2013 – 2017
Business and Management Plan
2013 – 2017
Business and Management Plan
Webcast
March, 19th 2013
DISCLAIMER
FORWARD-LOOKING STATEMENTS:
DISCLAIMER
The presentation may contain forward-looking statements about future
events within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that are not based on historical facts and are not assurances of
future results. Such forward-looking statements merely reflect the
Company’s current views and estimates of future economic
circumstances, industry conditions, company performance and financial
results. Such terms as "anticipate", "believe", "expect", "forecast", "intend",
"plan", "project", "seek", "should", along with similar or analogous
expressions, are used to identify such forward-looking statements.
Readers are cautioned that these statements are only projections and may
differ materially from actual future results or events. Readers are referred
to the documents filed by the Company with the SEC, specifically the
Company’s most recent Annual Report on Form 20-F, which identify
important risk factors that could cause actual results to differ from those
contained in the forward-looking statements, including, among other
things, risks relating to general economic and business conditions,
including crude oil and other commodity prices, refining margins and
prevailing exchange rates, uncertainties inherent in making estimates of
our oil and gas reserves including recently discovered oil and gas
reserves, international and Brazilian political, economic and social
developments, receipt of governmental approvals and licenses and our
ability to obtain financing.
We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new
information or future events or for any other reason. Figures for
2013 on are estimates or targets.
All forward-looking statements are expressly qualified in their
entirety by this cautionary statement, and you should not place
reliance on any forward-looking statement contained in this
presentation.
NON-SEC COMPLIANT OIL AND GAS RESERVES:
CAUTIONARY STATEMENT FOR US INVESTORS
We present certain data in this presentation, such as oil and gas
resources, that we are not permitted to present in documents filed
with the United States Securities and Exchange Commission
(SEC) under new Subpart 1200 to Regulation S-K because such
terms do not qualify as proved, probable or possible reserves
under Rule 4-10(a) of Regulation S-X.
3
2013-2017 BMP: Maintenance of the Production Curve
The same production targets from the 2012-16 BMP were kept. 2013 target is still ±2% of 2.022 kbpd, due to
maintenance and performance of new assets: production units and drilling rigs.
5,000
5.00
5,00
Oil and NGL Production (million bpd)
 Sapinhoá
Pilot
(Cid. São Paulo)
 Baúna
(Cid. Itajaí)
4.00
4,000
4,00
Million bpd
• Lula NE Pilot
(Cid. Paraty)
• Papa-Terra
(P-63)
• Roncador III • Sapinhoá
(P-55)
Norte
(Cid. Ilhabela)
• Norte Pq.
Baleias (P-58) • Iracema Sul
(Cid.
• Papa-Terra Mangaratiba)
 Baleia Azul (P-61)
(Cid. Anchieta)
3,000
3.00
3,00
2.00
2,000
2,00
• Roncador IV
(P-62)
2.0
2.0
• Iracema
Norte
(Cid. Itaguaí)
• NE de Tupi
(P-72)
• Lula Ext. Sul
• Iara NW
(P-68)
(P-71)
• Espadarte III
• Júpiter
• Lula Oeste
•
Deep Waters
• Lula Alto
(P-69)
Sergipe
• Florim
• Bonito
•
Franco
Sul
• Lula Central
• Sul Pq. Baleias
(P-76)
• Maromba
4.2
• Franco Leste
• Lula Sul
•Tartaruga
•
Espadarte
I
(P-66)
Verde e Mestiça
• Carcará
• Iara Horst
• Franco 1
• Entorno de
(P-70)
(P-74)
Iara (P-73)
• Parque dos
• Carioca
Doces
• Franco NW
• Lula Norte
(P-77)
(P-67)
• Franco SW
(P-75)
2.75
2.5
2.0 ±2%
25 new production units will start-up between 2013-17 or
38 new production units will start-up between 2013-20
1.00
1,000
1,00
2011
2011
2012
2012
 Production units in operation
2013
2013
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
2020
2020
4
2013-2017 BMP: Maintenance of the Production Curve
The same production targets from the 2012-16 BMP were kept. 2013 target is still ±2% of 2.022 kbpd, due to
maintenance and performance of new assets: production units and drilling rigs.
006
5,00
6.00
Oil and NGL Production (million bpd)
Oil, NGL and Natural Gas Production (million boe)
5.2
005
5.00
Million boed
4,00
4.00
004
4.2
3.4
3,00
3.0
3.00
003
2.4
2,00
2.00
002
2.4
2.4 ±2%
2.75
2.5
2.0
2.0
2.0 ±2%
2011
1905ral
2012
1905ral
2013
1905ral
1.00
1,00
001
2014
1905ral
2015
1905ral
2016
1905ral
2017
1905ral
2018
1905ral
2019
1905ral
2020
1905ral
5
Investments and Physical and Financial Monitoring
2012: Alignment of Forecasts and Accomplishments: Physical Progress Tracking Financial Progress
Investments in 2012 totaled R$ 84.1 Billion, which represents 101% of the projected in the Plan
Annual Investment
Investment by Area
1,6%
2%
+1%
84.1
R$ Billion
83.3
6%
0,4%
5%
51%
34%
Projected 2012
2012-16 BMP
2012 Accomplished
Main Projects
E&P
Corporate
Downstream
Distribution
International
Biofuels
 E&P: Production Development Projects of Baleia
Azul (Cid. de Anchieta), Sapinhoá (Cid. de São
Paulo), Roncador Modules 3 and 4 (P-55 and P-62)
and Papa-Terra (P-61 and P-63).
 Downstream: RNEST and Comperj.
 G&P: UFN-III, Bahia Regasification Terminal and
UPGN Cabiúnas.
 International: Production Development Projects of
Cascade and Saint-Malo.
G&E
Individual Physical and Financial Monitoring of 174 projects (S Curves):
Average physical realization of 104.8% and financial realization of 110.6%.
6
Physical and Financial Performance: RNEST
RNEST: Physical Monitoring Curve
RNEST: Financial Monitoring Curve
RNEST Construction – 33 years after the last refinery (1980)
Suape Industrial Complex (PE) – Feb/13
Accumulated Physical Realization: 70.6%
Accumulated Financial Realization: US$ 11.7 Billion
7
Northeast Refinery (RNEST)
Physical and Financial Monitoring of the Project: Planning Fullfilled
RNEST: Physical Monitoring Curve
Mar/13
Dec/12
dez/12
Jun/12
Sep/12
Dec/11
dez/11
Mar/12
2012
Accomplished: 19.9%
2012-16 BMP: 19.7%
RNEST: Financial Monitoring Curve
Mar/13
Dec/12
dez/12
Jun/12
Sep/12
Mar/12
* Considers R$ 100 Million of claims
already negotiated
Dec/11
dez/11
2012
Accomplished: R$ 4.9 bi*
2012-16 BMP: R$ 5.0 bi
8
Parity: Seeking convergence with International Prices
9 months: +21.9% in Diesel and +14.9% in Gasoline
Seeking convergence with international prices.
In the last 9 months: 4 Diesel price readjustments, totaling +21.9%, and 2 Gasoline readjustments (+14.9%).
Average Brazil Price* x Average USGC Price**
260
2008
2009
2010
2011
2012
2013 900
240
700
Losses
180
600
160
Gains
140
500
120
400
100
300
80
60
200
40
100
20
ARP USGC (w/ volumes sold in Brazil)
Gasoline Imports
ARP Brazil
Diesel Imports
(*) considers Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil. (**) USGC price with domestic market prices.
Mar/13
Jan/13
Jan/12
Jan/11
Jan/10
0
Jan/09
0
Nov/08
Prices (R$/bbl)
200
Imported Volumes (Thousand bbl / d)
800
220
9
Parity: Seeking convergence with International Prices
9 months: +21.9% in Diesel and +14.9% in Gasoline
Seeking convergence with international prices.
In the last 9 months: 4 Diesel price readjustments, totaling +21.9%, and 2 Gasoline readjustments (+14.9%).
Average Brazil Price* x Average USGC Price**
260
2008
2009
2010
2011
2012
2013 900
240
700
Losses
180
1Q12
Brent (US$/bbl):
105
FX Rate (R$/US$): 1.67
160
Gains
140
120
+19%
1Q13
113
1.99
600
500
400
100
300
80
60
200
40
100
20
ARP USGC (w/ volumes sold in Brazil)
Gasoline Imports
ARP Brazil
Diesel Imports
(*) considers Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil. (**) USGC price with domestic market prices.
Mar/13
Jan/13
Jan/12
Jan/11
Jan/10
0
Jan/09
0
Nov/08
Prices (R$/bbl)
200
Imported Volumes (Thousand bbl / d)
800
220
10
Exploratory Success and Increase in Reserves
More than 3 Discoveries per month between January/2012 and February/2013
53 discoveries in the last 14 months (Jan/12 – Feb/13), from which 25 were offshore (15 in Pres-salt)
Brazil
 Discoveries: 53
• Offshore: 25
• Onshore: 28
 Exploratory Success Ratio: 64%
 Reserves: 15.7 Billion boe
 RRR¹: 103% for the 21st consecutive year
 R/P²: 19.3 years
Pre-Salt
¹ RRI: Reserves Replacement Ratio
² R/P: Reserve / Production
Discoveries: 15, of which 8 pioneers
Exploratory Success Ratio: 82%
Reserves: 300 km in the SE region, 55% of GDP1111
Pre-Salt Production is a Reality
Production reached 300 thousand barrels of oil per day in Feb/20/2013
Pre-Salt Production Data
Technological Challenges Surmounted
 Oil Production reached 300 kbpd (of which 249 kbpd
is Petrobras’ stake), 43% in Santos Basin and 57% in
Campos Basin;
 This level was reached with only 17 producing wells, 6
in Campos Basin and 11 in Campos Basin;
 Level reached only 7 years after discovery:
• Campos Basin: 11 years
• US Gulf of Mexico: 17 years
• North Sea: 9 years
 Production of 1 million bpd operated by Petrobras will
be reached by 2017 and the 2.1 million bpd threshold
will be reached by 2020.
 High Resolution Seismic: higher exploratory
success
 Geological and numerical modelling: better
production behaviour forecast
 Reduction of well construction time from 134
days in 2006 to 70 day in 2012: lower costs
 Selection of new materials: lower costs
 Qualification of new systems for production
gathering: higher competitiveness
 Separation of CO2 from natural gas in deep
waters and reinjection: lower emissions and
increase in recovery factor
12
Refining in Brazil: Oil Products Output
Oil Products output increases every year and will continue to grow with the start-up of the new refineries.
Successive records in oil processing have been broken.
Oil Products Output in Brazil (Million bbl / day)
Refineries in Operation
Refineries under Construction
3.5
3.0
Daily Oil Processing
records
2.11 MMbpd
(Jan)
2.5
• Premium I
Phase 1
• Comperj
Oct/17
Phase 2
Jan/18
• Comperj
Phase 1
Apr/15
• Premium I
Phase 2
Oct/20
• Premium II
Dec/17
• RNEST
• RNEST Phase 2
Phase 1 May/15
Nov/14
2.10 MMbpd 2.12 MMbpd
(Mar)
(Aug)
2.0
1.5
Refineries in Design Phase
Utilization Factor
92%
96%
93%
93%
93%
1.0
13
01-Jan-10
21-Jan-10
10-Feb-10
02-Mar-10
22-Mar-10
11-Apr-10
01-May-10
21-May-10
10-Jun-10
30-Jun-10
20-Jul-10
09-Aug-10
29-Aug-10
18-Sep-10
08-Oct-10
28-Oct-10
17-Nov-10
07-Dec-10
27-Dec-10
16-Jan-11
05-Feb-11
25-Feb-11
17-Mar-11
06-Apr-11
26-Apr-11
16-May-11
05-Jun-11
25-Jun-11
15-Jul-11
04-Aug-11
24-Aug-11
13-Sep-11
03-Oct-11
23-Oct-11
12-Nov-11
02-Dec-11
22-Dec-11
11-Jan-12
31-Jan-12
20-Feb-12
11-Mar-12
31-Mar-12
20-Apr-12
10-May-12
30-May-12
19-Jun-12
09-Jul-12
29-Jul-12
18-Aug-12
07-Sep-12
27-Sep-12
17-Oct-12
06-Nov-12
26-Nov-12
16-Dec-12
05-Jan-13
25-Jan-13
14-Feb-13
06-Mar-13
MWavg
Thermo Power Generation in the National Grid System
10,000 MW: Petrobras Supplies Fuel for 16% of the System Needs
Thermo power generation, Petrobras and Third Parties¹, above the 10,000 MW threshold in October/2012.
We had successive power generation records in 2012 and 2013.
2010
Petrobras - Gas
¹ Where Petrobras has a stake or supplies fuel
2011
Third Parties - Gas
2012
12,000
12.000
10,000
10.000
10,149 MWavg
(Nov/23)
Petrobras - Oil
2013
10,485 MWavg
(Feb/06)
8,000
8.000
6,000
6.000
4,000
4.000
2,000
2.000
00
Third Parties - Oil
14
2013-17 Business and Management Plan Fundamentals
Financiability
Assumptions
• Investment Grade rating
maintenance
• No new equity issuance
• Convergence with
International Prices (Oil
Products)
PERFORMANCE
• Management
focused on
reaching
physical and
financial targets
of each project
CAPITAL
DISCIPLINE
• Guarantee the
expansion of
the business
with solid
financial
indicators
PRIORITY
• Priority for
oil and
natural gas
exploration &
production
projects in
Brazil
• Divestments in Brazil and,
mainly, abroad
2013
2017
15
2013-2017 BMP Investments: Approved by Petrobras’ Board of
Directors in 03/15/13
2013-2017 Period
US$ 236.7 Billion
Financiability Assumptions
•
27.4%
Investment Grade Rating maintenance:
28%
(US$ 64.8 bi)
E&P
4.2%
62.3%
(US$ 9.9 bi)
(US$ 147.5 bi)
2.2%
Leverage lower than 35%
−
Net Debt/EBITDA lower than 2.5x
•
No new equity issuance
•
Convergence with International Prices (Oil
Products)
•
Divestments in Brazil and, mainly, abroad
(US$ 5.1 bi)
1.1%
−
(US$ 2.9 bi)
E&P
0.4%
1.0%
1.4%
(US$ 1.0 bi)
(US$ 2.3 bi)
(US$ 3.2 bi)
Downstream
G&E
International
Pbio*
Distribuition
ETM*
* Pbio = Petrobras Biofuel │ETM = Engineering, Technology and Materials │Other Areas = Financial, Strategy and Corporate
Other Areas*
16
2013-2017 BMP Investments: Implementation x Evaluation
=
Total
Under Implementation
All E&P projects in Brazil and projects of the
remaining segments in phase IV
US$ 236.7 Billion
US$ 29.6 Billion
770 projects
1.0%
6.1%
(US$ 0.3 Billion)
(US$ 1.8 Billion)
71.2%
(US$ 147.5 Billion)
27.4%
(US$ 64.8 Billion)
177 projects
20.9%
(US$ 43.2 Billion)
6.4%
(US$ 1.9 Billion)
2.9%
(US$ 5.9 Billion)
0.5%
(US$ 1.1 Billion)
1.1%
(US$ 2.9 Billion)
1.4%
(US$ 2.9 Billion)
73.0%
(US$ 21.6 Billion)
1.1%
0.5%
(US$ 2.3 Billion)
(US$ 1.0 Bililon)
1.4%
0.4%
(US$
3.2 Billion)
1.0%
(US$ 1.0 Billion)
(US$ 2.3 Billion)
Downstream
13.5%
(US$ 4.0 Billion)
1.5%
(US$ 3.2 Billion)
4.2%
(US$ 9.9 Billion)
2.2%
(US$ 5.1 Billion)
E&P
Projects for the remaining segments,
excluding E&P, currently in phase I, II and III.
US$ 207.1 Billion
947 projects
62.3%
(US$ 147.5 Billion)
+
Under Evaluation
G&E
International
Pbio*
Distribuition
ETM*
Other Areas*
* Pbio = Petrobras Biofuel │ETM = Engineering, Technology and Materials │Other Areas = Financial, Strategy and Corporate
Phase I: Opportunity Identification; Phase II: Conceptual Project; Phase III: Basic Project ; Phase IV: Execution
17
2013-2017 Business and Management Plan :
Project Portfolio Management
INVESTMENTS UNDER IMPLEMENTATION
US$ 147.5 Billion US$ 43.2 Billion
E&P
Downstream
US$ 5.9 Billion
Gas & Energy
US$ 3.2 Billion
International
US$ 2.9 Billion
Distribution
US$ 1.1 Billion
Biofuels
US$
207.1 bi*
Implementation of
Projects under
Evaluations contingent
on:
 Results of TechnicalEconomical Feasibility
studies;
US$
29.6 bi*
E&P
US$ 21.6 Billion
Downstream
US$ 4.0 Billion
Gas & Energy
US$ 1.9 Billion
International
US$ 0.3 Billion
Distribution
US$ 1.8 Billion
Biofuels
 Availability of Resources
(financiability);
 Competition for available
resources.
INVESTMENTS UNDER EVALUATION
* US$ 207.1 Billion include ETM (US$ 2,3 bi) and Other Areas (US$ 1,0 bi) investments
18
Programs to Support the 2013-2017 BMP
2013-2017 BMP
US$ 236.7 Billion
PROEF
Program to
Increase
Operational
Efficiency
PROCOP
Operating Costs
Optimization
Program
PRC-Poço
Program to
Reduce Well Costs
UO-BC
UO-RIO
INFRALOG – Logistic Infrastructure Optimization Program
PRODESIN – Divestment Program
Petrobras Local Content Management – Take advantage of the industry´s capacity to maximize gains to Petrobras
PROCOP: Focus on OPEX, operating costs of the Company activities – Manageable Operating Costs.
PRC-Poço: Focus on CAPEX dedicated to Wells construction – Investments in Drilling and Completion.
19
INFRALOG: Optimization of the Investments through
Integrated Management of Logistic Projects
Decrease in investments were incorporated in the 2013-2017 BMP, totaling US$ 2.2 Billion.
Additional opportunities to reduce up to US$ 2.8 Billion between 2018-2020 were also mapped.
Offshore Support Basis
Natural Gas Liquids Destination
E&P provides offshore support harbor and airport
infrastructure, focusing on Espírito Santo, Campos and
Santos Basins
DOWNSTREAM and G&E developing solutions to
improve the transportation and utilization of natural gas
liquids produced by E&P in the Pre-Salt
INFRALOG
Transportation and Oil Exports
Oil Products and Biofuels Supply and
Distribuition
DOWNSTREAM and TRANSPETRO transport E&P
production to the refineries or export in traditional large
vessels
DOWNSTREAM, TRANSPETRO and PETROBRAS
DISTRIBUITION aiming to increase capacity for storage,
pipeline transportation and in multiclient distribution
bases
Planning, monitoring and managing projects and actions to meet the infrastructure
needs of Petrobras System at lower costs.
20
PROCOP: Optimization of the Operational Activities Increasing
Productivity and Reducing Unit Costs
Benefits will come gradually and will lead to a total economy of R$ 32 Billion by 2016.
Initiatives Example
Economy of R$ 32 Billion in 4 years
Manageable Costs
R$ Billion
Annual Reduction Targets
4
7
9
12
 Exploration & Production: Consumption of
chemicals and fuels; Productive drilling rig days;
Maritime and air transportation; Onshore well
interventions;
 Downstream: Consumption of chemicals and
catalyzers; Residual production; Scheduled
Stoppages routine; excessive lay day at ports; Fleet
use; Delivery Schedule;
 Transpetro: Intervention in vessels, terminals, oil
and gas pipelines, and tanks;
 Gas & Energy: NG consumption to produce
ammonia; Operating cost for the gas pipeline
network;
 Engineering, Technology and Materials:
2013
2014
2015
Annual Reduction provided by PROCOP
Evolution of Manageable Costs
* Expenditures for industrial, administrative and support installations
2016
Supply and inventories of materials; IT costs per
user;
 Corporate e Services: Expenditures with
buildings,
trips
management.
and
transportation;
HSE
21
Exploration & Production
2013-2017 Period
US$ 147.5 Billion
73%
(106.9)
16%
(24.3)
11%
(16.3)
Production Development
Exploration
Infrastructure and Support
2222
E&P Investments
2013-2017 Period
Exploration
Production Development
US$ 24.3 Billion
US$ 106.9 Billion
25%
(26.2)
6%
(1.4)
24%
(5.8)
70%
(17.1)
43%
(46.4)
Post-Salt
Pre-Salt
Transfer of Rights
32%
(34.3)
Aside from Exploration and Production Development, E&P infrastructure investments total US$ 16.3 Billion.
23
2013-2017 BMP: Production Curve Maintained
Production Curve in Brazil – Oil and NGL Production
• Lula Alto
 Sapinhoá Pilots
(Cid. São Paulo)
• Lula Central
 Baúna
(Cid. Itajaí)
• Lula Sul
(P-66)
Million bpd
• Lula NE Piloto
• Roncador IV
(Cid. Paraty)
(P-62)
• Papa-Terra
(P-63)
• Sapinhoá
Norte
• Roncador III
(Cid.
Ilhabela)
(P-55)
• Norte Pq.
Baleias (P-58)
• Papa-Terra
 Baleia Azul
(Cid. Anchieta) (P-61)
2.0
2.0
• Iracema Sul
(Cid.
Mangaratiba)
• Franco 1
(P-74)
• Carioca
• Lula Norte
(P-67)
• Iracema
Norte
(Cid. Itaguaí)
• Franco SW
(P-75)
2.0 ±2%
2012
2.0 Million bpd
Pre-Salt (Concession)
• Lula Ext. Sul
(P-68)
• Lula Oeste
(P-69)
• Franco Sul
(P-76)
• Iara Horst
(P-70)
•Tartaruga Verde
e Mestiça
• Parque dos
Doces
• Franco NW
(P-77)
• Florim
2017
2020
2.75 Million bpd
4.2 Million bpd
Pre-Salt (Concession) 35%
93% Post-Salt
• Espadarte III
25 new production units will start-up between 2013-17 or
38 new production units will start-up between 2013-20
New Discoveries (*)
Transfer of Rights
7%
7%
• NE de Tupi
(P-72)
• Iara NW
• Júpiter
(P-71)
• Deep Waters
• Bonito
Sergipe
• Maromba
• Sul Pq. Baleias • Franco Leste
• Espadarte I
• Carcará
• Entorno de
Iara (P-73)
6%
Transfer of Rights 19%
58% Post-Salt
44% Post-Salt
Pre-Salt (Concession) 31%
(*) Includes opportunities in blocks where discoveries have already been found
24
2013-2017 BMP: Production Curve Maintained
Production Curve in Brazil – Oil and NGL Production
2013
Million bpd
 Sapinhoá Pilot
(Cid. São Paulo)
2.0
2.0
• Lula Central
 Baúna
(Cid. Itajaí)
• Lula Sul
(P-66)
• Lula NE Pilot
(Cid. Paraty)
• Franco 1
(P-74)
• Papa-Terra
(P-63)
 Baleia Azul
(Cid. Anchieta)
• Lula Alto
• Roncador IV
(P-62)
• Roncador III • Sapinhoá
(P-55)
Norte
• Iracema
(Cid. Ilhabela)
Norte
• Norte Pq.
Baleias (P-58) • Iracema Sul (Cid. Itaguaí)
(Cid.
• Papa-Terra
Mangaratiba)
(P-61)
• Carioca
• Lula Norte
(P-67)
• NE de Tupi
• Lula Ext. Sul (P-72)
(P-68)
• Espadarte III
• Iara NW
(P-71)
• Júpiter
• Lula Oeste
• Florim
(P-69)
• Deep Waters
• Bonito
Sergipe
• Franco Sul
(P-76)
• Sul Pq. Baleias
• Franco Leste
•Tartaruga Verde• Maromba
e Mestiça
• Espadarte I
• Iara Horst
• Carcará
(P-70)
• Entorno de
• Parque dos
Iara (P-73)
Doces
• Franco NW
(P-77)
• Franco SW
(P-75)
2.0 ±2%
25 new production units will start-up between 2013-17 or
38 new production units will start-up between 2013-20
 Production units in operation
25
Sapinhoá Pilot Project: Operating since January 5th, 2013
FPSO Cidade de São Paulo: 120 kbpd
Sapinhoá Pilot Project: Drilling, completion and interconnection of 13 wells to a chartered FPSO from Schahin/Modec with capacity to process120 kbpd
of oil and 5 million m3/d of natural gas.
26
FPSO Cidade de São Paulo anchored in field – Mar/13
TOTAL PHYSICAL COMPLETION - Forecast: 59.9% / Accomplished: 54.0%
TOTAL LOCAL CONTENT – Commitment with ANP: 30% / Planned: 57%26
Baúna Project: Operating since February 16th, 2013
FPSO Cidade de Itajaí: 80 kbpd
Baúna Project: Drilling, completion and interconnection of 13 submarine well to chartered FPSO Cidade de Itajaí, with capacity to process 80 kbpd of oil and
2 million m3/d of gas.
27
FPSO Cidade de Itajaí anchored in field - Jan/13
TOTAL PHYSICAL COMPLETION - Forecast: 69.8% / Accomplished: 53.5%
27
TOTAL LOCAL CONTENT – Commitment with ANP: 60%
Lula NE Pilot Project – 1st Oil on May 28th, 2013
FPSO Cidade de Paraty: 120 kbpd
Lula NE Pilot Project: Drilling, completion and interconnection of 14 wells to a FPSO chartered from QGOG/SBM with capacity to process 120 kbpd of oil
and 5 million m3/d of gas.
28
FPSO Cidade de Paraty Integration at BrasFELS Shipyard, Angra dos Reis/RJ, Mar/13.
UNIT's PHYSICAL COMPLETION - Forecast: 99.0% / Accomplished: 97.8%
UNIT's LOCAL CONTENT – Planned: 65%
28
TOTAL LOCAL CONTENT – Commitment with ANP: 30% / Planned: 60%
Papa-Terra Project: 1st Oil of P-63 on July 15th, 2013
FPSO P-63: 140 kbpd
Papa-Terra Project: Drilling, completion and interconnection of 30 wells to P-61 TLWP (Tension Leg Wellhead Plataform) and P-63 (FPSO) with capacity to
produce 140 kbpd and 1 MM m2/day of gas.
29
P-63 Integration at Honório Bicalho Shipyard, in Rio Grande (RS) – Feb/2013
UNIT’s PHYSICAL COMPLETION - Forecast: 98.5% / Accomplished: 94.1%
UNIT’s LOCAL CONTENT – Planned: 65%
29
TOTAL LOCAL CONTENT – Commitment with ANP: 0% / Planned: 46%
Roncador Project Module III - 1st Oil on September 30th, 2013
SS P-55: 180 kbpd
Roncador Project Module III: Drilling, completion and interconnection of 17 wells to SS P-55 with capacity to process 180 kbpd of oil and 6 million m3/d of
gas.
30
SS P-55 Integration at ERG1 Shipyard in Rio Grande/RS – Feb/2013
UNIT’s PHYSICAL COMPLETION - Forecast: 87.5% / Accomplished: 89.2%
UNIT’s LOCAL CONTENT – Planned: 65%
30
TOTAL LOCAL CONTENT – Commitment with ANP: 0% / Planned : 50%
Parque das Baleias Project: 1st Oil on November 30th, 2013
FPSO P-58: 180 kbpd
Parque das Baleias Project: Drilling, completion and interconnection of 24 wells to FPSO P-58, with a processing capacity of 180 kbpd of oil and 6 MM
m³/d of gas.
31
FPSO P-58 Integration at Honório Bicalho Shipyard , in Rio Grande/RS – Mar/2013
UNIT’s PHYSICAL COMPLETION – Forecast: 86.0% / Accomplished: 90.6%
UNIT’s LOCAL CONTENT – Planned: 62%
TOTAL LOCAL CONTENT – Commitment with ANP: 0% / Planned : 58%
31
Papa-Terra Project: 1st Oil of P-61 on December 31st, 2013
TLWP P-61
Papa-Terra Project: Drilling, completion and interconnection of 30 wells to P-61 – TLWP (Tension Leg Wellhead Plataform) and to P-63 (FPSO) with capacity
to process 140 kbpd and 1 MM m³/day of gas.
32
Topside and hull of P-61 at BrasFELS Shipyard (RJ) – Jan/2013
UNIT’s PHYSICAL COMPLETION – Forecast: 94.9% / Accomplished: 76.2%
UNIT’s LOCAL CONTENT – Planned: 65%
TOTAL LOCAL CONTENT – Commitment with ANP: 0% / Planned : 46% 32
2013-2017 BMP: Production Curve Maintained
Production Curve in Brazil – Oil and NGL Production
2014
 Sapinhoá Pilot
(Cid. São Paulo)
Million bpd
2.0
 Production units in operation
2.0
• Lula Central
 Baúna
(Cid. Itajaí)
• Lula Sul
(P-66)
• Lula NE Pilot
(Cid. Paraty)
• Franco 1
(P-74)
• Papa-Terra
(P-63)
 Baleia Azul
(Cid. Anchieta)
• Lula Alto
• Roncador IV
(P-62)
• Roncador III • Sapinhoá
(P-55)
Norte
• Iracema
(Cid. Ilhabela)
Norte
• Norte Pq.
Baleias (P-58) • Iracema Sul (Cid. Itaguaí)
(Cid.
• Papa-Terra
Mangaratiba)
(P-61)
• Carioca
• Lula Norte
(P-67)
• NE de Tupi
• Lula Ext. Sul (P-72)
(P-68)
• Espadarte III
• Iara NW
(P-71)
• Júpiter
• Lula Oeste
• Florim
(P-69)
• Deep Waters
• Bonito
Sergipe
• Franco Sul
(P-76)
• Sul Pq. Baleias
• Franco Leste
•Tartaruga Verde• Maromba
e Mestiça
• Espadarte I
• Iara Horst
• Carcará
(P-70)
• Entorno de
• Parque dos
Iara (P-73)
Doces
• Franco NW
(P-77)
• Franco SW
(P-75)
2.0 ±2%
33
Roncador Project Module IV – 1st Oil on March/2014
FPSO P-62: 180 kbpd
Roncador Project Module IV: Drilling, completion and interconnection of 17 wells to FPSO P-62 with a processing capacity of 180 kbpd of oil and 6 MM
m³/d of gas.
34
P-62 Integration at Atlântico Sul Shipyard, Ipojuca (PE) – Jan/2013
UNIT’s PHYSICAL COMPLETION – Forecast: 70.5% / Accomplished: 88.4%
UNIT’s LOCAL CONTENT – Planned: 64%
34
TOTAL LOCAL CONTENT – Commitment with ANP: 0% / Planned : 56%
Sapinhoá Norte Project: 1st Oil on September/2014
FPSO Cidade de Ilhabela: 150 kbpd
Sapinhoá Norte Project: Drilling, completion and interconnection of 15 wells to a production unit chartered from QGOG/SBM with processing capacity of 150
kbpd of oil and compression of 6 MM m³/day of gas.
35
FPSO Cidade de Ilhabela’s Hull Conversion at CSSC Shipyard, in China - Feb/2013
UNIT’s PHYSICAL COMPLETION – Forecast: 41% / Accomplished: 62%
UNIT’s LOCAL CONTENT – Planned: 65%
TOTAL LOCAL CONTENT – Commitment with ANP: 30% / Planned : 56.3%
35
Lula Project - Iracema Sul: 1st Oil on November/2014
FPSO Cidade de Mangaratiba: 150 kbpd
Lula Project – Iracema Sul Area: Drilling, Completion and interconnection of 15 wells to a FPSO charted from Schahin/Modec with processing capacity of
150 kbpd and compression of 8MM m³/day of gas.
36
FPSO Mangaratiba’s Hull Conversion at Cosco Shipyard, in China – Mar/13
UNIT’s PHYSICAL COMPLETION – Forecast: 58.3% / Accomplished: 47.7%
UNIT’s LOCAL CONTENT – Planned: 65%
TOTAL LOCAL CONTENT – Commitment with ANP: 30% / Planned : 68%36
2013-2017 BMP:
24 Contracted Units and 15 to Be Contracted between 2013-17
Production Curve in Brazil – Oil and LGN Production
• NE de Tupi
(P-72) (**)
• Lula Ext. Sul
•
Iara NW
(P-68) (**)
• Espadarte III
(P-71) (**)
• Lula Alto (*) • Lula Oeste
•
Júpiter
• Deep Waters
(P-69) (**)
• Florim
Sergipe
• Lula Central (*) • Franco Sul
• Bonito
• Sul Pq. Baleias
(P-76) (***)
• Lula Sul
• Maromba
• Franco Leste
•Tartaruga
(P-66) (**)
• Espadarte I
Verde e Mestiça
• Carcará
• Franco 1
• Iara Horst
• Entorno de
(P-74) (***)
(P-70) (**)
Iara (P-73) (**)
• Carioca
• Parque dos
 Sapinhoá Pilot
(Cid. São Paulo)
 Baúna
(Cid. Itajaí)
Million bpd
• Lula NE Pilot
(Cid. Paraty)
• Papa-Terra
(P-63)
 Baleia Azul
(Cid. Anchieta)
2.0
2.0
• Roncador IV
(P-62)
• Roncador III • Sapinhoá
(P-55)
Norte
• Iracema
(Cid. Ilhabela)
Norte
• Norte Pq.
Baleias (P-58) • Iracema Sul (Cid. Itaguaí)
(Cid.
• Papa-Terra
Mangaratiba)
(P-61)
2.0 ±2%
• Lula Norte
(P-67) (**)
Doces
• Franco NW
(P-77) (***)
• Franco SW
(P-75) (***)
• 24 Production Units contracted, 3 already in operation
(**) Hull being built in Rio Grande Shipyard (RS)
(***) Hull being converted in Inhaúma Shipyard (RJ)
• 15 new Production Units to be contracted between 2013-17
 Production units in operation
(*) Units in final contraction phase
37
Exploration Investments in Brazil
Target: Keep R/P > 12 Minimizing Dry-Well Risks
Consolidation and delimitation of Pre-Salt and Transfer of Rights areas, besides Post-Salt Sergipe-Alagoas and Espirito Santo basins.
Selective investments in New Frontiers: Equatorial and East Margin.
24%
(5.8)
Post-Salt
Pre-Salt
6%
(1.4) Transfer
of Rights
70%
(17.1)
Consolidation and
Delimitation
Sergipe-Alagoas, Espírito Santo,
New Frontiers
US$ 24.3 Billion
Equatorial
Margin
East
Margin
Finding Cost (US$ / boe)
0.58
0.64
0.76
2007
2008
2009
1.15
2010
1.56
1.96
Concession Areas
March, 2012
Petrobras
Other Companies
2011
Petrobras Costs Lower than Majors'
Majors (2007-2011): US$ 3.2 to 4.5 / boe
2012
38
PROEF: Program Now Includes UO-RIO
PROEF Targets
Operational Efficiency
(%)
Accomplished
HC/PAD Fields
Assets UO-BC
Assets UO-RIO
39
PRC-Poço: Program to Reduce Well Costs
Well Construction is a Relevant Portion in Investments
236.7
Other Areas
89.2
147.5
16.3
24.3
E&P
Infra-structure and Support
Exploration
147.5
106.9
2013-2017 BMP
Investments
Production Development
Exploratory and Production
Development Well Investments
total US$ 75 billion
Brazil E&P
Investments
Increase of drilling rigs fleet and logistic resources
• Petrobras currently has 69 floating drilling rigs for well construction and maintenance in Brazil
 Well construction represents:
• 32% of Petrobras investments in 2013-2017 BMP
• 51% of Brazil E&P Investments

40
PRC-Poço: Program to Reduce Well Costs
Structure, Initiatives and Expected Gains
 The PRC-Poço corporate governance involves all E&P executive managers
and big portion of technical and management structure of E&P, with quarterly
reports to the executive board.
Program to Reduce Well Costs comprises 23 initiatives
PRC-Poço
Structure
Unit Cost
Number of Activities
Term of Each Activity
GROUP 1
Reduce Unit
Costs
GROUP 2
Optimize Projects
Scope
GROUP 3
Seek Productivity
Gains
4 Prioritized
Initiatives
7 Prioritized
Initiatives
12 Prioritized
Initiatives
 2013-2017 BMP has already incorporated gains of US$ 1.4 Bn from initiatives aiming to decrease well
construction time and optimization of operational sequencing.
 Initiatives in final structuring phase have already identified significant additional gains. These gains will be
quantified by May/2013, when each initiative will be linked to an investment project.
41
Downstream
Projects Under
Implementation + Evaluation
US$ 64.8 Billion
15%
(9.7)
13%
(8.4)
51%
(33.3)
8%
(5.4)
5%
6% (3.3)
(4.0)
1% 1%
(0.3) (0.4)
Refining Capacity Expansion
Fleet Expansion
Operational Improvement
Petrochemical
Quality and Conversion
Ethanol Logistics
Logistics for Oil
Corporate
4242
Downstream Investments
Projects Under Implementation
US$ 43.2 billion
2013-2017 HIGHLIGHTS
21%
(9.2)
 Refining capacity expansion on the Under
11%
(4.9)
9%
(3.7)
45%
(19.4)
1%
(0.3)
Implementation Portfolio: RNEST (Pernambuco)
and COMPERJ 1st Phase (Rio de Janeiro)
6% 6%
(2.4) (2.8)
1%
(0.4)
 Refining capacity expansion in design phase:
6%
(2,8)
Premium I (Maranhão), Premium II (Ceará) and
Projects Under Evaluation
US$ 21.6 billion
2%
(0.5)
64%
(13.8)
 Diesel and Gasoline Quality Portfolio: REPLAN,
RPBC, REGAP, REFAP and RLAM
16%
(3.5)
7%
(1.5)
COMPERJ 2nd Phase (Rio de Janeiro)
 Fleet expansion: PROMEF – 45
Oil and Oil Products transportation vessels
8%
(1.7)
3%
(0.5)
Refining Capacity Expansion
Operational Improvement
Quality and Conversion
Logistics for Oil
Fleet Expansion
Petrochemical
Ethanol Logistics
Corporate
43
Northeast Refinery (RNEST): Start-up on November/14
Processing capacity: 230 kbpd
9
5
1
2
8
8
1
4
4
6
3
8
8
6
7
6
6
6
6
7
44
TOTAL PHYSICAL PROGRESS- Forecast: 70.3% / Accomplished: 70.6%
RNEST construction – Feb/13
LOCAL CONTENT- Target: 75% / Planned: 86.5%
(1) Oil and oil products storage area; (2) Atmospheric distillation unit; (3) Power House; (4) Coking Unit; (5) Intermediary products tanks; (6) Contractors yard; (7) Acid water treatment
44
unit; (8) Pipelines; (9) Hydrotreatment units
Relevance of refining capacity expansion for the oil
product market supply and demand balance
Brazil’s oil product market in 2020
Demand for oil products in Brazil grows 4.2% p.a. between 2012 and 2020.
Without Premium I, Premium II and Comperj 2nd phase, Brazil will import 29% of its oil product demand
(kbpd)
New Refineries
Under Implemantation
• RNEST: under construction
1st phase - 115 kbpd - Nov/14
2nd phase - 115 kbpd - May/15
• Comperj 1st phase: under
construction
165 kbpd - Apr/15
New Refineries
in Design Phase
• Premium I – 1st Phase
300 kbpd - Oct/17
2408
3380
• Premium II - Trem 1
300 kbpd - Dec/17
- 972
Processing
capacity
Demand
Deficit
• Comperj – 2nd Phase
300 kbpd - Jan/18
• Premium I - 2nd Phase
300 kbpd - Oct/20
45
Gas & Energy
Projects Under Implementation
+ Under Evaluation
US$ 9.9 billlion
20%
(2.0)
8%
(0.8)
25%
(2.5)
46%
(4.6)
Electric Energy
LNG
Network
Gas-chemical plants
4646
Gas & Energy Investments
Projects Under Implementation
US$ 5.9 billion
32%
(1.9)
6%
(0.3)
19%
(1.1)
2013-2017 HIGHLIGHTS
 Conversion of Natural Gas into fertilizers and
other gas chemical products: UFN III at Três
Lagoas (Mato Grosso do Sul)
43%
(2.6)
Projects Under Evaluation
US$ 4.0 billion
3%
(0.1)
 Natural gas processing and transportation:
NGPU Cabiúnas (Rio de Janeiro)
 Electric energy generation: Thermal Power
12%
(0.5)
Plant Baixada Fluminense (Rio de Janeiro)
 LNG Regasification: Bahia Terminal (Bahia)
34%
(1.4)
51%
(2.0)
Electric Energy
LNG
Network
Gas-chemical plants
 Units in Design Phase: UFN IV (Espírito Santo)
and UFN V (Minas Gerais)
47
Natural Gas Supply And Demand
(Million m³/d)
48
Financiability
4949
Financial Planning Assumptions
Financing analysis only incorporates projects under implementation
No equity issuance
Investment grade maintenance
Main assumptions for cash flow generation and investment levels
2013-17 BMP is based on constant currencies from 2013.
Brent prices (US$/bbl)
US$ 107 in 2013, declining to US$ 100 in the long term
Average exchange rate (R$/US$)
R$ 2.00 in 2013, strengthening to R$ 1.85 in the long term
Leverage
Limit: < 35% │ Maximum leverage in 2013 and 2014 (34%), declining after 2015
Net debt / EBITDA
Limit : < 2.5x │ Limit will be surpassed in 2013 and will fall below 2.0x after 2015
Oil product prices in Brazil
Convergence to international prices
Divestments
US$ 9.9 billion
Returns on new E&P projects
Pre-salt projects breakeven between US$ 40-45/barrel
Big post-salt projects have returns similar to pre-salt’s
50
Operating Cash Flow and Funding Needs
246.9
9.9
10.7
246.9
39.8
Additional financing needs will be funded exclusively through
new debt. No equity issuance is envisaged.

Free cash flow, before dividends, after 2015.
US$ Billion
61.3

Annual borrowing needs (2013-2017)
Gross – US$ 12.3 billion │Net – US$ 4.3 billion
207.1
165.0

Fontes
Usos
Divestments and restructurings
Cash utilization
Third-party resources (Debt)
Operating cash flow (after dividends)
Investments
Amortization
Net borrowing needs 50% below previous Plan due to:
• 2017 production, versus 2012, leading to higher
operating cash flows
• Declining downstream investments
• Long-term Brent prices (US$ 100 vs US$ 90 in the
previous Plan) and long-term F/X rate (R$ 1.85 vs R$
1.73)
51
Leverage
Leverage
Net Debt/EBITDA
BMP Target (< 35%)
BMP Target (< 2,5x)
2013
2014
2015
2016
2017
2013
2014
2015
2016
•
Declining leverage, within the Company’s self-imposed limits
•
Net Debt/EBITDA surpasses limit at some points in time, during the Plan period
2017
52
The End
53