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2020 PETROBRAS STRATEGIC & BUSINESS PLAN




                     PETROBRAS
                 Strategic & Business
                          Plan
                       2009-2013
               Opportunities for foreign suppliers



Houston, May 5th 2009            Paulo Sérgio Rodrigues Alonso D.Sc.
OTC 2009                               Materials Engineering Manager

                                                                           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

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2020 PETROBRAS STRATEGIC & BUSINESS PLAN




Petrobras Overview




                                                 5
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                                        A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY

           Among its peers, Petrobras has the:

           •    4th largest Proven Reserves;                                                             6th largest Refining Capacity;

           •    5th largest Oil & Gas Production;                                                        6th largest Market Value.
                                                           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
                                                  15,000             Target: 2009

                                                               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

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


                       DOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKET


       2007 Total Oil Consumption by Country (mmbo/d)
20.7
       7.9



                                                                             Brazil is world’s eighth-
                                                                             largest oil consumer




                                                                      Total Oil Consumption mb/d (index)

                                                         160                               Brazil                      OECD                           World


                                                         150


                                                         140
Brazil oil consumption growing at 2.4% p.a.
                                                         130


                                                         120
OECD oil consumption growing at 1% p.a.
                                                         110


                                                         100




                                                                                                                       1998
                                                                                                                              1999
                                                                                                                                     2000
                                                                                                                                            2001
                                                                                                                                                   2002
                                                                                                                                                          2003
                                                                                                                                                                 2004
                                                                                                                                                                        2005
                                                                                                                                                                               2006
                                                                                                                                                                                      2007
                                                               1990
                                                                      1991
                                                                             1992
                                                                                    1993
                                                                                           1994
                                                                                                  1995
                                                                                                         1996
                                                                                                                1997
        Source: BP Statistical Review 2008, PFC Energy                                                                                                                                       7
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                                           HIGH-POTENTIAL PORTFOLIO IN ONE OF THE WORLD’S
                                                               MOST EXCITING PROVINCES...




                                                                            Kashagan
                                                                                                       Sakhalin II
                                                                                                         Sakhalin I

                                                                                          Kurmangazi
              Thunder                                                 Shah
               Horse                                                  Deniz             Azadega
                                                                                        n
                                                                  Khurais             Anaran
                                          Roncador
                                          Marlim
                                                           Agbami
                                          Albacora
                                                           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


                                                                                                                                   8

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2020 PETROBRAS STRATEGIC & BUSINESS PLAN




Strategic and Business Plans
          highlights




                                                      9
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                                      VISION 2020 AND CHARACTERISTICS


                           Vision 2020

  We will be one of the largest integrated energy companies in the
     world and the preferred choice among our stakeholders


               Vision 2020 Characteristics
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.


                                                                            10
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                                                          5% 1%
                              US$ 174.4 billion                                                      8%

            2%        2%    2%
       3%                                                          E&P
                                                                                                7%
      7%        5.6          3.0
                                                                   RTC
         11.8                2.8
                             3.2                                   G&E

                                                                   Petrochemicals

                                                                   Distribution
       43.4                  104.6 (*)
25%                                            59%                 Biofuels

                                                                   Corporate                                                 79%


                                         (*) US$ 17.0 billion allocated to Exploration
                                                                                                  E&P            RTCP        G&E
                                                                                                  Distribution   Corporate




                                                                                                                                   11
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                                                                                                                           CENPES


                     Total Area:114.000 m2                                                        CENPES Expansion and
                     Building:75.000 m2      Expansion                                            Dataprocessing integrated Center:
                     137 Laboratories                                                             Total Area: 190.000 m2
                     30 Pilot plants                                                              Building: 114.000 m2


Partnership with over 120 universities and research centers in Brazil, and 70 Institutions abroad

 Investments in Technology                                          Technological programs
        2009-2013
        US$ 4.0 billion
      25%


            1.0                                         Basin
                                                                    Deep and
                                                                                      Heavy
                                          Frontier                  Ultra-deep                     Enhanced
                                                       Modeling                        Oil                      Pre-salt     Refining
                              47%          Areas                     Waters                           Oil
                    1.9                                                                            Recovery
 5%    0.2
             0.9

      23%                               Optimization
                                                                                                  Renewable
                                                          Fuel                                      Energy                   Climate
   E&P             Downstream                &                      Transportatio   Natural Gas                Environment
                                                       Innovation                                     and                    Changes
                                         Reliability                     n
                                                                                                   Bio Fuels
   G&E             Corp. (Cenpes)


                                                                                                                                        12

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E&P Business Segment




                                                 13
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                                                                                                E&P: FOCUSED & DISCIPLINED INVESTMENT



       Total Investments                                                         Total Investments of US$ 104.6 billion in E&P through
                                                                                  2013, of which US$ 92 billion will be spent in Brazil

      12%           13%
                                                                                                            Expected Costs of Production*

                                                                               140



                                             Production costs (US$/bbl-2008)
                                  17%                                          120
                                                                                                                Deepwater and
                                                                                                                Ultra-deep water

                                                                               100
                                                                                                                                                 Oil     Gas to     Coal to
                                                                                80                                                              Shales   liquids    liquids




                                                                                                                          R Arctic
                                                                                60                                                    Heavy




                                                                                                                         CO₂ -

                                                                                                                          EO
                                                                                                                         EOR
 58%                                                                                                                                  oil and
                                                                                                                                     bitumen
                                                                                40
                                                                                                               Other
Exploration        Development                                                  20       Produced    MENA
                                                                                                             conventi                  Petrobras expected
                                                                                                              onal oil                 maximum break-even cost


Santos Pre-salt    International                                                     0        1000    2000      3000         4000       5000    6000     7000      8000       9000   10000
                                                                                                                            Reserves (bn bbls)




                  * Source: IEA – Outlook 2008                                                                                                                                         14
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                                                                                       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
                                                                                                           15
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                                                                         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-vi
                                             Guara
                                                                         Three production systems by 2014:
BM-S-21
BR 80%                                                         BM-S-24   Tupi, Iara and Guara
                                 Azulão                        BR 80%
             Caramba
                                                     BM-S-9
                               BM-S-22               BR 45%
                               BR 20%




                                                                                                                   16

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                                                                                                                 ESPÍRITO SANTO PRE-SALT


                                                  UTG Cacimbas
                                           Linhares
                         Rio Doce                                             Cangoá     Peroá
                                                                                                 Infrastructure in-place
MG                               UPGN Lagoa Parda                                                P-34 at Jubarte field, first pre-salt production:
                                                                           24” – 66 km           excellent results, prod. up to 18 k b/d
                                 Aracruz                                   25 MM m3/d
              Terminal Barra do Riacho
                                                        Camarupim                                FPSO Seillean started in dec/08 as pilot
                                                                                  Canapu
                                                                                                 system of Cachalote (CHT) field
                                                                     Golfinho
                                                                                                 FPSO Capixaba will move from Golfinho field
                                             VITÓRIA
                                                            Carapó
                                                                                                 to Cachalote/Baleia Franca (BFR) in 1H10
                                           Vila Velha

                                                                                                 FPSO Pipa II will start in 2H10 as Baleia Azul
                                                                        Sul-Norte Capixaba
   UTG Sul Capixaba                             Sul Capixaba               Gas pipeline          (BAZ) pilot system
                             Guarapari
                                                Gas pipeline             12 a 24” – 160 km
                                                                          7 a 15 MM m3/d
                                                 12” – 83 km
                                                4,5 MM m3/d
                                                                                                 Baleia Azul first definitive production unit by
                      Anchieta
                                                                                                 4Q12
Presidente
Kennedy        Marataizes

                                     CHT
                                                            ARG                                  Natural gas production transported via pipeline
                                                              Baleia Franca
                                       JUB                           OST
                                                            NAU
RJ                           Baleia Azul                             ABA
                                  CXR
                                                      PRB

                                                                      Catuá




                                                                                                                                                     17
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                                                                                       MAJOR OIL PROJECTS

                              Marlim Sul
                              Module 2
                               SS P-51
   Thousand bpd              180,000 bpd                                           Anticipation of
                              24/jan/09                                             Baleia Azul
2800                                                                                   FPSO
                            Marlim Leste
                                                               Marlim Sul            Espadarte
                           FPSO Cidade de                                           100,000 bpd
                               Niterói
                                                                SS P-56                                      2,680
                             100,000 bpd
2600                          26/feb/09                         Module 3
                                                                                                      Roncador
                                                               100,000 bpd                  2,580
           Badejo                               Tupi Pilot                                           FPSO P-62
       FPSO Cidade Rio        Tupi TLD       FPSO Cidade de                                           Module 4
         das Ostras                                                                                  100,000 bpd
2400                       FPSO BW Cidade     Angra dos Reis          2,430
         15.000 bpd                            100,000 bpd
                             de S.Vicente
          31/mar08
                             30,000 bpd                          Jubarte                              Roncador
2200                         FPSO Frade               2,250    FPSO P-57                               SS P-55
         Marlim Leste                                          180,000 bpd                            Module 3
                             100,000 bpd
          FPU P-53                                                                                   180,000 bpd
         180,000 bpd                            Cachalote e
2000                                 2,050     Baleia Franca                                          Papa-Terra
          30/nov/08
                                              FPSO Capixaba                                          TLWP P-61 &
                             Parque das        100,000 bpd                                            FPSO P-63
                              Conchas                                                                150,000 bpd
                   1,855
1800     Cachalote
                            FPSO Espírito
       FPSO Seillean                                                                                 Guará 1 Pilot
                               Santo
        25,000 bpd                                                                                      FPSO
1600     16/dec/08           100,000 bpd                                Pre-Salt Projects            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 BPD),
            PRODUCTION ON 10/10/07




                                           20

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                  P-52 DECK MATING




                                     21
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


P-52 - BRASFELS SHIPYARD- ANGRA DOS REIS




                                               22
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


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                                             25
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
                               12%                            gasoline in-line with international standards
Refining
                          7%

Pipelines & Terminal                                    •     Investment targets Fuel Quality, Conversion and Expansion
Transport            8%

Ship Transport
                                                                                     Premium I      Premium II    3,012
                                                                                    300 tho. bpd   300 tho. bpd
Petrochemicals                                 73%                                   1st Phase:     1st Phase:
                                                                                        2013           2014
                                                                                    2nd Phase:     2nd Phase:
                                                                                        2015           2016
                                                                      UPB
                                                                   150 tho. bpd       2,270
                                                                    Dez/2012

                                                       RNE
           1,779          1,791                       230 tho.
                                                        bpd
                                                       2011
                                      REPLAN          REPAR
                                      Revamp          Revamp
                                     33 tho. bpd     25 tho. bpd
                                        2010            2011




           2008            2009        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

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2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                                            NEW INVESTMENTS - PREMIUM REFINERIES



                                                         LPG                         5%
                                                        PETROCHEMICAL NAPHTHA        20%
    Feedstock oil basis: Marlim 20                       AVIATION QUEROSENE          11%
                                                         DIESEL
                                                                                     50%
                                                         PETROCHEMICAL COKE          8%
                                                          BUNKER                     3%



                         Premium I – MA                           Premium II - CE

Capacity                  600 mil bpd                               300 mil bpd

                          2013 e 2015                               2013 e 2015
Operation
                           (2 phases)                                (2 phases)




 Market                         GLP, Nafta e QAV (Brasil) e Diesel 10 ppm (Europa)




                                                                                           29
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                          REFINERIES 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
                                       da Petrobras
Total Investments: US$ 3.7 billion between 2009-2013;
Main Projects:
       Storage extension in Santos and Paranaguá ports;
       Increase in effluents treatment in São Sebastião (TEBAR), São Fransisco do Sul (TEFRAN), Cabiúnas, Ilha Grande (TEBIG) and
     TEDUT 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 Segment




                                                      32

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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


                            Production
                               (kta)                                 Production (kta)
                Products
                  UPB                            Products
                            1st Generation
                                                   UPA
                                                                       2nd Generation

                 Diesel         535
                                                 Polypropylene
    Fuels                                             (PP)                 850
                Naphtha         284
   (UPB)
                  Coke          700              Poliethylene
                                                     (PE)
                                                                           800

                Ethylene       1.300
                                                  Styrene                  500
                Propylene       881
Petrochemical
 Feedstocks     Benzene         608             Ethylene glicol            600
   (UPB)
                Butadiene       157
                                                     PTA                   500
                p-Xylene        700

                                                     PET                   600
                 Sulfur          45

                                                                                        34
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                COMPERJ MAP LOCATION




Itaboraí




                                           35
2020 PETROBRAS STRATEGIC & BUSINESS PLAN




Gas and Energy Business Segment




                                                       36

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Revisar páginas 3.2, 3.3, 3.4 y 3.5, y responde a las siguientes preguntas: 1) ¿Alrededor de qué año se espera que India supere en población a China? 2) ¿En torno a cuánto se estima la población mundial para el año 2040 y 2050? ¿Le parecen razonable estas estimaciones?

2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                                                                  G&E INVESTMENTS


                                G&E Investments
                            US$ 10.6 billion 2009‐2013


                                      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



                                                                                   37
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                                       MAIN PROJECTS: GAS & ENERGY




                                                      US$ million

                       Main Projects
Gas Pipelines: Gasene, Northeast and Southeast Network,
South Section of Gasbol, Urucu-Coari-Manaus and Gasduc III
LNG – Liquefied Natural Gas
 Thermo-Electrics: Cubatão, Três Lagoas, Canoas and
Termoaçu
Wind Power Generation
G&E in Argentina and Other Countries
             Total investments US$ 10.6 billion




                                                                         38
2020 PETROBRAS STRATEGIC & BUSINESS PLAN




Critical goods and services and
      equipment quantities




                                                       39
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


E&P CRITICAL EQUIPMENT: OPPORTUNITIES FOR FOREIGN SUPPLIERS

       Production pipelines alloy coatings (13 Cr, Super 13 Cr);
       Turbo compressors (6-10 Mw );
       Polyester Mooring cables;
       Mooring systems;
       Drilling pipelines;
       Fiber glass pipelines;
       Electrical cables for CSP;
       Control Systems for well control, oil and gas metering
       systems, drilling activities;
       Offshore drilling rigs;
       Gravel packing;
       Drilling bits;
       Steam generators (25-50 x 106 BTU/d);
       Special submarine valves.

                                                                         40

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2020 PETROBRAS STRATEGIC & BUSINESS PLAN
    CRITICAL SERVICES FOR E&P ACTIVITIES: OPPORTUNITIES
                                FOR FOREIGN SUPPLIERS


Drilling;

Workover services;

Flexible lines and umbilicals laying services;

Support to diving;

Support to ROV;

Support to mooring activities;

Special vessels;

Submarine interconnection services.




                                                               41
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                     CRITICAL EQUIPMENT AND SERVICES FOR REFINING
                   ACTIVITIES: OPPORTUNITIES FOR FOREIGN SUPPLIERS



Equipment

   HCC Reactors (250-300 mm wall width, 200 Kgf/cm2);
   Boiler works with special alloys (reactors, towers, pressure vessels);
   Boilers (steam generators);
   Heat exchangers working with H2S traces (ASTM A 387 degree 11);
   API pumps;
   Structural packing for refining process towers;


Services
   Basic Design;
   Thermal Projects Design.




                                                                               42
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                    CRITICAL EQUIPMENT FOR G&E ACTIVITIES:
                     OPPORTUNITIES FOR FOREIGN SUPPLIERS




Pipelines in the range of 14-42 inches
diameter with longitudinal welding. Petrobras
standards do not accept helicoidal welding.




                                                                43
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                                                                 NEW EQUIPMENTS TO BE CONTRACTED

                                   Drilling ships and semi‐submersible drilling platforms 


29 RIGS CONTRACTED PLUS 28 TO BE LEASED UP TO 2017, MAKING A TOTAL OF 57 DRILLING RIGS
‐ 17 being delivered between 2009 and 2011
‐ 12 will be chartered via international bidding, being delivered in 2012 – Meeting Petrobras’ short‐term needs, while 
the national industry prepares itself for the remaining units
‐ 28 will be built in Brazil and operated by Brazilian companies, being delivered between 2013 and 2017

               Items                    Un.     TOTAL                          Items                    Un.     TOTAL
Wet Christmas Tree                      un          500        Pumps                                    un        8.000
Well Head                               un          500        Compressors                              un          700
Flexible Lines                          km        4.000        Winch                                    un          450
Manifolds                               un           30        Crane                                    un          200
Producing pipes                          t       42.000        Engines                                  un        1.000
Umbilical                               km        2.200        Turbines                                 un          350
Dry Christmas Tree                      un        1.700        Structure Steel (Hull)                    t      940.000
Onshore well head                       un        1.700
               Items                   Un.      TOTAL                     Items                       Un.      TOTAL
 Reactors                              un          280         Power Generators                       un          500
 Oil and water splitter                un           50         Filters                                un          300
 Storage Tankers                        un          1.800      Flares                                  un             30
 Turrets                                un            550
                                                                                                                          44

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2020 PETROBRAS STRATEGIC & BUSINESS PLAN




Petrobras supply strategies for
     goods and services




                                                       45
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                       SUPPLY STRATEGIES FOR GOODS AND SERVICES


                                                       •Equipment
                           • Manufacturers
                                                       •Chemicals
              US$ 7.0 Bi     • Distributors
                                                      •Spare parts
                                • Retailers
                                                              •Etc.


                                                        • Seismic
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              US$ 25.8 Bi       providers              •Transport
                                                             •Etc.


                                                        • Platform
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                                                       •Revamps
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As per 2008

                                                                             46
2020 PETROBRAS STRATEGIC & BUSINESS PLAN




     Up-dated Petrobras
Vendor Register Requirements




                                                      47
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


            REGISTER OF GOODS AND SERVICES SUPPLIERS


Requirements, Concepts and Ranking



         MANDATORY
      REQUIREMENTS and
   RANKING REQUIREMENTS
         5 CRITERIA



            SOCIAL     TECHNICAL
        RESPONSIBILITY




          HSE             ECONOMIC




                  LEGAL




                                                                        48

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                        REGISTRATION FOR MATERIAL SUPPLIERS



TECHNICAL REQUIREMENTS FOR MATERIALS


Depending on the material or equipment, the supplier must
comply with the following requirements:



  Tradition (Main Sales, Reference Letters);

  Facilities for Technical Assistance (Automation Systems,
  Rotating Machinery, etc);

  Mandatory Product Certification (API, ASME, ...);

  Other Specific Requirements.




                                                                      49
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                       REGISTRATION FOR SERVICES SUPPLIERS




TECHNICAL REQUIREMENTS FOR SERVICES


Depending on services criticality, the supplier must comply
with the following requirements:


 Tradition (List of Services Provided – continuity and
 Reference Letters);

 List of Equipment relating to services provided;

 Main personnel curricula vitae;

 Other specific requirements.




                                                                  50
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                                                     SUPPLIERS REGISTRATION

LEGAL REQUIREMENTS

MATERIALS & SERVICES


Brazilian companies:
   Proof of being legally constituted in Brazil;
   Proof of being regular with Brazilian taxes;
   See details on registration website.


Foreign companies:
   Proof of being legally constituted in its home country, issued by
   a Governmental Authority;
   Legal Representative in Brazil (mandatory);
   Commercial Representative (is not registered, but only indicated by
   and linked to the supplier):
        Not mandatory (may be the own company);
        May be the same or other than the Legal representative.

                                                                               51
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                                      SUPPLIERS REGISTRATION




ECONOMICAL REQUIREMENTS


MATERIALS & SERVICES

  Annual Reports with Audited Financial Statements;


  Proof that the company is not bankrupt (bank statement or
  company declaration by its president).




                                                                   52

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                                              SUPPLIERS REGISTRATION




MANAGEMENT and SOCIAL RESPONSIBILITY

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SERVICES

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                                                                           53
2020 PETROBRAS STRATEGIC & BUSINESS PLAN

                                       SUPPLIERS REGISTRATION


HELTH, SAFETY and ENVIRONMENT

SERVICES

 ISO-14001 and OSHAS-18001:

     Certification is not mandatory;

     Petrobras evaluates how does the suppliers
     implement these standards requirements (0 to 10).

MATERIALS

PETROBRAS requires supplier formal declaration of
compliance with legal requirements.
Petrobras evaluates how the suppliers implement some
standards requirements of ISO 14001 and OSHAS 18001 (not
mandatory) (0 to 10).
                                                                   54
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


               REGISTER OF SUPPLIERS OF GOODS AND SERVICES




General    information   is   obtained      at    Petrobras     website:
www.petrobras.com.br

   Options (icons):

       English;

       Business, Material Channel, Registration Guide.



Corporate registration process must be carried out in Petrobras
headquarters, in Rio de Janeiro.




                                                                        55
2020 PETROBRAS STRATEGIC & BUSINESS PLAN




PROMINP – Governmental
Program and Local Content




                                                    56

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1) Brasil Ecodiesel reported results for the fourth quarter and full year 2010. It operates in renewable energy (biodiesel) and food/agricultural commodities following the acquisition of Maeda. 2) For biodiesel, excess industry capacity and high discounts at auctions negatively impacted margins. The company aims to diversify away from dependence on this regulated market. 3) Internationally, commodity prices rose in 2010 due to tight supplies and strong demand from developing countries. The company's agricultural operations are well positioned to benefit from Brazil's competitive advantages in agriculture.

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                                                                      PROMINP
                  BRAZILIAN OIL & GAS NATIONAL INDUSTRY MOBILIZATION PROGRAM


                                     MINISTRY OF MINES AND ENERGY (MME) –
                                     Program’s promoter and manager


                                     PETROBRAS – Leading operator in Brazil


                                     BRAZILIAN PETROLEUM INSTITUTE (IBP) –
          BNDES    ABEMI
                                     Coordinator for the participation of the other
ABIMAQ                     SINAVAL   operators

ABDIB                       ABCE
                                     NATIONAL ORGANIZATION OF THE                       OIL
           PROMINP                   INDUSTRY (ONIP) – Coordinator for                  the
    IBP                ONIP
                                     participation of class associations (suppliers)




                                                                                           57
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                                  COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICES


Adequacy of The National Supply Industrial Complex
    GOOD AND SERVICES SUPPLY                                                   PATH

                                                                            5. Incentive for international companies to
                                                     imports                   establish operations in Brazill

                                                                            4. Incentive for association between
                                                                               national and international
                                     Increase in                               companies
                                National Supply
                                Capacity of G&S                             3. Incentive for new national entrants
               imports
                                                                            2. Develop competition among
                                                                               medium competitive sectors

                                                                            1. Increase productivity capacity of
  National
                                                                               highly competitive sectors
  Industry




             Current Demand                        Future Demand

                    Source: Promimp, 2008                                                                            57
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                       GLOBAL LOCAL CONTENT – 4TH QUARTER 2008


                       PROMINP




$ Target National      $ Target Total                  Target LCI

$ Accomplished Total   $ Accomplished National         Accomplished LCI   (US$bi)




                                                                                      58
2020 PETROBRAS STRATEGIC & BUSINESS PLAN


                                                         CONCLUSIONS


Huge Strategic Plan for the period 2009-2013;
Plenty of opportunities for foreign suppliers planning to establish
in Brazil and address the Latin America Market;
Strong industrial basis in Brazil, for the Oil and Gas segment
representing today 15% of GDP;
Opportunities shall be focused on critical goods and services not
available in a competitive basis in local market;
Foreign suppliers must be aware of the specific laws framework
and Local Content requirements; incentives should be assigned
by Government Offices once the intention to manufacture in Brazil
is assured;
Partnership with a local supplier operating in the same business
area should be considered. .


                                                                        59

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2020 PETROBRAS STRATEGIC & BUSINESS PLAN




PETROLEO BRASILEIRO S.A.
      PETROBRAS

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Paulo Sergio Rodrigues Alonso D.Sc.
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                                                      60

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Petrobras strategic & business plan 2009 2013 otc 20091

  • 1. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN PETROBRAS Strategic & Business Plan 2009-2013 Opportunities for foreign suppliers Houston, May 5th 2009 Paulo Sérgio Rodrigues Alonso D.Sc. OTC 2009 Materials Engineering Manager 1
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Petrobras Overview 5
  • 6. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY Among its peers, Petrobras has the: • 4th largest Proven Reserves; 6th largest Refining Capacity; • 5th largest Oil & Gas Production; 6th largest Market Value. 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 15,000 Target: 2009 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 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
  • 7. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN DOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKET 2007 Total Oil Consumption by Country (mmbo/d) 20.7 7.9 Brazil is world’s eighth- largest oil consumer Total Oil Consumption mb/d (index) 160 Brazil OECD World 150 140 Brazil oil consumption growing at 2.4% p.a. 130 120 OECD oil consumption growing at 1% p.a. 110 100 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1990 1991 1992 1993 1994 1995 1996 1997 Source: BP Statistical Review 2008, PFC Energy 7
  • 8. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN HIGH-POTENTIAL PORTFOLIO IN ONE OF THE WORLD’S MOST EXCITING PROVINCES... Kashagan Sakhalin II Sakhalin I Kurmangazi Thunder Shah Horse Deniz Azadega n Khurais Anaran Roncador Marlim Agbami Albacora 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 8
  • 9. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Strategic and Business Plans highlights 9
  • 10. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN VISION 2020 AND CHARACTERISTICS Vision 2020 We will be one of the largest integrated energy companies in the world and the preferred choice among our stakeholders Vision 2020 Characteristics 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. 10
  • 11. 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 5% 1% US$ 174.4 billion 8% 2% 2% 2% 3% E&P 7% 7% 5.6 3.0 RTC 11.8 2.8 3.2 G&E Petrochemicals Distribution 43.4 104.6 (*) 25% 59% Biofuels Corporate 79% (*) US$ 17.0 billion allocated to Exploration E&P RTCP G&E Distribution Corporate 11
  • 12. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN CENPES Total Area:114.000 m2 CENPES Expansion and Building:75.000 m2 Expansion Dataprocessing integrated Center: 137 Laboratories Total Area: 190.000 m2 30 Pilot plants Building: 114.000 m2 Partnership with over 120 universities and research centers in Brazil, and 70 Institutions abroad Investments in Technology Technological programs 2009-2013 US$ 4.0 billion 25% 1.0 Basin Deep and Heavy Frontier Ultra-deep Enhanced Modeling Oil Pre-salt Refining 47% Areas Waters Oil 1.9 Recovery 5% 0.2 0.9 23% Optimization Renewable Fuel Energy Climate E&P Downstream & Transportatio Natural Gas Environment Innovation and Changes Reliability n Bio Fuels G&E Corp. (Cenpes) 12
  • 13. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN E&P Business Segment 13
  • 14. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN E&P: FOCUSED & DISCIPLINED INVESTMENT Total Investments Total Investments of US$ 104.6 billion in E&P through 2013, of which US$ 92 billion will be spent in Brazil 12% 13% Expected Costs of Production* 140 Production costs (US$/bbl-2008) 17% 120 Deepwater and Ultra-deep water 100 Oil Gas to Coal to 80 Shales liquids liquids R Arctic 60 Heavy CO₂ - EO EOR 58% oil and bitumen 40 Other Exploration Development 20 Produced MENA conventi Petrobras expected onal oil maximum break-even cost Santos Pre-salt International 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Reserves (bn bbls) * Source: IEA – Outlook 2008 14
  • 15. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN 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 15
  • 16. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN 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-vi Guara Three production systems by 2014: BM-S-21 BR 80% BM-S-24 Tupi, Iara and Guara Azulão BR 80% Caramba BM-S-9 BM-S-22 BR 45% BR 20% 16
  • 17. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN ESPÍRITO SANTO PRE-SALT UTG Cacimbas Linhares Rio Doce Cangoá Peroá Infrastructure in-place MG UPGN Lagoa Parda P-34 at Jubarte field, first pre-salt production: 24” – 66 km excellent results, prod. up to 18 k b/d Aracruz 25 MM m3/d Terminal Barra do Riacho Camarupim FPSO Seillean started in dec/08 as pilot Canapu system of Cachalote (CHT) field Golfinho FPSO Capixaba will move from Golfinho field VITÓRIA Carapó to Cachalote/Baleia Franca (BFR) in 1H10 Vila Velha FPSO Pipa II will start in 2H10 as Baleia Azul Sul-Norte Capixaba UTG Sul Capixaba Sul Capixaba Gas pipeline (BAZ) pilot system Guarapari Gas pipeline 12 a 24” – 160 km 7 a 15 MM m3/d 12” – 83 km 4,5 MM m3/d Baleia Azul first definitive production unit by Anchieta 4Q12 Presidente Kennedy Marataizes CHT ARG Natural gas production transported via pipeline Baleia Franca JUB OST NAU RJ Baleia Azul ABA CXR PRB Catuá 17
  • 18. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN MAJOR OIL PROJECTS Marlim Sul Module 2 SS P-51 Thousand bpd 180,000 bpd Anticipation of 24/jan/09 Baleia Azul 2800 FPSO Marlim Leste Marlim Sul Espadarte FPSO Cidade de 100,000 bpd Niterói SS P-56 2,680 100,000 bpd 2600 26/feb/09 Module 3 Roncador 100,000 bpd 2,580 Badejo Tupi Pilot FPSO P-62 FPSO Cidade Rio Tupi TLD FPSO Cidade de Module 4 das Ostras 100,000 bpd 2400 FPSO BW Cidade Angra dos Reis 2,430 15.000 bpd 100,000 bpd de S.Vicente 31/mar08 30,000 bpd Jubarte Roncador 2200 FPSO Frade 2,250 FPSO P-57 SS P-55 Marlim Leste 180,000 bpd Module 3 100,000 bpd FPU P-53 180,000 bpd 180,000 bpd Cachalote e 2000 2,050 Baleia Franca Papa-Terra 30/nov/08 FPSO Capixaba TLWP P-61 & Parque das 100,000 bpd FPSO P-63 Conchas 150,000 bpd 1,855 1800 Cachalote FPSO Espírito FPSO Seillean Guará 1 Pilot Santo 25,000 bpd FPSO 1600 16/dec/08 100,000 bpd Pre-Salt Projects 100,000 bpd 1400 2008 2009 2010 2011 2012 2013 PN 2009-2013 18
  • 19. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN CIDADE DO RIO DE JANEIRO FPSO(CAPACITY 100 .000 BPD), PRODUCTION ON 06/01/07 AT ESPADARTE FIELD 19
  • 20. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN PIRANEMA FPSO (CAPACITY 30 .000 BPD), PRODUCTION ON 10/10/07 20
  • 21. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-52 DECK MATING 21
  • 22. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-52 - BRASFELS SHIPYARD- ANGRA DOS REIS 22
  • 23. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-54 - MAUÁ JURONG SHIPYARD- NITERÓI 23
  • 24. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-54 LEAVING THE SHIPYARD ON 19-Out-2007 24
  • 25. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-54 LEAVING THE SHIPYARD ON 19-Out-2007 25
  • 26. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Downstream Business Segment 26
  • 27. 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 12% gasoline in-line with international standards Refining 7% Pipelines & Terminal • Investment targets Fuel Quality, Conversion and Expansion Transport 8% Ship Transport Premium I Premium II 3,012 300 tho. bpd 300 tho. bpd Petrochemicals 73% 1st Phase: 1st Phase: 2013 2014 2nd Phase: 2nd Phase: 2015 2016 UPB 150 tho. bpd 2,270 Dez/2012 RNE 1,779 1,791 230 tho. bpd 2011 REPLAN REPAR Revamp Revamp 33 tho. bpd 25 tho. bpd 2010 2011 2008 2009 2010 2011 2012 2013 2020 27
  • 28. 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
  • 29. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN NEW INVESTMENTS - PREMIUM REFINERIES LPG 5% PETROCHEMICAL NAPHTHA 20% Feedstock oil basis: Marlim 20 AVIATION QUEROSENE 11% DIESEL 50% PETROCHEMICAL COKE 8% BUNKER 3% Premium I – MA Premium II - CE Capacity 600 mil bpd 300 mil bpd 2013 e 2015 2013 e 2015 Operation (2 phases) (2 phases) Market GLP, Nafta e QAV (Brasil) e Diesel 10 ppm (Europa) 29
  • 30. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN REFINERIES INVESTMENTS done present planned 30
  • 31. 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 da Petrobras Total Investments: US$ 3.7 billion between 2009-2013; Main Projects: Storage extension in Santos and Paranaguá ports; Increase in effluents treatment in São Sebastião (TEBAR), São Fransisco do Sul (TEFRAN), Cabiúnas, Ilha Grande (TEBIG) and TEDUT 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
  • 32. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Petrochemical Business Segment 32
  • 33. 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
  • 34. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN COMPERJ OUTPUTS Production (kta) Production (kta) Products UPB Products 1st Generation UPA 2nd Generation Diesel 535 Polypropylene Fuels (PP) 850 Naphtha 284 (UPB) Coke 700 Poliethylene (PE) 800 Ethylene 1.300 Styrene 500 Propylene 881 Petrochemical Feedstocks Benzene 608 Ethylene glicol 600 (UPB) Butadiene 157 PTA 500 p-Xylene 700 PET 600 Sulfur 45 34
  • 35. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN COMPERJ MAP LOCATION Itaboraí 35
  • 36. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Gas and Energy Business Segment 36
  • 37. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN G&E INVESTMENTS G&E Investments US$ 10.6 billion 2009‐2013 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 37
  • 38. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN MAIN PROJECTS: GAS & ENERGY US$ million Main Projects Gas Pipelines: Gasene, Northeast and Southeast Network, South Section of Gasbol, Urucu-Coari-Manaus and Gasduc III LNG – Liquefied Natural Gas Thermo-Electrics: Cubatão, Três Lagoas, Canoas and Termoaçu Wind Power Generation G&E in Argentina and Other Countries Total investments US$ 10.6 billion 38
  • 39. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Critical goods and services and equipment quantities 39
  • 40. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN E&P CRITICAL EQUIPMENT: OPPORTUNITIES FOR FOREIGN SUPPLIERS Production pipelines alloy coatings (13 Cr, Super 13 Cr); Turbo compressors (6-10 Mw ); Polyester Mooring cables; Mooring systems; Drilling pipelines; Fiber glass pipelines; Electrical cables for CSP; Control Systems for well control, oil and gas metering systems, drilling activities; Offshore drilling rigs; Gravel packing; Drilling bits; Steam generators (25-50 x 106 BTU/d); Special submarine valves. 40
  • 41. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN CRITICAL SERVICES FOR E&P ACTIVITIES: OPPORTUNITIES FOR FOREIGN SUPPLIERS Drilling; Workover services; Flexible lines and umbilicals laying services; Support to diving; Support to ROV; Support to mooring activities; Special vessels; Submarine interconnection services. 41
  • 42. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN CRITICAL EQUIPMENT AND SERVICES FOR REFINING ACTIVITIES: OPPORTUNITIES FOR FOREIGN SUPPLIERS Equipment HCC Reactors (250-300 mm wall width, 200 Kgf/cm2); Boiler works with special alloys (reactors, towers, pressure vessels); Boilers (steam generators); Heat exchangers working with H2S traces (ASTM A 387 degree 11); API pumps; Structural packing for refining process towers; Services Basic Design; Thermal Projects Design. 42
  • 43. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN CRITICAL EQUIPMENT FOR G&E ACTIVITIES: OPPORTUNITIES FOR FOREIGN SUPPLIERS Pipelines in the range of 14-42 inches diameter with longitudinal welding. Petrobras standards do not accept helicoidal welding. 43
  • 44. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN NEW EQUIPMENTS TO BE CONTRACTED Drilling ships and semi‐submersible drilling platforms  29 RIGS CONTRACTED PLUS 28 TO BE LEASED UP TO 2017, MAKING A TOTAL OF 57 DRILLING RIGS ‐ 17 being delivered between 2009 and 2011 ‐ 12 will be chartered via international bidding, being delivered in 2012 – Meeting Petrobras’ short‐term needs, while  the national industry prepares itself for the remaining units ‐ 28 will be built in Brazil and operated by Brazilian companies, being delivered between 2013 and 2017 Items Un. TOTAL Items Un. TOTAL Wet Christmas Tree un 500 Pumps un 8.000 Well Head un 500 Compressors un 700 Flexible Lines km 4.000 Winch un 450 Manifolds un 30 Crane un 200 Producing pipes t 42.000 Engines un 1.000 Umbilical km 2.200 Turbines un 350 Dry Christmas Tree un 1.700 Structure Steel (Hull) t 940.000 Onshore well head un 1.700 Items Un. TOTAL Items Un. TOTAL Reactors un 280 Power Generators un 500 Oil and water splitter un 50 Filters un 300 Storage Tankers un 1.800 Flares un 30 Turrets un 550 44
  • 45. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Petrobras supply strategies for goods and services 45
  • 46. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN SUPPLY STRATEGIES FOR GOODS AND SERVICES •Equipment • Manufacturers •Chemicals US$ 7.0 Bi • Distributors •Spare parts • Retailers •Etc. • Seismic • Service •Drilling US$ 25.8 Bi providers •Transport •Etc. • Platform • EPC •Refinery US$12.4 Bi •Shipyards •Revamps •Constructors •Etc. As per 2008 46
  • 47. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN Up-dated Petrobras Vendor Register Requirements 47
  • 48. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN REGISTER OF GOODS AND SERVICES SUPPLIERS Requirements, Concepts and Ranking MANDATORY REQUIREMENTS and RANKING REQUIREMENTS 5 CRITERIA SOCIAL TECHNICAL RESPONSIBILITY HSE ECONOMIC LEGAL 48
  • 49. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN REGISTRATION FOR MATERIAL SUPPLIERS TECHNICAL REQUIREMENTS FOR MATERIALS Depending on the material or equipment, the supplier must comply with the following requirements: Tradition (Main Sales, Reference Letters); Facilities for Technical Assistance (Automation Systems, Rotating Machinery, etc); Mandatory Product Certification (API, ASME, ...); Other Specific Requirements. 49
  • 50. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN REGISTRATION FOR SERVICES SUPPLIERS TECHNICAL REQUIREMENTS FOR SERVICES Depending on services criticality, the supplier must comply with the following requirements: Tradition (List of Services Provided – continuity and Reference Letters); List of Equipment relating to services provided; Main personnel curricula vitae; Other specific requirements. 50
  • 51. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN SUPPLIERS REGISTRATION LEGAL REQUIREMENTS MATERIALS & SERVICES Brazilian companies: Proof of being legally constituted in Brazil; Proof of being regular with Brazilian taxes; See details on registration website. Foreign companies: Proof of being legally constituted in its home country, issued by a Governmental Authority; Legal Representative in Brazil (mandatory); Commercial Representative (is not registered, but only indicated by and linked to the supplier): Not mandatory (may be the own company); May be the same or other than the Legal representative. 51
  • 52. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN SUPPLIERS REGISTRATION ECONOMICAL REQUIREMENTS MATERIALS & SERVICES Annual Reports with Audited Financial Statements; Proof that the company is not bankrupt (bank statement or company declaration by its president). 52
  • 53. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN SUPPLIERS REGISTRATION MANAGEMENT and SOCIAL RESPONSIBILITY MATERIALS ISO-9001 - certification mandatory for suppliers of material & equipment which require technical qualification. SERVICES Compliance with some requirements of ISO-9001 for special services. MATERIALS & SERVICES Petrobras stimulates suppliers to improve Social Responsibility actions. 53
  • 54. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN SUPPLIERS REGISTRATION HELTH, SAFETY and ENVIRONMENT SERVICES ISO-14001 and OSHAS-18001: Certification is not mandatory; Petrobras evaluates how does the suppliers implement these standards requirements (0 to 10). MATERIALS PETROBRAS requires supplier formal declaration of compliance with legal requirements. Petrobras evaluates how the suppliers implement some standards requirements of ISO 14001 and OSHAS 18001 (not mandatory) (0 to 10). 54
  • 55. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN REGISTER OF SUPPLIERS OF GOODS AND SERVICES General information is obtained at Petrobras website: www.petrobras.com.br Options (icons): English; Business, Material Channel, Registration Guide. Corporate registration process must be carried out in Petrobras headquarters, in Rio de Janeiro. 55
  • 56. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN PROMINP – Governmental Program and Local Content 56
  • 57. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN PROMINP BRAZILIAN OIL & GAS NATIONAL INDUSTRY MOBILIZATION PROGRAM MINISTRY OF MINES AND ENERGY (MME) – Program’s promoter and manager PETROBRAS – Leading operator in Brazil BRAZILIAN PETROLEUM INSTITUTE (IBP) – BNDES ABEMI Coordinator for the participation of the other ABIMAQ SINAVAL operators ABDIB ABCE NATIONAL ORGANIZATION OF THE OIL PROMINP INDUSTRY (ONIP) – Coordinator for the IBP ONIP participation of class associations (suppliers) 57
  • 58. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICES Adequacy of The National Supply Industrial Complex GOOD AND SERVICES SUPPLY PATH 5. Incentive for international companies to imports establish operations in Brazill 4. Incentive for association between national and international Increase in companies National Supply Capacity of G&S 3. Incentive for new national entrants imports 2. Develop competition among medium competitive sectors 1. Increase productivity capacity of National highly competitive sectors Industry Current Demand Future Demand Source: Promimp, 2008 57
  • 59. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN GLOBAL LOCAL CONTENT – 4TH QUARTER 2008 PROMINP $ Target National $ Target Total Target LCI $ Accomplished Total $ Accomplished National Accomplished LCI (US$bi) 58
  • 60. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN CONCLUSIONS Huge Strategic Plan for the period 2009-2013; Plenty of opportunities for foreign suppliers planning to establish in Brazil and address the Latin America Market; Strong industrial basis in Brazil, for the Oil and Gas segment representing today 15% of GDP; Opportunities shall be focused on critical goods and services not available in a competitive basis in local market; Foreign suppliers must be aware of the specific laws framework and Local Content requirements; incentives should be assigned by Government Offices once the intention to manufacture in Brazil is assured; Partnership with a local supplier operating in the same business area should be considered. . 59
  • 61. 2020 PETROBRAS STRATEGIC & BUSINESS PLAN PETROLEO BRASILEIRO S.A. PETROBRAS The Challenge is our Energy Paulo Sergio Rodrigues Alonso D.Sc. Materials Engineering Manager alonso@petrobras.com.br 60