Brazilian Pre-Salt Update

Mauro Yuji Hayashi

E&P-PRESAL Planning Manager May/2014

Agenda

The presentation may contain forecasts about future events. Such forecasts merely reflect the

expectations of the Company's management. Such terms as "anticipate", "believe", "expect",

"forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous

expressions, are used to identify such forecasts. These predictions evidently involve risks and

uncertainties, whether foreseen or not by the Company. Therefore, the future results of

operations may differ from current expectations, and readers must not base their expectations

exclusively on the information presented herein. The Company is not obliged to update the

presentation/such forecasts in light of new information or future developments.

All projects forecasted herein are subject to approval by the appropriate stakeholders.

The United States Securities and Exchange Commission permits oil and gas companies, in their filings

with the SEC, to disclose only proved reserves that a company has demonstrated by actual production

or conclusive formation tests to be economically and legally producible under existing economic and

operating conditions. We use certain terms in this presentation, such as oil and gas resources,

that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.

CAUTIONARY STATEMENT FOR US INVESTORS

Disclaimer

Agenda

3rd Largest Oil Producer, and 5th Largest Oil&Gas Producer

Petrobras Highlights

OIL

AN

D G

AS

PR

OD

UC

TIO

N

(m

illio

n b

arre

ls p

er d

ay)

OIL

PR

OD

UC

TIO

N

(kb

d, T

ho

usa

nd

s)

Agenda

20 17

15 15 14 13 13 12 10 9

0

5

10

15

20

25

Reserve/Production Y

ears

721%

176% 175% 145% 126% 112% 102% 99% 79% 49%

0%

200%

400%

600%

800% Reserve Reposition Index

4th best relation Reserve/Production, and 5th best Reserve Reposition Index

Petrobras Highlights

Agenda

2nd Biggest Oil Reserve

Petrobras Highlights

Agenda

The Largest Industry CAPEX

Petrobras Highlights

Agenda

BMP 2014-2018

US$ 220.6 billion

38.7

(18%)

153.9

(70%)

Distribution

Biofuels

Downstream

Other Areas 1 International

Gas and Energy Engineering, Technology and Materials

E&P

2.2 (1%)

1.0 (0.4%)

2.7 (1.2%)

2,3 (1.0%)

9.7 (4%)

10.1 (5%)

112,5(73%)

18,0(12%)

23,4(15%)

E&P - US$ 153.9 bilhões

Production Development + Exploration

US$ 135.9 billion

53,9(40%) 82,0

(60%)

Production

Development

Exploration

Infrastructure and

Support

Pre-Salt

Post-Salt

Petrobras Investments – 2014-2018 BMP

Pre-Salt (Concession)

Transfer of Rights

PSA (Libra)

Agenda Brazilian Pre-Salt

Brazilian Pre-Salt Province

Agenda

Rio de Janeiro

Curitiba

ES

MG

PR

São Paulo

RJ

100 km

Brazilian Pre-Salt Province

Curitiba

Florianopolis

Vitória

ES

MG

SC

100 km

RJ

PR

São Paulo

SP

Santos Basin

Campos Basin

BRAVA TRACAJÁ

CARIMBÉ NAUTILUS

BALEIA AZUL

BALEIA FRANCA

BMC-33

(100%) CONCESSION

(CAMPOS BASIN)

PRODUCTION SHARING

TRANSFER OF RIGHTS

(100%)

(40%)

(20%)

(20%)

(10%)

(10%)

CONCESSION (SANTOS BASIN)

(10%) (10%) (14%)

(30%) (25%)

(65%) (25%) (10%)

(65%) (25%) (10%)

(80%) (20%)

(80%) (20%)

BMS-8 (Carcará)

BMS-9 (Sapinhoá / Lapa)

BMS-10 (Parati)

BMS-11 (Lula-Iracema/ Iara)

BMS-21 (Caramba)

BMS-24 (Júpiter)

(66%)

(45%)

(60%) (20%) (20%) BMS-50 (Sagitário)

SUL DE GUARÁ

SUL DE LULA

NE DE TUPI ENTORNO DE IARA FLORIM BÚZIOS LIBRA

CARCARÁ

IRACEMA SAGITÁRIO

LULA

IARA

CARAMBA

LAPA

JUPITER

SAPINHOÁ

Agenda

Rio de Janeiro

Curitiba

Florianopolis

ES

MG

PR

SC

São Paulo

SP

RJ

100 km

Pre-Salt - Size

Campos Basin

7,000 km2 (1.7 million acres)

SP

650

US GoM Blocks

Santos Basin Pre-Salt

15,000 km2

(3.7 million acres)

Agenda Main Results: Excellent exploratory success

46 discoveries in 14 months

(jan/13 to feb/14):

24 offshore discoveries

14 in the Pre-Salt

Exploratory

Success in 2013

in the Pre-salt 100%

Petrobras as operator

Agenda

• High resolution seismic

• Suitable geological and flow model

• New materials

• New subsea systems

• CO2 separation and reinjection

Main results: technology is no longer an issue

Agenda

Reduction of drilling time

From 134 to 60 days (2006/2013)

Main Results: Wells Learning Curve

55% 134 days

60 days

109 days: drilling + completion record (2013)

Pre-Salt Province

TOTAL • 171 wells (until Feb/14)

Agenda

3 8 24 72 83

165 181

8 18

47

86

136

214

0306090

120150180210240270300330360390420

2008 2009 2010 2011 2012 2013 2014(March)

Daily Production Average

Santos Basin (kbpd)

Campos Basin (kbpd)169

395

16

42

Production Record: 444 kbpd in April 18th 2014

3

119

301

Sep/2008 Mar/2014 328 million boe Cumulative Production

16

19

9

8

Campos Basin

Gulf of Mexico

North Sea

Pre-Salt

Pre-Salt achieved 400 kbpd in 8 years

Main Results: 400+ kbpd production

Agenda After 8 years ...

34

36

36

BAZ-04 (Baleia Azul)

LL-02 (Lula Pilot)

SPS-77 (Sapinhoá Pilot)

*Lula NE Pilot on stream from jun/13 to dec/13, connected to just one production well

9,0 14,8

Lula* Petrobras E&P

Lifting Cost 2013 (US$/boe) High Productivity Wells (kbpd at peak)

13 13 13

17

15 16

21

23

25

10

15

20

25

2012 2013 2014

Campos Basin - RJ Campos Basin - ES Santos Basin*

Average Weels Productivity (kbpd)

5 Weels

8 Weels

4 Weels

6 Weels

9 Weels

6 Weels

5 Weels

12 Weels

9 Weels

Number of contributors weels* *Excluding EWTs, because their production are limited to gas burn restrictions.

Feb/13

Jun/12

Feb/14

Agenda Main Results: 11 FPSOs and 23 production wells on stream

Reference: Mar/2014

P-48 1 production well

P-53 3 production wells

FPSO Capixaba 2 production wells

FPSO Cid. Anchieta 5 production wells

FPSO Cid. Angra dos Reis 4 production wells

FPSO Cid. Paraty 2 production wells

FPSO Cid. São Paulo 2 production wells

FPSO Dynamic Producer 1 production well

FPSO Cid. Niterói 1 production wells

FPSO Cid. São Vicente 1 production well

P-58 1 production well

Agenda

FPSO Dynamic Producer

FPSO Cidade de São Vicente

EWTs Period Block

Lula Apr/09 - Dec/10 BM-S-11

Lula NE Apr/11 - Nov/11 BM-S-11

Iracema S Feb/12 - Oct/12 BM-S-11

Sapinhoá N Jan/13 - May/13 BM-S-9

Lula Sul Nov/13 – Apr/14 BM-S-11

EWTs Period Block

Sapinhoá Dec/10 - Jul/11 BM-S-9

Carioca NE Oct/11 - Feb/12 BM-S-9

Lula Central Oct/13 – Apr/14 BM-S-11

EWT’s

6 more to come (2014-2015)

Agenda

Lula Pilot First Oil: Oct/2010

Discovery + 4 years FPSO Cidade de Angra dos Reis

Pilot Projects

Agenda

Sapinhoá Pilot First Oil: Jan/2013

Discovery + 5 years FPSO Cidade de São Paulo

Pilot Projects

Agenda

Lula NE Pilot 1st Oil: Jun/2013

Discovery + 7 years FPSO Cidade de Paraty

Pilot Projects

Agenda Meanwhile in Campos Basin...

Baleia Azul First Oil: Set/12

First FPSO fully dedicated to Pre-Salt in Campos Basin

Discovery + 4 years FPSO Cidade de Anchieta

Agenda One more …

Norte Parque das Baleias On stream since March 17th

180 kbpd oil

8 MM m3 gas

15P + 9I wells P-58

Agenda

Buoyancy Supported Risers 1 Sapinhoá Pilot 2 wells producing

• 1st well (SPS-77) producing since February 18th

• 2nd well (SPH-04) producing since April 3rd

• 2 more wells to be connected in 2014

On going ...

BSR1 on location (2013)

Agenda

Buoyancy Supported Risers 2 Lula NE Pilot Already installed

• 70% reduction of installation period (165 to 50 days)

• 1st well (LL-22) 1st oil May 2014

• 3 more wells to be connected in 2014

Ballasting of BSR2 (Dec/2013)

On going ...

Agenda

Buoyancy Supported Risers 3 Sapinhoá Pilot Already installed

FPSO Cid. São Paulo, PLSV 7Seas and BSR 3 (Feb/2014)

• End of the first SCRs installation expected by Q2

On going ...

Agenda On going ...

Buoyancy Supported Risers 4 Lula NE Pilot End of installation expected by Q2

Agenda

Arriving at Brasa Yard – Dec/2013

Apr/2014

On going ...

FPSO Cidade de Ilhabela Sail away by Jul/2014

Sapinhoá Norte (Santos Basin)

1st oil: Q3, 2014

150 kbpd oil

6 MM m³/d gas

8p + 7i wells

Agenda

FPSO Cidade de Mangaratiba Sail away by Aug/2014

On going ...

Brasfels Yard – Aug/2013

Apr/2014

150 kppd oil

8 MM m³/d gas

8p + 7i wells

Iracema Sul (Santos Basin)

1st oil: Q4, 2014

Agenda More to come

150 kbpd oil

8 MM m³/d gas

8p + 9i wells

Iracema Norte (Santos Basin) 1st oil: Q4, 2015

FPSO Cidade de Itaguaí

Agenda

150 kbpd oil

6 MM m³/d gas

10p + 8i wells

Lula Alto (Santos Basin) 1st oil: 2016

FPSO Cidade de Maricá

More to come

Agenda

150 kbpd oil

6 MM m³/d gas

10p + 9i wells FPSO Cidade de Saquarema

Lula Central (Santos Basin) 1st oil: 2016

More to come

Agenda

8 New build FPSOs

(Replicants)

First: Lula Sul 1st oil: 2016 P-66

More to come

Agenda

P-74

4 Converted FPSOs

First: Búzios 1 1st oil: 2016

More to come

Agenda The Way Ahead

Oil Production (BMP 2014-2018)

Petrobras Share and Pre-Salt Contribution

2013 2014 2015 2016 2017 2018 2019 2020

4.2

Sapinhoá

Pilot

Lula NE Pilot

MM

bpd

52%

1.93

7%

3.2

Increase in 2014:

7,5% ± 1p.p.

Lula Ext.

Sul e CO de

Sul de Lula

Lula Oeste

Búzios III

Iara Horst

Búzios IV

Iracema

Norte

Norte Pq.

Baleias

Sapinhoá

Norte

Iracema Sul

Lula Alto

Lula Central

Lula Sul

Búzios I

Lapa

Lula Norte

Búzios II

Júpiter

Búzios V

Florim

Libra NE de Tupi

Iara NW

Sul Pq. Baleias

Carcará

Entorno de Iara

Agenda

Citi Research Global Oil Vision

PBR

IRR

Break-even Brent Oil price (US$/boe)

Competitive break-even and high return

1st quartile

Market Insight

Agenda Team Work

For more information:

Investor relations

www.petrobras.com.br/ri

+55 21 3224-1510

petroinvest@petrobras.com.br