2020 PETROBRAS STRATEGIC & BUSINESS PLAN PETROBRAS Strategic & Business Plan 2009-2013 Opportunities for foreign suppliers Paulo Sérgio Rodrigues Alonso D.Sc. Materials Engineering Manager Houston, May 5 th 2009 OTC 2009 1 2020 PETROBRAS STRATEGIC & BUSINESS PLAN DISCLOSURE 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. 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. 2 2020 PETROBRAS STRATEGIC & BUSINESS PLAN PRESENTATION OUTLINE Main objectives; PETROBRAS Overview; Strategic and Business Plans Highlights:  E&P;  Downstream;  Petrochemical;  Gas and Energy; Critical Goods and Services and equipment quantities; PETROBRAS Strategies for purchasing goods and services; Register Requirements for Foreign Suppliers; PROMINP – Governmental Program and Local Content; Conclusions. 3 2020 PETROBRAS STRATEGIC & BUSINESS PLAN MAIN OBJECTIVES To provide a broad overview of PETROBRAS main investment programs, included in the Strategic and Business Plan for the period 2008-2012, aiming to expand the basis of selected goods and services foreign suppliers interested to come to Brazil and register with the Company in order to participate in the projects’ Vendor Lists. 4 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Petrobras Overview 5 2020 PETROBRAS STRATEGIC & BUSINESS PLAN A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY 2007 (SEC) reserves and production XOM RDS BP CVX TOT CO P PBR 5,000 10,000 15,000 20,000 25,000 30,000 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 Production(mboe/d) Reserves(mmboe) Production Target: 2009 Production Target: 2013 Production Target: 2020 STRATEGIC VISION: TO BE ONE OF THE WORLD’S FIVE LARGEST PUBLICLY TRADED OIL PRODUCERS Among its peers, Petrobras has the: • 4 th largest Proven Reserves; • 5 th largest Oil & Gas Production; 6 th largest Refining Capacity; 6 th largest Market Value. Source: Bloomberg and Company Reports (2007 SEC Proven Reserves Data, 9M08 Oil & Gas Production data, 2008 Refining Capacity data and 2008 Market Value data) 6 2020 PETROBRAS STRATEGIC & BUSINESS PLAN 2007 Total Oil Consumption by Country (mmbo/d) DOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKET Source: BP Statistical Review 2008, PFC Energy Total Oil Consumption mb/d (index) Brazil is world’s eighth- largest oil consumer Brazil oil consumption growing at 2.4% p.a. OECD oil consumption growing at 1% p.a. 100 110 120 130 140 150 160 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Brazil OECD World 20.7 7.9 7 2020 PETROBRAS STRATEGIC & BUSINESS PLAN HIGH-POTENTIAL PORTFOLIO IN ONE OF THE WORLD’S MOST EXCITING PROVINCES Significant light oil and gas discoveries have been made in the Espirito Santo Basin 82% of our total crude production currently comes from Campos Basin Roncador Marlim Albacora Iara Jupiter Tupi Carioca Thunder Horse Agbami Akpo Kizomba Girassol, Jaz, Rosa Dalia Khurais Kashagan Kurmangazi Shah Deniz Azadega n Anaran Sakhalin II Sakhalin I Development of the Santos Basin sub-salt play will drive our long- term production growth Circle size indicates estimated reserves 8 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Strategic and Business Plans highlights 9 2020 PETROBRAS STRATEGIC & BUSINESS PLAN We will be one of the largest integrated energy companies in the world and the preferred choice among our stakeholders Vision 2020 Our operations will be notable for: Strong international presence; World scale prominence in biofuels; Operational excellence in management, technology and human resources; Profitability; Benchmark in social and environmental responsibility; Commitment to sustainable development. Vision 2020 Characteristics VISION 2020 AND CHARACTERISTICS 10 [...]... 2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-52 DECK MATING 21 2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-52 - BRASFELS SHIPYARD- ANGRA DOS REIS 22 2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-54 - MAUÁ JURONG SHIPYARD- NITERÓI 23 2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-54 LEAVING THE SHIPYARD ON 19-Out-2007 24 2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-54 LEAVING THE SHIPYARD ON 19-Out-2007 25 2020 PETROBRAS. .. Environment Climate Changes 0.9 23% E&P Downstream G&E Corp. (Cenpes) Optimization & Reliability Fuel Innovation Transportatio n Natural Gas Renewable Energy and Bio Fuels 12 2020 PETROBRAS STRATEGIC & BUSINESS PLAN E&P Business Segment 13 2020 PETROBRAS STRATEGIC & BUSINESS PLAN E&P: FOCUSED & DISCIPLINED INVESTMENT Total Investments 12% Total Investments of US$ 104.6 billion in E&P through 2013, of which US$... Capixaba 100,000 bpd Papa-Terra TLWP P-61 & FPSO P-63 150,000 bpd FPSO Espírito Santo 100,000 bpd Pre-Salt Projects Guará 1 Pilot FPSO 100,000 bpd 1400 2008 2009 2010 2011 2012 2013 PN 2009-2013 18 2020 PETROBRAS STRATEGIC & BUSINESS PLAN CIDADE DO RIO DE JANEIRO FPSO(CAPACITY 100 000 BPD), PRODUCTION ON 06/01/07 AT ESPADARTE FIELD 19 2020 PETROBRAS STRATEGIC & BUSINESS PLAN PIRANEMA FPSO (CAPACITY 30 000...2020 PETROBRAS STRATEGIC & BUSINESS PLAN AND A CAREFULLY CRAFTED SPENDING PROGRAM TO SUPPORT THAT VISION International Investments US$ 15.9 billion Business Plan 2009-2013 US$ 174.4 billion 3% 7% 2% 11.8 5.6 2% 5% 1% 8% 2% E&P 7% 3.0 RTC 2.8 G&E 3.2 Petrochemicals Distribution 43.4 25% 104.6 (*) 59% Biofuels 79% Corporate (*) US$ 17.0 billion allocated to Exploration E&P RTCP Distribution G&E Corporate... 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Downstream Business Segment 26 2020 PETROBRAS STRATEGIC & BUSINESS PLAN DOMESTIC CRUDE THROUGHPUT (THOUSAND BPD) Downstream Investments US$ 47.8 billion • Adding values to domestic crude and producing diesel and gasoline in-line with international standards • Investment targets Fuel Quality, Conversion and Expansion 12% Refining 7% Pipelines & Terminal 8% Transport... Propylene 850 PTA 700 Ethylene Petrochemical Feedstocks 284 Coke (UPB) Naphtha Polypropylene (PP) 157 (UPB) p-Xylene 700 Sulfur 45 34 2020 PETROBRAS STRATEGIC & BUSINESS PLAN COMPERJ MAP LOCATION Itaboraí 35 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Gas and Energy Business Segment 36 ... BUSINESS PLAN Petrochemical Business Segment 32 2020 PETROBRAS STRATEGIC & BUSINESS PLAN COMPERJ Site: Itaboraí - RJ; Capacity: 1300 kta ethylene; 700 kta P-Xylene; 881 kta Propylene; 608 kta Benzene; 157 kta Butadiene Total Investment: US$ 8.5 billion; Feedstocks: Heavy crude oil from Campos basin; Start up: 2012 33 2020 PETROBRAS STRATEGIC & BUSINESS PLAN COMPERJ OUTPUTS Products UPB Production (kta)... 1,791 REPLAN Revamp 33 tho bpd 2010 2008 Premium II 300 tho bpd 1st Phase: 2014 2nd Phase: 2016 REPAR Revamp 25 tho bpd 2011 2010 2011 2012 2013 2020 27 2020 PETROBRAS STRATEGIC & BUSINESS PLAN NEW INVESTMENTS NEW REFINERIES 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Start up:end of 2.012 Start up: 1 st quarter 2.011 Start up 2013 and 2015 Start up: 2013 and 2015 28 2020 PETROBRAS STRATEGIC & BUSINESS. .. Terminals; Implantation of the Program “Adequação de Suprimento de Petróleo” (PASP) and the Plano Diretor de Dutos, in São Paulo State, through interventions in the OSVAT and OSCAN Systems, and new pier for the São Sebastião Terminal; Improvements in the oil product outflow system in Santos and Paranaguá ports and Madre de Deus Terminal(TEMADRE) 31 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Petrochemical Business. .. INVESTMENTS done present planned 30 2020 PETROBRAS STRATEGIC & BUSINESS PLAN TERMINALS 26 water terminals, operated by means of monobuoys or buoy arrays 20 onshore terminals INVESTMENTS IN LOGISTICS – PIPELINES AND TERMINALS Os investimentos previstos atendem às necessidades da carteira exploratória e de desenvolvimento da produção Total Investments: US$ 3.7 billion between 2009-2013; da Petrobras Main Projects: . terms as "anticipate", "believe", "expect", "forecast", "intend", " ;plan& quot;, "project", "seek", "should",. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN PETROBRAS Strategic & Business Plan 2009-2013 Opportunities for foreign suppliers Paulo Sérgio Rodrigues Alonso. Technology 2009-2013 47% 23% 5% 25% E&P Downstream G&E Corp.(Cenpes) 1.9 0.2 1.0 0.9 US$ 4.0 billion 12 2020 PETROBRAS STRATEGIC & BUSINESS PLAN E&P Business Segment 13 2020 PETROBRAS STRATEGIC & BUSINESS PLAN E&P: