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2014 Global Energy Conference – Credit Suisse

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Rudimar Lorenzatto Exploration & Production June, 2014 2014 Global Energy Conference – Credit Suisse
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Page 1: 2014 Global Energy Conference – Credit Suisse

Rudimar LorenzattoExploration & ProductionJune, 2014

2014 Global Energy Conference – Credit Suisse

Page 2: 2014 Global Energy Conference – Credit Suisse

DISCLAIMERFORWARD-LOOKING STATEMENTS:

DISCLAIMER

The presentation may contain forward-looking statements about future events within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are not based on historical facts and are not assurances of future results. Such forward-looking statements merely reflect the Company’s current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by the Company with the SEC, specifically the Company’s most recent Annual Report on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties inherent in making estimates of our oil and gas reserves including recently discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason. Figures for 2014 on are estimates or targets.

All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this presentation.

NON-SEC COMPLIANT OIL AND GAS RESERVES:

CAUTIONARY STATEMENT FOR US INVESTORS

We present certain data in this presentation, such as oil and gas resources, that we are not permitted to present in documents filed with the United States Securities and Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K because such terms do not qualify asproved, probable or possible reserves under Rule 4-10(a)of Regulation S-X.

Page 3: 2014 Global Energy Conference – Credit Suisse

AGENDA

• BUSINESS AND MANAGEMENT PLAN 2014-2018

• PRODUCTION UPDATE

- RAMPING UP NEW SYSTEMS

- MAINTAINING EXISTING SYSTEMS

• PER BOE ANALYSIS

• PRE-SALT UPDATE

• NEW UNITS

• CONCLUSION

Page 4: 2014 Global Energy Conference – Credit Suisse

Business and Management

Plan2014-2018

Page 5: 2014 Global Energy Conference – Credit Suisse

5

Investments in Exploration & Production: US$ 153.9 billion

Downstream 38.7 (17.5%)

Gas & Energy 10.1 (4.6%)

International 9.7 (4.4%)

Distribution 2.7 (1.2%)

Biofuels 2.3 (1.0%)

Engineering, Technology& Materials 2.2 (1.0%)

Other Areas 1.0 (0.5%)

2014-18 BMPTotal Investment

US$ 220.6billion

Exploration & Production153.9 (69.8%)

Production Development112.5 (73%)

Infrastructure: 18.0 (12%)

Exploration: 23.4 (15%)Pre-saltConcession

Transfer of RightsProduction Sharing

Post-salt

Exp + R&D

82.0(60%)

53.9(40%)

Page 6: 2014 Global Energy Conference – Credit Suisse

6

Projects Under Implementation, Bidding Process and Evaluation

2014-18 BMPTotal InvestmentUS$ 220.6

billion

Downstream 38.7 (17.5%)

Gas & Energy 10.1 (4.6%)

International 9.7 (4.4%)

Distribution 2.7 (1.2%)

Biofuels 2.3 (1.0%)

Engineering, Technology& Materials 2.2 (1.0%)

Other Areas 1.0 (0.5%)

Exploration & Production 153.9 (69.8%)

Under Implementation(US$ 175.9 billion)• Projects being executed

(construction)• Projects already bid• Resources required for studies

of Projects Under Evaluation

Under Bidding Process¹(US$ 30.9 billion)• E&P projects in Brazil

Represent around 200 th. bpd ofproduction in 2018 and 900 th. bpd in 2020.

Projects under Studies in Phase I, II or III

(except E&P in Brazil)

Portfolio of Projects Under Implementation + Under Bidding Process

US$ 206.8 Billion Portfolio of Projects Under Evaluation

US$ 13.8 Billion

¹ Includes E&P projects in Brazil which will stil go through bidding process of their units, as well as Premium I and Premium II refineries, which will have the bidding process carried out throughout 2014 ² Source: IHS CERA Regional Downstream Capital Costs Indexes - 2011

Oil Production 2020: 4.2 million bpd

No impact in Oil Production 2020

Page 7: 2014 Global Energy Conference – Credit Suisse

7

2014-2018 BMP: Investment and Operating Costs Management

2014-2018 BMP US$ 220.6 Billion

PRC-PoçoProgram to Reduce

Well Costs

PRC-SubProgram to Reduce

Subsea Facilities Costs

PROEFProgram to Increase

Operational Efficiency

UO-BCUO-RIO

PROCOPOperating Costs

Optimization Program

INFRALOG – Logistic Infrastructure Optimization ProgramLocal Content Management– Take advantage of the industry´s capacity to maximize gains to Petrobras

Health, Safety, Environment and Energy Efficiency

PROCOP: Focus on OPEX, operating costs of the Company activities – Manageable Operating Costs..PRC-Poço: Focus on CAPEX dedicated to Wells construction – Investments in Drilling and Completion.

PRC Sub: Focus on CAPEX dedicated to subsea systems construction.

Page 8: 2014 Global Energy Conference – Credit Suisse

8

1.9

3,2

4.2

2013 2014 2015 2016 2017 2018 2019 2020

New systems ensure future growth

Growth in 2014:7.5% ± 1p.p.

Piloto Sapinhoá (Cid. São Paulo)

Baúna(Cid. Itajaí)

Piloto Lula NE(Cid. Paraty)

Papa-Terra(P-63)

Roncador III(P-55)

Norte Pq. Baleias (P-58)

Iracema Sul(C. Mangaratiba)

Roncador IV (P-62)

Sapinhoá Norte (Cid. Ilhabela)

Papa-Terra (P-61+TAD)

Florim

Lula Alto

Lula CentralJúpiterLula Sul

(P-66)

Búzios I(P-74)

Lapa

Lula Norte (P-67)

Búzios II(P-75)

Lula Ext. Sul e CO Sul de Lula

(P-68)

Lula Oeste(P-69)

Búzios III(P-76)

Tartaruga Verde e Mestiça

Maromba I

Iara Horst(P-70)

Búzios IV(P-77)

Entorno de Iara(P-73)

NE de Tupi (P-72)

Iara NW (P-71)

Sul Pq. Baleias

ES ÁguasProfundas

Carcará

Espadarte III

SE ÁguasProfundas I

Búzios V

RevitalizaçãoMarlim I

SE ÁguasProfundas II

Libra

RevitalizaçãoMarlim II

Iracema Norte (Cid. Itaguaí)

On StreamBuiltOrderedUnder Bidding

+640kbpd +660kbpd +150kbpd +1000kbpd +900kbpd +1050kbpd Capacity added per year

3 MM bbl

Page 9: 2014 Global Energy Conference – Credit Suisse

Ramping Up New Systems

Page 10: 2014 Global Energy Conference – Credit Suisse

10

FPSO Cid. São Paulo(Sapinhoá)

2,200

1,900

1,950

1,850

2,150

2,050

2,000

2,100

Feb-14

1,9261,923

Jan-14 Mar-14

2,0142,009

Sep-13

2,022

1,979

Aug-13

1,951

1,908

Jul-13

1,929

1,888

Jun-13

2,021

1,955

1,920

Jan-13

1,994

1,9651,979

May-13

1,925

1,892

Apr-13

1,974

1,924

Mar-13

1,890

1,846

Fev-13

1,988

1,917

Dec-13

2,027

1,964

Nov-13

2,009

1,957

Oct-13

1,994

1,960

Th. bpd1Q13

Average 1,9102Q13

Average 1,9314Q13

Average 1,9601Q14

Average 1,9223Q13

Average 1,924P-58(Parque das Baleias)

P-55(Roncador)

P-63(Papa-Terra)

Nov 12thFPSO Cid. Paraty(Lula NE Pilot)

FPSO Cidade de Itajaí(Baúna)

Feb 16th

Jan 5th Mar 17thDec 31st

Capacity:120 th. bpd (45% Petrobras)2013 – 10 th. bpd1Q14 – 20 th. bpd

Capacity:80 th. bpd (100% Petrobras)2013 – 36 th. bpd1Q14 – 72 th. bpd

Capacity:120 th. bpd (65% Petrobras)2013 – 10 th. bpd1Q14 – 30 th. bpd

Capacity:140 th. bpd (62.5% Petrobras)

2013 – 1 th. bpd1Q14 – 9 th. bpd

Capacity:180 th. bpd (100% Petrobras)1Q14 – 8 th. bpd

Capacity:180 th. bpd

(100% Petrobras)1Q14 – 2 th. bpd

Production Operated by PetrobrasPetrobras Production

Jun 6th

» Main factors that impacted production in the 1Q14: Demobilization of FPSO Brasil (integrity) and complete stoppage of Marlim P-20 for 103 days (fire). Limited availability of PLSVs, due to the delayed decision of contracting abroad (2010 → 2012), after failed attempts to contract them in Brazil,

impacting the pace of interconnection of wells. Delays in the delivery of the platforms by the shipyards and bigger than expected scope for off-shore activities. Longer time for the execution of innovative projects, such as the BSRs (monobuoys) and systems P-63/P-61/TAD.

2013: 1,931 th. bpd

Production in the 1Q14 was 1,922 kbpd, in line with projections

Page 11: 2014 Global Energy Conference – Credit Suisse

11

2Q14 3Q14 4Q14

2014 Average: 2,075 th. bpd ± 1%

Factors that support production growth:» New systems: P-62 (May 12th), P-61/TAD (3Q14), FPSO Cidade de Ilhabela (3Q14) and FPSO Cidade de Mangaratiba (4Q14).» Connection of 65 production wells in 2014, of which 20 have already been connected by 05/09/2014.

» PLSV fleet increase: 11 vessels in 1Q14, 13 vessels in 2Q14, 16 vessels in 3Q14 and 19 vessels in 4Q13.» PLSV productivity increase: from 99 km / PLSV / year in 1Q13 to 129 km / PLSV / year in 1Q14 (+30%).

Th. bpd

2,400

2,600

2,500

2,300

2,200

2,100

2,000

1,900

1,800

0

jul-1

4

may-1

4

aug-

14

jun-1

4

apr-1

4

oct-1

4

dez-1

4

nov-1

4

sep-

14

mar-1

4

1,926

feb-1

4

1,923

jan-1

4

1,917

dec-1

3

1,964

nov-1

3

1,957

oct-1

3

1,960

sep-

13

1,979au

g-13

1,908

jul-1

3

1,888

jun-1

3

1,979

may-1

3

1,892

apr-1

3

1,924

mar-1

3

1,846

feb-1

3

1,920

jan-1

3

1,965

2Q13Average 1.931

3Q13Average 1.924

4Q13Average 1.960

2013 Average: 1,931 th. bpd

1Q13Average 1.910

1Q14Average 1.922

P-62

Realized

FPSO Cid. São PauloFPSO Cid. Paraty

FPSO Cidade de Itajaí

Jan 5th P-55

P-63

Cid. Ilhabela

Cid. Mangaratiba4th Quarter

3rd Quarter

3rd Quarter

3rd Quarter

P-61

TAD

P-58

May 12th

Jun 6th

Feb 16th Nov 12th

Dec 31st Mar 17th

3rd Quarter

Production growth target of 7.5% (± 1 p.p.) maintained

Page 12: 2014 Global Energy Conference – Credit Suisse

12

Our critical resources needs are fulfilled

1) Rigs above 2000m 2) PLSV = Pipe Laying Support Vessel

Current fleet: 55 Current fleet: 40 Current fleet: 11

New Production Units New UDW Drilling Rigs¹above 2000m New PLSVs²

51

7

6

92

5

5 6

13

19

28 3035

2014 2015 2016 2017 2018 2019 20202

7

5

8

51

2

9

14

22

27 28

2014 2015 2016 2017 2018 2019 2020

8

9

2

8 8

1719 19 19 19

2014 2015 2016 2017 2018 2019 2020

Sete Brasil drilling rigs will largely replace the internationally built rigs

Page 13: 2014 Global Energy Conference – Credit Suisse

13

Production Wells Expected to be Connected in 2014

New Production Wells in 2014 New Injection Wells in 2014

18

49

5964

17

22

28

Connected Completed Drilled Total

3

Connected Completed Drilled Total

In 2014, up to April, 20 wells connections were done with 30% more efficiency (km/PLSV/year) than in the last year.

Page 14: 2014 Global Energy Conference – Credit Suisse

15

Buoyancy Supported Risers

Dimensions: 33ft x 130ft x 170ft

A pioneer concept for subsea systems: a giant buoy to support rigid risers.

• Which fields?– Sapinhoá Field

(FPSO Cid. de São Paulo)– Lula NE Field

(FPSO Cid. de Paraty)

• Operational status:– All 4 buoyancies are

installed.

• Time for installation:– 1st buoy: 164 days– 2nd buoy: 55 days

• The Results:– In 2013: more 17 mil bpd– In 2014: more 19,5 mil

bpd

Page 15: 2014 Global Energy Conference – Credit Suisse

Maintaining Existing

Systems

Page 16: 2014 Global Energy Conference – Credit Suisse

18

Main Operational Units

Vitória

ES

MG

Rio de Janeiro

RJ

PR

São Paulo

SP

100 km

Curitiba

SC

Campos Basin

Santos Basin

Parque das Baleias

Cangoá Peroá

CanapuGolfinho

Camarupim

Carapó

RoncadorAlbacora

MarlimBarracuda

Garoupa

CarapicuXerelete

Papa-Terra

MarombaCarataí

Pampo

IaraLibra

Ent. Iara

Búzios

Jupiter

PerobaSul de Lula

LulaIracemaParati

Lapa

Sagitário Florim

Bem-te-vi/CarcaráCaramba

Sapinhoá

S. Guará

Merluza

GuaiamáPiracucá

BaúnaPiracaba

TubarãoEstrela do Mar

CoralCaravela

Cavalo Marinho

Mexilhão CarapiáPirapitanga

Tambaú

Tambuatá

UO-SUL1 production units71 kbpd

UO-BS8 production units142 kbpd

UO-BC34 production units372 kbpd

UO-ES7 production units287 kbpd

UO-RIO17 production units840 kbpd

Page 17: 2014 Global Energy Conference – Credit Suisse

19

Program to Increase Operational Efficiency (PROEF)

488 455 452 442

418 389 390 389

355 382

428 413 408 405 374 357 370

312 335

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Apr/14

With PROEFWithout PROEF

920

871 887 871 881

839 807

910

851 840 841 811 824

775

4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Apr/14

With PROEFWithout PROEF

Oil + NGL Production (kbpd)

Oil + NGL Production (kbpd)

73 68 71 76 76 74 75 77 77 81

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Apr/14

92 91 89 94 91 93 92 94 95 96

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Apr/14

Operational Efficiency(%)

Operational Efficiency(%)

UO-BCRecovering wells and subsea systems.Total Expenditure*US$ 1,897 mmNPV*US$ 1,080 mmProduction gain:+43 kbpd in the 1Q14.

UO-RIOIntegrity improvement and optimization in the usage of resources. Total Expenditure*US$ 3.2 mmNPV*US$ 1,340 mmProduction gain+15 kbpd in the 1Q14.

* By February 2014

Page 18: 2014 Global Energy Conference – Credit Suisse

20

Legacy Oil – accounts for 80% of the production target for 2014

0

0.5

1

1.5

2

2.5

2012 2013 2014

OIL

PO

TEN

TIAL

(MM

BPD

)

Reservoirs potential decline rate

SOURCE LARGEFIELDS

SMALLFIELDS

Onshore 5,3% 6,2%

Deep waters 12,0% 19,8%

Shallow waters 7,5% 12,1%

Decline Rates - CERA

CERA: Cambridge Energy Research AssociatesAuthors: Jackson/Eastwwod, 01/2012Deep waters = water depth > 300mLarge fields = reserves > 500 mm bbl

Decline rate1Q14 x 1Q13

10%

The control over the reservoirs decline rate ensures the oil

production forecast for the year

Page 19: 2014 Global Energy Conference – Credit Suisse

21

Average FX (R$/US$) 1.67 1.96 2.16 2.37 2.36

% of costs in US$ 18 18 32 35 35

Oil production (th. bpd) 2,022 1,980 1,931 1,922 2,088

Pre-salt production (th. bpd) 100 138 249 299 324

Days of workovers (PROEF) 1,402 2,966 3,479 872 3,711

Higher productivity guaranteed the maintenance of lifting cost

1920.93

22.31 22.47 22.57

26.39

30.7928.33 29.49

31.2534.28

32.66 33.14 32.65

11.3813.12 13.37 12.49 12.91 13.28

15.2413.8 14.76 15.02 14.96 14.33 14.15 14.62

0

5

10

15

20

25

30

35

40

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2014E

BRL/boeUSD/boe

More operational activities with constant oil production;Stabilized unitary costs with a downward trend → increase in productivity and cost reduction

2011 Average:R$ 21.19 /boe

2012 Average:R$ 26.97 /boe

2013 Average:R$ 31.94 /boe

2011 Average:R$ 21.19 /boe

2012 Average:R$ 26.97 /boe

2013 Average:R$ 31.94 /boe

1Q 2014:R$ 33.14 /boe

1Q 2014:R$ 33.14 /boe

+9% +7% -1%

+27%

+18% +1%

Page 20: 2014 Global Energy Conference – Credit Suisse

22

The 2014-18 BMP counts with the gains of PROCOP

Costs reduction between 2013 and 2016, with nominal values of R$ 37,5 billion

Ligting Cost(R$/boe)

• Optimization of routine processes and resources used in the production of oil & gas.

• Excellence level in the management of materials and spares.

• Adequacy of overhead.

34.8

27.3

32.7

24.2

-5,9% a.a.

-7,2% a.a.

2014 2018

Page 21: 2014 Global Energy Conference – Credit Suisse

Pre-salt Update

Page 22: 2014 Global Energy Conference – Credit Suisse

24

Rio de Janeiro

MG

100 km

MG

100 km

The Pre-Salt Province

RJ

São Paulo

Curitiba

* Comerciality declaration of Lula (6,5 bi boe), Lula–Iracema (1,8 bi boe), Sapinhoá(2,1 bi boe) e Lapa (459 mi boe)

Average Water Depth: 2,100 mDistance from the coast: 300 kmSalt thickness: 2 kmReservoir average depth: 5 kmRecoverable Volumes

· Lula: 6.5 bi boe· Lula – Iracema area: 1.8 bi boe· Sapinhoá: 2.1 bi boe· Transfer of Rights: 5.0 bi boe

Total: 15.4 bi boe

Remaining areas103.4 mil km²

69%

Areas underconcession45.6 mil km²

31%87%Petrobras andassociates

13%Consortium withoutPetrobras

CamposBasin

7,000 km2

(1.7 million acres)

Santos BasinPre-Salt

15,000 km2

(3.7 million acres)

650US GoMblocksConcessionTransfer of RightsProduction Sharing

Page 23: 2014 Global Energy Conference – Credit Suisse

25

Rio de Janeiro

MGMG

The Pre-Salt Province

RJ

São Paulo

Curitiba

FPSOCapixaba1 p. well

P-481 p. well

P-533 p. wells

FPSO Cid.Angra dos Reis4 p. wells

FPSO Cid.Paraty

2 p. wells

FPSO DynamicProducer

1 p. well

FPSO Cid.Niterói1 p. well

FPSO Cid.São Vicente1 p. well

ConcessionTransfer of RightsProduction Sharing

P-581 p. well

FPSO Cid.Anchieta5 p; wells

FPSO Cid.São Paulo

2 p. wells

9 production units+ 2 EWT

22 productionwells (10 PPSBS,5 BC/RJ e 7 BC/ES)

Page 24: 2014 Global Energy Conference – Credit Suisse

26

Pre-Salt Production Highlights

Lula Nordeste Pilot on stream since June 2013 with only 1 production well

Campos Basin

Santos Basin

13686

4718

208

316

42

119

169

301

385

2008 2009 2010 2011 2012 2013 April 2014

165

83

72

24

203

8

Monthly Production Average(kbpd) Daily Production Record

470 kbpd in May 11st 2014

Cumulative productionAug/08 to Apr/14378 million bbl

9.014.8

Lula Petrobras E&P

Lifting Cost 2013 (US$/boe)

34

36

36

BAZ-04 (Baleia Azul)

LL-02 (Lula Pilot)

SPS-77 (Sapinhoá Pilot)

High Productivity Wells (kbpd - peak)

411

Page 25: 2014 Global Energy Conference – Credit Suisse

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Pre-salt Drilling Activity in the Santos Basin Pre-salt Cluster

2 23

7

10 10

2122

Active Rigs

2 3 4 4 69 10 12

6

15

21

2 3 4 57

15

25

33

2006 2007 2008 2009 2010 2011 2012 2013

DevelopmentExploration

23 injection wells21 production wells

50 exploratory wells

55% Reduction of drilling timefrom 134 to 60 days (2006-2013)*

Drilling + completion record (2013): 109 days

100% Exploratory success in thepre-salt province in 2013

>90% Exploratory success in thepre-salt province since 2006

* dryhole

Page 26: 2014 Global Energy Conference – Credit Suisse

28

168

125

98 98

78

2010 2011 2012 2013 2014Duration (days/well)

158

10289 86

64

2010 2011 2012 2013 2014Duration (days/well)

Drilling Completion (including WCT)

Wells Construction in Santos Pre-salt – Total Duration

-11% p.a. -15% p.a.

Page 27: 2014 Global Energy Conference – Credit Suisse

29

Libra

ConcessionTransfer of RightsProduction Sharing

Libra

L1L3

L2

L4

L5L6 L7

L8

L9

L10

L11L12

Unique Characteristics• Very thick Pre-salt reservoirs• Good reservoir quality

(porosity / permeability)• Light Oil (~ 27° API)

The Libra partnership offers a vast array of opportunities• Very strong oil companies• Integrated Project Team• Openness to new ideas

40% 20% 20% 10% 10%

Page 28: 2014 Global Energy Conference – Credit Suisse

New Units

Page 29: 2014 Global Energy Conference – Credit Suisse

FPSO Cidade de Ilhabela - Sapinhoá Norte

• Sail away by Jul/2014• 1st oil: 2H 2014• 150 kbpd oil• 6 MM m³/d gas• 8p + 7i wells

Page 30: 2014 Global Energy Conference – Credit Suisse

FPSO Cidade de Mangaratiba - Iracema Sul

• Sail away by Aug/2014• 1st oil: 2H 2014• 150 kppd oil• 8 MM m³/d gas• 8p + 7i wells

Page 31: 2014 Global Energy Conference – Credit Suisse

P-66 - Lula Sul (Replicant)

• 1st oil: 2016• The first of 8 new build

FPSOs (Replicants)

Page 32: 2014 Global Energy Conference – Credit Suisse

P-74 – Búzios I

• 1st oil: 2016• The first of 4 Converted

FPSOs

Page 33: 2014 Global Energy Conference – Credit Suisse

Conclusion

Page 34: 2014 Global Energy Conference – Credit Suisse

39

• To achieve our 7,5% (+-1%) growth in production in 2014, we are counting on:– Arrival of 8 PLSV, making a total of 19 PLSVs (12 to pre-salt) by the end of 2014– Out off the 10 new units planed for 2013-2014, 7 are already producing, one is in its final stage (P-61) and

the other 2 are almost done (92% and 93%).– The BSR technology are now field proof with all the buoy installed.– Highly productivity of the pre-salt fields (the last wells are producing 30- 35 kbpd).

• The decline rate of our fields are slightly better then the market benchmarks.

• PROEF is bringing great results by reducing the decline rate of our existing fields and also by improving the efficiency of our production systems.

• PROCOP is proving very important for the upstream department of Petrobras because is decreasing the lifting cost.

• The Pre-salt production is increasing in a sustainable manner and is showing the high productivity of its fields (average production of 410 kbpd in April).

CONCLUSION

Page 35: 2014 Global Energy Conference – Credit Suisse

40

• Petrobras is a businesses driven company and our focus now is the increase of production. Our board is directly involved in this matter.

• We are getting more efficient in drilling and completing wells the Pre-salt layer, with an average duration reduction of 13% yearly from 2012 to 2014, a remarkable outcome, since it accounts for 51% of our E&P investments.

• We are all very excited about Libra and committed to deliver a great project achieving production and cost targets.

CONCLUSION

Page 36: 2014 Global Energy Conference – Credit Suisse

THANK YOU!INFORMATIONInvestor Relations+55 21 3224-1510

[email protected]/ir


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