2. DISCLAIMER
This presentation may contain forward-looking Cautionary statement for U.S. investors:
statements. Such statements reflect only the
expectations of the Company's management The United States Securities and Exchange
regarding the future conditions of the economy, Commission permits oil and gas companies,
the industry, the performance and financial in their filings with the SEC, to disclose
results of the Company, among other factors. proved reserves that a company has
Such terms as "anticipate", "believe", "expect", demonstrated by actual production or
"forecast", "intend", "plan", "project", "seek", conclusive formation tests to be economically
"should", along with similar expressions, are and legally viable under existing economic
used to identify such statements. These and operating conditions. We use certain
predictions evidently involve risks and terms in this presentation, such as
uncertainties, whether foreseen or not by the discoveries, that the SEC’s guidelines strictly
Company. Consequently, these statements do prohibit us from including in filings with the
not represent assurance of future results of the SEC.
Company. Therefore, the Company's future
results of operations may differ from current
expectations, and readers must not base their
expectations solely on the information presented
herein. The Company is not obliged to update
the presentation and forward-looking statements
in light of new information or future
developments. Amounts informed for the year
2011 and upcoming years are either estimates
or targets.
2
3. BRAZIL LEADERSHIP IN RECENT DISCOVERIES
Deep‐water discoveries in Brazil represent 1/3 of the worldwide discoveries in the last 5
years
New Discoveries 2005‐2010
(33,989 million bbl) Deep‐Water
Discoveries
38%
Brazil
Brasil
62%
Outros
Other
Other Discoveries Deep-Waters
• In the last 5 years, more than 50% of the new discoveries (worldwide) were made in deep waters;
• The development of these reserves will demand additional capacity from the supply chain;
• Expansion of the oil and gas chain in Brazil is in line with this perspective.
Petrobras expects to double its proved reserves until 2020, keeping the discovery cost around US$2/boe
Source: PFC Energy 3
4. INCREASE IN SALES VOLUMES
Sales Volume (thousand boe/day)
6.6% p.y.
8.000 7,142 Fertilizers
79
141
7.000 El ectri c Energy
401
5.6% p.y. 906
6.000 Bi ofuel s
4,958
38 480
5.000 106
3,848 290 Interna ti ona l Sa l es(**)
3,773
3,464 17 17 738
4.000 17 94 97 2,317
94 136 147 436 Na tura l Ga s (***)
125 593 634
3.000 542 997
312 320
231 Exports
699 586
2.000 706 1,739
1,453
1,204 1,315 Other Di s tri bui tors
1,097
1.000
731 899 1,078
652 718 Sa l es to BR
0
*2009 *2010 2011 2015 2020
BP 2011‐15 ‐ Petrobras Total Sales Volume
(*) Accomplished
(**) International area sales and offshore trading operations free from eliminations.
(***) Natural Gas was converted to boe/d.
4
6. 2011‐2015 INVESTMENTS
Investment level similar to the previous Plan, with more focus in E&P
2010‐14 Business Plan 2011‐15 Business Plan
US$224 billion US$224.7 billion
2% 1%
2% 1% 2%
2,9
2% 1% 2,4 1%
8% 2.9 6% 2,32.4
4,24,2
17.8
3.5 14,73,2 4.1
14,7 3,2
13.2 3.1
2.4
5.1 4,14,1
3.8
118.8 (*)
53% 65,5
65,5
73.6 70.6 127.5
31% 57%
33%
E&P RTM
RTC
E&P
Gás,Energia & Gás Química
Gas, Energy & Gas Chemicals Petroquímica
Petrochemicals (*) US$22.8 billion in Exploration
Distribuição
Distribution Biocombustíveis
Biofuels • 5% of investments will be made overseas, 87%
Corporativo
Corporate
of which in E&P.
• Obs: HSEE (US$ 4.2 bi), IT (US$ 2.7 bi), Technology
(US$ 4.6 bi), Logistics (US$ 17.4 bi) and Maintenance &
Infrastructure (US$ 20.6 bi)
6
7. INVESTMENTS BP 2011‐15 VS. BP 2010‐14
US$ billion
BP 2010‐14 BP 2011‐15
(R$ 419.7 billion) (R$ 388.9 billion)
US$ 224 billion US$ 224.7 billion
0,3%
Excluded
10,8 New
‐9,7% 32,1 90,6
82,9
37% 40%
Maintained
Maintained
213,2
192,6
141,1
Changes in: 134,1
63% FX rate 8.6
60%
Budget 1.5
Schedule (23.7)
Business model (0.6)
Scope (6.4)
Total in Foreign Currency
Total in Local Currency
7
8. KEY CHANGES IN PORTFOLIO
New projects concentrated in E&P
Exploration & Production Supply Gas & Energy
(includes Petrochemicals)
+ US$8.7 billion ‐ US$4.3 billion ‐ US$4.6 billion
New Projects
New Projects • HPP Barra do Rocha I
New Projects
• New units Comperj • HPP Bahia II
• Transfer of Rights
• Oil Logistics Projects concluded in 2010
• New Pre‐Salt Units (Lula) • Gas pipelines: Gasene, Pilar‐
Projects concluded in 2010
Ipojuca, Gasduc III and Gasbel II
• Infrastructure
• Braskem investment
• New Discoveries and R&D
Excluded, Revised and/or
• Investments in quality Postponed Projects
Excluded, Revised and/or Excluded, Revised and/or • Postponement of projects: UFN IV,
Postponed Projects Postponed Projects UFN V, GTL Paraffins and Gas FSO
• Projects discontinued after • Postponement of Premium I • Exclusion of Catu‐camaçari gas
unsuccessful exploratory phase Refinery pipeline and Ecomp Itajuípe
• Exclusion of HPP projects from
• Revision of Development Projects
2010 auctions
8
13. VARIABLES
Key variables that impact the cash flow and funding needs
Assumptions
No Capital Increase in the period
Investment grade maintenance
Key variables for Cash Generation and Investment Level
• Oil price
• Foreign Exchange Rate
• Brazilian Market Growth
• Average Realization Price (ARP) – Brazil
– International Parity
– International margins per product
• Oil and products exports and imports
• Investment Program
• Divestitures and business restructuring
• Third‐party funding
13
14. CASH GENERATION AND INVESTMENTS
Divestment and traditional funding sources adequate for Plan needs
Scenario A Scenario B
US$ 256.1 US$ 256.1 US$ 255.6 US$ 255.6 Key assumptions
13,6 13,6
31,4 30,9
26,1 26,1 Scenario A Scenario B
Exchange rate
1.73 1,73
67,0 (R$/US$)
91,4
2011 – 110 2011 – 110
2012 – 80 2012 – 95
224,7 224,7 Brent (US$/bbl) 2013 – 80 2013 – 95
2014 – 80 2014 – 95
148,9
125,0 2015 – 80 2015 – 95
Leverage (Average) 29% 26%
Net Debt/EBITDA
1.9 1.5
Sources Use Sources Use (Average)
ARP (R$/bbl) 158 177
Divestment and Restructuring Debt Amortization
Cash Investments
Third‐Party Resources (Debt) • 40% of capex in dollar in comparison to 37% in the
Operating Cash Flow (After Dividends)
previous Plan
14
16. STRATEGY
Sustainable development of hydrocarbon reserves
Increase oil and gas reserves and production, in a sustainable manner, and be
recognized for its excellence in E&P operations, placing the Company among the world’s
five largest oil producers
2011‐15 Business Plan Highlights:
• 65% of Capex allocated to production development.
• 19 large projects, adding capacity of 2.3 million bpd.
• Drilling of more than 1,000 offshore wells, of these 40% is exploratory and 60% is production
development.
• In 2020, the pre‐salt production will correspond to 40.5% of the oil production in Brazil.
16
17. TOTAL E&P INVESTMENTS IN BRAZIL– 2011‐15 BUSINESS PLAN
Exploration
E&P investments in Brazil: US$117.7 bn
Pre‐Salt Post‐Salt 26%
Pre‐salt
US$ 53.4 billion US$ 64.3 billion
Infrastructure
68%
Other areas 6%
Transfer of
17% Rights
18%
Exploration
65%
Production Development
Production
Development
Pre‐salt
Other areas 37%
48%
• Annual investments of more than US$ 4 billion in exploration
15%
• Investments of US$ 12.4 billion related to the transfer of
rights areas in 2011‐15 Transfer of Rights
• In the BP 2010‐2014, the forecasted investment for the Pre‐
Salt was of US$33 billion
Note: Pre‐salt includes Basins in Santos, Campos and Espírito Santo
17
18. PRODUCTION
With broad access to new reserves, Petrobras can more than double its production in
the next decade 6,418
142
246
1.120
3,993
125
180 + 35 Systems
2,575 2,772 618
2,386 2,516
+10 Post‐Salt Projects
93 96
96 141 +8 Pre‐Salt Projects
4,910
99
’000 boe/day
132 144 435
111 317 334
321 +1 Transfer of Rights 845
3,070
Transfer of Rights
Added Capacity 13
1.855 1.971 2.004 2.100
Oil: 2,300,000 bpd Pre-Salt 1,148
543
2008 2009 2010 2011 2015 2020
Oil Production‐ Brazil Natural Gas Production ‐ Brazil Oil Production ‐ International Natural Gas Production ‐ International
• Pre‐salt and Transfer of Rights will represent 69% of the additional capacity up to 2020;
• Pre‐Salt participation in the total production will enhance from the current 2% to 18% in 2015 and 40.5% in
2020.
Note: Does not include Non‐Consolidated International Production.
18
19. PRODUCTION
Long history of implementing offshore projects in Brazil
2,004
2000
10% p.y over the last 30 years
10% p.y
Deep water
1600 Shallow water
Onshore 1,271
1200 1,601
Thous .
Thous.
653 749
bpd
800
42
400 400 292
187 189
75 211 230 214
0 112
1980 1990 2000 2010
• 123 offshore units (45 floating and 78 fixed)
• 25 new units installed over the last 5 years
P‐56
FPSO Cidade de Angra dos Reis P‐57
FPSO Cidade de Santos
19
20. LARGE PROJECTS SUSTAIN THE INCREASE IN PRODUCTION NG Projects
Pre‐Salt and Transfer of
Rights Projects
Post‐Salt Projects
Lula Pilot
FPSO BW Cidade Juruá NG EWTs
Angra dos Reis
100.000 bpd Lula NE Franco 1
FPSO Cidade de Transfer of
Cachalote and Mexilhão Paraty Rights
Baleia Franca Jaqueta
FPSO Capixaba HG Guará Pilot 2 120.000 bpd FPSO
100.000 bpd
FPSO Cidade de
São Paulo Parque das Guará (North)
150.000 bpd
Tambaú Baleias FPSO FPSO P‐67
120.000 bpd Replicant 2
Thous. Uruguá FPSO Cidade FPSO P‐58 150.000 bpd
FPSO Cidade de 150.000 bpd
bpd
Santos
de Santos
NG
Baleia Azul
180.000 bpd
Cernambi BMS‐9 our11
35.000 bpd FPSO Cidade de Papa‐Terra South
Marlim Sul Anchieta TLWP P‐61 & FPSO 3.070
module 3 100.000 bpd FPSO P‐63 150.000 bpd
3000 Jubarte
SS P‐56 (FPSO Espadarte 150.000 bpd
FPSO P‐57
180.000 bpd
100.000 bpd reallocation)
FPSO P‐66
2500 2.100 Replicant 1
2.004 Baleia Azul
150.000 bpd
Roncador BMS‐9 or 11
2000 EWTs Lula NE module 3
Roncador FPSO
module 4 60.000 bpd Maromba
Tiro Pilot e Cernambi SS P‐55
FPSO P‐62 FPSO
1500 SS‐11 FPSO BW 180.000 bpd
180.000 bpd Siri 100.000 bpd
Cidade São
Atlantic Zephir
30.000 bpd
Vicente Tiro/Sidon
Aruanã
Jaqueta e
1000 30.000 bpd FPSO Cidade de
FPSO
FPSO ESP/Marimbá
Itajaí 50.000 bpd FPSO
EWT Guará EWT Carioca 100.000 bpd
80.000 bpd 40.000 bpd
500 FPSO Dynamic FPSO Dynamic
Producer
30.000 bpd
Producer
30.000 bpd
4 EWTs
Pre‐salt
3 EWTs
Pre‐salt
5 EWTs
Pre‐salt
5 EWTs
Pre‐salt
0
2010 2011 2012 2013 2014 2015
20
21. NEW PROJECTS
Higher number of drilling rigs will enable a faster ramp‐up of the new platforms
Months
20 To reach 50% capacity
Para atingir 50% capacidade
16 Para atingir 75% capacidade
To reach 75% capacity
12
8
Forecast
4
0
P‐43 P‐48 P‐50 P‐52 P‐54 P‐53 P‐51 FPSO P‐57
CAPIXABA
2004 2005 2006 2007 2007 2008 2009 2010 2010
P‐56 will have 1 producing well and 1 injection well to be connected in 3Q11.
Water Depth 2006 2008 2010 2011 2012 2013
Up to 1,000 meters 6 11 11
1,000 to 2,000 meters 19 19 21 +2 +1 +1
Over 2,000 meters 2 3 15 +10 +13 +1
From 2007 to 2012 Petrobras will double its fleet of contracted drilling rigs, focusing on modern, recently built drilling rigs
with capacity to operate in the Pre‐salt layer.
21
22. POSITIVE RESULTS OBTAINED DURING EWTs
Average drilling time of the wells completed during the year
(versus combined average time for 2006/7) Results obtained during EWTs
Constant production
5 wells
Restriction due to flaring limitation
4 wells
Good behavior of the reservoirs
5 wells
Good lateral communication
6 wells
No issues regarding flow guarantee
EWT Schedule
4
1
4
1
5 5
4
3 3
2011 2012 2013 2014 2015
TLD ‐ Pré‐Sal e Cessão Onerosa
EWT – Pre-Salt and Transfer of TLD ‐ Outras áreas
EWT – Other areas
Rights
22
24. PROFITABILITY
New E&P projects generate attractive returns
Key Assumptions:
• 150,000 bpd FPSOs
• Production of 500,000 bpd
• Ramp‐up in line with industry
• Historic decline rate
• Oil value = 95% Brent
• Does not include exploration and
acquisition costs
Case 1 – US$12/boe Capex / US$5/boe Opex (expected scenario)
Case 2 – US$15/boe Capex / US$7/boe Opex
Case 3 – US$12/boe Capex / US$5/boe Opex without Special Interest (such as Transfer of Rights)
• The graph illustrates the cost‐benefit ratio of a standard production development in Brazil, using assumptions
based on previous experiences
24
25. E&P PROFITABILITY IN BRAZIL
Oil production profitability in Brazil fully exposed to oil prices
Brent vs. Net income per Barrel E&P Net Income ($/boe)
Net income per Barrel (US$)
Peers
Petrobras
Brent (Average in dollars)
E&P ROCE
• E&P profitability strongly correlated to oil price
• Production in Brazil: 86% oil and 14% gas
• Higher net profit per barrel yields better return
than its peers
• Stable regulatory environment allows for Peers
capturing the benefits of the increase in oil prices Petrobras
Source: PFC Energy Peers: BP, CVX, XOM,RDS, TOT
25
26. VARREDURA PROJECT: TECHNOLOGICAL DEVELOPMENT AND EXPLORATORY OPTIMIZATION
Varredura Project
Discoveries in Pre‐salt
Descobertas do Pr é-sal
Campos Basin 2009/10
na Bacia de Campos
2009/10 (VARREDURA)
(Varredura) • Additional recoverable volume from discoveries:
• Post‐salt: Marimbá, Marlim Sul and Pampo:
1,105 MM boe;
• Pre‐salt: Barracuda, Caratinga, Marlim, Marlim
Leste, Albacora and Albacora Leste: 1,130 MM
boe*.
• Well productivity exceeds 20,000 bpd
67 exploratory wells will be drilled between 2011 and 2015 in production areas in
Campos basin
*No volumes have been announced regarding the Marlim Leste and Albacora Leste discoveries. 26
27. NEW TECHNOLOGIES
Applications enhance recovery, slow decline rates and increase production
Technological Solution Technology Status
Subsea BCS In Operation
Subsea Pumping Model In Operation (Jubarte e Golfinho)
Subsea Pumping
Systems Skid BCS Prototype in TLD ESP 23 (Oct/11)
Subsea Muliphase Pump BMSHA Prototype in Barracuda (Dec/11)
Gas/Liquid Subsea
VASPS Prototype Tested in P‐08 (2011)
Separation
Oil/Water Subsea
SSAO Prototype in Marlim (End of 2011)
Separation
Raw water injection SRWI Prototype in Albacora (End of 2011)
Subsea electric
transmission and Under qualification Prototype scheduled to 2015
distribution
VASPS Underwater Electric Raw water injection Oil/Water Subsea
Pump in Skid Separation
27
28. NEW VESSELS AND EQUIPMENTS
Resources required for production growth
Delivery Plan (to be contracted)
Current Situation Accumulated Value
Critical Resources (Dec/10)
By 2013 By 2015 By 2020
Drilling Rigs Water Depth Above 2.000 m 15 39 37 (1) 65 (2)
Supply and Special Vessel 287 423 479 568
Production Platforms SS e FPSO 44 54 61 94
Others (Jacket and TLWP) 78 80 81 83
Production
Supply Vessel Drilling Rigs
Platform (FPSO)
39 rigs contracted, 28 more to be built by 2020:
o Until 2013: 16 rigs contracted before 2008 and 2 rigs relocated from international operations¹; +15 new
rigs contracted in 2008, +1 in 2009, +1 in 2010 and +4 in 2011 through international bidding;
o 2015‐2020: From the 28 rigs to be built in Brazil, EAS won the bid for the first package ‐ construction
and chartering of seven drilling rigs to be built in Brazil. A new bid was open for the remaining 21.
(1) Two rigs reallocated from international operations, expire in 2015, so it is not considered in the 2020 accumulated value
(2) The demand for long‐term will be adjusted as new demand assessments are made.
28
29. TRANSFER OF RIGHTS
Development of the areas fully under way
Declaration of Commerciality
Exploration Production
Development
Duration: 4 years Variable, according to
Extendable for 2 more years Development Plan
Total Duration: 40 years, extendable for 5 more years according to specific criteria
Area 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Franco
Resources already
lara surroundings available for: First 4
production
Florim • 7 Exploratory wells New technologies
units
• 1 contingent Exploratory and definition of
NE of Tupi well undergoing
resource allocation
• 1 EWT contracting
South of Guará • 2 contingent EWTs (*)
• 3D Seismic
South of Tupi
* Conversion at the Inhaúma shipyard
29
30. REVISION OF THE TRANSFER OF RIGHTS
• The revision will be completed after the declaration of commerciality (4 years period)
• Revision based on technical reports and on assumptions provided in the contract
• Assumptions for price revision:
– Change in oil price
– Production curve
– Cost assumptions update
– Discount rate and appraisal base date maintenance
Final
value
Higher Lower
• Petrobras pays the difference to the Federal • Federal Government pays the difference
Government to Petrobras
• (or) Petrobras requests a reduction in
volumes corresponding to the difference
30
31. BENEFITS FROM THE LOCAL INDUSTRY DEVELOPMENT
Suppliers investing in Brazil Navy Industry Direct Labor force
Flexible pipes ‐ Wellstream and Prysmian
Pumping Units – Weatherford
30 x
Valves – Cameron
Turbine generators – Rolls‐Royce
2 FPSOs fully built in Brazil
6 Platforms under construction in Brazil
Construction of 8 hulls for replicant FPSOs (65% Local
Content)
Contracting of 7 drilling rigs at competitive costs and
21 being leased (55%‐65% Local Content)
Platforms built in Brazil with competitive costs
Source: Sinaval
31
33. STRATEGY
Expansion, quality, logistics and commercialization
Expand the downstream, ensuring the margins from the Brazilian market supply
with the required quality, and developing markets for the oil surplus
2011‐15 Business Plan Highlights:
• Downstream capacity will increase by 395 thousand bpd between 2011‐15 and 1,065 thousand bpd between
2016‐2020;
• Completion of the process to modernize the downstream segment;
• Logistics integrated with E&P activities to ensure the commercialization of the oil surplus;
• Increase petrochemicals and biopolymers production.
33
34. NEW REFINERIES, FUEL QUALITY AND MODERNIZATION SUM UP TO 74% OF RTM
INVESTMENTS
US$70.6 billion
• Refining Capacity Expansion: Abreu e Lima
4.5%
4.9%
1.0%
1.1% Refinery, Premium I and II, and Comperj;
0.8%
15.2%
• Quality and Conversion: Modernization,
13.9% conversion, and hydrodesulfurization;
• Operating improvement: maintenance and
optimization, HSEE, and R&D;
26.4%
23.9%
• Fleet Expansion
• Logistics for Oil: oil supply for refineries and
infrastructure for oil exports.
Refining Capacity Expansion
Quality and Conversion
Operating improvement
Fleet Expansion
Logistics for Oil Petrochemical Investments amount to US$3.8 billion
International
34
35. DOWNSTREAM EXPANSION
Reduced dependence on imports of oil products
Increase in import levels will lead to higher ... and to high levels of exposure to
’000 bpd logistical costs... international supply
Net Imports as a percentage of total demand (%)*
2006 2007 2008 2009 2010 2011E
USA
Brazil (2010)
France
Germany
China
Japan
Spain
Mexico
Indonesia
Brazil (2020)**
* Source: IEA – 2010 World Energy Statistics
** Without considering Capacity Expansion
35
36. PRODUCTION, DOWNSTREAM AND DEMAND IN BRAZIL
Construction of new refineries to meet local market demand
PREMIUM I
,000 bpd (2nd phase)
COMPERJ 300,000 bpd
(1st phase)
5,000 165,000 bpd
(2019)
(2013)
COMPERJ
(2nd phase)
Abreu e Lima 165,000 bpd
4,000 Refinery (RNE) (2018)
230,000 bpd
(2012)
3,327
PREMIUM II
3,000 2,643
300,000 bpd 3,095
(2017)
4,910
2,536
PREMIUM I
2,000 (1st phase)
3,070
3,217
300,000 bpd
(2016)
2,147
2,205
2,208
2,100
2,004
1,971
1,933
1,811
1,798
1,792
1,000
0
2009 2010 2011 2015 2020
Oil and NGL Production – Brazil Total crude oil processed – Brazil Oil Products Market (2 scenarios)
• Highlights: Abreu e Lima, 1st phase of COMPERJ, and 1st phase of Premium I.
36
37. INVESTMENTS IN DOWNSTREAM EXPANSION
REPRE I Abreu e Lima Refinery Comperj
REPRE II
Capacity: 230,000 bpd Capacity: 330,000 bpd
Stage: Implementation Stage: Implementation
Startup: 2012 Startups: 2013 and 2018
RNE
Premium I Refinery Premium II Refinery
Capacity: 600,000 bpd Capacity: 300,000 bpd
Comperj
Stage: Earthworks Stage: Preliminary License issued
Startup: 2016 and 2019 Startup: 2017
Launch of Petrobras’ Refineries
PREMIUM II
PREMIUM I
COMPERJ
REPLAN
REMAN
REDUC
REGAP
REVAP
REPAR
RECAP
RNEST
REFAP
RLAM
RPBC
32 years
50’s 60’s 70’s 80’s 90’s 00’s 10’s
• Learning curve from the two new refineries (Abreu e Lima Refinery and Comperj) to reduce Premium
refineries CAPEX
37
38. REFINING CAPACITY NEEDS OUTSIDE THE SOUTH/SOUTHEAST REGIONS
Market in 2010 Market in 2015
299 552 968
763
-464 -416
Capacity Demand Deficit Capacity Demand Deficit
1.652 1.675
1.466
1.384
82
-23
Capacity Demand Superavit Capacity Demand Deficit
• Increase in demand in the Central‐West, Northeast, and North explains the concentration of investments in the
Northeast;
• Tax incentives combined with environmental restrictions also contribute to the concentration in the region.
38
39. PRODUCTS
New refineries will produce higher value‐added oil products
Productivity of existing refineries – 2020 Productivity of new refineries – 2020
65%
43%
50%
36%
38% 21% 21% 19%
4% 15%
10% 4%
9%
7% 15% 15% 11%
5% 6% 4%
Medium Distillated Light Others Medium Distillated Light Others
Diesel Gasoline Naphtha Fuel Oil
Jet Fuel LPG Special Intermediary
• Increase in global demand for medium‐distillated products tends to lead to an increase in price versus the
gasoline price.
39
40. RESOURCE OPTIMIZATION AT PREMIUM REFINERIES
Economies of scale and new implementation Lower refining costs due to design
strategies to reduce Capex, including: quality and scale
• Design competition based on the lowest final cost Current downstream cost
(US$ / bbl in 2010)
• Selection of UOP ‐ international company with extensive
refining experience Age (years)
• Single design integrating all the refinery on‐site and off‐site
• Designer involved from conceptual design to technical
assistance in the start up
• Scale economies (RPRE: 300kbpd modules)
• Maximum standardization of equipments specification
Scale (’000 bpd)
40
44. INVESTMENTS IN GAS, ENERGY, AND GAS‐CHEMICALS 2011‐2015
2011‐15 Investments
US$13.2 billion
• Investment cycle in the expansion of the
6% transportation network to be completed in
2%
2011;
0,8
0,8 26%
0,3
0,3
• New natural gas delivery spots, negotiation with
3,4 distributors to increase sales and diversification
of contractual arrangements ;
5,9
5,9
2,8 • Consolidated investment in thermal power
45%
generation;
21%
• Operating in the LNG chain and serving the
3,4 thermal power market;
Network
3,4
Electric Energy • Increased portion of investments allocated to
Gas-chemicals plants International the conversion of natural gas into urea,
(Nitrogenized) ammonia, methanol, and other fertilizers, and
2,8
LNG gas‐chemicals.
44
45. 2ND INVESTMENT CYCLE: MONETIZATION OF THE PRE‐SALT RESERVES
1st Investment Cycle 2nd Investment Cycle
COMPLETED 2011‐2015 BP
2011‐
100%
LNG LNG
Acquisition TPPs Pecém BGUA UFN III (Sep/14)
90% Cubatão UFN V (Sep/15)
TPP Bicomb. Conversion Sulfato de Amônio (May/13)
Termoaçu
80%
ARLA 32 (out/11)
70% UFN IV (Jun/17)
% do Investimento Total
60%
Gasduc III
50% Gasbel II
Regás Bahia
Gasene (Jan/14)
40%
Pilar-Ipojuca
New NG TPPs
30%
Cacimbas-Vitória Japeri-Reduc
20% Gastau
Catu-Pilar Gascav
Gaspal II
Gascar
UPGN Cabiúnas –
10% Atalaia-Itaporanga
Urucu-Manaus
Gasan II Route 2 Pre-Salt
(Aug/14)
Ecomps + Delivery Spots + Network Maintainance
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Adaptation of the Gas Pipelines Network (US$ 3.34 bi) TPP Commitments (US$ 0.94 bi)
New TPPs run on Natural Gas (US$ 1.82 bi) Renewable Energy: Wind Power and Biomass (US$ 0.02 bi)
LNG regasification (US$ 0.74 bi) Natural Gas Liquefaction (US$ 0.10 bi)
Chemical Transformation of NG (US$ 5.85 bi)
45
46. NEW UNITS BENEFITING FROM HIGHER NATURAL GAS PRODUCTION
Fertilizer Production Installed Generation Capacity
UFN IV (Jun/2017)
4.000 UFN V (Sep/2015) 30 11.000 70
9,475
UFN III (Sep/2014) 2,936 25 9.000 581 60
Million cm/d
Thous.ton /year
3.000
7,114
Million cm/day
2,271 20
6,518 44 50
7.000 420
13 420
2.000 15 34 40
MW
5.000 30
1,109 6 30
10
1.000 813 813 3.000
3 8.894
5 20
291 6.098 6.694
1.000 10
0 -
2011 2015 2020
-1.000 2011 2015 2020 0
Ammonia Urea Natural Gas Consumption
UTE Renewable Natural Gas Consumption
• Brazil currently imports 53% of its total ammonia consumption and will be self‐sufficient in 2015;
• We currently import 53% of the total urea consumed. This amount will reduce to 28% in 2015, 16% in 2017 and 22%
in 2020.
46
47. NATURAL GAS SUPPLY & DEMAND BALANCE (MILLION M3/D) – SCENARIO A
PCS 9.400 kcal/m³ SUPPLY DEMAND
Domestic NG Supply Thermal Power Plants Demand : Petrobras + Third parties
102
78 9 Northern Region 76
(15.1 GW)
55 9 59
(10.7 GW) To be contracted (5.5 GW
6 93 38
Other Regions (6.7 GW)
69
49 37 40 Flexible
25
13 Inflexible
2011 2015 2020 2011 2015 2020
Supply via LNG Regasification Terminals NG Distributors Demand
41 41
14 14 Bahia Non‐thermal power
21 Pecém
14 20 20 Guanabara Bay
2011 2015 2020 2011 2015 2020
Bolivian Supply Petrobras’ Demand: Downstream + Fertilizers
61
Fertilizers
39
30 30 30 16 UPGN
Flexible 17
24 24 24 25 32 Downstream
Firm
2011 2015 2020 2011 2015 2020
Total Total
106 149 173 96 151 200
Supply Demand
47
50. INVESTMENTS IN DISTRIBUTION
2011‐2015 BP
US$3.1 billion
Mercado Automotivo
Gas Station
Mercado Consumidor
Wholesales Consumers 21%
42%
Operações e Logística
Operations & Logistics
Liquigás
18%
Internacional 6%
International
13%
Share in the automotive and global markets
50 40.6
38.6 38.8 38.5
40
30
20
30.6 30.9 31.3 33.7
10
0
2009 2010 2011 2015
Automotive Market (%) Global Market (%)
50
51. INVESTMENTS: INTERNATIONAL AREA
Activities in 27 countries in the E&P, RTCP, Distribution, and G&E segments
US$11 billion Gulf of Mexico
7%
1% Key Projects:
3% 2%
• Cascade / Chinook
E&P
G&E • Saint‐Malo
RTCP • Tiber
Distribution
87%
Corporate
Africa’s West Coast Latin America
Key Projects:
Key Projects:
Bolivia
• Nigéria San Alberto / San Antonio
Akpo Serving the Brazilian market
Agbami
Peru
Egina Integrated Gas Project – Lots 57 and 58
Oil Production – Lot X
• Angola Argentina
Block 26 Maintenance of Existing Assets
51
