1 PETROBRAS PETROBRAS A NEW ROLE IN THE GAME A NEW ROLE IN THE GAME Mr. Jos Mr. Jos é é Sergio Sergio Gabrielli Gabrielli – – CEO CEO October October 26th, 2009 26th, 2009 October, 2009
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1. PETROBRAS A NEW ROLE IN THE GAME Mr. Jos Sergio Gabrielli
CEO October 26th, 2009October, 2009 1
2. DISCLAIMERThe presentation may contain forecastsCAUTIONARY
STATEMENT about future events. Such forecasts merelyFOR 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 usedproved reserves that a company
has to identify such forecasts. These predictions demonstrated by
actual production or evidently involve risks and uncertainties,
whether foreseen or not by the Company. conclusive formation tests
to be 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 expectationsWe use certain terms in this exclusively on the
information presentedpresentation, such as oil and gas herein. The
Company is not obliged to resources, that the SECs guidelines
update the presentation/such forecastsstrictly prohibit us from
including in in light of new information or future filings with the
SEC. developments. 2
3. COMPETITIVE POSITIONING AMONG PEERSMarket Value as of
October 12, 2009 337.0 199.6 (US$ bn) 176.0 164.5147.7 141.6CAPEX
1H09 vs. 1H08102.576.2 75.920% 18%XOM PBR RDSBPCVXTOT ENICOPSTL11%
Source: Bloomberg3% STL XOM RDS ENICOPBP PBRBGCVX -1% -1%Oil and
Gas production 1H09 vs. 1H08TOT-6% 6%5% -12%4%4%-17% 2%
1%ENIXOMRDSTOT PBR COPCVXBPSTLBG-1%-37%-2% Source: Company reports
and web site-4% Source: Company reports and web site -6%3
4. HIGH EQUITY TURNOVER AND DIVERSIFIED SHAREHOLDER BASE
Shareholder BaseTurnover NYSE & Bovespa (Daily Average
Turnover)(% category and US$MM) 9,5%Foreign20,3% 10,9%26,4%31,2%
29,5%37,4% Turnover 2009YTD/2005 = 512%46,4%10,3% 219 483 992
1,9301,344 18,0%9,9% 8,0% 7,9% Bovespa25,1%30,6%43% 43%Nyse23,1%
22,7%47% 50%20,7% 53% PBR PBR/A 61,6%25%21%20%53,6%20%19%44,4%
40,6% 39,9% 6% Boves40,1%6%5%5%5% pa31%PETR325%27% 26%22%PETR4
Oct/1992 Jul/2000 After Aug/00 After Jul/01 Dec/2003
Dec/08200520062007 2008 2009 YTDofferingoffering Government
(1)Bovespa ForeignPETR3 (Bovespa) PETR4 (Bovespa)PBR/A (Nyse)PBR
(Nyse)Bovespa BrazilADRs 4(1) Includes BNDES / BNDESPAR
5. BUSINESS PLAN 2009-20132,2703,012 OIL AND GAS
PRODUCTIONREFINING CAPACITY5,729(Thousand boe/d) Premium I7.5%
a.a.223 (Thousand bpd)) 600 Th. bpd. 6% a.a 4092010: 43 TH.
BPDandPremium II 3,6551,1772011: 255 TH. BPD 300 Th.
bpd2,7571311,7791,791 2012: 150 TH. BPD2,308 2,400 210103 634
109100 142 8.8% a.a. 126124 463 273 3213,9202,6801,7921,855
2,0502007 2008 2009 2013 2020 O il P roduction - B razil G as R
poduction - B razil O il P roduction - International G as P
roduction - International2008 2009201020112012 2013 2020GAS &
ENERGYCAPEX - US$174.4 Billions 1st investment cycle (up to 2010)
2%2% 2% E&P3%+ 2, 332 km pipelines 5.6 RTC 7% 3.0+ 19 new power
plants11.8 2.8 G&E+ 1,236 MW3.2+ LNG Terminal - Baa de
GuanabaraPetrochemicals Distribution 43,4 104.6 (*) 2nd investment
cycle (2011 on ) 25%59% Biofuels + 307 km pipelines Corporate + new
compressor stations (*) US$ 17.0 billion allocated to + 2 LNG
terminals (Regas-Flex Terminal) Exploration + Natural Gas
plants5
6. CURRENT INTERNATIONAL PRESENCE Exploration & Production
EnergyRefining Gas sector activitiesDistribution Representative
officeCommercializationCooperation agreement Operations inExpanding
activities in America, 27 countries Europe, Africa and Asia.
Petrochemicals Head officeJAPAN - Nansei Sekiyu refinery in
Okinawa: Capacity to process 100 thousand bpd, storage for 9.6
million barrels of oil products and provide logistical support for
the distribution of Petrobras products to the Asian market 6
7. PRE SALT REGION: A PROMISING FUTUREThe big blue area
represents the expected Pre-salt location, with great potential for
oil presence Currently, Campos basin is responsible for 87% of the
Companies' total production, however, when comparing with Santos
basin region one may see how promising the region is. 7
8. ENHANCING RESERVESSantos Pre-Salt announced recoverable
volumes, can almost double Brazilian reserves.mi boe~ 25-30 bn
boe30,000 25,000 20,000 15,000Higher estimates +5,40010,000 5,000
14,093 Lower estimates 10,6000 2008 Proven Santos and Campos Basins
Proven Reserves* +Reserves* Pre-Salt Santos and Campos Basins
(Tupi, Iara, Guar and Whales Pre-SaltPark)** (Tupi, Iara, Guar and
Whales Park)** *SPE Criteria ** include Petrobras and Partners
8
9. PURSUING NEW PROJECTS WHILE MAXIMIZING PRODUCTION FROM
EXISTING ASSETSPetrobras Total Production (x 1000 boe/d)5,729
2237.5% p.y. 4091.177 3,6555.6% p.y.8.8% p.y. 1312,758210 634 2,400
103 2,217 2,2972,301 142 1,8102,037 2,020101 110100 1,635 96 124463
228594142 12624 163321 35 161168 277 2733.92044 274 252251265232
2.680 1.8552.050*1.684 1.7781.792 1.5001.5401.493 1.33520012002
20032004 2005 200620072008 2009.....2013.....2020Oil production -
BrazilGas production - BrazilOil production - International Gas
production - International * Consider +- 2,5%9
10. IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT 2.000.000
1.800.001.600.00Production (bpd)1.200.00 1.000.00 800.00 400.000 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 YearsProduction since foundingDiscovery of
Garoupa inDiscovery of giant fields in CamposDiscovery of the
Pre-Salt,of Petrobras (1954)the Campos basin (1954)basin including
Albacora/Marlimsince Parati (2006) 10
11. DEVELOPMENT STRATEGYScenario for the Pre-SaltSeveral blocks
Operational Similar geologicalacquired at thePartnerships
characteristics same periodOperational PartnershipsChallenging
Waterdepth, shoredistance, salt layer,After massive exploratory
efforts led to huge discoveries MajorHigh InvestmentImpact on
severalTechnological Need areas of Petrobras
ChallengesPLANSALSantos Basin Pre-Salt Development Master Plan
11
12. COMMERCIAL CHALLENGES Take advantage of possible
synergiesand scale to pursue cost reduction Local content current
successfulexamples: Supply vessel construction Subsea equipment
Tubulars Motors, Valves etc Repeatability and scale Hull Factory
Batch contracts for process modules Standardization program for
well and subsea hardware (trees, lines, ) FPSO Flex 12
13. USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING ASSETS
AND FPSOSWater Depth20082009 2010 20112012 2013 - 20180-999m11 1
1000-18 2 1999m 2000m 5 596 + 28 to be leasedTotal per 3479* 7
928**year Rigs Available in 7176 the market > 2400m 30 RIGS
CONTRACTED PLUS 28 TO BE LEASED UP TO 2018, MAKING A TOTAL OF 58
DRILLING RIGS:23 being delivered between 2009 and 20119 will be
chartered via international bidding, being delivered in 2012
Meeting Petrobras short-term needs, while the national industry
prepares itself for additional orders.28 will be built in Brazil,
being delivered between 2013 and 2018 FIRST 2 FPSOS TO BE CHARTERED
(2013-2014): Oil Production: 120,000 bpd, Gas Compression: 5 M m/d
ADDITIONAL 8 FPSOS (2015-2016):Construction of the hulls at the Rio
Grande Shipyard, all identical units, manufactured in series* 2
rigs will be dismissed in 2013 13 13**30 rigs contracted plus 28 to
be leased up to 2018, making a total of 58 new drilling rigs
14. NEW EQUIPMENT TO BE CONTRACTEDItemsUn.
TOTALItemsUn.TOTALWet Christmas Tree un500Pumpsun 8.000Well
Headun500Compressorsun700Flexible Lines km 4.000
Winchun450Manifoldsun 30Craneun200Producing pipes t42.000 Enginesun
1.000Umbilicalkm 2.200 Turbines un350Dry Christmas Tree un 1.700
Structure Steal (Hull)t 240.000Onshore well headun 1.700 Structure
Steal (Platforms Hull)t 700.000 ItensUn.TOTALItens Un.
TOTALReactorsun280 Power Generatorsun 500Oil and water
splitterun50Filters un 300Storage Tankers un1.800 Flaresun30Turrets
un55014
15. TECHNOLOGICAL INNOVATION FOR THE NEXTDECADESPETROBRAS
RESEARCH CENTERPartnership with over 120 universities and research
centers in Brazil, and 70 Institutions abroad. Investments in
TechnologyTechnological programs2009-2013US$ 4.0 billion25%1.0Basin
Deep andHeavy FrontierUltra-deep EnhancedModeling Oil
Pre-saltRefining 47%Areas Waters Oil 1.9Recovery 5% 0.20.923%
Optimization Bio FuelsE&P Downstream Fuel Natural GasClimate
PRO-CO&Transportation EnvironmentInnovation
ChangesReliabilityG&E Corp. (Cenpes)15
16. MANAGING RESERVOIR UNCERTAINTIES Reservoir Quality
Predictability- best EOR method Subsea Layout Production System
Integrity Flexible FPSOs Topsides CO2 Processing & Handling
Flow Assurance 16
17. Santos Pre-Salt Cluster Vs. Campos ACCELERATED PROJECT
DEVELOPMENT BasinPRE SALT RESERVE DEVELOPMENT USING FAST TRACK
PROJECTS - EXPECTED RESULTS: Anticipation of revenues Revenue
Anticipation;Possible optimized Possible optimized recovery
usingrecovery alternate water and CO2 injection; Capex Optimization
Time to first oil reduction Year 0Year 2 Year 4Year 6 Year 8 Year
10 Year 12Year 14Year 16Year 18 Year 20Year 22Year 24 Year 26 Year
28 Year 30Year 32 Year 34 Fast Track Project Standard Project
17
18. PETROBRAS: GLOBAL PRESENCE IN THE BIOFUEL SEGMENT BIOFUELS
CAPEX 2009-2013US$ 2.8 BILLION16% Ethanol Biodiesel 84% Ethanol
Exports (thousand m)Brazilian Biodiesel Market and 4,5 (thousand
m)Petrobras Production Target*427003,5 40.6% p.y.2200317.9% p.y.
2,5 1700 211424,225 1,5 1200 1971700 0,5 1,081 401 Petrobras5350
200 Market-share (20%)(29%)2009 2013-3002009 2013 18 * Base case:
Demand B5 in 2013
19. ETHANOL: ANOTHER GOOD OPPORTUNITY TO BECAME A GLOBAL
PLAYERNorth andEurope CURRENT MARKET DISTRIBUTION OF WORLD
CONSUMPTION Central America37%Brazil 9.8%Ethanol global market is
46.5 Billions LitersEthanol as a Fuel is 30.6 Billions Liters, or
67% of total ethanol 35%productionTODAY the ethanol consumption is
2,6% of gasoline MKSouthincreasing ethanol to 10% of gasoline will
represent 118 Billions Lt America Asia38% 16.2%TOMORROW Potential
ethanol production would grow by more than 100% based on
Lignocelluloses Biomass technologySUGARCANE ETHANOL PROVIDES THE
LOWER AND BRAZIL: LEADER IN ETHANOL EFFICIENT PRODUCTION BEST
PAYBACK TIME RATIO FOR CARBON EMISSION 420ENERGYRAW MATERIAL
OUTPUT/ENERGY320 INPUT Payback Time (Yrs) Wheat 1.2Corn1.3 1.8Sugar
Beet1.9 8693Sugar Cane (under37 17Brazilian Production8.3BR
AmazonBR Cerrado to IndonesianUS CentralCondictions)to Soy BR
Cerrado toIndonesianPeatland Tropical Grassland to Soy
BiodieselSugarcane Lowland TropicalBiodiesel Rainforest to Palm
Corn Etanol Ethanol Rainforest to PalmOil Biodiesel Oil Biodiesel19
19
20. FUEL ETHANOL USE AROUND THE WORLD Ethanol blending Existing
programmes Programmes under implementation No ethanol blending20
Source: IFQC, 2007
21. COMPETITIVE BRAZILIAN ETHANOLProduction Costs US $ / B a
rre l 15 4 US $ / B a rrel US $ / B a rre lUS$ / B arre lUS$ / B
arre l7551 46 32EU (cereals)USA (Corn) Australia (SugarThailand
(SugarBrazil (Sugar Cane)Cane)Cane)Sorce: DATAGRO (in New trends to
the ethanol supply chain in brazil, Simoes, R.B., Master Thesis,
University VanTilburg, holanda, jul-2006)Brazilian ethanol: growing
expectation64 602,556 2,6522,57,7 8,3 472,57,143 2,5 6,6382,56,129
33 2,4 4,9 billion liters251,8 3,9 1,04,1 53,21,14,246,149,64,238,7
42,5 31,334,9 2427,620,32008 2009 201020112012 2013 20142015 2016
2017 Sorce:MME (10 Years Energiy Plan PDE 2006 2017 ver.2) Fuel in
domestic MarketExport Other Uses21
22. PETROBRAS: FIRST SERVICE STATION WITH ETHANOL IN JAPAN
Initiated operation on 1st of september 2009; Located in Kawasaki;
E3 Fuel Commercialization. Initial instalation in two
pumps;Expectation of 100 m3/month;Target 2010 (march): 10 service
stations and 1,000 m3/month. 22
23. For more information:Investor
Relationswww.petrobras.com.br/ri+55 21
[email protected] 23