Strategic Plan 2009-2013

January 26, 2009
DISCLAIMER

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. Figures
for 2009 on are estimates or targets.
CAUTIONARY STATEMENT FOR US INVESTORS
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.
 A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY

2008 Proven Reserves (SEC) 2008 Oil & Gas Production

23.0
3.9 3.8
17.9
3.2

(mmboe/d)
2.5
(bln boe)

11.7 2.4 2.4 2.3

11.2 11.2 10.5 10.2 1.9 1.8
6.6
5.6

X OM BP RDS P BR C VX T OT C OP ENI ST L
XOM BP RDS CVX PBR COP TOT STL ENI
Source: Evalua te Energy and Company reports Source: Evalua te Energy and Company reports

2008 Refining Capacity Market Value as of July 1, 2009
Market Value as of December 31, 2008

5,675
406.1

3,905

(US$ bn)
(mcb/d)

3,119 2,917
2,600
2,223 2,083 161.1 150.3 143.6 128.7 77.2
96.8 93.6
828 52.2
299

XOM RDS BP COP TOT PBR CVX ENI STL XOM RDS CVX BP TOT PBR ENI COP STL

Source: PFC Energy WRMS 
(barrels per calendar day, considering c ompany % s hareholding and including JVs) Source: Bloomberg

Note: Peer companies selected above have a majority of capital traded in the public markets. 3
DELIVERING OUTSTANDING GROWTH

EXCELLENT PERFORMANCE
Since August 2007 when we released our
last strategic plan, we have:

Announced 10 billion boe in potential recoverable

reserves (from Pre-salt blocks of Tupi, Iara, Espírito
Santo pre-salt and Golfinho ring-fence)
Increased production by 7% to 2,436 thousand boe/d
Increased gas production by 21%
Added +one million bbls of new production capacity
Increased net revenues 54%1
Increased net income by 56%1

1
3Q 2008 vs. 3Q 2007 4
IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT

Production (b/d)

54 years
16 years

22 years

27 years

45 years
12 years

Number of years
Production since founding of Discovery of Garoupa in Discovery of giant fields in Campos Discovery of the Pre-salt,
Petrobras (1954) the Campos Basin (1974) Basin inc. Albacora (1984) including Parati (2006)

5
 A CONTINUED COMMITMENT TO R&D…

Top 10 2007 R&D Spenders in the Energy Sector

US$ mm % of Revenues
120 0 4%

100%
100 0
3% 80% International
80 0 G&E
60% Corporate
60 0 2% Downstream
40%
E&P
40 0
20%
1%
20 0 0%

0 0%
RDS PBR TOT XOM PTR SLB BP CVX SPC BHI STL ENI HAL BHP GAZP
20 07 R&D % of Revenues

Source: PFC Energy 6

GIVES US A COMPETITIVE ADVANTAGE IN THE DEEPWATER

Petrobras operates 23% of global

deepwater production

2007 Gross Global Operated Deepwater

Production (mboe/d)

HESS ENI
2% 2%

BG
TOT 4%
6% PBR
APC 23%
6%

CVX
7%

BP XOM
9% 15%

STL
RDS
13% 13%

Source: PFC Energy | Note: Est imat ed volu mes above r eflect wh at operator s ar e r espon sib le for produ cing , not what they keep on a n et working
inter est o r entitlement basis. M inimu m wat er d epth is 300 met er s; eleven operator s above account for 94% of glob al deep water produ ction in 2007. 7
STRATEGIC VISION: TO BE ONE OF THE WORLD’S FIVE LARGEST
PUBLICLY TRADED OIL PRODUCERS

Production
30,000 Target: 2020

25,000
Reserves (mm boe)

Production XOM
20,000 Target: 2013
BP
Production
Target: 2009
15,000

PBR
10,000 CVX RDS
COP
TOT

5,000
2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500
Production (mboe/d)
2007 (SEC) reserves and production

8
DOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKET

2007 Total Oil Consumption by Country (mmbo/d)

20.7
8 7.9

6
5.1

4 Brazil is world’s ninth

2.7 2.7
2.4 2.4 2.3
largest oil consumer
2.2 2.2 2.0 1.9 1.7 1.7 1.6
2

0
US

France
S. Korea

UK 
Germany

Mexico
China

Japan

Iran
India

Canada

Brazil

Saudi 

Italy
Russia

Total Oil Consumption mb/d (index)

160 Brazil OECD World

150

140
Brazil oil consumption
130
growing at 2.4% p.a.
120
OECD oil consumption
growing at 1% p.a. 110

100
1991
1990

1992

1993
1994

1995
1996
1997

1998
1999

2000
2001
2002

2003
2004

2005
2006
2007
Source: BP Statistical Review 2008, PFC Energy
9
HIGH-POTENTIAL PORTFOLIO IN ONE OF THE WORLD’S MOST EXCITING
PROVINCES...

Kashagan
Sakhalin II
Sakhalin I

Kurmangazi
Thunder Shah
Horse Deniz Azadegan

Khurais Anaran
Roncador
Marlim
Albacora Agbami
Akpo
Iara
Jupiter Dalia Kizomba
Tupi
Carioca Girassol, Jaz, Rosa
82% of our total crude
production currently
comes from Campos
Basin Development of the Santos Basin
sub-salt play will drive our long-
term production growth

Significant light oil and gas

discoveries have been made Circle size indicates
in the Espirito Santo Basin estimated reserves

10
AND APPLYING UNIQUE EXPERTISE TO SELECTED INTERNATIONAL
OPPORTUNITIES

Projected equity production from Petrobras international operations

(Thousand boed)
632

9.0% p.y.

223
341

224 244 8.8% p.y.

131
103 409
100
210
124 142

2008 2009 2013 2020

O il a nd N GL N atura l G as

Production considering Petrobras’ partic ipation in projects 11

INTERNATIONAL INVESTMENTS

Total Investments
US$ 15.9 billion

BUSINESS AREA COUNTRY

5% 1% 17% 16%
8%

7% 5%

22%

28%

79%
12%
Argentina Angola
E&P RTCP
G&E Distribution USA Nigeria
Corporate New Opportunities Other Countries

12
GROWING OPTIONS IN BIOFUELS AND LOW-CARBON TECHNOLOGIES...

Biofuels Investments STRATEGY: To establish a global presence in

US$ 2.8 billion
the biofuels segment, with a particular focus on
biodiesel and ethanol

16%
Participate in Brazilian ethanol chain and
develop global markets for Brazilian ethanol
Participate sustainably in the biodiesel
business in Brazil and with selective
international investments
Develop competitive technologies to produce
biofuels from residual biomass

84%

Ethanol Biodiesel

13
WHICH CONTINUE TO INCREASE IN IMPORTANCE

Brazilian Biodiesel Market and

Ethanol Exports Petrobras Production Target*

(mm m³) (mm m³)

4.5 3000
4 40.6% p.y. 17.9% p.y. 2.65
2500
3.5
3 2000
2.5
4.23 1500 1.37
2
1.5 1000
1
500 Petrobras
0.5 1.08 401 535
Market-share
 (29%) (20%)
0 0
2009 2013 2009 2013

* Base case: Demand B5 in 2013 14

IMPORTANT DECISIONS MUST BE MADE IN A TIME OF UNPRECEDENTED
UNCERTAINTY...

GEOPOLITICS VITAL RESOURCES LOOMING

Global economic crisis Goods & services UNCERTAINTIES
Conflicts and wars Human resources Oil prices
Political tensions Costs
Environmental implications • Aging workforce Future demand
Elections • Difficulties in attracting Future supply
new workers
Rising tides of nationalism Competitiveness of biofuels
• Shortage of specialized
candidates Development of game-
changing technologies

15
HOWEVER, THE MEDIUM/LONG-TERM OIL MARKET OUTLOOK REMAINS VERY
STRONG

GLOBAL OIL DEMAND SCENARIOS

mm b/d
140

120 EIA/DOE High Demand Scenario

IEA Reference Scenario

100

Global demand scenarios

80 EIA/DOE Low Demand Scenario

60
Observed decline
Additional Required
40 Capacity (b/d)
Actual decline
Existing production Natural decline
20 Natural decline 2020 | 55 – 65 mm
Existing production
Existing production 2030 | 75 – 90 mm
0
2012

2028
2000

2002

2004

2006

2008

2010

2014

2016

2018

2020

2022

2024

2026

2030
Production in most non-OPEC countries is at a plateau or in decline;
Global oil production capacity will be challenged to meet projected demand growth;
Lower demand and capital spending during current down-cycle will postpone the
crunch, but not eliminate it.

Source: IEA World Energy Outlook 2007, EIA International Energy Outlook 2007 16
 AND PRE-SALT CAN BE DEVELOPED AT A RELATIVELY LOW COST

Expected Costs of Production

140

Deepwater and
120
Ultra-deep water
Production costs (US$/bbl-2008)

100
Oil Gas to Coal to
80 Shales liquids liquids
Arctic

60
EOR
CO -

Heavy oil
EOR

and
bitumen
40

Other
20 convention Petrobras expected
Produced MEN A al o il
maximum break-even cost

0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Reserves (bn bbls)

Source: IEA – Outlook 2008 17

 A VISION FOR INTEGRATED GROWTH TO 2020…

Commitment to Sustainable Development

Integrated Growth Profitability Social & Environmental

Responsibility

Expand operations in target markets for oil, oil products, petrochemicals, gas and energy, biofuels and distribution and to
be recognized as a model integrated energy company

Grow oil and gas
production in a sustainable
manner, and become one
of the five largest oil
producers in the world
Capture value added Consolidate leadership Expand integrated To have a global
through expansion of in the Brazilian natural petrochemicals presence in the
integrated operations in gas market while operations while biofuels business
refining, establishing an capturing synergies with participation in
commercialization, international presence within Petrobras the biodiesel and
logistics & distribution and increase domestic ethanol businesses
with a focus on the electricity generation
Atlantic Basin and Far business
East

Operational, management, human resources and technological excellence

Downstream
E&P Distribution Gas & Energy Petrochemicals Biofuels
(RTC)

18
AND A CAREFULLY CRAFTED SPENDING PROGRAM TO SUPPORT THAT
VISION
Business Plan 2009-2013

2% 2% 2%
3% US$ 174.4 billion
7% 5.6 3.0 E&P

11.8 2.8
RTC
3.2
G&E

Petrochemicals
43.4 104.6 (*) Distribution
25% 59%
Biofuels

Corporate

(*) US$ 17.0 billion allocated to Exploration

Business Plan 2008-12

2% 1% 2%
4% US$ 112.4 billion
6% 4.3 2.6
E&P
6.7 1.5
RTC
2.5
G&E

Petrochemicals
26% 29.6 65.1
Distribution
59%
Biofuels

Corporate

19
WITH MOST OF THE INCREASES RELATED TO NEW PROJECTS

Evolution of Capex: Plan 2009-2013 vs. Plan 2008-2012

200 8.1
3.4 2.9
180
17.1
160
140 47.9
120
100
80 174.4
US$ billion

60 111.2
40
20
0
2009‐13 S pend + New + C os t + Ajus tment to + E xchang e ‐ Others * 2009‐2013
(as  declared in P rojects Increas e projects rate effect Inv es tment
prev ious P lan
B us ines s
P lan)   

(*) Change in Business Model, excluded projects, change in aschedule| Note: Investment levels do not reflect expected
declines in future costs 20
PRIORITIZING E&P PROJECTS

US$ 47.9 Billion • Petrobras strategy gives first priority

to meeting production targets

• E&P accounts for 76% of new project

4% 1% 0.4
spending (US$ 28 bn for pre-salt)
12% 2.1
5.7
6% 3.1

36.6

77%

E&P RTC

G&E Biofuels

(PQF, Dist., Corp)

21
FLEXIBLE PIPELINE OF PROJECTS 2009-13: BY PHASE

More than 530 Large Projects in Portfolio

US$ bn 1.5% 2.7
A substantial portion of our
investment plan has yet to be 28.3%
approved and contracted Phase I (Under Evaluation)

49.3
Phase II (Conceptual)
Only projects with a positive
85.8
NPV at cost of capital will be 49.2% Phase III (Design)
11.7
approved
6.7%
24.9 Phase IV (Approved)

Acquisition
14.3%

22
INCREASING LOCAL CONTENT STRENGTHENS PETROBRAS BUSINESS IN
THE LONG RUN

From a business perspective...

Local
content

More equipment
availability
Expanded
supply capacity
Increased
flexibility
New suppliers

Lower prices

From a Sustainability stand point...

Strengthen Brazilian Create jobs and Reinforce internal

economy income market

23
OPTIMIZING COSTS

Planning
• More details Æ less risk Planning

Optimizing Costs
• Simplification
• Standardization (i.e. 8 identical Pre-salt
FPSOs) Oversight
• Carefully considering industry-standards

Oversight Culture
• Equipment purchases Æ Smaller
quantities allows participation of mid-
sized companies
• Closer oversight

Culture
• Reducing redundancies

24
A COMMITMENT TO OUR WORLD-CLASS WORKFORCE

Number of Employees Participants in Training Programs

2,822
PhD: 232 Post-grad: 845 Employees w ith an undergraduate
degree, but lacking previous experience, 2 ,46 8
Master: 1,098 University: 23,084 attend Petrobras University for up to 1
year before starting work 2,101
74,240
68,931
62,266
53,904
52,037
48,798
46,723 1,213
989 1 ,04 3
774

20 02 2003 2004 20 05 2006 2007 200 8

2002 2003 2004 2005 2006 2007 2008

27,000 new employees since 2002

Forecasted demand for workers in the Petrobras supply

chain: 112,625 employees

The Brazilian government, with

Petrobras support, has a
specific program to meet this
demand CIVIL CONSTRUCTION &
ENGINEERING CONSTRUCTION ACQUISITION MAINTENANCE
5,967 15,020 84,576 7,062

25
CONSISTENTLY DELIVERING RESERVES GROWTH…

123% reserve replacement rate in Aiming for a reserves to

2008. Over the past decade, production life of 15 years
reserve replacement has More than 50% as
principally been driven by internal undeveloped reserves
additions in Brazil

13.75 13.92 14.09

13.02 13.23
0.88 0.92
0.88 1.23

Production Production Production Production

(0.67 bn boe) (0.70 bn boe) (0.70 bn boe) (0.75 bn boe)

Reserves Reserves Reserves Reserves

Replacement Replacement 12.52 Replacement 13.04 Replacement 13.17
12.35
Index Index Index Index
(131%) (174%) (124%) (123%)

2004 2005 2006 2007 2008

26
AND PURSUING NEW PROJECTS WHILE MAXIMIZING
PRODUCTION FROM EXISTING ASSETS

Petrobras Total Production (000 b/d)

5,729
223
409
7.5% p.y.

1.177
3,655
5.6% p.y.
131
2,757 210
2,400 8.8% p.y. 634
2,223 2,305 2,308 103
2,042 2,027 100 142
1,812 96 101 109
1,637 124 463
23 85 94
163 142 126 321
24 35 161 168 277 273 3.920
44 274
252 251 265
232
2.680
1.778 1.792 1.855 2.050
1.500 1.540 1.493 1.684
1.335

2001 2002 2003 2004 2005 2006 2007 2008 2009 2013 2020
Oil production ‐ Brazi l Ga s producti on ‐ Bra zil Oil  Product ‐ Internationa l Ga s Product ‐ Inte rna ti onal

27
AT A VERY COMPETITIVE COST.

Total 2007 F&D costs per barrel (3-year roll)

$30

$25

$20

$15

$10

$5

$0
Marathon
LUKOIL

EnCana

OMV
Murphy
BG

Anadarko

TOTAL
BP
Apache
Petrobras

Hess
Petro‐Canada

Eni
ExxonMobil

Devon

Nexen

StatoilHydro
Chevron

Talisman
Woodside

Noble
Can Natl Res

Pioneer
Occidental

Shell
BHP Billiton
ConocoPhillips

Total F&D costs per barrel (3-year roll)

$35
Peer Group
$30
Petrobras
$25

$20

$15

$10

$5

$0
2000 2001 2002 2003 2004 2005 2006 2007

PFC Energy / Note: (Unproved & Proved Property Acquisition + Exploration & Development Expenditure)/(Revisions + Improved
Recovery + Extensions & Discoveries + Purchases); 3-year time frame 28
EXPLORATION &
PRODUCTION
EFFECTIVE STRATEGY 2009-2013

Discover and develop

resources in Brazil and
internationally, maintaining a
reserves-to-production ratio
of 15 years

Delineate and develop

Develop an integrated global the pre-salt cluster and
natural gas network to supply
new oil provinces in
Petrobras’ markets
Southeast Brazil

Apply innovative
Increase production in
deepwater expertise in
Brazil and abroad,
new high-potential
optimizing the use of
frontier provinces in
existing infrastructure
Brazil and abroad

30
FOCUSED & DISCIPLINED INVESTMENT

Total Investments of US$ 104.6 billion in E&P through 2013,

of which US$ 92 will be spent in Brazil

12% 13%

Exploration

17% Santos Pre-salt

Development

International

58%

31
TO DELIVER RETURNS ON PAR WITH THE MAJORS

E&P REVENUES: US$ / BOE (2007) E&P CASH FLOW: US$ / BOE (2007)

$60.00 $25.00

$46.93 $47.92 $20.28

$50.00 $19.91
$20.00

$40.00
$15.00
$30.00
$10.00
$20.00

$5.00
$10.00

$0.00 $0.00
Petrobras Peer average* Petrobras Peer average*

Source: Company reports

*Peers: ExxonMobil, Chevron, ConocoPhillips, TOTAL, RD Shell and BP 32
INDUSTRY-LEADING PRODUCTION GROWTH

CAGR (2004-2008) - %
7,75
5, 33
4,40 4,38
2,48
1,36
-1,02 -1, 79 -2, 57 -3,71 -3, 78

Chevron

Total
PetroChina

Repsol YPF
ExxonMobil

RD Shell
Lukoil
ConocoPhillips

Pet robras

BP
ENI
Petrobras Oil and Gas Production (000 boe/d)

2,400
2,298 2,301
2,217
4.4% CAGR

2,020

2004 2005 2006 2007 2008

Source: Evaluate Energy (2004-2008 CAGR) 33

AND PURSUING NEW PROJECTS WHILE MAXIMIZING
PRODUCTION FROM EXISTING ASSETS

Petrobras Total Production (000 b/d)

5,729
223
409
7.5% p.y.

1.177
3,655
5.6% p.y.
131
2,757 210
2,400 8.8% p.y. 634
2,223 2,305 2,308 103
2,042 2,027 100 142
1,812 96 101 109
1,637 124 463
23 85 94
163 142 126 321
24 35 161 168 277 273 3.920
44 274
252 251 265
232
2.680
1.778 1.792 1.855 2.050
1.500 1.540 1.493 1.684
1.335

2001 2002 2003 2004 2005 2006 2007 2008 2009 2013 2020
Oil production ‐ Brazi l Ga s producti on ‐ Bra zil Oil  Product ‐ Internationa l Ga s Product ‐ Inte rna ti onal

34
ESTIMATED OIL PRODUCTION IN BRAZIL

Out of the 824 kb/d in
domestic production growth
through 2013, 566 kb/d will
come from fields where we
have already declared
commerciality
The biggest contribution in the
domestic production growth of
1,240 kb/d between 2013 and
2020 will come from pre salt
production
The PN 2008-2012 Brazil oil
target for 2015 was 2,812 k
b/d. The new target
represents an increase of
19% (+528 kb/d)

Petrobras Total Production in Brazil (000 b/d)

3,920
3,340
2,680

1,855 2,050

2008 2009 2013 2015 2020

Light Oil ≥ 31º API Medium Oil Heavy Oil ≤ 22º API

35
ROBUST PROJECT PIPELINE - 2009

In addition to the five new projects starting-up in 2009, P-52 and P-54, which
will reach peak production this year, and P-53, which started operation in
December 2008, will contribute to production increases

2,050 73

9
10.5% 43.1%

Million m3/day
JABUTI
thousand b/d

MANATI

9
expansion
EWT Tupi
LAGOSTA
1,855
P51
MARLIM SUL 9 51
CANAPU

P53 FRADE
MARLI M LESTE CAMARUPIM

P ARQUE D AS
SIRI 1 CONCHAS
URUCU

2008 2009 2008 2009

Light Oil Heavy Oil Natural

Gas

36
AND 2010-2013

MANATI
expansion

LAGOSTA URUGUÁ JURUÁ

TAMBAÚ ARACANGA
CANAPU 3.32
MEXILHÃO 3.20 Oil and gas
CAMARUPIM
3.02
URUCU 2.79
million boe/d

2.68
2.51 2.58 Oil
2.43
P-62
2.25 RONCADOR

2.05 P55
RONCADOR
P-57
JUBARTE BALEIA AZUL
P-61
JABUTI PAPA-TERRA
TUPI P-56
EWT Tupi P-63
Pilot MARLIM SUL
PAPA-TERRA
P-51 CACHALOTE.
MARLI M SUL BALEIA FRANCA, GUARÁ 1 or IARA 1
BALEIA ANÃ
FRADE
TUPI 1
P ARQUE D AS Pilot Expansion
CONCHAS

2009 2010 2011 2012 2013

Pre-salt Heavy oil Natural Gas

37
MAJOR PROJECT OVERVIEW 2009-2013

Espírito
Santo Basin

Parque das
Baleias/
Espírito Santo
Pre-salt

Traditional
Campos Basin

Pre-Salt Cluster
180 th b/d 2009
2010
100 th b/d 2011
2012
< 100 th b/d 2013

38
SIGNIFICANT RESOURCE BASE YET TO BE DEVELOPED

Announced recoverable volumes in the pre-salt can

double our reserves…

bn boe

~23.5 -28 bn boe

Higher
estimates
+4.5
13.920 14.093 Lower
estimates
747 920 9.5

2007 Proven - Accumulated + Incorporated 2008 Proven + Announced Announced

Reserves* Production in as Proven Reserves* Pre-salt Reserves
2007 Reserves discoveries
(Tupi, Iara and
Espírito Santo)

* Acc ordi ng to Society of Petrol eum Engineers – SPE 39

OPTIMIZE RECOVERY FROM EXISTING FIELDS

IMPLEMENT INTEGRATED
PROGRAMS TO IMPROVE OIL
RECOVERY, THAT:

Reduce the natural decline rate of

oil producing fields
Increase reserves through the
improvement of recovery factors
Optimize costs, increasing
reserves and production
Production Employing IOR techniques

Natural decline rate

Projects to increase reserves

Time
Projects to reduce decline rate

40
ALBACORA

Albacora field: a model where innovative technologies

are used to revitalize production.
RECAGE identified complex technical limitations on
platforms P-25 and P-31 (Albacora). It was not possible to
inject enough water in the production units.

P-25 P-31

Solution to recover production:

CENPES developed RWI (Raw Water Injection), technology
that reinject seawater into a reservoir through an injection well,
thereby increasing production capacity.
The system uses electrical submersible pumps and filters on
the sea-bed, without disturbing surface installations.

Raw Water Injection (RWI)

41
 CARMÓPOLIS

SERGIPE
Carmópolis field: started-up production in 1963 and today
is one of two examples of the most successful implementation
of an solution to enhance productivity.

It was in this field that “rigless” technology was introduced:

replacing rigs, to fracture a well utilizing hydraulic power.

Direct Effects:
• Increased production;
• Reduced well costs;
• Improved the recovery factor: from 27% to 30% (in 2009);
• New expected peak production: 25.4 mmb/d (in 1990) to
31.6 mmb/d (in 2009);
• Extended the useful life of the field an additional 18 years:
from 2007 to 2025.

42
CARMÓPOLIS

Carmópolis Production (b/d)

Expected increase of 36%

09
20
st
a
rec
Fo
43
DIVERSIFIED AND FLEXIBLE PORTFOLIO

ESPÍRITO SANTO

150 MM boe
Golfinho OPTIMIZING EXISTING
SYSTEMS IN THE
GOLFINHO FIELD:
VITÓRIA
Moving FPSO Capixaba (100 Mb/d)
from Golfinho to Parque das Baleias in
anticipation of the development of the
Espirito Santo pre-salt ;

Developing new discoveries in the Ring

Fence of Golfinho (150 million boe)
Parque das Baleias/ using FPSO Cidade de Vitória;
Pre-Salt Espírito Santo
Relocating a well from FPSO Capixaba
to FPSO Cidade de Vitória

44
USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING ASSETS

Water Depth 2008 2009 2010 2011 2012 2013-2017

ƒ Petrobras XVI
ƒ Ocean Yorktown
ƒ Petrobras XVII
ƒ Pride Mexico
ƒ Al ask an Star
ƒ Borgny Dolphin ƒPetrobras XIV
0-999m ƒ Atlantic Star
ƒ Ocean Concord
ƒ Ocean Wittington
ƒ Falcon-100
ƒ P. South Atlantic

ƒPetrobras X ƒOcean Winner

ƒPetrobras XXIII ƒT. Driller
ƒP. South Am erica ƒSedco 710
ƒP. Portland ƒN. Therald Martin
ƒP. Rio de Janeiro ƒN. Leo Segerius Olinda Star
1000-1999m ƒP. Brazil ƒN. Muravlenko Ocean Worker
ƒP. Carlos Walter ƒLouisiana
ƒOcean Yatzi ƒS.C. Lancer
ƒOcean Alliance ƒPeregrine I

ƒ ƒ Delba V
ƒSedco 707 Gold Star
ƒ Noble Dave ƒ Pantanal ƒ Delba VI
ƒDw. Navigator ƒ Scorpion
Beard ƒ Norbe VI ƒDelba IV
ƒN. Roger Eason ƒ Delba VII
ƒ Sevan Driller ƒ Delba III ƒSchain TBN1 + 28 new units to
≥ 2000m ƒO. Clipper ƒ West Taurus ƒ West Orion ƒSevan Brasil
ƒ Delba VIII
be leased
ƒ Norbe IX
ƒN. Paul Wolf ƒ West Eminence ƒ Petrorig II ƒ DS Carolina ƒ Schahin TBN2
ƒ SSV Victoria ƒ Lone Start ƒ Norbe VIII
ƒ Am azonia ƒ Etesco 8

Total per year 34 7 8 5 9 28

Cumulative 41 49 54 63 91

29 RIGS CONTRACTED PLUS 28 TO BE LEASED UP TO 2017, MAKING A TOTAL OF  57 NEW  DRILLING RIGS

45
ESTABLISHED EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF
DEVELOPMENT

Margem Equatorial
Brazil
Ceara & Potiguar Exploration:
2009-13
Solimões
US$ 13.8 bn
Potiguar Exploratory
SEAL& REC & TUC
Area: 157.59
km²
Bahia Sul 278
São Francisco exploratory
blocks
Espírito Santo
30 appraisal
Campos plans
303 production
Petrobras Santos
Others concessions
Pelotas

46
EXPLORING TO LEVERAGE EXCITING FRONTIER PLAYS IN OUR OWN BACKYARD

Exploration
Capex
US$ mm Success Rate
70%
2.750

2.500 60%
2.250
50%
2.000

1.750
40%
1.500

1.250 30%
1.000
20%
750

500
10%
250

0 0%
2002 2003 2004 2005 2006 2007 2008 2009‐2013

47
…AND APPLYING UNIQUE EXPERTISE TO SELECTED INTERNATIONAL
OPPORTUNITIES

TURKEY
PORTUGAL PAKISTAN
LIBYA
US GoM
CUBA IRAN
MEXICO SENEGAL
VENEZUELA
INDIA
COLOMBIA NIGERIA
EQUADOR
TANZANIA
BRAZIL
PERU
ANGOLA
BOLIVIA MOZAMBIQUE

ARGENTINA Core
Focus
New Venture

48
PRE-SALT PROVINCE

Total area of the Province: 112,000 km2

Area under concession: 41,000 km2 (38%) ESPIRITO SANTO
Area not under concession: 71,000 km2 (62%)
MINA GERAIS
Area with Petrobras interest: 35,000 km2 (31%)

SÃO PAULO RIO DE JANEIRO

PARANÁ

Tested wells
Campos HC
Exploratory Blocks
Pre-Salt reservoirs

49
PRE-SALT OVERVIEW

US$ 28.9 bn in capex through 2013

related to pre-salt development
Initial oil production via FPSOs
Initial natural gas production
brought onshore via pipeline
Six production units in Campos and
Espírito Santo pre-salt starting-up
by 2014, excluding extended well
tests
~7 mm m3/d of natural gas
available to the market by 2013
Many production systems
programmed through 2020
Oil production in 2015: 582 kb/d
Oil production 2020: 1,815 kb/d;
natural gas available to the
market: 40 mm m3/d

Estimated oil production of 219 kb/d

in 2013

50
SANTOS BASIN PRE-SALT CLUSTER

50 km Rio de Janeiro

Major discoveries include: Tupi,

Iara, Carioca, Guara, Jupiter, Parati,
BM-S-10
BR 65% BM- S-11 Bem-te-vi and Caramba
BR 65%
Multi-billion barrel reserves potential
Good oil quality: medium-light
BM-S- 8
BR 66%
Seismic activity and appraisal wells
underway
Iara Recoverable resources announced:
Parati

Tupi
5-8 bn boe in Tupi and 3-4 bn boe
in Iara
Carioca
Bem-te-v i
Guara
Three production systems by 2014:
BM-S-21
BR 80% BM- S-24 Tupi, Iara and Guara
Azul ão BR 80%
Caramba
BM- S-9
BR 45%
BM- S-22
BR 20%

51
TUPI

50 km Rio de Janeiro
Extended well test (EWT)
• Tupi-Sul re-entry underway
• Vessel conversion completed
• First production Q2 2009
• Up to 14,000 b/d

Initial development sanctioned

(pilot)
• Major contracts awarded
• Oil 100,000 b/d
• Gas pipeline 216 km to Mexilhão
• Production late-2010
Tupi

Full field development

• Development optimization studies
• Resources 5-8 bn boe
• Expansion in the Pilot in 2013

52
DEVELOPMENT STRATEGY (example: TUPI)

1st Oil – EWT 1st Oil – Tupi Pilot Significant

Tupi (Mar/09) (Dec/10)) production level

..... ..... t
2007 2009 2010 2012 2017

Information Acquisition Definitive Development

Phases
Phase 0 Phase 1A Phase 1B

EWT (Mar/2009), Tupi Pilot and Implementation of “X” production units Implementation of “Y”
Focus
appraisal wells (Replicant FPSOs) production units

• Analyze water and gas/CO2 injection behavior

• Area Delimitation
• Test adjustments on FPU related to CO2
• Analyze reservoir flow
• Test improvements in well projects
Objective • Fractured well performance
• Apply previous dominated concepts and technologies with necessary adjustments to
• Complete sampled core
reach significant production by 2017
• Material analysis vs. CO2
• Aggregate innovative technical solutions to optimize project performance

53
IARA

3-4 bn boe of resource

Thick reservoir section
Outline forward plans

• Re-entry/test of Iara-1 in Q1/2 2009

• Full field development studies
• Appraisal wells 2010/11
• EWT with production in 2010/11
• Production FPSO by 2014

54
GUARÁ

50 km Rio de
Janeiro High quality reservoir
Outline of forward plans:

• Re-entry/test of Guara-1, Q1/2 2009

• Full field development studies
• Appraisal wells 2010/11
• Possible EWT in 2010/11
• Production FPSO by 2014

Guar
á

55
 ESPÍRITO SANTO PRE-SALT

to UTG Cacimbas
Infrastructure in-place
an
Linhares
Rio Doc e
P-34 at Jubarte field, first pre-salt production:
oS

Cangoá
MG Peroá

UPGN Lagoa Parda excellent results, prod. up to 18 k b/d

it
pír

Aracruz
24” – 66 km
25 MM m 3/d
FPSO Seillean started in dec/08 as pilot system of
Cachalote (CHT) field
Es

Terminal Barra do Riacho

Camarupim
Canapu
FPSO Capixaba will move from Golfinho field to
Golfinho Cachalote/Baleia Franca (BFR) in 1H10
VITÓRI A
FPSO Pipa II will start in 2H10 as Baleia Azul
Vila Velha Carapó (BAZ) pilot system
Baleia Azul first definitive production unit by 4Q12
Sul-Norte Capixaba
UTG Sul Capixaba
Guarapari Sul Capixaba Gas pipeline
12 a 24” – 160 km
Natural gas production transported via pipeline
Gas pipeline
12” – 83 km 7 a 15 MM m 3/d
Anc hieta 4,5 MM m 3/d

Presidente
Marataizes
Kennedy
ARG
CHT Baleia Franca
JUB OST
N AU
RJ Baleia Azul AB A
CXR
PRB

Catuá

56
PRE-SALT OIL PRODUCTION

Petrobras Pre-salt Oil Production (000 b/d)

1,815
1,336 632
4 63
219 582
1 60 1,18 3
62 8 73
1 57 4 22

2013 2015 2017 2020

Pre‐Salt Petrobras Pre‐salt Partners

Petrobras Pre-salt Capex Through 2020

2009-2013 2009 -2020

Petrobras Total Pre-salt Capex (Production Development) 28.9 111.4

Santos Basin Pre-salt 18.6 98.8

Espírito Santo Pre-salt (includes post-salt fields) 10.3 12.6

57
DOWNSTREAM
 VERTICALLY INTEGRATED SYSTEM TO CAPTURE SYNERGIES WITHIN THE
VALUE CHAIN

Upstream Operations Downstream Operations

Existing Pipelines
Refineries
Petrobras Marine Terminal
Other Companies In Land Terminal

59
 INVESTING IN REFINING INFRASTRUCTURE

REMAN LUBNOR Capacity Troughput

Refineries
(000 b/d) (000 b/d)
Paulínia - Replan (SP) 365 348
RLAM Landulpho Alv es - Rlam (BA) 323 261
Duque de Caxias -Reduc (RJ) 242 243
Henrique Lage - Revap (SP) 251 236
RECAP Alberto Pasqualini - Refap (RS) 189 148
Pres. Getúlio Vargas - Repar (PR) 189 169
Pres. Bernardes - RPBC (SP) 170 153
REDUC
Gabriel Passos - Regap (MG) 151 132
REPLAN Manaus - Reman (AM) 46 41
Capuava - Recap (SP) 53 42
REVAP Fortaleza - Lubnor (CE) 7 6
TOTAL BRAZIL 1,986 1,779

REPAR REFAP RPBC RECAP

As Petrobras continues to grow its upstream With limited investment over the last 20 years,
business, the need for a compatible refining Petrobras will increase capacity to meet the needs of
infrastructure becomes more critical a growing domestic market

60
IMPROVING THE TRADE BALANCE

Exports (000 barrels/day) Imports (000 barrels/day)

234
246 262 197
148
260 94 118

439 390
335 353 352 370 373
263

2005 2006 2007 2008 2005 2006 2007 2008

Oil Oil P roducts Oil Oil Products

Despite a current surplus in volumes, Petrobras continues to run a

trade deficit
Targeted investments aim to reduce the need for oil imports and
increase oil products exports

61
FOCUSED STRATEGY TO ADD VALUE TO DOMESTIC CRUDE

Expand refining capacity

in Brazil and internationally

Optimize quality to make

Petrobras the preferred fuels Improve margins by
brand for consumers in Brazil expanding average
and abroad complexity

Increase production of basic Use commercial and

petrochemicals, capturing logistical partnerships to
synergies within the expand presence in target
Petrobras System markets

62
INVESTING TO REALIZE THESE GOALS

Downstream Investments
US$ 47.8 billion

12%
Refining 7%

Pipelines & Terminal

Transport 8%

Ship Transport

Petrochemicals 73%

• Adding values to domestic crude and producing diesel and gasoline in-line with
international standards

• Investment targets Fuel Quality, Conversion and Expansion

63
ADDRESSING THE NEED TO INCREASE THROUGHPUT CAPACITY AND
COMPLEXITY...
Average Refinery Throughput Capacity (000 b/d)

240

220

200

180

160

140

120

100
1 2 3 4 5 6 7 8 9 10

PFC Average Complexity Index

Source: PFC Energy 64

THE BENEFITS OF INTEGRATION

Return on Capital Employed
ROCE

35%
30%
25%
20%
15%
10%
5%
0%
‐5%
‐10%
‐15%
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007
Integrated  Upstream Players Refi ners

Integrated Companies: BP, Shell, Exxon, Conoco, Chevron, Total, ENI, Luke Oil and Repsol
Upstream Players: Apache, Anadarko, Devon, EnCana, Nexen and Talisman
Refiners: Valero, Reliance Industries, PKN Orlen, Sunoco and Tesoro

Source: PFC Energy 65

INCREASING GROSS REFINING MARGINS...

US$/bbl US Gulf Coast Gross Refining Margins

35

30

25 US Gasoline
Downturn
20

15

10

0
1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008
Margin: WTI Cracking Margin: Maya Coking

Gross Refining Margins = Margin WTI Cracking = USGC Margin Maya Coking = USGC
Products prices minus crude Margin of using WTI with Margin of using Maya with
oil cracking yields coking yields

Source: Platts 66
AND CAPTURING THE LIGHT/HEAVY DIFFERENTIAL

US$/bbl
45
40
35
30
25
20
15
10
5
0
1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008
WTI - Maya Diesel & Gasoline – Fuel Oil

Spread Crude Oil Light-Heavy = WTI Spread Oil Products Light-Heavy = (Unleaded
– Maya USG + N2 Diesel USG)/2 – Fuel Oil 3% USG

Source: Platts 67
LESSENING IMPORTED CRUDE REQUIREMENTS FOR REFINING INPUTS

Domestic Crude as a Percentage of Total Feedstock Processed

95%

79% 80% 78%

75% 76%

Petrobras’ refining site will be adapted to run

more domestic crude, so capturing the
light/heavy differential and avoiding high
acidity crude discounts

2000 2002 2004 2006 2008 2020

68
AND UPGRADING TO OPTIMIZE PERFORMANCE AND ENSURE SUSTAINABILITY

QUALITY OF GASOLINE QUALITY OF DIESEL

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

Transition Regular Gasoline Diesel

Regular Gasoline
Period 0,005% S S-1800

Diesel
S-500
RECAP REPAR
Diesel & Gasoline
Gasoline Diesel
S-50
REDUC REPLAN
Gasoline Gasoline Diesel
S-10
REFAP
Gasoline
REVAP RECAP RLAM REFAP REPLAN
REFAP Gasoline Diesel & Diesel Diesel Diesel
Gasoline Gasoline
REGAP RPBC
RLAM Diesel Diesel
Gasoline
REGAP
RPBC Rev amp
Gasoline HDT

IMPROVING GASOLINE AND DIESEL QUALITY TO COMPLY WITH TIGHTER ENVIRONMENTAL

REGULATIONS AND REDUCE EMISSIONS & GASES STREAMS

69
FAST GROWING DOMESTIC DEMAND…

(000 b/d)
2,876
3.3% p.y.
400
2,257 150
Others
1,906 1,945 3.0% p.y. 274 FO
112 Diesel
182 202
119 107 1224 QAV
901 Naphta
738 783 Gasoline
179 LPG
118
84 89 246
250 218 255
367 419
326 332
208 214 230 257

2007 2008E 2013E 2020E

70
WILL BE MET BY INVESTMENTS TO SIGNIFICANTLY INCREASE REFINING
CAPACITY

Domestic Crude Throughput (000 b/d)

3500 Premium I
(600 th bpd)
and
Premium II
(300 th bpd) 3,012
3000 1st Fase:
2013
2nd Fase:
2015
2500
Clara 2,270
UPB
Camarão 150 tho. bpd
2010 Dez/2012
2000
1,779 1,791
RNE
REVAP 230 tho.
10 tho.bpd bpd
1500 2010 2011

REPLAN REPAR
Revamp Revamp
1000 33 tho. bpd 25 tho. bpd
2010 2011

500

0
2008 2009 2010 2011 2012 2013 2020

71
 DOMESTIC REFINING CAPACITY ADDITIONS

400
Thousand b/d
350

300

250

200

150

100

50

0
2009 - 2010 2010 - 2011 2011 - 2012 2012 - 2013

Distillation Capacity Conversion Capacity Treating Capacity

72
MAIN DRIVERS FOR THE NEW REFINERIES

Access to oil products market

Access to raw material

Logistic potential

Shared infrastructure

Adaptation to social and environmental issues (sustainability)

Capital discipline and solid returns

Adaptation to international product quality specifications

Add value to stakeholder through accessing new markets abroad

73
ADDRESSING GROWING DOMESTIC DEMAND FOR PETROCHEMICALS

(000 tons p.a.)

10,000 671
PS
1,663
8,000 PVC
526 990
1,293
6,000 412
PET
784 3,212
991
4,000 289 587 2,353 PP
310 699
728 436 1,651
380 PE
2,000 800 1,070
3,666
2,833
1,607 1,625 2,202
0
2000 2005 2010 2015 2020

74
 BY INTEGRATING THE DOWNSTREAM SUPPLY CHAIN THROUGH
TARGETED INVESTMENTS

Investment decisions in this segment are based on the need to:

Secure a natural hedge between petrochemical and refining Maintain flexibility and access to competitive feedstocks
cycles Develop cost leadership
Diversify into higher value-added products Improve competitiveness

QUATTOR BRASKEM

PQU COPESUL
PRODUCTION PRODUCTION
1.020 kta ethene QUATTOR 2.480 kta ethene 1.180
320kta propene kta propene 510 kta IQ
1.040 kta PE PVC
875 kta PP PU 1.975 kta PE IPQ
1.090 kta PP
RIOPOL

UDQ

37,3% Petrobras/Petroquisa 23% Petrobras/Petroquisa

56% UNIPAR | 6,6 % BNDES 38% Grupo Odebrecht
36% Others

75
COMPERJ WILL CONTRIBUTE TO THE PETROBRAS VALUE CHAIN

Comperj will:
Capture synergies from existing regional
Expand the domestic petrochemical market infrastructure
Utilize Marlim crude as feedstock Improve the balance within the commercial
value chain for oil, oil products and
petrochemicals

BASICS DOWNSTREAM

Production
Products
(kta)
Production
Diesel 535 Products
(kta)
Fuels Naphtha 284
Polypropylene 850
Coke 700 Polyethylene 800
Ethylene 1,300 Styrene 500
Propylene 881 Ethylene glycol 600
Petroche micals Benzene 608 PT A 500
Butadiene 157 PET 600
p-Xylene 700
Sulphur 45

76
GAS & ENERGY
FOCUSED STRATEGY

Monetize gas reserves

and add value

Price gas competitively

Invest in electricity generation with competing energy
from renewable sources sources while
Natural Gas and LNG
Purchase and Sales maintaining profitability

Transport and
Distribution
Power generation,
purchase and sales

Optimize participation in Participate globally in the

Brazil’s electricity generating full LNG chain
system

Flexibly supply power

generation and other
markets

78
 INTEGRATED GAS AND POWER SYSTEM

ONS coordinates Natural Gas

the operation of Consumers
Production Imports Distribution
Brazilian Processing
electrical power. ANP

Hydro-power
provides base
load electricity
where natural
conditions allow.
Thermal plants
minimize deficit Thermal Plants Power Energy
risk. Consumers

Hydro-power
Plants Distribution
Transmission
ANEEL

Exchanges
RAIN: ACCUMULATES ENERGY – SAVES WATER

79
 INCREASING GAS DEMAND

Non-thermal Demand
million m3/d @ 9,400 k cal/m3
6% p.a. expected average growth: 2009-13
60
Industrial
Price parity with fuel
50
oil, accepted by the 50 49
Natural Gas to Non-Thermal Market

market 45
41
Automotive 40 38
37
Flex fuel fleet, more 36 Domestic Gas:
34
expensive kits, contracted with natural
31
higher NG prices gas distributors until
30 28 2012
Commercial
25
Following services 20
GDP projection 20 17 Realized Demand Contracted Demand Bolivian Gas:
14
Residential contracted with natural
Following urban gas distributors until
population growth
10 2020

0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013
Accrued Proj. Petrobras 

80
INCREASING DEMAND FOR GAS-FIRED GENERATION

Average Supply 2008: 52 GW

GW Avg

100
90
5% growth p.a.
80 2009-2013
Energy Supply (GW Avg)

70
60
50
87 91
40 80 84
73 77
67 70
30 61 64
55 58
20
10
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

81
BALANCING SUPPLY & DEMAND

140 135

Electricity Generation
123
120
112
LNG 49
100 96 44
million m3/d @ 9,400 k cal/m3

41
Bolivia
80 36

Other Uses
68
58 45
60 19 39
14 34
27
40 19
17 Domestic

Industrial
Supply
20 36 40 41
30 33
27
0
2008 2009 2010 2011 2012 2013

National Supply Bolivian Supply LNG: Existing Regas Capacity LNG Additions

Industrial Demand Other Uses Thermoelectric Demand

82
 PHASED INVESTMENT PLAN

Phase I

Gas & Energy Area Phase II

Creation

2009-13
Business Plan
200 0
200 1
200 2
200 3
200 4
200 5
200 6
200 7
200 8
200 9
201 0
201 1
201 2
201 3
201 4
201 5
201 6
201 7
201 8
201 9
Phase I (2003–2010): Diversify Supply and Integrate Network
Rationale:
• Meet domestic needs of power generation and non-thermal market
• Diversify supply: Bolivia and LNG;
• Increase power generation capacity
Result:
PLANGAS, network integration, regasification terminal construction

Phase II (from 2011): Increase Supply Flexibility and Network Integration

Rationale:
• Expand natural gas supply and transmission capacity
• Create options to reach domestic and international markets
Result:
Pre-salt production offloading, regasification terminals, expanded thermoelectric power generation

83
 PHASE I: DIVERSIFY SUPPLY & INTEGRATE NETWORK
(A) EXPAND PIPELINE SYSTEM

70% expansion 2003-2010

Gasfor
Existing
Manau s Açu/Serra do Mel
Transportation
Nordestão
Pipelines: Urucu - Manaus (Sep/09)
Pilar-Ipojuca (sept/10)
2003 – 5,451 km GLP duto (Jan/09)
GASALP
2006 – 5,495 km Urucu
Itaporanga-Pilar
2007 – 6,157 km Atalaia-Itaporanga
2008 – 6,933 km GASEB
Catu-Itaporanga
Pipelines Cacimbas-Catu (mar/10)
Underway: Cacimbas-Vitoria
Lagoa Parda-Vitoria - Gasvit
2009 – 7,930 km
Cabiúnas-Vitória
2010 – 9,265 km
Gasduc III (sept/09)
Gasduc I e II
Gasbol Japeri-Reduc (mar/09)
Campinas-Rio
(trecho Taubaté-Japeri)
Campinas-Rio
(trecho Paulinia – Taubaté)
Gastau (oct/10)
Paulínia – Jacutinga (jul/09)
GASPAL II (apr/10)
GASAN II (apr/10)
Underway
GASPAL I
Existing
GASAN I
Gasbol - Ampl. T. Sul (may/10)

84
 PHASE I: DIVERSIFY SUPPLY & INTEGRATE NETWORK
(B) ADD FLEXIBILITY WITH LNG

PECÉM TERMINAL

Capacity:
7 MM m3/d

Start-up:
Jan/09

Objective :
Flexible gas
supply for
thermal
generation in
the Northe ast

Terminal Overview: Regasification Vessel – 01/22/09

85
 PHASE I: DIVERSIFY SUPPLY & INTEGRATE NETWORK
(B) ADD FLEXIBILITY WITH LNG

GUANABARA BAY

Capacity:
Terminal: 20 mm
m3/d

Regasification
Vessel: 14 mm
m3/d

C&A completion:
Jan/09

Objective :
Flexible gas
supply for
thermal
generation in the
Southeast

Terminal Overview: Construction and Assembly (C&A) Completion – 01/22/09

86
PHASE I: DIVERSIFY SUPPLY & INTEGRATE NETWORK
(C) INCREASE POWER GENERATION CAPACITY
2008: 24 Plants: 5,559 MW
Tambaqui 2010: 43 Plants: 7,135 MW Carangola
89 MW 15 MW

Termoceará 220 MW
Jaraqui Potiguar III 66 MW BI-FUEL
89 MW
Potiguar 52 MW
Termocabo 48 MW
Jesus S. Pereira 340 MW (leased)
Manauara
85 MW
SU AP E II 350 MW Petrolina 128 MW
Ar eia 11,4 MW (leased)
Juiz de Fora Ar embepe 1 48 MW
84 MW Bahia
Água Limpa 14 MW Muricy I31 MW
148 MW
Barbosa Lima Sobrinho 386 MW Brentech 140 MW
Celso Furtado
BI-FUEL
Britarumã 60 MW 185 MW
Bonfante
Irara 30 MW 19 MW
Luís Carlos Prestes Rômulo Almeida
252 MW Jataí 30 MW São Pedro 138 MW
30 MW
Retiro Velho 18 MW
Fumaça Funil
Fernando Gasparian 44,5 MW 22.5 MW
370 MW Euzébio Rocha 208 MW
São Simão Aurel. Chaves
27 MW 226 MW
Gover. Leonel Brizola
1,043 MW Calheiros 19 MW
São Joaquim
Pira 19 MW Monte Serrat 25 MW 21 MW
Mário Lago
922 MW BANAÇO 60 MW Santa Fé
30 MW
NG 4.900 MW
Sepé Tiaraju 160 MW OIL 472 MW Araucária
BI-FUEL 484 MW
PCH 187 MW

87
PHASE II: INCREASE SUPPLY FLEXIBILITY & NETWORK INTEGRATION
(A) TRANSPORTATION INFRASTRUCTURE

Increase natural gas supply and flexibility:

Additional regasification terminals will:

Increase supply to meet thermal demand

Create opportunities to supply domestic and international markets

Increase natural gas transmission capacity:

Add 307 km of pipelines and new compression facilities

Increase (net) natural gas flow between the Southeast and Northeast

Connect new natural gas supplies, including pre-salt and third and fourth
LNG terminals

88
PHASE II: INCREASE SUPPLY FLEXIBILITY & NETWORK INTEGRATION
(B) ENERGY INVESTMENTS

Expand thermal generation

Federal government plan (2008-2017) creates opportunities to expand

power supply from natural gas-fired plants;
Petrobras foresees participation in future energy bids, assuring fixed
revenue before investment;

Petrobras may participate as:

LNG supplier

Logistical service provider (transportation and/or regasification)

Power generator

Combinations of the above

This will be done via competitive bidding

89
GAS & ENERGY INVESTMENT PLAN 2009-2013

G&E Investments
US$ 10.6 billion

1,477

926
4,528

3,692

US$ million
Natural Gas
US$ 8.2 billion
Projects in Portfolio New Investments Proposed

Energy
Projects in Portfolio New Investments Proposed
US$ 2.4 billion

90
FINANCE
CREATING SHAREHOLDER VALUE AND IMPRESSIVE RETURNS ON CAPITAL

Total Shareholder Return (TSR) vs. ROACE

50%

40% PBR

30%
TSR (Average 06‐08)

HES
20% OXY
ENI
10% BG
MRO

0% REP STO
10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30%
‐10%

‐20% ROACE (Average 06‐08) Shareholder Return (TSR)

145%
MIN
120%
MAX
95% PBR

70%

45%

20%

‐5%

‐30%

‐55%

‐80%
2003 2004 2005 2006 2007 2008

Source: Bloomberg/Company reports 92

STEADY PAYOUT AND INCREASING INCOME HAS LED TO HIGHER DIVIDENDS

US$ mm
29%
20.000 50%
18.000 32% 45%
32%
16.000
40%
14.000 33%
12.000 31% 35%
10.000 30%
8.000 25%
6.000
20%
4.000
2.000 15%
‐ 10%
2004 2005 2006 2007 2008

Net Income Dividend Divi dend a s % of Net Inc ome

Brazilian Corporate Law requir es a minimum annual distributions equal to 25% of net income

Note: Net Income and Dividends based on provisioned dividends and US GAAP. 93
GROWING CASH FLOW DRIVES CAPEX…

SOURCES
3 0 ,0 0 0

2 5,0 0 0

2 0 ,0 0 0

15,0 0 0

10 ,0 0 0

5,0 0 0

- 5,0 0 0 20 04 2005 2006 2007 2008

OC F Ne t De bt

USES

3 0 .0 0 0
2 5.0 0 0
2 0 .0 0 0
15.0 0 0
10 .0 0 0
5.0 0 0
0
- 5.0 0 0 20 04 200 5 20 06 2 007 2 008 *

CAPEX Dividends Acquisition

94
...ACCOMPANIED BY STRENGTHENING CREDIT RATIOS AND INCREASED
DEBT CAPACITY

Net Debt/ EBITDA and ST Debt/LT Debt

1.40 1.16 1.10

1.20
1.00 Sound credit ratios and
0.64 0.67
0.80 0.59
0.60
commitment to
0.38
0.40 maintaining investment-
6.5% 7.1% 13.7%
0.20 2.7% 4.7% 6.5% grade ratios
0.00
2003 2004 2005 2006 2007 2008
Net Debt/EB ITD A S T D ebt/L T Debt
Long Term Debt to Long-term Capital *

MAX
50%
MIN
PBR
40%

30%

20%

10%

0%
2003 2004 2005 2006 2007

* Source: Company reports (REP, HES, ENI, BG, OXY, MRO, STL) 95
HISTORICALLY, CONSERVATIVE PLANNING HAS LED TO A BALANCE BETWEEN
OCF AND CAPEX; NEW PLAN WILL FOLLOW SIMILAR APPROACH

Historical Projected
US$ 88.5 bn (2003 – 2008) US$ 148.6 bn (2009 – 2013)

Net Debt
Net Debt

Capex
OCF OCF
(US$ 174 bn)
(after dividends) Capex (after dividends)
(US$ 92,3 bn)

Sources Uses Sources Uses

Average Brent:   Average Oil Production:  Average Brent (e):  Average Oil Production (e): 

US$ 60/bbl 1,720 (thousand boe/d) US$ 66/bbl 2,398 (thousand boe/d)

96
2009-2013 ASSUMPTIONS AND CAPEX ARE DESIGNED TO MAINTAIN
TARGETED FINANCIAL RATIOS

INDECES 2009-2013 Plan 2008-2012 Plan

FX Rate (R$/US$) 2.0 2.18
2009 – 58.00
2010 – 61.00 2008 – 55.00
2011 – 72.00 2009 – 50.00
Brent for Funding (US$/bbl) 2010 – 45.00
2012 – 74.00
2013 – 68.00 2011-2012 – 35.00

Projected Net Cash Flow (After 148.6 104.4

dividends) (US$ bn)

Projected Investments (US$ bn) 174.4 112.4

Net Debt/Net Debt + Shareholders´Equity

(Leverage) Up to 35% 20%

Minimum cash balance (US$ bn) 3.8

5

97
2009-2013 PLAN: BRENT PRICE ASSUMPTIONS

US$/bbl
80

74
75
72

70 68

65
61 60
58 60
60

55

50
45 45 45 45 45
45
40
40 37

35

30
2009 2010 2011 2012 2013 2014 2015

Reference Curve Robustness Curve

98
LONG-TERM PRICING ASSUMPTIONS AT OR BELOW MARKET FORECASTS.
NEAR-TERM FUNDING REQUIREMENTS ASSUME PRICES WELL BELOW THE
FORWARD CURVE.

Projected Brent Curves

120

100

80
U S $  b b l

60

40

20

0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Brent ‐ Forwa rd Curve  (01/23/09) PIRA (Jan 09) Petrobras  (Ba se Ca se) Petrobra s (Funding 09‐10) WoodMackenzi e (Dec 08)

Petrobras uses a `severe stress´ scenario to project

financial need through 2010

Source: Bloomberg/PIRA/Mackenzie 99
THE PLAN DOES NOT ASSUME CAPITAL COSTS WILL DECLINE, ALTHOUGH
LOWER OIL PRICES SHOULD PRODUCE DOW NWARD PRESSURE ON COSTS

Capital Cost Index

500

400

300
(2000=100)

18%
Index

200

11%
100

0
2000

2001

2002

2003

2004

2005

2006

1Q07

3Q07

1Q08

3Q08

4Q08

2009

2010

2011

2012

2013
CCI Downstream CCI Upstream WTI

Source: CERA / Bloomberg 100

FINANCIAL PLANNING THROUGH 2010 IS BASED ON A WORST CASE SCENARIO

Key Variables to Petrobras Cash Flow

• International price of crude oil and oil products
• Internal domestic prices
• Exchange Rate
• % of investment execution
• Cost of capital investment

Minimum Projected Cash Flow (US$ bn)

2009 2010*
OCF including amortization and after dividends 10.5 16.0
Capex 28.6 35.0
Funding Needs (18.1) (18.9)
Brent (US$ / bbl) 37 40

* Capex for 2010 is based on the annual average of the Plan´s total spending. 101
FUNDING FOR 2009 COMPLETED, WITH REMAINING NEEDS FOR 2010 TO BE
MET VIA TRADITIONAL SOURCES AND COST REDUCTIONS

2009 2010

Needs
Needs
• US$ 18.10 bn
• US$ 18.9 bn
Sources
Sources
• BNDES: US$ 12.5 bn • BNDES: US$ 10.0 bn
• Capital Market: US$ 6.5 bn (bridge loan) • Remainder to be financed : US$ 8.9 bn
*US$ 2.75 bn (Global Notes due 2019, in 2 tranches: • 15% reduction in capex would reduce
1.5 bn, yield 8.125% + 1.25 bn, yield 6.875%)
remaining financial needs to less than
• US Exim : US$ 2 bn US$ 4 bn
• CDB: US$ 10 bn

102
For more information:
Investor Relations
www.petrobras.com.br/ri
+55 21 3224-1510
petroinvest@petrobras.com.br