2. DISCLAIMER
The presentation may contain forecasts about CAUTIONARY STATEMENT FOR
future events. Such forecasts merely reflect the US INVESTORS
expectations of the Company's management.
Such terms as "anticipate", "believe", "expect", The United States Securities and Exchange
"forecast", "intend", "plan", "project", "seek", Commission permits oil and gas companies, in
"should", along with similar or analogous their filings with the SEC, to disclose only proved
expressions, are used to identify such forecasts. reserves that a company has demonstrated by
These predictions evidently involve risks and actual production or conclusive formation tests to
uncertainties, whether foreseen or not by the be economically and legally producible under
Company. Therefore, the future results of existing economic and operating conditions. We
operations may differ from current expectations, use certain terms in this presentation, such as oil
and readers must not base their expectations and gas resources, that the SEC’s guidelines
exclusively on the information presented herein. strictly prohibit us from including in filings with the
The Company is not obliged to update the SEC.
presentation/such forecasts in light of new
information or future developments.
2
3. PETROBRAS: AN INVESTMENT GRADE, PUBLICLY TRADED, MAJOR
INTERNATIONAL OIL COMPANY
Incorporated in 1953 as government
monopoly for all hydrocarbon activities in Government maintains controlling
Brazil interest with 55% of voting shares
Originally established as a refinery of
imported crude oil Market cap of approximately US$ 200
billion as of March 16th, 2010
Became net exporter in 2006
Foreign currency ratings from Moody’s
60% of total equity capital (common and (Baa1), Standard & Poors (BBB-), and
preferred) is now publicly traded Fitch (BBB).
Petroleum 2MM bpd, A New E&P
Law and ANP First Public Full Upgraded to Crossed the Brazil Self
Petrobras $200MM market Regulatory
(National Oil Auction of Oil Deregulation Investment US$100 billion Sufficient in
NYSE Listing cap, Discovery Framework.
Agency) Exploration Grade Issuer Market Oil
Cap mark of new oil Pre-Salt and
creation: Areas frontier: Pre Strategic
End of Salt (Tupi field) Areas
Monopoly
1997 June 1999 Aug 2000 Jan 2002 Oct 2005 2006 Apr 2006 2007 Aug 2009
3
4. 60% OF THE EQUITY CAPITAL OF PETROBRAS IS PUBLICLY TRADED
9 ,5% Shareholder Base
20 ,3% 2 6 ,4 %
10,9 % 2 9,5 %
46 ,4 % 10,3 %
Foreign
18,0 % 9 ,9 % 7 ,9 % 37.4%
2 5 ,1%
23 ,1% 2 2,8 % Brazilian
22.8%
61,6%
53,6%
44,4% 40,6% 39,8% Government
39.8%
Oct/1992 Jul/2000 After Aug/00 After Jul/01 offering Dec/2009
offering
Gov ernment (1) Bov espa Brazil Bov espa Foreign ADRs
o On August, 2000 the Brazilian Government reduced its ownership share to 55% of the voting
shares through an SEC registered secondary public offering (PBR)
o In July 2001, BNDESPar, sold a portion of its non-voting shares (PBRA)
o Since the offering in July, 2001 the ownership structure has remained virtually unchanged.
(1) Includes BNDES / BNDESPAR
5. PETROBRAS IS THE MOST LIQUID STOCK IN VALUE TRADED ON BOTH
THE BOVESPA AND NYSE
Turnover NYSE & Bovespa
(Daily Average Turnover)
Turnover 2009/2005 = 596%
(US$ MM) (% category and US$MM)
1,930
1,308 43% 47% 43%
50% 52% Nyse
PBR
992 PBR/A
Nyse
PBR
20%
PBR/A 25% 21%
20% 19%
483 6%
6% 5% 5% 6%
Bovespa
219 31% PETR3
Bovespa
25% 27% 26% PETR4
PETR3 23%
PETR4
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
PETR4 (Bovespa) PETR3 (Bovespa) PBR/A (Nyse) PBR (Nyse)
o Turnover of PBR 3 times the volume of PBRA on the NYSE
o Turnover of PN 5 times the volume of the ON
o Probable explanation: Cultural. Brazilians familiar with PN´s and would not pay premium for ON´s
5
6. CORPORATE ORGANIZATION AND KEY OPERATING RESULTS
Exploration & Downstream Gas &
Production Distribution Energy International Biofuels
(Supply)
Petrochemicals
Summary Financials Operating Income*
(US$ billion- USGAAP) (US$ billion- USGAAP)
2007 2008 2009 20 18,9
13,1 15,5
Net Revenues 87.7 118.3 91.9
EBITDA 25.6 31.1 28.9 15
Net Income 13.1 18.9 15.5
10
Capex 21.0 29.9 35.1
Total Debt(1) 21.9 27.1 57.1
Cash & Cash Equivalents 7.0 6.5 16.2 5
Net Debt 14.9 20.6 40.9
Total Equity 65.2 61.9 94.1 0
Total Assets 129.7 125.7 200.3
-5 2007 2008 2009
(1) Includes capital leases
Domestic E&P Downstream Gas &Energy
* Excludes Corporate and Elimination
Distribution International
6
7. A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY
2009 Oil & Gas Production
3.9 3.9
Gas Production boe/d
3.2 Oil Production boe/d
2.7
(mmboe/d)
2.5
2.5
2.2
1.7
84%
(oil) 0.6
BP XOM RDS CVX PBR COP Total ENI BG
Source: Evaluate Energy and Company reports
2008* Refining Capacity Market Value as of April 9th, 2010
325
5, 57 3
(thousand boe/d)
3 , 9 33
(US$ bn)
189 186 186
3 , 1 3 3 2 , 6 79 160
2 , 6 5 8 2 , 1 64 2 , 1 1 5 141
95
85 78
83 3
315
X OM RDS BP COP T OT PBR CVX ENI ST L X OM PBR RD S BP CV X T OT ENI COP ST L
Source: PFC Energy
*Report December 2009 Source: Bloomberg
7
Note: Peer companies selected above have a majority of capital traded in the public markets.
8. DOMESTIC E&P PROFILE
2009 Production 2009 Proven Reserves (SPE)
14% 10% 9% 10%
19%
24%
57% 57%
2,287 thousand boed 14.17 billion boe
Onshore Shallow water (0-300m) Deep water (300-1500m) Ultra-deep water (> 1500m)
8
Source: Petrobras
10. DOMESTIC PROVEN RESERVES PROFILE
Proven Reserves as of Dec/2009 (ANP/SPE)
(14,17 billion boe)
< 22º API
22º Oil + Condensate
(heavy)
85%
50%
29% 22 – 31 º API
(intermediate) 10% 5%
15% 6%
Gas > 31 º API (light) Associated Gas
Non-Associated Gas
Non-
43%
Undeveloped 57% Developed
Proven Reserves Proven Reserves
10
11. ENHANCING RESERVES
Santos Pre-Salt announced recoverable volumes including the
transfer of rights, can more than double Brazilian reserves.
million boe ~ 30-35 bn boe
35,000
+5,000
30,000
Higher estimates
25,000 +5,400
20,000 Lower estimates
10,600
15,000
10,000
5,000
14,169
0
2009 Proven Santos and Campos Basins Transfer of Proven Reserves*
Reserves* Pre-Salt Rights with +
(Tupi, Iara, Guará and Whale’s Compensation Santos and Campos Basins
Park)** Pre-Salt
(Tupi, Iara, Guará and Whale’s Park)**
*SPE Criteria +
Transfer of Right
** include Petrobras and Partners
11
12. IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT
2.000.000
1.800.00
16 anos
54 anos
1.600.00
Production (bpd)
22 anos
1.200.00
1.000.00
27 anos
12 anos
45 anos
800.00
400.00
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55
Numbers of Years
Production since Discovery of giant fields in Campos
Discovery of Garoupa in Discovery of the Pre-Salt,
incorporation of Petrobras basin including Albacora/Marlim
the Campos basin (1974) since Parati (2006)
(1953) (80´s & 90’s)
12
13. INDUSTRY-LEADING PRODUCTION GROWTH
CAGR (2004-2009) - %
6,61
4,56 3,96 3,52
2,44 1,66
0,00 -1,38 -2,59 -3,26 -4,94
* *
Ex x onM obil
R D Shell
PetroChina
Luk oil
T otal
R eps ol YPF
Conoc oPhillips
BP
C hev ron
Petrobras
ENI
* 9M09 Annualized
Petrobras Oil and Gas Production (000 boe/d)
4.6% CAGR 2.525
2.400
2,297 2.301
2.217
2.020
2004 2005 2006 2007 2008 2009
13
Source: Evaluate Energy
14. STRATEGIC VISION: TO BE ONE OF THE WORLD’S FIVE LARGEST
PUBLICLY TRADED OIL PRODUCERS
Petrobras
30,000 Target: 2020
25,000
Reserves (mm boe)
Petrobras XOM
20,000 Target: 2013
BP
15,000
PBR
10,000 CVX RDS
TOT COP
5,000
2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000
Production (mboe/d)
Petrobras 2009 (SEC) reserves and production
2009 production and 2008 (SEC) reserves
14
Source: PFC Energy
15. BRAZILIAN ECONOMY IS GROWING WITH STABILITY AND FISCAL
RESPONSIBILITY
GDP Growth (%)
Trade Balance (US$ Billion)
6 5.7 5.7 Forecast 250 Forecast
Exports Imports
5.1
5 4.7 198 189 187
200
4.0 173 171 162
161
GDP Growth (%)
4 153
3.2 150 138
121 128
119
3 97
100 91
63 74
2
1.2 50
1
0.2
0
0
2004 2005 2006 2007 2008 2009 2010 2011
2003 2004 2005 2006 2007 2008 2009 2010
Nominal Fiscal Deficit/GDP (%)
International Reserves (US$ billion) 20
Brazilian Debt (as % of GDP) 60
Net Debt/GDP (%)
300 2009 52,1 50,0 47,7 46,6 50
44,2 39,9 41,4
250 239 15
207 40
200
180 10 30
150
86 5,1 20
100 3,3 3,5 3,3
49 53 54 5 2,7 2,6 1,9
50 10
0 0 0
2003
2004
2005
2006
2007
2008
2009
abr
mar
out
ago
set
jan
jun
mai
jul
dez
nov
fev
2003
2004
2005
2006
2007
2008
15
Source: Brazilian Central Bank
16. INCREASING INVESTMENTS WITH CAREFULLY CRAFTED SPENDING
PROGRAM
Business Plan 2009-2013
PN 2009-13 | Brazil/International
2% 2% 2%
3% US$ 174.4 billion 9%
7% 5.6 3.0 E&P
16.2 US$ 174.4 billion
11.8 2.8
RTC
3.2 Brazil
G&E
International
Petrochemicals
158.2
43.4 104.6 (*) Distribution
25% 59%
Biofuels
91%
Corporate
(*) US$ 17.0 billion allocated to Exploration
Business Plan 2008-12
2% 1% 2%
4% US$ 112.4 billion
6% 4.3 2.6
o Petrobras strategy gives first priority to meeting 6.7 1.5
E&P
production targets 2.5 RTC
G&E
Petrochemicals
26% 29.6 65.1
o E&P accounts for 76% of new project spending 59%
Distribution
Biofuels
(US$ 28.9 bn for pre-salt)
Corporate
16
17. PEERS CAPEX
U$S MM Capex by Quarter: 1Q07 – 4Q09
12.000 Petrobras
10.000
Super Majors Average
8.000 (Exxon, Shell, BP)
6.000 Peer Group Average
(without Petrobras)
4.000
2.000
0
1Q07
1T07 2Q07
2T07 3Q07
3T07 4Q07
4T07 1Q08
1T08 2Q08
2T08 3Q08
3T08 4Q08
4T08 1Q09
1T09 2Q09
2T09 3Q09
3T09 4Q09
4T09
Capex for 2010: 2009 vs. 2010E
50.000
U$S MM
45.000
40.000
35.000
30.000 2009
Average
25.000 without
20.000 Petrobras
15.000 2010
Average
10.000 without
Petrobras
5.000
0 (1)
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
Source: Evaluate Energy and Company Reports
17
(1) R$ 88.5 billion converted by FX rate of 1,87 R$/US$ (Petrobras forecast to 2010)
18. PETROBRAS RESEARCH CENTER: TECHNOLOGICAL INNOVATION FOR
THE NEXT DECADES
Partnership with over 120 universities
and research centers in Brazil, and 70
Institutions abroad
Technological Strategy
Investments in Technology
2009-2013
US$ 4.0 billion
25%
1.0
1.9 47%
5% 0.2
0.9
23%
E&P Downstream
G&E Corp. (Cenpes)
18
20. 17TH CONSECUTIVE YEAR OF FULLY REPLACING BRAZILIAN
PRODUCTION
o 110% reserve replacement rate in 2009. o Targeting a reserves to
Over the past decade, reserve production life over 18 years
replacement has principally been driven
by internal additions in Brazil
13,75 13,92 14,09 14,17
13,23 0,92 0,86
1,23 0,88
Production Production Production Production
(0.70 bn boe) (0.70 bn boe) (0.75 bn boe) (0.79 bn boe)
Reserves Reserves 13,04 Reserves 13,17 Reserves 13,31
Replacement 12,52 Replacement Replacement Replacement Index
Index Index Index (110%)
(174%) (124%) (123%)
2005 2006 2007 2008 2009
* According to SPE (Society of Petroleum Engineers) criteria
20
21. PETROBRAS PRODUCTION GROWTH
Petrobras Total Production (x 1000 boe/d) 5,729
223
409
7.7% p.y.
1,177
3,655
5.6% p.y. 131
9.7% p.y. 210
2,525 634
2,400 97
2,217 2,297 2,301
141
1,810 2,037 2,020 101 110 100
1,635 96 124 316
22 85 94 142 126
24 35 163 277 273 321
161 168 274 3,920
44 251
252 265
232 2,680
1,855 1,971
1,684 1,778 1,792
1,500 1,540
1,493
1,335
2001 2002 2003 2004 2005 2006 2007 2008 2009 ..... 2013 ..... 2020
Oil production - Brazil Gas production - Brazil Oil production - International Gas production - International
* Consider +- 2,5%
21
22. ESTIMATED OIL PRODUCTION IN BRAZIL
Out of the 824 kb/d in The biggest The PN 2008-2012 Brazil
domestic production contribution in the oil target for 2015 was
growth through 2013, 566 domestic production 2,812 k b/d. The new
kb/d will come from fields growth of 1,240 kb/d target represents an
where we have already between 2013 and increase of 19% (+528
declared commerciality 2020 will come from kb/d)
pre salt production
Petrobras Total Production (000 b/d)
3,920
3,340
2,680
1,971
1,855
2008 2009 2013 2015 2020
Light Oil ≥ 31º API Medium Oil Heavy Oil ≤ 22º API
22
23. ROBUST PROJECT PIPELINE: 2010-2013
CANAPU
MANATI
expansion URUGUÁ JURUÁ
TAMBAÚ ARACANGA
LAGOSTA
3.32
MEXILHÃO 3.20 Oil and gas
CAMARUPIM
3.02
URUCU 2.79
million boe/d
2.68
2.28 2.58 Oil
2.43
P-62
2.25 RONCADOR
1.97 P55
RONCADOR
P-57
BALEIA AZUL
JUBARTE P-61
JABUTI PAPA-TERRA
TUPI P-56
MARLIM SUL P-63
EWT Tupi Pilot
PAPA-TERRA
P-51 CACHALOTE.
MARLIM SUL BALEIA FRANCA, GUARÁ 1
BALEIA ANÃ
FRADE
TUPI 1
PARQUE DAS Pilot Expansion
CONCHAS
2009 2010 2011 2012 2013
Pre-salt Heavy oil Natural Gas
23
24. RESERVES IN ULTRA-DEEP WATER CAN BE DEVELOPED AT A
RELATIVELY LOW COST
Expected Costs of Production
140
Deepwater and
Production costs (US$/bbl-2008)
120
Ultra-deep water
100
Oil Gas to Coal to
80 Shales liquids liquids
Arctic
CO₂ - EOR
60
EOR
Heavy oil
and
bitumen
40
Other
20 Produced
convention Petrobras expected
MENA al oil maximum break-even cost
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Reserves (bn bbls)
24
Source: IEA – Outlook 2008
25. LIFTING COSTS STABLE, IN SPITE OF HIGHER OIL PRICES
R$/barrel US$/barrel
75.00
68.28
54.91 58.79
44.40
41.48 38.86 41.62 43.04
34.24 24.74
22.39 19.50 22.86
16.33 21.28 24.78 26.53 18.11 14.69
10.78 10.78 15.23
9.87 6.87
19.09 17.91 17.58 16.84 16.51 8.24 7.82 8.72 9.51
7.82
4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09
Lifting Cost Gov. Take Lifting Cost Gov. Take Brent
o Lower lifting costs without government take, in Reais, despite increase in international oil prices
o In Dollars, the increase was due to FX rate appreciation
o Increase in the government take due to higher international oil prices
25
26. DISTRIBUTION OF UPSTREAM REVENUES
Distribution of the Realization Price of a Barrel of
Domestically Produced Oil
$80,00 100,0%
90,0%
$70,00
80,0%
$ per Barrel Realization Price
% Share of Realization Price
$60,00
70,0%
$50,00
60,0%
$40,00 50,0%
40,0%
$30,00
30,0%
$20,00
20,0%
$10,00
10,0%
$- 0,0%
2005 2006 2007 2008 2009 2005 2006 2007 2008 2009
Lifting Other COGS DD&A Income Tax Other
SG&A Net Income R&D Exploratory Costs Government Take
26
27. NEW PRODUCTION UNITS
Project Start up Type Oil and Gas Capacity Shipyard Leased
Uruguá-Tambaú 25,000 bpd
1Q/10 FPSO Cosco (China) Modec
Cidade de Santos 10.0 MM m3/d
Mauá Jurong
Mexilhão 2Q/10 Fix 15 MM m3/d
(Brazil)
Cachalote/Baleia Franca 100,000 bpd
2Q/10 FPSO Keppel (Singapore) SBM
FPSO Capixaba 3.2 MM m3/d
Tupi Pilot 100,000 bpd
4Q/10 FPSO Cosco (China) Modec
Cidade de Angra dos Reis 5.0 MM m3/d
Marlim Sul Mod. 3 - P-56 (P- 100,000 bpd Brasfels-Keppel
2H/11 SS
51 Clone) 6.0 MM m3/d (Brazil)
180,000 bpd Brasfels-Keppel
Jubarte Mod. 2 - P-57 2H/11 FPSO
2.0 MM m3/d (Brazil)
180,000 bpd Keppel
Papa Terra - P-61 2H/13 TLWP FloaTec
1.0 MM m3/d (Brazil)
150,000 bpd Rio Grande
Papa Terra - P-63 2H/13 FPSO BW Offshore
1.0 MM m3/d (Brazil)
120,000 bpd
Guará Pilot 2H/13 FPSO Bid in progress
5.0 MM m3/d
Atlântico Sul and
180,000 bpd
Roncador Mod 3 - P-55 2H/13 SS Rio Grande
6.0 MM m3/d
(Brazil)
27
28. NEW TECHNOLOGIES TO INCREASE RECOVERY FACTOR
Vertical Annular Separation and
ESP in a skid on the sea-bed Pumping System
4D Seismic (Espadarte-Fase III)
(Marlim; Marlim Sul; (Congro; Malhado; Corvina) (Parque dos
Albacora) VASPS Temperos; )
Bonito
CAISSON
2011
2009 2010 2012
Oil Water
Subsea Christmas
Subsea
Tree.
Separation
“Piggy-back” (Marlim)
(Marimbá; Barracuda) TLWP
(Papa-terra)
SBMS - Subsea RWI – Raw
Multiphase Pumping Water Injection Multifractured Well
System
(Albacora) (Bonito)
(Marlim)
28
29. EXPLORING TO LEVERAGE EXCITING FRONTIER PLAYS IN OUR OWN
BACKYARD
Exploration
Capex Success Rate
US$ mm
70%
2.750
2.500 60%
2.250
50%
2.000
1.750
40%
1.500
1.250 30%
1.000
20%
750
500
10%
250
0 0%
2002 2003 2004 2005 2006 2007 2008 2009-2013
29
30. MAIN DISCOVERIES IN THE POST-SALT REGION (1)
Estimated Water
Date Field Participation Fluids Recoverable Depth (m)
Volume
Mar-2010 Piranema BR (100%) Light Oil 15 million 800
barrels
Fev-2010 Barracuda BR (100%) Oil 40 million 860
barrels
Fev-2010 Pampo BR (100%) Oil 25 million 200
barrels
Nov-2009 Rig Fence BR(100%) Light Oil 25 million 400
Marimbá barrels
Aug-2009 BM-C-36 BR (100%) Light Oil 280 million 976
Aruanã barrels
BR(35%),
May-2009 BM-S-48 Repsol(40%), N. Gas and Not disclosed 161
Panoramix Vale(12,5%), Condensate
Voodside(12,5%) Piranema
Nov-2008 BM-J-3 BR (60%), Oil Not disclosed 2,354
Jequitinhonha STATOIL (40%)
Sep-2008 BM-S-40/Sidon BR (100%) Light Oil 150 million 274
barrels
Jul-2008 Golfinho BR (100%) Light Oil 150 million 1,374 Marimbá
barrels Aruanã
Barracuda
Pampo
May-2008 BM-S-40/Tiro BR (100%) Light Oil Not disclosed 235
Dec-2007 BM-ES-5/ BR (65%), N. Gas and Not disclosed 708
Camarupim EL PASO (35%) Condensate
May-2007 BM-ES-5/ BR (65%), N. Gas and Not disclosed 763
Camarupim EL PASO (35%) Condensate
Mar-2007 BR (100%) Light Oil 570 million 1,011
BC-60/Caxaréu barrels *
(1) 2007 to March 2010
* Volume in place
30
31. EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF DEVELOPMENT
Margem Equatorial o Brazil
Ceara & Potiguar Exploration:
2009-13 US$
Solimões 13.8 bn
Potiguar o Exploratory Area:
155.0 thousand
SEAL& REC & TUC
km²
Bahia Sul
o 265 exploratory
São Francisco blocks
Espírito
Santo o 35 appraisal
plans
Campos
Petrobras Santos o 313 production
Others concessions
Pelotas
31
32. INCREASE IN THE NUMBER OF FIELDS ANDS BLOCKS HELD WITH
PARTNERS
o Petrobras’ current domestic production comes mainly from concessions (97%) owned by the
company alone
o For the areas under development, the percentage of concession held without partners falls to 62%
o More than half (53%) of the blocks under exploration or appraisal are joint ventures
Concessions Under Production Production Development Exploration + Evaluation
(247) Concessions (66) Concessions (54)
97% 53%
38%
62%
47%
3%
Petrobras (100%)
Petrobras in Partnerships 34 Oil and Gas Companies (2008)
32
SINN, July 2009
34. PRE-SALT JOINT VENTURES
• 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%)
JUBARTE
ESS-103 CHL-4
BFR-1
Blocks Consortium
1-2
Bi boer
BAZ-1 BC-60 BR (100%)
Jubarte
Cachalote
Shore Distance = 60 km Balia Franca
Total Area = 3.000 km2 Baleia Azul
Baleia Anã
Blocks Consortium
BMS-8 BR (66%), SH (20%) e PTG (14%)
BMS-9 BR (45%), BG (30%) e RPS (25%)
BM-S-11
BM-
(Tupi) BMS-10 BR (65%), BG (25%) e PAX (10%)
BMS-11 BR (65%), BG (25%) e PTG (10%)
BMS-21 BR (80%), PTG (20%)
1.1-2 bi BMS-22 EXX (40%), HES (40%) e BR (20%)
Shore Distance = 300 km boer
BMS-24 BR (80%), PTG (20%)
Total Area = 15.000 km2
34
36. 2009 and 2010 PRE-SALT:
Accelerating activities in the santos cluster
o EWT currently producing 20 thous. bpd
o 2 wells being drilled: North of Guará and North of Iara
(for ANP)
o 1 well being completed and evaluated in Guará and
tests were finished in Tupi O/W and Tupi NE which
proved to have high productivity of 30 th. bpd
o During 2010, 11 new wells expect to be drilled in the
pre salt cluster
o Bids in progress:
Parati
(i) FPSO for Guará pilot Iara
(ii) FPSO for the second pilot in the BM-S-11 (still
IracemaTupi NE
being defined)
Tupi O/A
(iii) 8 hulls for the Santos cluster
Tupi
Jupiter
Guará
North
Bem-te-vi Carioca Tupi 660
Tupi
Iguaçu Guará South
Abaré Tupi 646 Wells drilled
Drilling for ANP
Azulão Guarani
Drilling
Caramba Completing / testing
EWT
36
37. GAS PIPELINE FOR TUPI`S PILOT SYSTEM
UGN UTGCA
RPBC
14
5
Km
PMXL
170 Km
21
2K
URG
m
To 24
8
se Km
rv i
ce
t
he
PMLZ-1 Pi
lo t
TUPI Area
Existing Planned
TEFRA Under
N Construction
38. CAPEX DISTRIBUTION:
PRE-SALT VS. CAMPOS BASIN
Pre-salt
CAPEX DISTRIBUTION
26% 18%
56%
Gathering Completion + Drilling Units
Deepwater Projects in Campos Basin*
CAPEX DISTRIBUTION
33.3% 33.3%
o The biggest difference between the
capex distribution in the pre-salt and in
the general deepwater projects in
Campos Basin is a higher percentage
in drilling and completion in the pre-
33.3% salt area.
Gathering Completion + Drilling Units
38
* Generic example, considering that these rates can change among the different existing projects in Campos Basin
39. DEVELOPMENT STRATEGY (example: TUPI)
1st Oil – EWT 1st Oil – Tupi Significant
Tupi (May/09) Pilot (Dec/10) production level
..... ..... t
2007 2009 2010 2012 2017
Information Acquisition Definitive Development
Phases
Phase 0 Phase 1A Phase 1B
EWT (Mar/2009), Tupi Pilot Implementation of 8 production units Implementation of “X”
Focus
and appraisal wells (Replicated FPSOs) production units
o Area Delimitation o Analyze water and gas/CO2 injection behavior
o Analyze reservoir flow o Test adjustments on FPU related to CO2
o Fractured well o Test improvements in well projects
Objective
performance o Apply previous dominated concepts and technologies with necessary
o Complete sampled core adjustments to reach significant production by 2017
o Material analysis vs. CO2 o Aggregate innovative technical solutions to optimize project performance
39
40. PRE-SALT ACCOMPLISHMENTS TIMELINE
2008 Phase 0 2013 Phase 1A 2017 Phase 1B 2020
…
Phase 1A - Projects
Phase 0:Information gathering
Phase 1a: 1st phase of definitive development, use of
Appraisal wells, EWTs and consolidated or rapidly-consolidating technologies to
Tupi Pilot achieve production targets, generate cash-flow to
support Phase 1b
First 2 FPSOs to be chartered (2013-2014)
• Oil Production: 120,000 bpd
Phase 1B - Projects • Gas Compression: 5 M m³/d
• 2nd phase of definitive development Additional 8 FPSOs (2015-2016)
• Construction of the hulls at the Rio Grande
• Significant production increase Shipyard
• All identical units, manufactured in series
• Innovation acceleration • Process plant under study:
• Massive use of new technologies specially − Oil Production: 150,000 bpd
tailored for Pre-Salt conditions − Gas Compression: 5.5 M m³/d
− Water-Alternating-Gas injection capability
40
41. MAJOR TECHNOLOGICAL DEVELOPMENTS UNDER EVALUATION
PLANSAL - Pre-Salt Development Master Plan
Pre-
Offshore
logistical hub
Water-alternating- Offshore
gas (HC or CO2) produced fluid
injection handling hubs
CO2 storage in
Extended-reach saline aquifers,
and deviated depleted fields, salt
wells (salt) caves
Pre-Salt
Flow Assurance
Definitive Deepwater
and formation
CALM buoy
damage control Development
Dry completion
systems (SPAR, Reservoir
TLP, FPDSO, …) Characterization
Offshore gas
Floating LNG storage in salt
caves
CO2 separation /
capture technology
41
42. ESPÍRITO SANTO PRE SALT
n to UTG Cacimbas
Sa
Linhares
Rio Doce Cangoá
o Infrastructure in-place: diversified and flexible portfolio;
MG Peroá
ito
UPGN Lagoa Parda
p ír
24” – 66 km
Aracruz 25 MM m3/d o P-34 at Jubarte field, first pre-salt production (Sep/08):
Es
Terminal Barra do Riacho
Camarupim
excellent results/light oil (30ºAPI);
Canapu
Golfinho
o FPSO Capixaba (100 Mb/d) moved from Golfinho field
VITÓRIA
Vila Velha
Carapó and is being adapted to produce in Cachalote
(CHT)/Baleia Franca (BFR) in 1H10;
Sul-Norte Capixaba
UTG Sul Capixaba Sul Capixaba Gas pipeline
Guarapari
Gas pipeline 12 a 24” – 160 km
12” – 83 km 7 a 15 MM m3/d
4,5 MM m3/d
o Baleia Azul first definitive production unit by 4Q12;
Anchieta
Presidente Marataizes
Kennedy
ARG
CHT Baleia Franca o Natural gas production transported via pipeline.
JUB OST
NAU
RJ Baleia Azul
CXR
ABA
PRB
Catuá
Whales Park*
42
*Whales Park comprehends the fields: Jubarte, Cachalote, Baleia Franca, Baleia Azul and Baleia Anã
45. NEW REGULATORY MODEL
Production Transfer
Sharing Pre-salt of Rights with
Agreement and compensation
Strategic Areas
Petrobras 100%
Petrobras Operator
Other companies
trough Bidding
Process
Current
Other Areas Concession
Model
There will be no regulatory changes in the areas under concession, including the pre-
salt area already granted
45
46. PRODUCTION SHARING AGREEMENTS
Production sharing agreements
o Petrobras will operate all blocks under this regime, with a minimum stake of 30%
o Consortium between Petrobras, Petro-sal and the winning bidder will be managed by the Operational
Committee
o Petrobras will be able to participate in the bidding process to increase its stake
o The winning bidder will be the
Companies company that offers the highest
percentage of “profit oil” for the
Profit Brazilian Government
Oil o Petrobras will have to follow
Government the same percentage offered
by the winning bidder
o The Brazilian Government will not
assume the risks of the activities,
except when it decides to invest
Cost directly
Oil o Prior to contracting, the Government
may evaluate the potential of the
areas and may contract Petrobras
directly
46
Graphs are showing only hypothetical values
47. E&P TRANSFER OF RIGHTS WITH COMPENSATION
o 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
o Transfer of rights limited to a maximum produced of 5 billion boe. Petrobras
will be the owner of produced volumes
o 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
o The transaction includes a clause of reappraisal of reserves value
o If the value of appraisal rises, Petrobras will pay the difference to the
Government. If price falls, the contrary will happen
o Royalties will be paid by Petrobras and distributed according to the Law nº
9.478/97. No special participation payment is expected
47
48. TRANSFER OF RIGHTS APPRAISAL
Appraisal need to consider
Production Capex
Curve
Production
Oil Volume Costs
Oil reservoir
Future Oil Discount
prices Rate
Reserves Fiscal
development/ Environment
Knowledge (government
participation)
48
