GENERAL PRESENTATION INVESTOR RELATIONS PETROBRAS

Transcription

1 GENERAL PRESENTATION INVESTOR RELATIONS PETROBRAS August, 2010

2 DISCLAIMER FORWARD-LOOKING ST ATEMENTS: 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 2010 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. 2

3 PETROBRAS: AN INVESTMENT GRADE, PUBLICLY TRADED, MAJOR INTERNATIONAL OIL COMPANY Incorporated in 1953 as government monopoly for all hydrocarbon activities in Brazil Originally established as a refinery of imported crude oil Became net exporter in % of total equity capital (common and preferred) is now publicly traded Government maintains controlling interest with 55% of voting shares Market cap of approximately US$ 160 billion as of June 10 th, 2010 Foreign currency ratings from Moody s (Baa1), Standard & Poors (BBB-), and Fitch (BBB). Petroleum Law and ANP (National Oil Agency) creation: End of Monopoly First Public Auction of Oil Exploration Areas Petrobras NYSE Listing Full Deregulation Upgraded to Investment Grade Issuer Crossed the US$100 billion Market Cap mark Brazil Self Sufficient in Oil 1997 June 1999 Aug 2000 Jan 2002 Oct Apr MM bpd, $200MM market cap, Discovery of new oil frontier: Pre Salt (Tupi field) 2007 A New E&P Regulatory Framework. Pre-Salt and Strategic Areas Aug

4 60% OF THE EQUITY CAPITAL OF PETROBRAS IS PUBLICLY TRADED 46,4% 53,6% 9,5% 20,3% 10, 9 % 26,4% 2 9, 5 % 10,3 % 18,0% 9,9% 7,9% 25,1% 23,1% 22,8% 61,6% 44,4% 40,6% 39,8% Shareholder Base Foreign 37.4% Brazilian 22.8% Government 39.8% Oct/1992 Jul/2000 After Aug/00 After Jul/01 offering Dec/2009 offering (1) Government Bovespa Brazil Bovespa Foreign ADRs o o o On August, 2000 the Brazilian Government reduced its ownership share to 55% of the voting shares through an SEC registered secondary public offering (PBR) In July 2001, BNDESPar, sold a portion of its non-voting shares (PBRA) Since the offering in July, 2001 the ownership structure has remained virtually unchanged. (1) Includes BNDES / BNDESPAR 4

5 PETROBRAS IS THE MOST LIQUID STOCK IN VALUE TRADED ON BOTH THE BOVESPA AND NYSE (US$ MM) Turnover 2009/2005 = 596% 1,930 Turnover NYSE & Bovespa (Daily Average Turnover) (% category and US$MM) 992 1,308 43% 47% 43% 50% 52% Nyse PBR PBR/A Nyse PBR PBR/A Bovespa PETR3 PETR4 25% 21% 6% 5% 25% 27% 20% 6% 31% 20% 19% 5% 6% 26% 23% Bovespa PET R3 PET R PETR4 (Bovespa) PETR3 (Bovespa) PBR/A (Nyse) PBR (Nyse) o Turnover of PBR 3 times the volume of PBRA on the NYSE o Turnover of PN 5 times the volume of the ON o Probable explanation: Cultural. Brazilians familiar with PN s and would not pay premium for ON s 5

6 CORPORATE ORGANIZATION AND KEY OPERATING RESULTS Exploration & Production Downstream (Supply) Distribution Gas & Energy International Biofuels Petrochemicals Summary Financials (US$ billion- USGAAP) Operating Income* (US$ billion- USGAAP) Q10 Net Revenues EBITDA Net Income Capex Total Debt (1) Cash & Cash Equivalents Net Debt Total Equity Total Assets ,1 18,9 15,5 (1) Includes capital leases and project financings * Excludes Corporate and Elimination Domestic E&P Downstream Gas &Energy Distribution International 6

7 A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY Oil & Gas Production Gas Production boe/d (mmboe/d) Oil Production boe/d 84% (oil) 0.6 Source: Evaluate Energy and Company reports BP XOM RDS CVX PBR COP Total ENI BG 2009* Refining Capacity Market Value as of June 10 th, 2010 (thousand boe/d) 6,271 3,639 2, ,594 2,223 2, (US$ bn) Source: PFC Energy *Report ODecember S2009 CO O C S XOM PBR RDS CVX TOT BP COP ENI STL Source: Bloomberg Note: Peer companies selected above have a majority of capital traded in the public markets. 7

8 DOMESTIC E&P PROFILE 2009 Production 2009 Proven Reserves (SPE) 19% 14% 10% 24% 9% 10% 57% 57% 2,287 thousand boed billion boe Onshore Shallow water (0-300m) Deep water ( m) Ultra-deep water (> 1500m) Source: Petrobras 8

9 COMPETITIVE ADVANTAGE IN THE DEEPWATER Petrobras operates 22% of global deepwater production and 18% of all operating vessels CVX 6% APC TOT6% 8% BP 9% 2008 Gross Global Operated Deepwater Production REL HES MUR MUR HES REL 1% 1% 2% 2% 1% 1% BG APC 4% 5% STL 14% PBR 22% RDS 14% XOM XOM 14% Petrobras Shell StatoilHydro ExxonMobil BP Chevron Anadarko Total CNOOC ConocoPhillips ENI/Agip Others FPS Operators All Contracted Vessels (252 Vessels Total) FPSO Semi Spar TLP Other 100 Source: (1) PFC Energy Note: Estimated v olumes abov e ref lect what operators are responsible f or producing, not what they keep on a net working interest or entitlement basis. Minimum water depth is 300 meters; twelv e operators abov e account f or 94% of global deepwater production in (2) Copy right 2008 ODS-Petrodata, Inc. 9

10 DOMESTIC PROVEN RESERVES PROFILE Proven Reserves as of Dec/2009 (ANP/SPE) (14,17 billion boe) < 22º API (heavy) 50% 15% 6% 29% º API (intermediate) 10% 5% Oil + Condensate 85% Gas > 31 º API (light) Associated Gas Non-Associated Gas Undeveloped Proven Reserves 43% 57% Developed Proven Reserves 10

11 ENHANCING RESERVES Santos Pre-Salt announced recoverable volumes including the transfer of rights, can more than double Brazilian reserves. million boe 35,000 30,000 25,000 20,000 15,000 Higher estimates +5,400 Lower estimates 10,600 +5,000 ~ bn boe 10,000 5,000 14,169 0 *SPE Criteria 2009 Proven Reserves* ** include Petrobras and Partners Santos and Campos Basins Pre-Salt (Tupi, Iara, Guará and Whale s Park)** Transfer of Rights with Compensation Proven Reserves* + Santos and Campos Basins Pre-Salt (Tupi, Iara, Guará and Whale s Park)** + Transfer of Right 11

12 IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT anos 54 anos Production (bpd) anos 22 anos 27 anos 45 anos Production since incorporation of Petrobras (1953) Discovery of Garoupa in the Campos basin (1974) Numbers of Years Discovery of giant fields in Campos basin including Albacora/Marlim (80 s & 90 s) Discovery of the Pre-Salt, since Parati (2006) 12

13 INDUSTRY-LEADING PRODUCTION GROWTH 6,61 4,56 3,96 3,52 2,44 1,66 0,00-1,38-2,59-3,26 Petrobras Oil and Gas Production (000 boe/d) 4.6% CAGR 2,297 2,301 2,217 2,020 2,525 2, Source: Evaluate Energy -4,94 C onoc ophillips Petrobras Lukoil PetroChina Chevron ENI BP ExxonMobil Total RD Shell Repsol YPF CAGR ( ) - % * * * 9M09 Annualized 13

14 OIL AND GAS PRODUCTION TARGETS: SUPERMAJORS AND PETROBRAS Petrobras has the highest growth rate target of the industry 6000 thousand boe/d ExxonMobil: Production growth rate ~3-4% in 2010; ~2-3% p.y. up to 2013 Petrobras: 3.9 MM boe/d in 2014 and 5.4 MM boe/d in 2020 BP: Production growth rate ~1-2% p.y. up to 2015 Shell: ~3.5 MM boe/d in 2012 and ~3.7 MM boe/d in 2014 Chevron: production growth rate ~1% p.y. between and 4.5% p.y. between Source: PFC Energy and Company reports 14

15 BRAZILIAN ECONOMY: Growing with stability and fiscal responsibility GDP Growth (%) Forecast Trade Balance (US$ Billion) Exports Imports Forecast International Reserves (US$ billion) jan fev mar 247 abr Nominal Fiscal Deficit/GDP (%) ,1 5, Brazilian Debt (as % of GDP) 50,0 47,7 46,6 44,2 39,9 41,4 3,3 3,3 2,7 3,5 2,6 1, Net Debt/GDP (%) Source: Brazilian Central Bank 15

16 BUSINESS PLAN : 14: US$ 224 BILLION Increased investment for integrated operations in Brazil Business Segment (US$ Billion) 8% % 2% 1% 2% Brazil and Abroad (US$ Billion) International 5% % % 95% Brazil E&P Downstream G&E Petrochemicals Distribution Biofuels Corporate 16

17 ADJUSTMENTS TO THE PORTFOLIO Increased spending on infrastructure, logistics, value chain in Brazil 31.6 (17.0) (6.8) CAPEX in Business Plan New Projects Projects Excluded Change in project timeline Change in project design and cost Change in Stake Business Plan E&P Downstream Gas & Energy Corporate 1% 21% % 62% o New projects for pre-salt, logistics, increased utilization of domestic oil, and monetization of natural gas. o Change in partnership participation reflecting uncertainty about participation of partners in downstream projects 17

18 LOCAL CONTENT PARTICIPATION Brazilian suppliers expected to provide nearly 70% of total needs Distribution and Biofuels (100%) Gas & Energy (82%) 100 % Business unit Capex in Brazil (US$ billion) Investments in Brazil Purchased in Brazilian Market Brazilian content (%) Downstream and 80 % E&P % Corporate (80%) RTM and Petrochem % E&P (53%) 60 % 40 % Gas & Energy Distribution Biofuels Corporate % 100% 100% 80% 20 % Total % Brazilian Content 0 % + US$ 46.4 billion from Partners o Petrobras purchases in Brazil of approximately $28 billion per year (versus $20 billion per year in prior plan) 18

19 PEERS CAPEX U$S MM Capex by Quarter: 1Q07 4Q Petrobras 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 U$S MM Capex for 2010: 2009 vs. 2010E Super Majors Average (Exxon, Shell, BP) Peer Group Average (without Petrobras) Average without Petrobras 2010 Average without Petrobras (1) Source: Evaluate Energy and Company Reports (1) R$ 88.5 billion converted by FX rate of 1,87 R$/US$ (Petrobras forecast to 2010) 19

20 TECNOLOGICAL CHANGES 3 Key pillars Partnership with over 120 universities and research centers in Brazil, and 70 Institutions abroad Expanding Limits Technological Strategy Investments in HSE, IT and R&D US$ 11.4 Billion 29% 46% % New Exploratory Frontier Maximizing recov ery f actor Dev eloping Production, Operation and Pre Salt Logistic Adding value and Diversifying Products Fuel, Lubricants and special products innov ation Petrochemic als Gas Chemic Dev elopment of new generation Sea and Subsea Sy stems Biof uels Other Renewable sources Energy Sediments and other f uels characterizat ion of the pre salt and other complex reserv oirs Water managem e nt Solutions f or Natural Gas logistic in harsh env ironments Operational Optimization CO 2 and other gas managem ent Middle distillate Maximi zation Sustainability Energetic Eff iciency HSE IT R&D 20

21 UPSTREAM 21 21

22 17TH CONSECUTIVE YEAR OF FULLY REPLACING BRAZILIAN PRODUCTION o 110% reserve replacement rate in Over the past decade, reserve replacement has principally been driven by internal additions in Brazil o Targeting a reserves to production life over 18 years 13,23 13,75 1,23 13,92 14,09 0,88 14,17 0,92 0,86 Production (0.70 bn boe) Production (0.70 bn boe) Production (0.75 bn boe) Production (0.79 bn boe) Reserves Replacement Index (174%) 12,52 Reserves 13,04 Reserves 13,17 Reserves Replacement Replacement Replacement Index 13,31 Index Index (110%) (124%) (123%) * According to SPE (Society of Petroleum Engineers) criteria 22

23 OIL AND GAS PRODUCTION TARGETS Domestic targets unchanged, international targets reduced o Production curve for domestic oil gas production consistent with prior Business Plan o Projected international production reduced as a result of decrease in investment o Production curve does not currently assume any contribution from Transfer of Rights 5, % p.y (Thous. boe/day) 1,810 2,037 2, % p.y. 2, ,297 2,301 2, , , % p.y. 3, , ,950 1,500 1,540 1,493 1,684 1,778 1,792 1,855 1,971 2, , 078 Pre-Salt Oil Production - Brazil Gas Production - Brazil Oil Production - International Gas 152 Production - International

24 PRINCIPAL PROJECTS SCHEDULED DURING Updated business plan added new projects Th. bpd Mexilhão NG Uruguá/Tambaú FPSO Cidade de Santos NG/35,000bpd Marlim Sul SS P-56 Module 3 100,000 bpd Antecipation of Baleia Azul FPSO Espadarte 100,000 bpd Guará Pilot FPSO 120,000 bpd Tupi NE Pilot FPSO 120,000 bpd 2, Tupi Pilot Cidade de Angra dos Reis 100,000 bpd ,100 Cachalote e Baleia Franca FPSO Capixaba 100,000 bpd Tupi NE EWT bpd Guará EWT Dynamic Producer 30,000 bpd Tiro EWT SS-11 30,000 bpd Aruanã EWT Cidade Rio das Ostras 15,000 bpd Roncador Papa-Terra Roncador SS P-55 TLWP P-61 & FPSO P-62 Module 3 FPSO P-63 Module 4 180,000 bpd 150,000 bpd 180,000 bpd Jubarte Tiro/Sidon Whales Park FPSO P-57 FPSO FPSO P ,000 bpd 100,000 bpd 180,000 bpd Aruanã Guaiamá FPSO FPSO 100,000 bpd 100,000 bpd 4 EWT 4 EWT 3 EWT 2 EWT Pre-salt Pre-salt Pre-salt Pre-salt Oil Pre salt Natural Gas EWT = Extended Well Test 24

25 E&P-BRAZIL INVESTMENTS Continued emphasis on Post-Salt acreage, growing spending on Pre-Salt Pre-Salt US$ 33.0 Billion 3% 13% Post-Salt US$ 75.2 Billion 15% 18% % 67% Exploration Development Infrastructure o Annual expenditures for exploration of more than US$4 billion annually o Development capex in Pre-salt approaching 50% of Post-salt spending 25

26 RESERVES IN ULTRA-DEEP WATER CAN BE DEVELOPED AT A RELATIVELY LOW COST Expected Costs of Production 140 Production costs (US$/bbl 2008) Produced MENA Deepwater and Ultra deep water Other convention al oil CO₂ EOR EOR Arctic Heavy oil and bitumen Oil Shales Gas to liquids Petrobras expected maximum break even cost Coal to liquids Reserves (bn bbls) Source: IEA Outlook

27 DOMESTIC LIFTING COST: Stable costs R$/barrel US$/barrel Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10 Lifting Cost Gov.Part. Lifting Cost Gov. Part. Brent o In Do llar, lifting cost increased, fo llowed recovery of international o il prices; o In Reais, lifting cost remained stable during the last year.

28 DISTRIBUTION OF UPSTREAM REVENUES Distribution of the Realization Price of a Barrel of Domestically Produced Oil $80,00 100,0% $70,00 80,0% $60,00 $ per Barrel Realization Price $50,00 $40,00 $30,00 $20,00 $10,00 $ Q10 % Share of Realization Price 60,0% 40,0% 20,0% 0,0% Q10 $(10,00) -20,0% Lifting SG&A Other COGS Net Income DD&A R&D Income Tax Exploratory Costs Other Government Take 28

29 NEW PRODUCTION UNITS: Continued increases in capacity Main units responsible for production increase Projects Capacity 2Q10 FPSO Cidade de Vitória (Golfinho) 100 thousd bpd 60.9 FPSO Espírito Santo Parque das Conchas (1) 100 thousd bpd 28.2 FPSO Capixaba Cachalote e Baleia Franca Mexilhão and Uruguá- Tambaú (1 ) P rojec ts in partners hip, produc tion refers to Petrobras s hare (3 5% ) 100 thousd bpd 35 thousd bpd and 25 million cu.m gas 9.7 Production Start-up: UTB - 14/jul Mexilhão 4Q10 Principal New Units to start-up operation Projects Capacity FPSO Cidade de Angra dos Reis (Tupi Pilot) 100 mil bpd Start-up forecast 4Q10 P-56 (Marlim Sul) P-57 (Jubarte) 100 mil bpd 180 mil bpd

30 NEW PRODUCTION UNITS Project Start up Type Oil and Gas Capacity Shipyard Leased Cachalote/Baleia Franca FPSO Capixaba 2Q/10 FPSO 100,000 bpd 3.2 MM m3/d Keppel (Singapore) SBM Uruguá-Tambaú Cidade de Santos 3Q/10 FPSO 25,000 bpd 10.0 MM m3/d Cosco (China) Modec Mexilhão 4Q/10 Fix 15 MM m3/d Mauá Jurong (Brazil) Tupi Pilot Cidade de Angra dos Reis 4Q/10 FPSO 100,000 bpd 5.0 MM m3/d Cosco (China) Modec Marlim Sul Mod. 3 - P-56 (P-51 Clone) 2H/11 SS 100,000 bpd 6.0 MM m3/d Brasfels-Keppel (Brazil) Jubarte Mod. 2 - P-57 2H/11 FPSO 180,000 bpd 2.0 MM m3/d Brasfels-Keppel (Brazil) Papa Terra - P-61 2H/13 TLWP 180,000 bpd 1.0 MM m3/d Keppel (Brazil) FloaTec Papa Terra - P-63 2H/13 FPSO 150,000 bpd 1.0 MM m3/d Rio Grande (Brazil) BW Offshore Guará Pilot 2H/13 FPSO 120,000 bpd 5.0 MM m3/d Bid in progress Roncador Mod 3 - P-55 2H/13 SS 180,000 bpd 6.0 MM m3/d Atlântico Sul and Rio Grande (Brazil) 30

31 NEW TECHNOLOGIES TO INCREASE RECOVERY FACTOR 4D Seismic (Marlim; Marlim Sul; Albacora) ESP in a skid on the sea-bed (Espadarte-Fase III) Vertical Annular Separation and Pumping System (Congro; Malhado; Corvina) VASPS (Parque dos Temperos; ) Bonito CAISSON Subsea Christmas Tree. Piggy-back (Marimbá; Barracuda) Oil Water Subsea Separation (Marlim) TLWP (Papa-terra) SBMS - Subsea Multiphase Pumping System (Marlim) RWI Raw Water Injection (Albacora) Multifractured Well (Bonito) 31

32 EXPLORING TO LEVERAGE EXCITING FRONTIER PLAYS IN OUR OWN BACKYARD Exploration Capex US$ mm Success Rate 70% 60% 50% 40% 30% 20% 10% % 32

33 MAIN DISCOVERIES IN THE POST-SALT SALT REGION (1) Date Field Participation Fluids Mar-2010 Feb-2010 Feb-2010 Nov-2009 Aug-2009 May-2009 Nov-2008 Estimated Recoverable Volume 15 million barrels 40 million barrels 25 million barrels 25 million barrels 280 million barrels Not disclosed Oil Not disclosed 2,354 Sep-2008 BM-S-40/Sidon BR (100%) Light Oil 150 million barrels 274 Jul-2008 Golfinho BR (100%) Light Oil 150 million barrels 1,374 Marimbá May-2008 Piranema Barracuda Pampo Rig Fence Marimbá BM-C-36 Aruanã BM-S-48 Panoramix BM-J-3 Jequitinhonha BM-S-40/Tiro BR (100%) BR (100%) BR (100%) BR(100%) BR (100%) BR(35 %), Repsol(40%), Vale(12,5%), Voodside(12,5%) BR (60%), STATOIL (40%) BR (100%) Light Oil Oil Oil Light Oil Light Oil N. Gas and Condensate Light Oil Not disclosed Water Depth (m) Piranem a Aruanã Barracuda Pampo Dec-2007 BM-ES-5/ Camarupim BR (65%), EL PASO (35%) N. Gas and Condensate Not disclosed 708 May-2007 Mar-2007 BM-ES-5/ Camarupim BC-60/Caxaréu BR (65%), EL PASO (35%) BR (100%) N. Gas and Condensate Light Oil Not disclosed 570 million barrels * 763 1,011 (1) 2007 to March 2010 * Volume in place 33

34 EXPLORATION PORTFOLIO AT DIFFERENT STAGES OF DEVELOPMENT Margem Equatorial Ceara & Potiguar Solimões o Brazil Exploration: US$ 13.8 bn Potiguar SEAL& REC & TUC Bahia Sul São Francisco o o Exploratory Area: thousand km² 265 exploratory blocks Espírito Santo Campos o 35 appraisal plans Petrobras Others Santos Pelotas o 313 production concessions 34

35 INCREASE IN THE NUMBER OF FIELDS ANDS BLOCKS HELD WITH PARTNERS o Petrobras current domestic production comes mainly from concessions (97%) owned by the company alone o For the areas under development, the percentage of concession held without partners falls to 62% o More than half (53%) of the blocks under exploration or appraisal are joint ventures Concessions Under Production (247) Production Development Concessions (66) Exploration + Evaluation Concessions (54) 3% 97% 38% 62% 53% 47% Petrobras (100%) Petrobras in Partnerships 34 Oil and Gas Companies (2008) SINN, July

36 PRE-SALT OVERVIEW 36

37 PRE-SALT JOINT VENTURES Total Area: 149,000 km2 Area Under Concession: 41,772 km2 (28%) Area Not Under Concession: 107,228 km² (72%) Area With Petrobras Interest: 35,739 km2 (24%) JUBAR TE ESS-103 BFR Bi BAZ-1 boer CHL-4 Shore Distance = 60 km Total Area = km 2 Blocks Consortium BC-60 BR (100%) Jubarte Cachalote Balia Franca Baleia Azul Baleia Anã Blocks Consortium BMS-8 BR (66%), SH (20%) e PTG (14%) BM S 11 (Tupi) BMS-9 BMS-10 BR (45%), BG (30%) e RPS (25%) BR (65%), BG (25%) e PAX (10%) BMS-11 BR (65%), BG (25%) e PTG (10%) BMS-21 BR (80%), PTG (20%) Shore Distance = 300 km Total Area = km bi boer BMS-22 BMS-24 EXX (40%), HES (40%) e BR (20%) BR (80%), PTG (20%) 37

38 t BRAZILIAN SE BASINS IN COMPARISON WITH GULF OF MEXICO USA 38

39 PRODUÇÃO PRE-SALT NEWS: 2010 Accelerating development activity o Campos and Espirito Santo Basin o o New discoveries in Campos basin in the pre-salt layer in Marlim, Albacora Leste and Caratinga fields; Production start-up in Baleia Franca field, in Espírito Santo. 20 Tbpd forecast by year end. o Santos Basin o 6 new wells to be drilled in 2010, totaling 16 wells in 2010; Franco Libra o 3 new rigs * previously contracted scheduled to arrive in 2010, in addition to the 10 already operating; o o FPSO Cidade de Angra dos Reis, to be installed as Tupi Pilot project (currently en route to Brazil); Letter of intent with SBM/Queiroz Galvão to construct 3rd Pilot. FPSO to operate in Tupi Nordeste. Capacity: 120 thous. bpd of oil and 5 million cu.m p/day of natural gas. Delivery date: 34 months; o Letter of intent to construct 8 replicant FPSO hulls for definitive systems Santos Basin, with Engevix. Capacity: 150 thous. bpd. Macunaíma Carioca NE Guará Norte Piloto de Tupi P1 Guará Iracema Norte Tupi Sudoeste Piloto de Tupi IG1 Wells**: Petrobras ANP * Ocean Valor, Vitoria and Sevan Driller. ** Drilling or completion or test.

40 GAS PIPELINE FOR TUPI`S PILOT SYSTEM UGN UTGCA RPBC 145 Km 212 Km PMXL 170 Km URG 248 Km To service the Pilot PMLZ-1 TUPI Area TEFRA N Existing Under Construction Planned

41 CAPEX DISTRIBUTION: PRE-SALT VS. CAMPOS BASIN Pre-salt CAPEX DISTRIBUTION 26% 18% 56% Gathering Completion + Drilling Units Deepwater Projects in Campos Basin* CAPEX DISTRIBUTION 33.3% 33.3% 33.3% Gathering Completion + Drilling Units o Additional drilling and completion cost in the pre-salt compared with an generic deepwater project in Campos basin can be partially or fully offset by higher quality and quantity of oil that is expected in the pre-salt area. * Generic example, considering that these rates can change among the different existing projects in Campos Basin 41

42 DEVELOPMENT STRATEGY (example: TUPI) 1st Oil EWT Tupi (May/09) 1st Oil Tupi Pilot (Dec/10) Significant production level t Phases Information Acquisition Definitive Development Phase 0 Phase 1A Phase 1B Focus EWT (Mar/2009), Tupi Pilot and appraisal wells Implementation of 8 production units (Replicated FPSOs) Implementation of X production units Objective o Area Delimitation o Analyze reservoir flow o Fractured well performance o Complete sampled core o Material analysis vs. CO 2 o Analyze water and gas/co 2 injection behavior o Test adjustments on FPU related to CO 2 o Test improvements in well projects o Apply previous dominated concepts and technologies with necessary adjustments to reach significant production by 2017 o Aggregate innovative technical solutions to optimize project performance 42

43 PRE-SALT ACCOMPLISHMENTS TIMELINE 2008 Phase Phase 1A 2017 Phase 1B 2020 Phase 0:Information gathering Appraisal wells, EWTs and Tupi Pilot Phase 1B - Projects 2nd phase of definitive development Significant production increase Innovation acceleration Massive use of new technologies specially tailored for Pre-Salt conditions Phase 1A - Projects Phase 1a: 1st phase of definitive development, use of consolidated or rapidly-consolidating technologies to achieve production targets, generate cash-flow to support Phase 1b First 2 FPSOs to be chartered ( ) Oil Production: 120,000 bpd Gas Compression: 5 M m³/d Additional 8 FPSOs ( ) Construction of the hulls at the Rio Grande Shipyard All identical units, manufactured in series Process plant under study: Oil Production: 150,000 bpd Gas Compression: 5.5 M m³/d Water-Alternating-Gas injection capability 43

44 MAJOR TECHNOLOGICAL DEVELOPMENTS UNDER EVALUATION PLANSAL - Pre-Salt Development Master Plan Flow Assurance and formation damage control Water-alternatinggas (HC or CO 2 ) injection Extended-reach and deviated wells (salt) Dry completion systems (SPAR, TLP, FPDSO, ) Floating LNG Offshore logistical hub Pre-Salt Definitive Development Offshore produced fluid handling hubs Offshore gas storage in salt caves CO 2 storage in saline aquifers, depleted fields, salt caves Deepwater CALM buoy Reservoir Characterization CO 2 separation / capture technology 44

45 ESPÍRITO SANTO PRE SALT MG Rio Doce Terminal Barra do Riacho Camarupim Espírito Santo UTG Cacimbas Linhares UPGN Lagoa Parda Aracruz Cangoá km 25 MM m 3 /d Canapu Peroá o Infrastructure in-place: diversified and flexible portfolio; o P-34 at Jubarte field, first pre-salt production (Sep/08): excellent results/light oil (30ºAPI); VITÓRIA Vila Velha Carapó Golfinho o FPSO Capixaba (100 Mb/d) moved from Golfinho field and is being adapted to produce in Cachalote (CHT)/Baleia Franca (BFR) in 1H10; UTG Sul Capixaba Anchieta Guarap ari Sul Capixaba Gas pipeline km 4,5 MM m 3 /d Sul-Norte Capixaba Gas pipeline 12 a km 7 a 15 MM m 3 /d o Baleia Azul first definitive production unit by 4Q12; Presiden te Kennedy RJ Marataiz es CHT JUB Baleia Azul CXR ARG Baleia Franca OST NAU ABA PRB o Natural gas production transported via pipeline. Catuá Whales Park* 45 *Whales Park comprehends the fields: Jubarte, Cachalote, Baleia Franca, Baleia Azul and Baleia Anã

46 E&P REGULATORY FRAMEWORK Pre-Salt and Strategic Areas 46

47 NEW REGULATORY MODEL Production Sharing Agreement Petrobras 100% Pre-salt and Strategic Areas Transfer of Rights with compensation Petrobras Operator Other companies trough Bidding Process Other Areas Current Concession Model There will be no regulatory changes in the areas under concession, including the presalt area already granted 47

48 PRODUCTION SHARING AGREEMENTS Production sharing agreements o Petrobras will operate all blocks under this regime, with a minimum stake of 30% o Consortium between Petrobras, Petro-sal and the winning bidder will be managed by the Operational Committee o Petrobras will be able to participate in the bidding process to increase its stake Profit Oil Cost Oil Companies Government o The winning bidder will be the company that offers the highest percentage of profit oil for the Brazilian Government o Petrobras will have to follow the same percentage offered by the winning bidder o The Brazilian Government will not assume the risks of the activities, except when it decides to invest directly o Prior to contracting, the Government may evaluate the potential of the areas and may contract Petrobras directly Graphs are showing only hypothetical values 48

49 E&P TRANSFER OF RIGHTS WITH COMPENSATION o Government may transfer to Petrobras, for compensation, without bidding, the rights to explore and produce oil in the pre-salt areas not under concession. These areas may or may not be contiguous o Transfer of rights limited to a maximum produced of 5 billion boe. Petrobras will be the owner of produced volumes o Oil values shall be determined by technical reports prepared by qualified third parties contracted by the government (ANP) and Petrobras, taking into account best industry practices o The transaction includes a clause of reappraisal of reserves value o If the value of appraisal rises, Petrobras will pay the difference to the Government. If price falls, the contrary will happen o Royalties will be paid by Petrobras and distributed according to the Law nº 9.478/97. No special participation payment is expected 49

50 TRANSFER OF RIGHTS APPRAISAL Appraisal need to consider Production Curve Capex Oil Volume Production Costs Oil reservoir Future Oil prices Discount Rate Reserves development/ Knowledge Fiscal Environment (government participation) 50

51 PETROBRAS CAPITALIZATION The value of capitalization could be: o Minimum: the same value of the transfer of rights with compensation o Maximum: up to 3 times this value Appraisal of reserves in R$ Petrobras increase in capital (to be approved by the ESM) Petrobras will receive cash from minority shareholders Petrobras will pay the transfer of rights with compensation to the federal govt o Brazilian Government could pay the capital contribution to Petrobras with public debt issuances, priced at market value o Petrobras may pay the Brazilian Government the transfer of rights with compensation, using the same securities arising from the capitalization Graphs are showing only hypothetical values 51

52 CAPITALIZATION PROCESS: Estimated timeline of Capitalization with or without Transfer of Rights with Compensation May June July August on Approval of Capitalization Process by Board of Directors and Announcement for Extraordinary Shareholding Meeting EXTRAORDINARY SHAREHOLDING MEETING Giving the Board authority to proceed with the capital increase PUBLIC OFFERING Kick Off with the Registration procedure with Regulators Marketing (Road show) Capitalization Register in CVM and others regulatory agencies Bookbuilding Financial Settlement Completion of Transaction TRANSFER OF RIGHTS WITH COMPENSATION Definition of oil price, in accordance with Brazilian Government Transfer of Rights agreement, with criteria for future revision, as set up in the Bill Payment of the Transfer of Rights 52

53 EQUIPMENT AND SERVICES 53

54 NEW VESSELS AND PURCHASE OF NEW EQUIPMENTS Petrobras critical resources demand will drive Brazilian and international industry Critical Resources Current Situation (Dec/09) Delivery Plan (to be contracted) Accumulated Value By 2013 By 2015 By 2020 Drilling Rigs Water Depth Above m * Supply and Special Vessel Production Platforms SS e FPSO Others (Jacket and TLWP) Supply Vessel Drilling Rigs Production Platform (FPSO) 26 RIGS CONTRACTED, 28 MORE TO BE BUILT BY 2020: o Until 2013: 13 rigs contracted before 2008 and 1 rig relocated from international operations*; +12 new rigs contracted in 2008, through international bidding; o : Bidding process in progress, to contract 28 rigs to be built in Brazil. * The rig reallocated from international operations, expire in 2015, so it is not considered in the 2020 accumulated value 54

55 USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING ASSETS Water Depth m m m m m to be leased Total per year o 34 rigs operating in 2009 o 27 rigs contracted to be delivered until 2012 o Bids are out to construct 28 rigs in Brazil, being delivered between 2013 and

56 COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICES Adequacy of The National Supply Industrial Complex GOOD AND SERVICES SUPPLY National Industry Imports Increase in National Supply Capacity of G&S Imports PATH 5. Incentive for international companies to establish operations in Brazil 4. Incentive for association between national and international companies 3. Incentive for new national entrants 2. Develop competition among medium competitive sectors National Industry National Industry 1. Increase productivity capacity of highly competitive sectors Current Demand Future Demand 56

57 NEW EQUIPMENT TO BE CONTRACTED Items Un. TOTAL Wet Christmas Tree un 500 Well Head un 500 Flexible Lines km Manifolds un 30 Producing pipes t Umbilical km Dry Christmas Tree un Onshore well head un Items Un. TOTAL Pumps un Compressors un 700 Winch un 450 Crane un 200 Engines un Turbines un 350 Structure Steel (Hull) t Structure Steal (Platforms Hull) t Itens Un. TOTAL Reactors un 280 Oil and water splitter un 50 Storage Tankers un Itens Un. TOTAL Power Generators un 500 Filters un 300 Flares un 30 Turrets un

58 CAMPOS BASIN: A GIANT TECHNOLOGY LAB Petrobras Offshore Facilities Subsea Trees Manifold Equipment Installed Dec/2009 Planned (2010) Subsea Trees Subsea Manifolds 74 2 Flexible Flowlines (km) 4, Flexible Flowlines Umbilicals Umbilicals (km) Rigid Pipelines (km) 3,391 1, Floating Production Units 40 3 Mono buoys

59 LONG TERM HR CHALLENGES Business Plan Rigs 146 sspply Vessels New Production Platforms Promef II Leasing of 19 Vessels Refinery- Premium I Refinery-Premium II 207,643 Human Resource Gap BP ,862 Qualified Professionals 25,540 Professionals Selected o o Shortage of trained human resources and demand for local-content increase Competition with other projects for people 59

60 DOWNSTREAM 60

61 DOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKET 2008 Total Oil Consumption by Country (mmbo/d) o Brazil is world s seventh-largest oil consumer US China Japan India Russia Ge rmany Brazil Canada S. Korea Saudi Mexico Fran ce Iran UK Italy Total Oil Consumption mb/d (index) 120 Brazil US OECD World o Brazil oil consumption growing at 1.99% p.a; o OECD oil consumption growing at 0.17% p.a Source: BP Statistical Review 2009, PFC Energy 61

62 VERTICALLY INTEGRATED SYSTEM TO CAPTURE SYNERGIES WITHIN THE VALUE CHAIN Upstream Operations Downstream Operations Petrobras Other Companies o Access to raw material o Access to oil products market Existing Pipelines Refineries Marine Terminal In Land Terminal o Logistic and infrastructure developed o Near the biggest market in Brazil 62

63 RTM AND PETROCHEMICALS INVESTMENTS New refineries, fuel quality, and modernization account for 70% of capex US$ 73.6 Billion 11% 6% 3%1% Additional capacity: Refinery NE Premium I Comperj 29% Additional capacity Operational Improvement Logistics for oil 50% Quality and conversion Fleet expansion International Quality and conversion Sulfur removal Modernization Upgrading (coker) Operating improvement and logistics: Maintenance HSE Logistics for oil and biofuels Investments of US$ 5.1 Billion in Petrochemical (includes acquisition of Quattor) 63

64 BRAZILIAN PRODUCTION, REFINING AND DEMAND Long term plans to achieve greater balance and integration Production as a % of refining 132% 124% 110% kbpd 13% 2,980 1,393 1,036 1,971 1,791 1,933 2,260 2,356 3,950 3,196 2, Production E 2020E Throughput Oil Product Demand o Oil Production and the Brazilian market demand currently exceed refining capacity o By 2014, exports are projected to reach nearly 1 million bpd, even as refining capacity is expanded to process Brazilian production to meet demand 64

65 BRAZILIAN DEMAND AND REFINING CAPACITY Strong Brazilian GDP growth projected to increase demand 3.4% p.y. Thousand bpd 3000 Clara Camarão 2010 RNE 230 thous. bpd (2013) PREMIU M I (1ª phase) 300 thou. bpd (2014) PREMIUM I (2ª fase) 300 thous. bpd (2016) 2,794 3, , REPLAN Revamp U200+PAM 33 thous. bpd (2010) 1,831 COMPERJ (1º phase) 165 thous. bpd (2013) 2,356 1,016 2,260 PREMIUM II 300 thous. bpd (2017) COMPERJ (2º phase) 165 thous. bpd (2018) 1, , Gasoline Diesel Others Throughput o Domestic production will represent 91% of refinery throughput by 2020 o Comperj s first phase is now a new refinery 65

66 Upgrading to Optimize Performance and Ensure Sustainability Through Cleaner Fuels o QUALITY OF GASOLINE Regular Gasoline Regular Gasoline 0,005% S RECAP REPAR REMAN o QUALITY OF DIESEL Diesel S-1800 Diesel S-500 Diesel S-50 Diesel S REDUC REPLAN REVAP RLAM REP AR REPLAN REVAP RE CAP RPBC REGAP REFAP REGAP REMAN RE FAP RLAM REGAP RPBC o Improving gasoline and diesel quality to comply with stricter environmental regulations and reduce emissions & pollutant streams 66 66

67 AVERAGE REALIZATION PRICE: Stable price in both domestic and international markets US$/bbl R$/bbl Avg. 2Q Avg. 1Q10 Avg. 2Q Q08 3Q084Q081Q092Q09 3Q09 4Q09 1Q10 2Q10 Petrobras Oil Price (avr) 4Q07 3Q08 4Q08 3Q08 4Q09 1Q09 2Q09 ARP EUA 3Q09 4Q09 1Q10 2Q10 Brent (US$/bbl) ARP Petrobras o Oil price increase in the international market (1H09:US$40.74; 1H10:US$73.35) and decrease in the discount between light/heavy oil since the end of 2009 which increased E&P earnings; o Price stability in Brazil combined with higher Brent and heavy oil prices reduced refining margins

68 POSITIVE MARGINS GUARANTEES REFININGS GOOD RESULTS WTI Petrobras Margins* US Gulf Coast M argins** (US$barrel) PBR: PBR: PBR: PBR: USGC: USGC: USGC : USGC: jan/08 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 abr/08 jul/08 out/08 jan/09 abr/09 jul/09 out/09 jan/10 o Although diesel and gasoline prices were down in June 2009, Petrobras margins are still above international market reference margins *Petrobras Margins = PMR-WTI (in US$/barrel) * * USGC Margins Bloomberg 68

69 TRADE BALANCE 1H09 v. 1H10: Increasing trade balance despite small reduction in net exports Thous bpd H Oil Oil Products H Export Import Net Export Financial Volume (US$ Million) Export Import Net Export US$ 1,302 4,906 6,208 1S09 Import US$ 1,466 8,904 10,370 1S10 Export o Lower net export due to stronger domestic demand, primarily diesel; o Higher financial volume in the trade balance (+US$ 164 millio n) due to smaller light heavy differential, reduced crack spreads on imports.

70 DOWNSTREAM SUPPLY CHAIN: INTEGRATING THROUGH TARGETED INVESTMENTS Investment decisions in this segment are based on the need to: o Secure a natural hedge between petrochemical and refining cycles o Diversify into higher value-added products o o o Maintain flexibility and access to competitive feedstock Develop cost leadership Improve competitiveness BRK Petrochemical Investments i) The incorporation of a holding company which will hold 100% of Braskem common stocks ii) iii) iv) Capital contribution in BRK to be paid in cash by Petrobras (R$ 2,5billion) and Odebrecht (R$ 1 billion) Capital increase at Braskem through a private subscription (between R$4,5 and R$ 5 billion) Acquisition by Braskem of the stock in Quattor held by Unipar v) Acquisition by Braskem of 100% of the stock in Unipar Comercial and 33% of the stock in Polibutenos vi) vii) Merger by Braskem of Petrobras stake at Quattor Stock tender offer for the indirect sale of the controlling interest in Quattor Petroquímica SA 70

71 COMPERJ: CONTRIBUTING TO THE PETROBRAS VALUE CHAIN Comperj will: o Expand the domestic petrochemical market o Utilize Marlim crude as feedstock o Capture synergies from existing regional infrastructure o Improve the balance within the commercial value chain for oil, oil products and petrochemicals Fuels Petrochemicals BASICS Products Production (kta) Diesel 535 Naphtha 284 Coke 700 Ethylene 1,300 Propylene 881 Benzene 608 Butadiene 157 p-xylene 700 Sulphur 45 DOWNSTREAM Products Production (kta) Polypropylene 850 Polyethylene 800 Styrene 500 Ethylene glycol 600 PTA 500 PET

72 BIOFUEL TARGETS AND INVESTMENTS Continued expansion and integration with oil products Ethanol Production Production Capacity of Biodiesel in Brazil Thous. m³/year % 2,600 Thous. m³/year % Ethanol Exports +135% 1,055 INVESTMENTS : 2014: US$ 3.5 Bi 0.7 Thous. m³/year Ethanol Biodiesel R&D Logistics 72

73 GAS & ENERGY 73 73

74 NATURAL GAS MARKET AND POWER CAPACITY Growth in natural gas demand, consolidation in Thermo Power capacitycity Natural Gas Demand 130* Million m3/day 46 14,4 2,0 24,3 5, Electrical Generation Industrial Fertilizers Other uses * 2014 Thermooelectrical generationa refers to full and simultaneous dispatch of plants Installed Capacity of Electrical Energy Generation (MW) 7,227 7, % 365 5,997 6,437 1,093 1, International Thermoelectrical and Co-generation Renewables Sources 74

75 NATURAL GAS BASED FERTILIZERS Fertilizer plants to take advantage of available gas and infrastructureructure +160% UFN III (sep/14) Am monia: 81th. ton/year Urea th. ton/year Ammonia Plant (Dec/14) 519 th. ton/year UFN IV (dec/15) Urea 763 th. ton/year 2,911 2,104 Th. ton/year 1, ,374 1, Ammonia o Manage total demand for gas by transforming natural gas into fertilizers needed by Brazilian agriculture (substituting demand that is currently imported) Urea 75

76 GAS, POWER AND GAS CHEMICAL INVESTMENTS Transition from investment in infrastructure to gas demand flexibility Investments US$ 17.8 billion 30% % o Completion of the natural gas transport and processing infrastructure o Consolidating investment in power generation: thermo-electric, wind, biomass % o Presence in LNG chain for transport and distribution of pre-salt gas 5.7 o Major investments in the conversion of natural gas in to Urea and Ammonia 32% LNG Electrical Energy Pipeline network Chemical Gas Facilities (Fertilizers, ammonia) 76

77 NATURAL GAS AND ENERGY GENERATION INFRASTRUCTURE CONSOLIDATION o Natural Gas logistic and Energy generation Infrastructure consolidation. Highlights: o o Urucu-Coari-Manaus pipeline and Gasoduc III 844 KM and 44.1 MMm3/d NG capacity LNG Regasification Terminals: - Guanabara Bay and Pecém - 27 MMm3/d o Auctions and bi-lateral agreements to sell shortterm NG supply (average sales of 4.7 MMm3/d de NG in 9 auctions) o Portfolio diversification concluding first investment cycle 77

78 INTERNATIONAL 78

79 PETROBRAS CURRENT INTERNATIONAL PRESENCE 2009 Brazil Production: Oil and LNG: thous. bpd Natural Gas: 317 thous. bpd Oil Products: thous. bpd Proven Reserves: 14,2 million boe (SPE Criteria) Distribution market share: 38.6% Ethanol Exportation: m³ 79

80 INTERNATIONAL STRATEGY Reduced allocation of capex, with focus on upstream o Ramp up of existing developments, stable production in long term o Reduced investment and production a reflection of greater opportunities in Brazil DISTRIBUTION 221 2% G&E 186 2% INVESTMENTS : 2014: US$ 11.5 bi RTCP 615 5% E&P 10,330 90% CORPORATE 123 1% Thousand bpd INTERNATIONAL PRODUCTION OF OIL AND GAS BP o Development focus: Gulf of Mexico, West Coast of Africa and Latin America o Exploration focus: Atlantic Project, West coast of Africa, aligned with domestic E&P o Reduced emphasis on refining Oil and NGL Natural Gas BP Target o Reduced emphasis on LNG, alignment with domestic Gas and Power segment 632 BP Target - 49% 80

81 PROCESS OF DEVELOPING DEEPWATER PRODUCTION IN OFFSHORE GOM wells are a continuation of our process of developing deepwater production in offshore Brazil 1977 Enchova 410ft 1988 Marimbá 1610ft TUPI WATER DEPTH = 7,125 ft TOTAL DRILLING DEPTH = 17,431 ft TIBER WATER DEPTH = 4,134 ft TOTAL DEPTH = 35,055 ft DRILLING MILES BY WATER DEEPTH 1994 Marlin 3,370ft 2009 Tiber 4,134 ft 1997 Marlin Sul 5,600ft 2003 Roncador 6,180 ft 2009 Tupi 7,125 ft 2010 Cascade Chinok 8,250ft 81

82 CASCADE - CHINOOK DEVELOPMENT FIRST OIL 2010 Shuttle Tanker FPSO Petrobras America operated fields - Water Depth ~ 2,500 meters (8,200 feet). Control Umbilical Manifold Gas Export Pipeline Power Umbilical Cascade FSHR Flow line Tree Chinook US regulators approved Petrobras plans to bring first FPSO (*) to the US Gulf of Mexico. Technologies new to US Gulf of Mexico, including disconnectable turret buoy, allowing the vessel to move offsite during hurricanes, and transportation via shuttle tanker. (*) FPSO Floating, Production, Storage and Offloading facility. Petrobras has an extensive experience in the use of FPSO with fifteen units currently under operation offshore Brazil. Source: Petrobras America inc 82

83 INTERNATIONAL WEST AFRICA AGBAMI (PB 13%, Operator: Chevron): First oil: July 2008 / Peak: 232,000 bpd in 2009 (total) 6 blocks (1 in production) 6 blocks (1 in production) Operator in prolific Block 18 with 30% stake (First oil: 2010) Operator in prolific Block 18 with 30% stake (First oil: 2010) AKPO (PB 20% - Operator: Total): First oil: March 09 / Peak: 175,000 bpd in 2009 (total) Petrobras Stake in Akpo and Agbami: 64,000 bpd by end of Proven Reserves (SEC ): 131,3 MM boe (% Petrobras) 83

84 FINANCE 84

85 HISTORICAL DIVIDEND PAYMENT Dividends per ADR Net Income per ADR Price per ADR (Max-Min) US$ US$ US$ o Brazilian Corporate Law requires a minimum annual distributions equal to 25% of net income o Dividends paid each year based on prior years income o In 2009, Petrobras paid the dividends related to the 2008 results as well as a portion of the dividends (interest on capital) related to the 2009 results * Dividends includes the Interest on own Capital (IOC) 85

86 GROWING CASH FLOW DRIVES CAPEX 35,000 30,000 SOURCES 27,886 34,213 5,993 42,832 17,9 12 US $ million 25,000 20,000 15,000 10,000 5,000 12,311 15, ,825 5,222 21,077 22,664 28,220 24, ,000-2,804-3, OC F Net Debt US$ million 45,000 40,000 35,000 30,000 25,000 20,000 15, ,00 0 5, USES 42,846 34,621 7,712-26,179 4,747 1, ,030 3, ,480 3,144 35,134 29, ,104 20,768 14, , CAPEX Dividends Acquisition 86

87 CAPEX RELATED TO GROWTH, NOT MAINTENANCE US$ MM ,326 Others ,134 Gas & Energy ,920 14,500 Downstream E&P OCF 2009 Capex 2009 (1) Capex 2010 (2) Est. Maintenance Capex (1) In USGAAP (2) R$ 88.5 billion converted by FX rate of 1,87 R$/US$ (Petrobras forecast to 2010) 87

88 CONSTRUCTION IN PROGRESS: Increase in net debt related to expansion US$ Million Construction and Installations in Progress , ,537 38, ,865 19, US$ Million Net Debt 40, , ,306 8,650 14,

89 CASH GENERATION AND INVESTMENT Profitable investments funded with cash flow, debt and equity capital PROJECTED Operating Cash Flow ( ) Cash US$ 11 billion Funding (debt + equity) US$ 96 billion Amortization US$ 38 billion OCF (after dividends) US$ 155 billion Investments US$ 224 billion Sources Uses o Plan requires additional debt and equity capital o Return on portfolio of approximately 14% on the aggregate of projects in the Plan substantially exceeds cost of capital 89

90 PRINCIPAL FINANCIAL INDICATORS vs Stable cash flows with increasing investments INDEX Plan Plan FX Rate (R$/US$) Brent for Funding (US$/bbl) Projected Investments (US$ bn) Projected Net Cash Flow (After dividends) (US$ bn) Net Total Capt. (US$ bn) 58* 23 Leverage Up to 35% Up to 35% Average Realization Price (R$ barrel) * Including Capitalization and excluding amortization of US$38 billion o Conservative assumptions: Despite higher assumed oil prices, stable realization price 90

91 0 SUCCESSFUL EFFORTS TO RAISE CAPITAL FROM LONG TERM SOURCES (US$ bilion) 6.5 Brigde Loan Market Capital Bond issuance ,5 2,5 1,25 1,5 Bond issue 2009 Oct (Maturity 2040) Yield: 7.00% Oct (Maturity 2020) Yield: 5.875% Jul (Maturity 2019) Yield: 6.875% Feb (Maturity 2019) Yield: 8.125% + BNDES Others Loans US$ billion 13.3 (*) 2 U S Eximbank Others (*) R$ 25 billions conv erted by FX tax in China Development Bank In 2009, US$ 34.8 billion were raised with an average life of 10.6 years 91

92 DEBT PORTFOLIO: A very diversified debt portfolio 0.2% 2.2% 19.8% FUNDING SOURCES (US$bn) Mar-10** Dec-09 Dec % US$ R$ JPY Others 53.1% 46.9% Commercial Banks Debt International Bonds Local Bonds ECA s Project Finance BNDES* Other BB/CEF Total Debt Fixed Floating % Capital Market 23% 26% 27% * Including Project Finance ** Based on 1Q10 BRGAAP Results 92

93 QUARTERLY CASH FLOW: Financing and cash flow support investments and maintain liquidity R$ million 2Q09 1Q10 2Q10 Cash at the beginning of the period 19,776 29,034 26,951 Cash generated by operating activities 9,114 9,676 13,259 Cash used in investment activities (17,750) (16,013) (19,638) Free Cash Flow (8,636) (6,337) (6,379) Dividends (6,398) (24) (3,711) Financing 5,937 4,212 7,292 Cash at the end of the period 10,297 26,951 24,210 Brent (US$/bbl) FX rate (R$/US$) EBITDA 17,599 15,076 15,927 o Stable EBITDA w ith substantial liquidity o Greater EBITDA in 2Q09 due to higher ARP, combined with lower production taxes. Weaker Real also led to higher export revenues, when expressed in Reais.

94 LEVERAGE: Multiples maintained within Company s targets % 26% 28% 0.95 Net Debt/Net Cap % 32% 34% 1.21 Net Debt/Ebitda % 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% Targets: - Leverage between 25% and 35% - Net Debt / EBITDA up to 2,5x 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 R$ Billion 06/30/2010 Short Term Debt 26.0 Long Term Debt 92.4 Total Debt Cash and Cash Equivalents 24.2 Net Debt 94.2 Net Debt/Ebitda 1.52X US$ Billion 06/30/2010 Total Debt /31/ X 03/31/

95 CAPITAL STRUCTURE AND CREDIT METRICS In Million US$ Cash and Cash Equivalents Total Debt Net Debt Shareholders Equity Net Debt / Net Capitalization 30% 25% 19% Net Debt/ Market Capital 21% 22% 6% Net Debt / Boe Production (USD/boe) 22,4 23,5 17,8 Net Debt / Proved Reserves (USD/boe) 2,76 1,37 1,0 Reserves/Production (Years, SPE Criteria) 16,12 17,22 17, Net Income EBITDA Net Debt/EBITDA 0,71 0,66 0,58 95

96 CAPEX 2010 vs Investments 2009 R$ 70.8 billion 0,6 3,8 6,8 10,5 31,6 17,4 25% E&P Downstream Gas & Energy International Distribuition Others Annual Business Plan 2010 R$ 88.5 billion 8,1 6,2 0,9 34,0 2,6 36, (2.4) (0.7) (0.9) (R$ billion) CAPEX 2009 E&P Downstream G&E International Distribution, CAPEX 2010 Biofuels and Corporate 96

97 UPDATE 97 97

98 OIL AND NATURAL GAS PRODUCTION 1H10 VS 1H09: New projects contribute to production increases 231 2,272 Total Production +3% 2,503 2, International National 2, ,958 National Production +2% 2,272 2, Natural Gas Oil and LNG 1,998 (Thous. bpd) 1H09 1H10 1H09 1H10 o Monthly record of domestic oil production of 2,033 thousand bpd in April,2010; o 6,5% growth in international production due to production start-up in the fields of Akpo and production increase in Agbami, in Nigeria.

99 DOMESTIC OIL PRODUCTS AND NATURAL GAS MARKET: Significant sales growth in the domestic market Thous. bpd Oil Products Natural Gas +7% 1,769 1,851 1, % Others LPG Gasoline Diesel Q Q Q10 2Q09 1Q10 2Q10 Oil product sales in the domestic market grew 7% in comparison with 2Q09, due to: o 6,5% increase in diesel sales as a result of recovering economic activity and improved grain harvest; o 13% growth in gasoline sales. Growth was led by increase in the usage of gaso line in flex fuel vehicles caused by ethano l shortage and temporary reduction of anhydrous ethanol in the gaso line blend; o 15% increase in jet fuel sales (economic recovery leading to increased aviation). Natural gas: Higher sales of natural gas to industry, greater thermoelectric dispatch.

100 CAPEX 1H10 vs 1H09: Increasing investments to meet domestic market demand Capex 1H10 R$ 38.1 billion Capex 1H09 R$ 32.5 billion ,8 0, ,1 5,6 24, ,1 1,3 6,1 E&P Downstream Gas and Energy International RTC Others , Downstream Capex 25% 25% Quality /Sulfur Content Reduc tion Conversion New Refineries 18% 12% Fleet Expansion Investments of R$ 2.5 billion in Braskem 19% Plangas, Maintenanc e, infrastruc ture, HSE and others 1%

101 Information: Investor Relations