1. Conference Call / Webcast
New E&P Regulatory Model
Pre-salt and Strategic Areas
José Sergio Gabrielli
CEO
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2. DISCLAIMER
The presentation may contain forecasts CAUTIONARY STATEMENT
about future events. Such forecasts merely FOR US INVESTORS
reflect the expectations of the Company's
management. Such terms as "anticipate", The United States Securities and Exchange
"believe", "expect", "forecast", "intend", Commission permits oil and gas companies,
"plan", "project", "seek", "should", along with in their filings with the SEC, to disclose only
similar or analogous expressions, are used proved reserves that a company has
to identify such forecasts. These predictions demonstrated by actual production or
evidently involve risks and uncertainties,
conclusive formation tests to be
whether foreseen or not by the Company.
Therefore, the future results of operations economically and legally producible under
may differ from current expectations, and existing economic and operating conditions.
readers must not base their expectations We use certain terms in this
exclusively on the information presented presentation, such as oil and gas
herein. The Company is not obliged to resources, that the SEC’s guidelines
update the presentation/such forecasts strictly prohibit us from including in
in light of new information or future filings with the SEC
developments
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3. THE PRE-SALT REGION
The big blue area represents the expected Pre-salt location, with great potential for oil
presence
Currently, there is a production acceleration program in Jubarte (Whales’ Park) and an
extended well test in Tupi (Santos Basin)
• Total Area: 149,000 km2
• Area Under Concession: 41,772 km2 (28%)
• Area Not Under Concession: 107,228 km² (72%)
• Area With Petrobras Interest: 35,739 km2 (24%)
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4. NEW REGULATORY FRAMEWORK
Transfer of
Rights with
Pre-salt Compensation Up to 5 billion boe
and
Strategic Petrobras 100%
Areas Production
Sharing Petrobras Operator
Agreement
Other Companies Through
Bidding Process
Current Concession
Other Areas Model
There will be no regulatory changes in the areas under
concession, including the pre-salt area already granted
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5. PRODUCTION SHARING AGREEMENTS
Production sharing agreements
Petrobras will operate all blocks under this regime, with a minimum stake of 30%
Consortium between Petrobras, Petro-sal and the winning bidder will be managed by the
Operational Committee
Petrobras will be able to participate in the bidding process to increase its stake
The winning bidder will be the
Companies company that offers the highest
percentage of “profit oil” for the
Profit Brazilian Government
Oil Petrobras will have to follow
Government the same percentage offered
by the winning bidder
The Brazilian Government will not
assume the risks of the activities,
Cost except when it decides to invest
Oil directly
Prior to contracting, the Government
will evaluate the potential of the areas
and may contract Petrobras directly
5 Graphs are showing only hypothetical values

6. OPERATOR’S ROLE AND INDUSTRY
PRACTICES
OPERATOR
Responsible for conducting exploration and production activities providing critical
resources: technology (usage and development), human resources and
equipments
Access to strategical information
Production and costs control
Technological access and development
PETROBRAS: defined as the exclusive operator of all areas under the
production sharing agreements
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7. AGENT’S ROLE OF PROCUCTION
SHARING AGREEMENTS
NATIONAL ENERGY POLICY COUNCIL - CNPE
Bidding schedule and national content
Blocks for exclusive contracts and blocks for bidding
Technical and economical parameters of the contracts
Definition changes (increase) for the areas called pre-salt
Definições Técnicas
Areas to be classified as strategic
National Petroleum Agency - ANP
Promote bids, regulate and supervise
Analyze and approve production sharing agreements
Approve the contracts of Unitization
Adapt and standardize the applicable rules under different regimes
Advising Ministry of Mines and Energy in blocks ring fences delimitation
PETRO-SAL
Will reduce information asymmetry between the Brazilian Government and oil companies, aiming to
reduce cost oil
Will not assume risks nor invest
Contract management of production sharing agreements
Will not execute E&P activities
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8. E&P TRANSFER OF RIGHTS
WITH COMPENSATION
Government may transfer to Petrobras, for compensation, without bidding, the
rights to explore and produce oil in the pre-salt areas not under concession.
These areas may or may not be contiguous
Transfer of rights limited to a maximum produced of 5 billion boe. Petrobras
will be the owner of produced volumes
Oil values shall be determined by technical reports prepared by qualified
third parties contracted by the government (ANP) and Petrobras, taking into
account best industry practices
The transaction includes a clause of reappraisal of reserves value with a
maximum deadline of 24 months
If the value of appraisal rises, Petrobras will pay the difference to the
Government. If price falls, the contrary will happen
Royalties will be paid by Petrobras and distributed according to the Law nº
9.478/97. No special participation payment is expected
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9. PETROBRAS’ INCREASE IN CAPITAL
At the same time of the “transfer of rights”, the Company will have an increase in
capital, which shall be approved by the Extraordinary Shareholders Meeting :
Granting of shareholders’ right to exercise their preemptive rights to subscribe for
additional shares
Increase in capital will follow the current proportion of the different classes of shares
All common shareholders will have voting rights
Petrobras will
receive cash from
Petrobras’ increase in minority
capital shareholders
Petrobras will pay
Appraisal of (to be approved by the
the transfer of
reserves in R$ ESM) rights with
compensation to
the federal govt
Result:
Increase of Petrobras’ financial capacity to invest, specially in the pre-salt area
If minority shareholders do not exercise their rights in full, the Brazilian Government may
enhance its participation in Petrobras’ capital and results
Graphs are showing only hypothetical values 9
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10. PETROBRAS’ CHALLENGES
BUSINESS PLAN
Ambitious Business Plan 2009-2013
Huge increase of E&P portfolio stimulating the integration of the different areas:
Upgrading the Company management model
Critical resources management (financial, technological, human resources,
equipments and services contracts )
NEW REGULATORY FRAMEWORK BRINGS NEW CHALLENGES
Petrobras is an integrated company and CAPEX will increase in all business
areas
Accounting, tax and financial management (CAPEX growth, cash management
and different E&P regimes)
Hiring and training workforce
Internal controls strengthening with different parties in production sharing
agreements (ANP, CNPE, Petro-sal)
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11. For more information:
Investor Relations
www.petrobras.com.br/ri
+55 21 3224-1510
petroinvest@petrobras.com.br
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