Post on 09-Mar-2018
ETM
1
PETROBRAS AT A GLANCE
May, 2013
DISCLAIMER
The presentation may contain forward-looking statementsabout future events within the meaning of Section 27A ofthe Securities Act of 1933, as amended, and Section 21Eof the Securities Exchange Act of 1934, as amended, thatare not based on historical facts and are not assurances offuture results. Such forward-looking statements merelyreflect the Company’s current views and estimates offuture economic circumstances, industry conditions,company performance and financial results. Such termsas "anticipate", "believe", "expect", "forecast", "intend","plan", "project", "seek", "should", along with similar oranalogous expressions, are used to identify such forward-looking statements. Readers are cautioned that thesestatements are only projections and may differ materiallyfrom actual future results or events. Readers are referredto the documents filed by the Company with the SEC,specifically the Company’s most recent Annual Report onForm 20-F, which identify important risk factors that couldcause actual results to differ from those contained in theforward-looking statements, including, among otherthings, risks relating to general economic and businessconditions, including crude oil and other commodityprices, refining margins and prevailing exchange rates,uncertainties inherent in making estimates of our oil andgas reserves including recently discovered oil and gasreserves, international and Brazilian political, economicand social developments, receipt of governmentalapprovals and licenses and our ability to obtain financing.
We undertake no obligation to publicly update orrevise any forward-looking statements, whether asa result of new information or future events or forany other reason. Figures for 2013 on areestimates or targets.
All forward-looking statements are expresslyqualified in their entirety by this cautionarystatement, and you should not place reliance onany forward-looking statement contained in thispresentation.
NON-SEC COMPLIANT OIL AND GAS RESERVES:
CAUTIONARY STATEMENT FOR US INVESTORS
We present certain data in this presentation, suchas oil and gas resources, that we are not permittedto present in documents filed with the UnitedStates Securities and Exchange Commission (SEC)under new Subpart 1200 to Regulation S-K becausesuch terms do not qualify as proved, probable orpossible reserves under Rule 4-10(a) of RegulationS-X.
FORWARD-LOOKING STATEMENTS
2
ETM
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Overview
Deep Water (300-1,500m)
48%
Ultra-Deep Water(> 1,500m)
36%
Onshore8%
Shallow Water (0-300m)
8%
15.73 Billion boe
PETROBRAS TODAYFully integrated across the hydrocarbon chain
• 2.4 mm boed production
• 293 production fields
• 96% of Brazilian production
• 34% of global DW and UDW production
Exploration and
Production
• 12 refineries (Brazil)
• 2.0 mm bpd refining capacity
• Oil products sales in Brazil: 2,285 Kbpd
• Oil products output in Brazil: 1,997 Kbpd
Downstream
• 7,641 service stations
• 38,1% of market share
• 20% share of service stations
Distribution
• 9,190 km of gas pipelines in Brazil
• NG Supply: 74.9 million m³/d
• 3 LNG Regasificationterminals by 2013 with 41 MMm³/d capacity
• 7,028 MW of generation capacity
Gas and Power
• 24 countries
• 0.7 Bn boe of 1P (SPE)
• 243 th. boed production
• 231 th. bpd refining capacity
International
• 3 Biodiesel Plants
• Ethanol: opening new markets
• Largest domestic producer of biodiesel
• 3rd producer of ethanol in Brazil
Biofuels
(1) Adjusted according average exchange rate. Excludes Corporate and Elimination.
2012 Proven Reserves (SPE Criteria) - Brazil
4
Adjusted EBITDA per Segment (US$ bn) (1)
2009 2010 2011 2012
19.3
30.5
43.4 42.011
4.2
-6.9
-15.6
0.91.7
3.62.0
1.1
2.2
3.03.2
E&P RTM G&P Distribution International
1.1
1.3
1.31.6
ETM
3
34%
12%
7%12%
16%
19%
OWNERSHIPBroad distribution: government, Brazilian and foreign shareholders
Brazilian Non-Gov’tShareholders
Non-VotingVoting
Foreign Shareholders
Non-VotingVoting
Brazilian Government
Non-VotingVoting
*Includes: Federal Government, BNDES, BNDESPAR, Sov. Wealth Fund and Social Participation Fund - FPS
• Brazilian government, by law, must maintain control. Does so with 61% of voting shares.
• In BM&FBovespa, Petrobras is most actively traded stock, by shares and volume.
• 2000: ADRs listing on NYSE.
5
35%
19%
46%*
16.8
13.3 12.311.3 10.8
8.66.8
5.2
Exxon BP Shell BR Chevron Total Conoco ENI Statoil
Gas Oil
RELATIVE POSITIONRanked among the leading integrated energy companies
Note: Peer companies selected above have a majority of capital traded in the public market.
Source: Evaluate Energy (barrels per calendar day, considering company % shareholding and including JVs) and Bloomberg
Market Cap (US$ bn) – May 1st, 20132012 Refining Capacity (mm boe/d)
2012 Oil and Gas Production (mm boe/d) 2012 Proven Reserves – SEC (bn boe)
6Note: Peer companies selected above have a majority of capital traded in the public market.
Exxon BP Shell Chevron BR Total ENI Conoco BG
Gás Oil
2.6
3.23.3
2.62.3
1.7 1.6
0.6
4.2
Exxon Shell BP BR Conoco Total Chevron ENI Statoil
1.92.12.3 2.2
2.9
3.7
5.5
0.90.3
EXXON CHEVRON SHELL BP BR TOTAL ENI STATOIL CONOCO
392
234220
73
125 118138
7887
25.2
ETM
4
164 Million years ago152 Million years ago130 Million years ago122 Million years ago108 Million years agoEarth Planet as today
PRE-SALT FORMATION
0 4960 Miles
PRE-SALTShaded area represents the defined boundaries
8
• Total area of the Province: 149,000 km2
• Area under concession: 45,615 km2 (30,6%)
• Area not under concession: 103,385 km2 (69,4%)
• Area with Petrobras interest : 39,615 km2 (26,6%)
Petrobras - Exploration
Petrobras/Partners - Exploration
Petrobras - Production
Evaluation Plan
Transfer of Rights
15 biggest producing fields in Campos Basin: ~5,300 km2
6 blocks in Santos Pre-salt (BR operator): ~9,800 km2
3 biggest producing fields in Campos Basin: 1,539 km2
Lula field in Santos Basin: 1,523 km2
ANP data
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ETM
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10000
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25000
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Onshore 0-300m 300-1500m > 1500m
RESERVES AND RECOVERABLE VOLUMESRapid growth in reserves from discoveries in deep waters
* Lula/Cernambi, Iara, Sapinhoá and Whales Park, ranging from 6.7 to 7.9 Billion boe
Garoupa
Namorado
Marlim
Roncador
Park of Whales, Mexilhão
Pre Salt: Lula & Cernambi
15.73 bi boe
Carmópolis
Guaricema
Pre Salt: Sapinhoá
Mill
ion
Boe
Deep/Ultra-Deep Water PhaseOnshore Phase Shallow Water Phase
Proved Reserves – SPE criteria
Pre-salt’s Recovery Volume* Transfer of Rights
Potentialincrease
COMPTETITIVE ADVANTAGESUniquely positioned to integrate upstream and downstream operations
• Leader in deep-water production,
with access to abundant oil reserves
• New exploratory frontier, adjacent
to existing operations
• Dominant position in growing
market, far from other refining
centers
• Balance and integration between
production, refining and demand
• Fully developed infrastructure
for processing and transfporting
gas
• Integration accross full energy
and hydrocarbon chain in Brazil
Exploration & Production Downstream Gas & Power/ Biofuels/Petrochemicals
Abundant reserves 300 km
away from the market
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ETM
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2013-17 Business and
Management Plan
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12
2013-2017 BMP INVESTMENTS: IMPLEMENTATION X EVALUATION
Under Implementation
US$ 207.1 Billion
Under Evaluation
US$ 29.6 Billion
+=Total
US$ 236.7 Billion
All E&P projects in Brazil and projects of the remaining segments in phase IV
Projects for the remaining segments, excluding E&P, currently in phase I, II and III.
770 projects 177 projects947 projects
62.3%(US$ 147.5 Billion) 27.4%
(US$ 64.8 Billion)
1.0%(US$ 2.3 Billion)
1.4%(US$ 3.2 Billion)
1.1%(US$ 2.9 Billion)
2.2%(US$ 5.1 Billion)
4.2%(US$ 9.9 Billion)
0.4%(US$ 1.0 Billion)
71.2%(US$ 147.5 Billion) 20.9%
(US$ 43.2 Billion)
1.1%(US$ 2.3 Billion)
1.4%(US$ 2.9 Billion)
0.5%(US$ 1.1 Billion)
1.5%(US$ 3.2 Billion)
2.9%(US$ 5.9 Billion)
0.5%(US$ 1.0 Bililon)
73.0%(US$ 21.6 Billion)
1.0%(US$ 0.3 Billion)
13.5%(US$ 4.0 Billion)
6.4%(US$ 1.9 Billion)
6.1%(US$ 1.8 Billion)
Phase I: Opportunity Identification; Phase II: Conceptual Project; Phase III: Basic Project ; Phase IV: Execution
* Pbio = Petrobras Biofuel │ETM = Engineering, Technology and Materials │Other Areas = Financial, Strategy and Corporate
International ETM* Other Areas*Pbio*E&P DistribuitionDownstream G&E
ETM
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13
2013-17 BUSINESS AND MANAGEMENT PLAN FUNDAMENTALS
• Management focused on
reaching physical and
financial targets of each project
PERFORMANCE
• Guarantee the expansion of the business
with solid financial
indicators
CAPITAL DISCIPLINE
• Priority for oil and
natural gas exploration & production projects in
Brazil
PRIORITY
2013 2017
Financiability Assumptions
• Investment Grade rating maintenance
• No new equity issuance
• Convergence with International Prices (Oil Products)
• Divestments in Brazil and, mainly, abroad
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PROGRAMS TO SUPPORT THE 2013-2017 BMP
2013-2017 BMP US$ 236.7 Billion
PRC-PoçoProgram to
Reduce Well Costs
PROEFProgram to
Increase Operational Efficiency
UO-BCUO-RIO
PROCOPOperating Costs
Optimization Program
INFRALOG – Logistic Infrastructure Optimization ProgramPRODESIN – Divestment Program
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.
Petrobras Local Content Management – Take advantage of the industry’s capacity to maximize gains to Petrobras
ETM
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15
PRC-Poço: Program to Reduce Well CostsWell Construction is a Relevant Portion in Investments
Exploratory and Production Development Well Investments
total US$ 75 billion
2013-2017 BMP Investments
E&P
Other Areas 89.2
147.5
236.7
147.5
106.9
24.3Infra-structure and Support16.3Exploration
Production Development
Brazil E&P Investments
� Increase of drilling rigs fleet and logistic resources• Petrobras currently has 69 floating drilling rigs for well construction and maintenance in Brazil
� Well construction represents:• 32% of Petrobras investments in 2013-2017 BMP • 51% of Brazil E&P Investments
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PRC-Poço: Program to Reduce Well CostsStructure, Initiatives and Expected Gains
PRC-PoçoStructure
4 Prioritized Initiatives
7 Prioritized Initiatives
12 Prioritized Initiatives
GROUP 1Reduce Unit
Costs
GROUP 2Optimize Projects
Scope
GROUP 3Seek Productivity
Gains
Term of Each ActivityUnit Cost Number of Activities
Program to Reduce Well Costs comprises 23 initiatives
� 2013-2017 BMP has already incorporated gains of US$ 1.4 Bn from initiatives aiming to decrease wellconstruction time and optimization of operational sequencing.
� Initiatives in final structuring phase have already identified significant additional gains. These gains will bequantified by May/2013, when each initiative will be linked to an investment project.
� The PRC-Poço corporate governance involves all E&P executive managersand big portion of technical and management structure of E&P, with quarterlyreports to the executive board.
ETM
9
17
E&P Investments
25%(26.2)
43%(46.4)
32%(34.3)
Production DevelopmentUS$ 106.9 Billion
70%(17.1)
24%(5.8)
6%(1.4)
Post-Salt
Pre-Salt
Transfer of Rights
ExplorationUS$ 24.3 Billion
2013-2017 Period
Aside from Exploration and Production Development, E&P infrastructure investments total US$ 16.3 Billion.
95% 93% 69% 58%44%
5% 7%30% 35%
31%1%
7%
19%
6%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Post-salt Pre-salt (Concession) Transfer of Rights New Discoveries*
PRODUCTION CURVE IN BRAZIL - OIL AND LNGPost-Salt, Pre-Salt and Transfer of Rights
Th
ou
san
ds
bp
d
Production Curve in Brazil – Oil and LNG Production
(*) Includes new opportunities in blocks where discoveries have already been found
2014
Roncador IV (P-62)
Sapinhoá Norte (Cid. Ilhabela)
Iracema Sul(Cid. Mangaratiba)
2016
Lula Alto
Lula Central
Lula Sul(P-66)
Franco 1 (P-74)
Carioca
Lula Norte (P-67)
Franco SW (P-75)
2012
Baleia Azul(Cid. Anchieta)
2013
Sapinhoá Pilot (Cid. São Paulo)
Baúna(Cid. Itajaí)
Lula NE Pilot (Cid. Paraty)
Papa-Terra (P-63)
Roncador III (P-55)
Norte Pq. Baleias (P-58)
Papa-Terra (P-61)
2015
Iracema Norte (Cid. Itaguaí)
2017
Lula Ext. Sul(P-68)
Lula Oeste(P-69)
Franco Sul(P-76)
Tartaruga Verde e Mestiça
Iara Horst (P-70)
Parque dos Doces
Franco NW (P-77)
2020
Espadarte III
Florim
2019
Júpiter
Bonito
Franco Leste
2,022
2,500
4,200
18
2,750
2,0221,980
(±±±± 2%)
��
�
2018NE de Tupi(P-72)
Iara NW (P-71)
Deep Waters Sergipe
Sul Pq. Baleias
Maromba
Espadarte I
Carcará
Entorno de Iara(P-73)
ETM
10
19
PRE-SALT PRODUCTION UNIT STARTED-UP IN 2013FPSO Cidade de São Paulo: Sapinhoá Pilot
Capacity (kbpd) 120
Project Sapinhoá Pilot
1st Oil January 5th, 2013
Shipyard BrasFELS ShipyardAngra dos Reis/RJ
Unit’s Physical Completion Forecast:Accomplished:
59.9% 54.0%
Unit's Local Content Planned: -
Total Local Content Commitment w/ ANP:Planned:
30%57%
DESCRIPTION LOCAL CONTENT
19
Mar/13Mar/13
20
POST-SALT PRODUCTION UNIT STARTED-UP IN 2013FPSO Cidade de Itajái: Baúna
Capacity (kbpd) 80
Project Baúna
1st Oil February 16th, 2013
Shipyard Odebrecht and Teekay CingapuraSingapore
Unit’s Physical Completion Forecast:Accomplished:
69.8% 53.5%
Unit's Local Content Planned: -
Total Local Content Commitment w/ ANP:Planned:
60%-
DESCRIPTION LOCAL CONTENT
20
Mar/13Jan/13
ETM
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21
PRE-SALT PRODUCTION UNITS ON STREAM IN 2013FPSO Cidade de Paraty: Lula NE Pilot
Capacity (kbpd) 120
Project Lula NE Pilot
1st Oil May 28th, 2013
Shipyard BrasFELS ShipyardAngra dos Reis/RJ
Unit’s Physical Completion Forecast:Accomplished:
99.0% 97.8%
Unit's Local Content Planned: 65%
Total Local Content Commitment w/ ANP:Planned:
30%60%
DESCRIPTION LOCAL CONTENT
21
Mar/13
22
POST-SALT PRODUCTION UNITS ON STREAM IN 2013FPSO P-63: Papa-Terra
Capacity (kbpd) 140
Project Papa-Terra
1st Oil July 15th, 2013
Shipyard Honório Bicalho Shipyard, Rio Grande (RS)
Unit’s Physical Completion Forecast:Accomplished:
98.5%94.1%
Unit's Local Content Planned: 65.0%
Total Local Content Commitment w/ ANP:Planned:
0.0%46.0%
DESCRIPTION LOCAL CONTENT
22
Feb/13
ETM
12
POST-SALT PRODUCTION UNITS ON STREAM IN 2013FPSO P-55: Roncador Module III
Capacity (kbpd) 180
Project Roncador – Module III
1st Oil September 30th, 2013
Shipyard ERG1 ShipyardRio Grande/RS
Unit’s Physical Completion Forecast:Accomplished:
87.5%89.2%
Unit's Local Content Planned: 65.0%
Total Local Content Commitment w/ ANP:Planned:
0.0%50.0%
DESCRIPTION LOCAL CONTENT
23
Feb/13
POST-SALT PRODUCTION UNITS ON STREAM IN 2013FPSO P-58: Parque das Baleias
Capacity (kbpd) 180
Production Unit Parque das Baleias
1st Oil November 30th, 2013
Shipyard Honório Bicalho ShipyardRio Grande/RS
Unit’s Physical Completion Forecast:Accomplished:
86.0%90.6%
Unit's Local Content Planned: 62.0%
Total Local Content Commitment w/ ANP:Planned:
0.0%58.0%
DESCRIPTION LOCAL CONTENT
24
Mar/13
ETM
13
POST-SALT PRODUCTION UNITS ON STREAM IN 2013TLWP P-61: Papa-Terra
Capacity (kbpd) TLWP to P-63
Project Papa-Terra
1st Oil December 31st, 201
Shipyard BrasFELS Shipyard Angra dos Reis/RJ
Unit’s Physical Completion Forecast:Accomplished:
86.0%88.4%
Unit's Local Content Planned: 62.0%
Total Local Content Commitment w/ ANP:Planned:
0.0%58.0%
DESCRIPTION LOCAL CONTENT
25
Jan/13
POST-SALT PRODUCTION UNITS ON STREAM IN 2014FPSO P-62: Roncador Module IV
Capacity (kbpd) 180
Project Roncador Module IV
1st Oil March, 2014
Shipyard Atlântico Sul, Ipojuca (PE)
Unit’s Physical Completion Forecast:Accomplished:
70.5%90.6%
Unit's Local Content Planned: 64.0%
Total Local Content Commitment w/ ANP:Planned:
0.0%56.0%
DESCRIPTION LOCAL CONTENT
26
Jan/13
ETM
14
POST-SALT PRODUCTION UNITS ON STREAM IN 2014FPSO Cidade de Ilhabela: Sapinhoá Norte
Capacity (kbpd) 150
Project Sapinhoá Norte
1st Oil September, 2014
Shipyard CSSC, China
Unit’s Physical Completion Forecast:Accomplished:
41.0%62.0%
Unit's Local Content Planned: 65.0%
Total Local Content Commitment w/ ANP:Planned:
30.0%56.3%
DESCRIPTION LOCAL CONTENT
27
Feb/13
POST-SALT PRODUCTION UNITS ON STREAM IN 2014FPSO Cidade de Mangaratiba: Lula Project
Capacity (kbpd) 150
Project Lula Project – Iracema Sul Area
1st Oil November, 2014
Shipyard Cosco, China
Unit’s Physical Completion Forecast:Accomplished:
58.3%47.7%
Unit's Local Content Planned: 65.0%
Total Local Content Commitment w/ ANP:Planned:
30.0%68.0%
DESCRIPTION LOCAL CONTENT
28
Mar/13
ETM
15
NEW PRODUCTION UNITSPlatforms under construction or already contracted will meet mid-term needs
• Oil Production Capacity: 150,000 bpd per unit
• Installation in Transfer of Rights areas
• Hulls under construction at Rio Grande Shipyard
• Contracts signed for the construction and integration of the topside modules of the six first units: DM/TKK, IESA, Tome/Ferrostaal, Mendes Jr/OSX, Keppel-FELS and Jurong
• The two remaining topside modules and integration package contracts are expected to be awarded by the end of 2013 with the same companies.
• P67 was moved to China (Cosco Shipyard)
• Installation in Transfer of Rights Areas (Franco)
• Conversion will be made at the Inhauma Shipyard
• All units will be converted from 2013 to 2016
• Next ongoing stage: modules construction and integration bidding
• P75, P76,and P77 were moved to China (Cosco Shipyard)
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8 Replicant FPSOs for Pre-Salt
4 VLCCs Conversion to FPSOs
PETROBRAS LEADERSHIP IN OFFSHORE PROJECTSPetrobras dominates demand for new offshore equipment
Petrobras: Dominant position in the global offshore industry
Source: PFC Energy Service Sector team, May/2013
Note: Includes offshore projects in conceptual phase, FEED, under bidding or under construction
• An increase in global offshore capacity is necessary to meet Petrobras’ demands
• Constructions in Brazil: scale gains and standardization
30
0 10 20 30 40
Petrobras
Shell
Chevron
BP
PETRONAS
TOTAL
Eni
ONGC
Hess
ExxonMobil
Global Offshore Projects: Top 10 Operators
FLNG
FPSO
SEMI
SPAR
TLP
Others
Global Offshore Projects
ETM
16
For the Country For the Oil Companies
Local Economy Diversification
Sustainable Economic Growth
Increase Country´s Attractiveness for Investors
Local Productive Capacity Development
Proximity between Suppliers and the Operation
Reduced Dependence on Expatriated Workforce
Suppliers Innovation Capacity Increased
Logistic Risks Reduction
Operating Costs ReductionEmployment and Income Generation
Local Technical Assistance AvailabilityTax Revenue Increase
Local Content
WHY LOCAL CONTENTAdvantage and Facilities to Oil Industry in Brazil
31
Potential Gains
LOCAL CONTENTOffshore Companies investing to build new capacity in Brazil
Products Company Projects in Brazil
Subsea Pipelines NKT FlexiblesTechnipWellstreamPrysmianButting
� New flexible pipe plant in Brazil in 2013.� Installation of new plant� Current plant expansion in 2013 (60% capacity increase).� Plant expansion to produce flexible pipes.� Construction of a new plant for the production of line pipes.
Umbilicals Duco and NexansOceaneering (MSD) MFX
� Ongoing discussions to establish new plants in Brazil.� Current manufacturing capacity will double by early 2013.� 80% expansion in manufacturing capacity in 2013.
Subsea Equipment AkerFMCGECameron
� Increase of manufacturing capacity.� Increase of manufacturing capacity and construction of a technology center.� Expansion of the Jandira Plant and the construction of a new unit.� Industrial Expansion.
Turbomachines Rolls-RoyceDresser-Rand
� Construction of new plant in Santa Cruz (Turbogenerators).� Construction of new unit in Santa Bárbara do Oeste (Turbocompressors).
Offshore cranes MEP Pellegrini � Working through partnerships, ongoing discussions to establish new plant in Brazil.
Drill pipes V&M do Brasil � Adapting current units to manufacture pipes.
CRA Tubing V&M do Brasil � Capacity to produce high corrosion-resistant alloys
High diameter pipes USIMINAS � Current units under qualification.
Offshore steel structures Metasa � Industrial expansion.
Automation Emerson � Industrial expansion to assemble equipments in Brazil.
32
ETM
17
RESEARCH & DEVELOPMENTEstablishing research centers enhances long term future of Brazil as hub
50 Thematic Networks At the UFRJ technological complex, 9 P&D centers ofimportant equipment and services suppliers are already inconstruction/operation:
Other Companies with development plans fortechnological centers in Brazil:
• Weatherford• Wellstream
• FMC Technologies• Usiminas• TenarisConfab
• Schlumberger• Baker Hughes• Halliburton• General Electric• Vallourec & Mannesman
• Cameron• IBM• Technip
Source: E&P-CORP, May 25/2012 and CENPES, May 28/2012.
Petrobras partnerships with more than 120 universities and research centers have led Brazil to have a prominent worldwide applied research complex
CENPES expansion (Mar/2012)
33
BRASFELS SHIPYARD - RJ
1
2 3
View of BrasFels Shipyard, in Angra dos Reis – RJ (08//3112).(1) P-61 (LC:65%): Construction of the HULL of the TLWP and integration of TOPSIDE (deckbox and modules constructed in Singapore). (2) FPSO Cidade de São Paulo (LC:65%): Conversion of the HULL in China and integration of 15 modules, constructed in Brasfels (5 mod), Enaval (1 mod), Thailand (8 mod) and China (2 mod). (3) FPSO Cidade de Paraty (LC:65%): Conversion of the HULL and integration of 15 modules constructed in (5), Nuclep (4), Enaval (2) and Singapore (4). 34
ETM
18
ATLÂNTICO SUL SHIPYARD – PE
Atântico Sul Shipyard (Ipojuca-PE): Construction of Zumbi dos Palmares ship in drydock and integration of the P-62 on the dock of the shipyard (08.29.12).(1) P-62: Integration of the FPSO to 15 modules, including 3 built in EAS, 7 in the UTC and 5 in the Nuclep construction sites.(2) SHIP Zumbi dos Palmares of Suezmax (2nd ship of PROMEF 1) in drydock, (3) Panel manufacturing workshops and pre-assembly of blocks; (4) Future area for construction of 6 Setebrasil drilling rigs; (5) Future area for Promar Shipyard, responsible for the construction of 8 gas tankers for Promef Phase 2.
1
2
3
4
5
35
RIO GRANDE SHIPYARD – ERG1 - RS
View of Rio Grande Shipyard ERG1 – RS (09/03/12).(1) Steel plates of Ecovix; (2) Sub-blocks of the Hulls of the replicants of Ecovix; (3) QUIP modules for Topside and integration of P-55; (4) Modules of the IESA; (5) Pre edification area , with details for the yellow blocks of the Goliath crane type of the Konecranes (biggest crane in the world: 210m high and capacity of 2 thousand ton) delivered in Aug/12; (6) Work integration of P-55; (7) Work construction of Rio Grande Shipyard ERG 2, where will be constructed 3 Drilling Rigs of Setebrasil (NS Cassino, NS Curumim e NS Salinas)
1
2
33
4
5
6
7
36
ETM
19
37
Japan Brazil
47
FranceUSA
16
592
167
599
China
688
GermanyItaly
814545
India
Light Vehicles per 1.000 habitants*
Source: PNLT 2010, Ministério dos Transportes, Anuário do transp. de carga e Eurostat – 2007, Petrobras
81%
46%
43%
43%
37%
25%
11%
11%
25%
13%
17%
8%
50%
32%
Brazil
China
USA
53% 4%
43%
Australia
Canada
Russia
58%
Roads
Hydro and Others
Railway
Cargo Transportation Matrix
* Brazil Data for 2012, Other Countries 2010
THIS PERFORMANCE HAS A DIRECT IMPACT ON OIL DEMANDThe characteristics of the Brazilian transportation indicate potential for growth
2020 Total Crude Oil Processed may vary depending on Projects Under Evaluation2012 Oil Products Market considers Petrobras’ sales (not total demand).* Crude Throughput considers utilization factor. 38
Oil Production, Crude Throughput* And Domestic Market
Domestic oil products demand is expected to grow 50% until 2020, but Brazil will be a material net exporter
181
1.323
2.004 1.980
2.750
4.200
1.3931.641
1.7981.944
2.320
1.036
1.8142.147 2.255
2.933
3.380
20001980
3.380
2.320
2020201720122010
Total Crude Oil Processed
Market gap for new refining projects
Oil and NGL Production
Oil Products Demand
DEMAND WILL CREATE ADDITIONAL DEFICIT UNTIL 2020Products’ supply gaps and abundant oil production will create opportunity for refining
ETM
20
Capacity: 230 kbpd Project Completion: 73%
Solomon Complexity: 9.6 Start-up: 1st module ���� Nov/142nd module ���� May/15
Diesel 10 ppm yield: 70%
RNEST WILL ADD 230 KBPD TO THE CURRENT SYSTEMThis will allow us to increase high quality diesel production from ultra-heavy crudes
39
(1) Oil and oil products storage area; (2) Atmospheric distillation unit; (3) Power House; (4) Coking Unit; (5) Intermediary products tanks; (6) Contractors yard; (7) Acid water treatment unit; (8) Pipelines; (9) Hydrotreatment units
11
11
88
88
99
22
33
88
66
77
88
4444 66
55
66 66
66 6677
1
1
8
8
9
2
3
8
6
7
8
44 6
5
6 6
6 67
NORTHEAST REFINERY (RNEST): START-UP ON NOVEMBER/14Processing capacity: 230 kbpd
RNEST construction – Feb/13
40
40
TOTAL PHYSICAL PROGRESS -- Forecast: 70.3% / Accomplished: 70.6%LOCAL CONTENT -- Target: 75% / Planned: 86.5%
ETM
21
41
OPERATING CASH FLOW AND FUNDING NEEDS
Divestments and restructuringsCash utilizationThird-party resources (Debt)Operating cash flow (after dividends)AmortizationInvestments
� Additional financing needs will be funded exclusively through new debt. No equity issuance is envisaged.
� Free cash flow, before dividends, by 2015.
Annual borrowing needs (2013-2017)
Gross – US$ 12.3 billion │Net – US$ 4.3 billion
� Net borrowing needs 50% below previous Plan due to:
• 2017 production, versus 2012, leading to higher operating cash flows
• Declining downstream investments
• Long-term Brent prices (US$ 100 vs US$ 90 in the previous Plan) and long-term F/X rate (R$ 1.85 vs R$ 1.73)
US$
Billio
n
246.9
61.3
10.79.9
Sources
165.0
Uses
207.1
39.8
246.9
DEBT PROFILEDiversification and long term
2014 2015 2016 2017 2018-2042
Long Term Debt Amortization Schedule
42
BRL
21%
USD
70%
JPY
1%
GBP
2%
EUR
6%
By Maturity By Category By Currency By Rate
Total Debt (US$ 98 billion as of 3/31/2013)
BNDES
25%
Export
Credit
6%
Financial
Institutions
22%
Intl Capital
Markets
35%
Others
5%Fixed
49%
Floating
51%Long term
93%
Short term
7%
China
Development
Bank
7%
ETM
22
CHALLENGES
� Critical Resources (goods and services, human resources)
� Infrastructure and logistics
� Developing industry to meet local content requirements
� Cost pressures
OPPORTUNITIES
� Abundant oil reserves
� A Growing domestic market
� Maximizing scale, standardization, and integration
� Developing new technologies
� Monetizing natural gas
CONCLUSIONA Portfolio of opportunities and challenges
43
44
Information:
Investor Relations
+55 21 3224-1510
petroinvest@petrobras.com.br
investors@petrobras.com
www.petrobras.com.br/ir