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Surplus Volumes of

Transfer of Rights

Maria das Graças Silva Foster

CEO

Rio de Janeiro, June 27th of 2014

2

Transfer of Rights

Through the Transfer of Rights agreement, Petrobras

acquired the rights to explore, evaluate and produce up to 5

billion boe in six areas of Santos basin pre-salt. For this

transaction, Petrobras paid R$ 75 billion (US$ 42 billion) in

2010, subject to a review, after the declarations of

commerciality.

Area Volume

MM boe

Florim 467

Búzios 3,058

Sul de Guará 319

Entorno de Iara 600

Sul de Lula 128

NE Tupi 428

Total 5,000

Concessão

Cessão Onerosa

Partilha de Produção

Contracted Volumes in

2010

Ongoing discussions on the

Transfer of Rights will not be

affected by the Surplus Volumes.

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Complying with regulations, Petrobras informed the ANP

the estimates for volumes in Buzios, in the Declaration of

Commerciality, in Dec/13, indicating the expectation of up to

7 billion boe in surplus volumes in this field (recoverable

volume of 10 billion boe)

Areas

Additional Volumes to the Transfer of Rights Contract from 9.8

to 15.2 billion boe, according to ANP

(million boe)

Búzios Between 6.500 and 10.000

Entorno de Iara Between 2.500 and 4.000

Florim Between 300 and 500

Nordeste de Tupi Between 500 and 700

Source: CNPE Resolution N. 1, June, 24 2014.

Transfer of Rights Areas Have Great Potential Already Known and Proven

Búzios Module 1 (transfer of rights) P-74: First Oil: 2016 Capacity: 150 thousand barrels/day

Physical Progress (may/14): 55.5%

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Field / Area Area (km2)

Contracted Volume Transfer of Rights

(bilion boe)

Drilled wells or in progress

Tested wells or with tests in

progress

CO2 content in gas (%)

Lula 1,523 Not applicable 36 24 10 - 20%

Lula / área de

Iracema Not applicable 16 5 very low

Sapinhoá 233 Not applicable 19 7 15 - 20%

Buzios 852 3.1 10 8 22 - 25%

Entorno de Iara 611 0.6 3 1 25 - 35%

NE Tupi 291 0.4 2 2 15 - 20%

Florim 292 0.5 2 1 very low

Sul de Lula 203 0.1 1 1 17%

Sul de Guará 145 0.3 1 0 15%

Libra 1,548 Not applicable 1 1 45%

• Transfer of Right Areas already have a

significant number of wells drilled and tested, with excellent results

•Great potential per well, in line with the projects already in production of pre-salt

Santos Basin, sanctioined with 20 thousand bpd and results that reach up to 35 thousand bpd

• Projects under development in progress,

without any foreseeable additional risks related to volumes, reservoir properties, technologies and the availability of the

required equipments and services to the projects

• Surplus volumes projects can "replicate"

Transfer of Rights projects, with large

gains in the learning curve and cost optimization

High Degree of Maturity Areas of the pre-salt Santos Basin L

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Access to the Transfer of Rights Surplus:

1. Replaces the accumulated production of six years in the period 2020-2030 (replacement of 1.6 to 1.8 billion boe / year)

2. Assures in advance the potential volume with low exploration risk (Exploratory Success Ratios: 100%)

3. Allows higher selectivity in future bidding for exploration areas

4. Considering the current Finding Costs (US$ 2.66 / boe, Petrobras’ average in 2013), it would be necessary to invest around US$ 26 billion to acquire areas (bonus payment), discover and define (seismic, exploration wells and delineation) potential estimated volume of Transfer of Rights Surplus

5. Estimated Finding Costs savings: US$ 18 billion (2015-2021)

Acquisition of Transfer of Rights Surplus Volumes Signature of Trasfer of Rights

Agreement

Transfer of Rights 4 years

Surplus Volumes of The Transfer of Rights: 9.8 to 15.2 Billion of boe

Great Potential with Low Risk Leading to Reduction of Investments in Exploration

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16

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1st Oil from Transfer of Rights

1st Oil from Transfer of Rights Surplus

Exploration /

Delineation Production

Development Production

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3D Seismic (2,159 km²) 17 wells drilled in the 4 areas Formation Tests and EWT

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Transfer of Rights and Production Sharing Contracts (PSC): Regulatory Framework and

Simultaneous Production - Búzios Case

Production Sharing Contracts (6.5 a 10 Billion boe)

(35 years)

Transfer of Rights (3.058 Billion boe)

(40 year / volume limit)

Transfer of Rights

Signature: Sep/10

End of production of

contracted volume

Transfer of Rights Units

continue to produce

under PSC

End of SVRT Production

Sharing term

2010 2040

Transfer of Rights

Contract

Transfer of Rights Contract

+ Production Sharing

Contract

Production Sharing Contract

1st oil of Búzios SVRT: 2021

2050

End of Transfer of Rights

term

2051 2021

1st oil of Búzios: 2016

Beginning of Production

Sharing Contract term

(SVTR*)

2016

Simultaneous

Production

*SVRT: Surplus Volume of The Transfer of Rights

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Petrobras Big Choice for the E&P segment

Strategic Plan Approved by the Board of Directors on 02/25/2014

0

1

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3

4

5

6

7

8

9

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Brazil*: Sustainable Pace Petrobras: PE 2030

Petrobras: SP 2030 + Abroad Petrobras: Média 2013-2020

Petrobras: Média Exterior 2013-2020 Petrobras: Média Exterior 2016-2020

Petrobras: Média 2016-2020

4,2 •Petrobras Average Production in Brazil* and Abroad

2020-2030: 4.0 million bpd

Average 2020-2030

Petrobras Average Production in Brazil* 2020-2030: 3.7 million bpd

Average Oil Production in Brazil* Petrobras (70%) + Third Parties (26%) + Government (4%) 2020-2030:

5.2 million bpd

•Petrobras Average Production in Brazil* and

Abroad 2013-2020:

•3.0 million bpd

Petrobras Average Production in Brazil* 2013-2020:

•2.9 million bpd

• Brazil’s production according to Petrobras’s view and reasoning, considering different paces for the bid rounds put forward by the Government

To produce on average 4.0 million barrels of oil per day in the 2020-2030 period, under Petrobras’

ownership in Brazil and abroad, acquiring exploration rights to meet this objective E&P

E&P

Webcast on 02/26/2014 and Meeting with Analysts on 03/24/2014.

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Petrobras Contracted for a 100% of These Areas Ensures Our Reserves Reposition and

Production Sustainability in the 2020-2030 Horizon, with Higher Profitability

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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Petrobras: 2030 SP

4,2

2020-2030 Average

3.7 million of bpd (16 BIDs and SVTR = 50% Petrobras in 2026)

The Surplus Volumes of Transfer of Rights (SVTR) allow that the 2020-2030 production level be raised to up to 4.2 million barrel per day, maximizing profitability through a selective participation on bid rounds and portfolio management (divestments).

2020-2030 Petrobras Average Production in Brazil

4.2 million of bpd (14 BIDs and SVTR = 100% Petrobras in 2021)

500 thous. bpd

The Surplus Volumes of the Transfer of Rights Contracts implies:

• Reduction of participation in new BIDS from 16 to 14 (2015-2030), according to

Petrobras’s view and reasoning adopted in 2030 SP, which was approved by the

Board of Director in 02/25/2014

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Production Units Planned in the Business Plan

and Petrobras Strategic Plan 1st Oil 2014-2020

SVTR

SVTR SVTR

SVTR

SVTR

SVTR

SVTR

SVTR

SVTR

P-62 Roncador IV

Cid Ilhabela Sapinhoá Norte

P-61 Papa-Terra

Cid Mangaratiba Iracema Sul

Cid Itaguaí Iracema Norte

Cid. Maricá Lula Alto

Cid Saquarema Lula Central

P-74 Búzios 1

P-66 Lula Sul

P-67 Lula Norte

Cid Caraguatatuba

Lapa

P-75 Búzios 2

P-68 Lula Ext. Sul e

CO Sul de Tupi

P-69 Lula Oeste

P-76 Búzios 3

Tartaruga Verde and Mestiça

P-70 Iara Horst

P-77 Búzios 4

Júpiter

Búzios 5

Deep Water ES

P-72 NE de Tupi

P-71 Iara NW

Marlim I Revitalization

Sul Pq. Baleias

Deep Water I SE

Carcará

Maromba I

P-73 Iara Surrounding

Libra

Deep Water II SE

Espadarte III

Marlim II Revitalization

Florim

SVTR

Planning includes: projects already announced in BMP, projects to be announced in the next BMPs, projects to revitalize the p roduction, new units

planned in areas with volumes under long term evaluation and appraisal for the next discoveries

Surplus Volumes of Transfer of Rights:

Increase of Investments From 2019 On for a 1st Oil Beginning in 2021

2017 2018 2019 2020 2021 2026 2027 2028 2029 2022 2023 2024 2030 2025 2015 2014 2013 2016

Cid Itajaí Baúna

P-61 Papa-Terra

Cid Paraty Lula NE Pilot

P-63 Papa-Terra

P-58 Norte Pq.

Baleias

P-55 Roncador III

Cid São Paulo Sapinhoá Pilot

P-62 Roncador IV

TAD Papa-Terra

P-58 Norte Pq.

Baleias

TAD Papa-Terra

Maturity Increase of Naval and Offshore industry in Brazil

9 Units

Completed

Surplus Volume of Transfer of Rights (SVTR)

Other Areas under Concession or Production Sharing Agreement

Transfer of Rights

Unit Completed in 2013 with 1st Oil in 2014

Sete Brasil Drilling Rigs Construction: 28 units by 2020

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2017 2016 2015 2027 2026 2025 2014 2013 2024 2023 2028 2019 2018 2030 2029 2022 2021 2020

US

$ b

illi

on

Average ex-E&P Investments: US$ 10.6 billion/year Average ex-E&P Investments: US$ 3.8 billion/year

Petrobras Investments Will Be Even More Concentrated in E&P Lower Investments in the Other Segments Enable Additional Investments in E&P in Brazil

Petrobras ex-E&P investments in Brazil in the 2014-2018 BMP / 2030 Strategic Plan

Average annual investments will fall from US$ 45.6 billion between 2013 and 2020 to US$ 26.6 billion between 2021 and 2030, mainly due to the conclusion, by 2020, of Downstream projects (RNEST, Comperj, Premium I, Premium II) and G&P projects (UFN-III, UFN-V,

Routes 2 and 3)

Petrobras Total E&P Investments in Brazil in the 2014-2018 BMP / 2030 Strategic Plan

Investments in “Under Implementation” Portfolio + “Under Bidding process” Portfolio (Partnerships in the Premiums Refineries)

Average Investments in E&P: US$ 35 billion/year

Petrobras Average Production in Brazil: 2.9 million bpd

Average Investments in E&P: US$ 22.8 billion/year

Petrobras Average Production in Brazil: 3.7 – 4.2 million bpd

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Financial Planning with the Surplus Volumes 2014-2018 BMP: No material impact in results and debt ratios

I – 2014-2018 BMP ASSUMPTIONS:

• Oil Production: 7.5% Growth (+/- 1pp) in 2014, 3.2 million bpd in 2018, 4.2 million bpd in 2020

• Price Readjustments: According to the policy presented to the Board in Nov/2013.

• Divestments: Assumes US$ 11 billion in divestments in the 2014-2018 period.

• Business Model Restructurings (Change of Capex for Opex): Assumes inflows of US$ 9.9 billion in the 2014-2018

period.

• Brent Prices: 104.72 US$/bbl in 2014, 100 US$/bbl from 2015 to 2017 and 95 US$/bbl from 2018 on.

• Weaker FX: 2014 = 2.44 R$/US$; 2015 = 2.56 R$/US$; 2016 on = 2.59 R$/US$.

• Stronger FX: 2014 = 2.23 R$/US$; 2015 = 2.10 R$/US$; 2016 on = 1.92 R$/US$.

II – IMPACTS IN INVESTIMENTS:

Investments (US$ billion) 2014-2018 2019-2020 2021-2030

2014-2018 BMP – Implementation+Bidding 206.8 - -

Bonus – Surplus Volumes 0.8 0 0

Antecipation of Profit Oil – Surplus Volumes 5.0 0 0

Additional Investments 1.2 9.7 39.8

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2014-2018 BMP Financiability (US$ 206.8 billion) + Surplus Volumes of the Transfer of Rights 2014-2018 BMP: No material impact in results and debt ratios.

Depreciated FX Rate 2014 2015 2016 2017 2018 2019 2020 2021-2030

Net Debt/EBITDA

2014-2018 BMP 4.61 2.73 1.93 1.68 1.41 1.06 0.95 1.04 to 1.13

+Transfer of Rights

Surplus 4.64 2.77 1.91 1.76 1.53 1.17 1.02 0.95 to 1.21

Leverage

BMP 2014-2018 44.6% 42.0% 37.0% 33.3% 29.3% 25.1% 25% 25%

+Transfer of Rights

Surplus 44.7% 42.3% 37.3% 34.2% 31.1% 26.3% 25.1% 25%

Average Annual Gross

Borrowing (Average Annual Net

Borrowing)

BMP 2014-2018 8.2 (-0.2) 10.5 (-2.5) *

+Transfer of Rights

Surplus 10.2 (1.7) 13.3 (-4.2) *

III – IMPACTS IN THE FINANCIABILITY DURING THE PERIOD OF THE 2014-2018 BMP :

In the 2014-18 BMP: 3.5 % growth in investment (including bonus)

Net Debt/EBITDA and Leverage: No material impact

IV – EQUITY ISSUANCE IS NOT CONTEMPLATED (CAPITALIZATION)

* Borrowings during the period 2021-2030 aim at maintaining leverage at 25% in this simulation and are not

related to the investment volume, which will be totally financed by cash generation.

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Conclusions Price Convergence, Divestments and Financial Restructuring Assumptions for the BMP 2014-108 are kept

I – The direct contract for 100% of the Surplus Volume of the Transfer of Rights (SVTR) grant Petrobras:

• Areas with excelent potential, with low risk, already known and proven

• Potential recoverable volumes between 9.8 and 15.2 billion boe

• Possibility to increase production in Brazil between 2020 and 2030 to up to 4.2 million bpd

• Maximize the profitability for the selective participation in future bids and E&P portfolio management (divestments in areas under concession)

II – The simultaneous production in SVTR will allow the optimization of production and infrastructure

resources, as well as anticipate the production of the volumes of the surplus

III – In the 2014-2018 period investment will grow by 3.5% and the SVTR does not bring material impact to the

financiability indicators

IV – Between 2020-2030 the average annual total investment will decrease and will be more concentrated in

E&P, and oil production in Brazil will be at a higher level relative to the average of the period 2013-2020

V – Equity Issuance is not contemplated (capitalization)

VI – The SVTR contract is aligned with the Strategic Plan 2030, approved by the Board of Directors in

February 25th 2014

The End