41

INVESTMENTS IN DISTRIBUTION

Share in the automotive and global markets

2011‐2015 BPUS$3.1 billion

21%

18%

13%

42%

Mercado Automotivo

Mercado Consumidor

Operações e Logística

Liquigás

Internacional 6%

33.731.330.930.6

38.6 38.8 38.5 40.6

0

10

20

30

40

50

2009 2010 2011 2015

Automotive Market (%) Global Market (%)

Automotive Market

Consumer Market

Operations & Logistics

International

42

Biofuels

US$ 4.1 billion

43

INVESTMENTS IN BIOFUELS

2011‐2015 INVESTMENTS US$4.1 billion

273%

1.5

Pbio Partners

5.6

16%

735

855

Pbio Partners

Market Share Pbio+Partners:• 2011: 28%• 2015: 26%

Biodiesel supply (’000 m³)

592 712

143143

2011 2015

Ethanol supply (million m³)

0.9

3.10.6

2.5

2011 2015

Market‐share Pbio+Partners:• 2011: 5.3%• 2015: 12%

47%

7%

32%

14% Etanol

Logística para Etanol

Biodiesel

R&D

1,9

1,3

0,60,3

44

International

US$ 11 billion

45

INVESTMENTS: INTERNATIONAL AREA

Key Projects:

• Cascade / Chinook

• Saint‐Malo

• Tiber

Key Projects:

• BoliviaSan Alberto / San Antonio Serving the Brazilian market

• PeruIntegrated Gas Project – Lots 57 and 58 Oil Production – Lot X

Key Projects: • NigériaAkpoAgbamiEgina

• AngolaBlock 26

US$11 billion

Activities in 27 countries in the E&P, RTCP, Distribution, and G&E segments

Africa’s West Coast

Gulf of Mexico

Latin America

Corporate

Distribution

G&E

E&P

RTCP

87%

1%

3% 2%7%