2014 Global Energy Conference Credit Suisse. Rudimar Lorenzatto Exploration & Production June, 2014

Transcription

1 2014 Global Energy Conference Credit Suisse Rudimar Lorenzatto Exploration & Production June, 2014

2 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 2014 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 forwardlooking 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 AGENDA BUSINESS AND MANAGEMENT PLAN PRODUCTION UPDATE - RAMPING UP NEW SYSTEMS - MAINTAINING EXISTING SYSTEMS PER BOE ANALYSIS PRE-SALT UPDATE NEW UNITS CONCLUSION

4 Business and Management Plan

5 Investments in Exploration & Production: US$ billion Production Development (73%) Exploration & Production (69.8%) BMP Total Investment US$ billion Downstream 38.7 (17.5%) Gas & Energy 10.1 (4.6%) International 9.7 (4.4%) Distribution 2.7 (1.2%) Biofuels 2.3 (1.0%) Engineering, Technology & Materials 2.2 (1.0%) Other Areas 1.0 (0.5%) Pre-salt Concession Transfer of Rights Production Sharing 82.0 (60%) 53.9 (40%) Post-salt Exploration: 23.4 (15%) Infrastructure: 18.0 (12%) Exp + R&D 5

6 Projects Under Implementation, Bidding Process and Evaluation Portfolio of Projects Under Implementation + Under Bidding Process US$ Billion Portfolio of Projects Under Evaluation US$ 13.8 Billion BMP Total Investment US$ billion Exploration & Production (69.8%) Downstream 38.7 (17.5%) Gas & Energy 10.1 (4.6%) International 9.7 (4.4%) Distribution 2.7 (1.2%) Biofuels 2.3 (1.0%) Engineering, Technology & Materials 2.2 (1.0%) Other Areas 1.0 (0.5%) Under Implementation (US$ billion) Projects being executed (construction) Projects already bid Resources required for studies of Projects Under Evaluation Under Bidding Process¹ (US$ 30.9 billion) E&P projects in Brazil Represent around 200 th. bpd of production in 2018 and 900 th. bpd in Oil Production 2020: 4.2 million bpd Projects under Studies in Phase I, II or III (except E&P in Brazil) No impact in Oil Production 2020 ¹ Includes E&P projects in Brazil which will stil go through bidding process of their units, as well as Premium I and Premium II refineries, which will have the bidding process carried out throughout 2014 ² Source: IHS CERA Regional Downstream Capital Costs Indexes

7 BMP: Investment and Operating Costs Management BMP US$ Billion PROEF Program to Increase Operational Efficiency UO-BC UO-RIO PROCOP Operating Costs Optimization Program PRC-Poço Program to Reduce Well Costs PRC-Sub Program to Reduce Subsea Facilities Costs INFRALOG Logistic Infrastructure Optimization Program Local Content Management Take advantage of the industry s capacity to maximize gains to Petrobras Health, Safety, Environment and Energy Efficiency 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. PRC Sub: Focus on CAPEX dedicated to subsea systems construction. 7

8 New systems ensure future growth Piloto Sapinhoá (Cid. São Paulo) Baúna (Cid. Itajaí) Piloto Lula NE (Cid. Paraty) Papa-Terra (P-63) Roncador III (P-55) 1.9 Norte Pq. Baleias (P-58) Roncador IV (P-62) Papa-Terra (P-61+TAD) Sapinhoá Norte (Cid. Ilhabela) Iracema Sul (C. Mangaratiba) Growth in 2014: 7.5% ± 1p.p. Iracema Norte (Cid. Itaguaí) Lula Alto Lula Central Lula Sul (P-66) Búzios I (P-74) Lapa Lula Norte (P-67) Búzios II (P-75) 3 MM bbl Lula Ext. Sul e CO Sul de Lula (P-68) Lula Oeste (P-69) Búzios III (P-76) Iara Horst (P-70) Tartaruga Verde e Mestiça Búzios IV (P-77) NE de Tupi (P-72) ES Águas Profundas Iara NW (P-71) Revitalização Marlim I SE Águas Profundas I Sul Pq. Baleias Maromba I Carcará Entorno de Iara (P-73) 3,2 Júpiter Búzios V Espadarte III SE Águas Profundas II Revitalização Marlim II Libra Florim 4.2 On Stream Built Ordered Under Bidding kbpd +660kbpd +150kbpd +1000kbpd +900kbpd +1050kbpd Capacity added per year 8

9 Ramping Up New Systems

10 Production in the 1Q14 was 1,922 kbpd, in line with projections Th. bpd 2,200 2,150 2,100 2,050 2,000 1,950 1,900 1,850 1,994 1,955 1,965 1,920 1Q13 Average 1,910 FPSO Cid. São Paulo (Sapinhoá) Jan 5 th Capacity: 120 th. bpd (45% Petrobras) th. bpd 1Q14 20 th. bpd FPSO Cidade de Itajaí (Baúna) Feb 16 th Capacity: 80 th. bpd (100% Petrobras) th. bpd 1Q14 72 th. bpd 1,890 1,846 1,974 1,924 2Q13 Average 1,931 1,925 1, : 1,931 th. bpd 2,021 1,979 1,929 1,888 3Q13 Average 1,924 FPSO Cid. Paraty (Lula NE Pilot) Jun 6 th Capacity: 120 th. bpd (65% Petrobras) th. bpd 1Q14 30 th. bpd Petrobras Production 1,951 1,908 2,022 1,979 1,994 1,960 4Q13 Average 1,960 P-63 (Papa-Terra) Nov 12 th Capacity: 140 th. bpd (62.5% Petrobras) th. bpd 1Q14 9 th. bpd Production Operated by Petrobras 2,009 1,957 2,027 1,964 P-55 (Roncador) Dec 31 st Capacity: 180 th. bpd (100% Petrobras) 1Q14 8 th. bpd 1,988 1,917 1Q14 Average 1,922 P-58 (Parque das Baleias) Mar 17th Capacity: 180 th. bpd (100% Petrobras) 1Q14 2 th. bpd 2,009 1,923 2,014 1,926 Jan-13 Fev-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14» Main factors that impacted production in the 1Q14: Demobilization of FPSO Brasil (integrity) and complete stoppage of Marlim P-20 for 103 days (fire). Limited availability of PLSVs, due to the delayed decision of contracting abroad ( ), after failed attempts to contract them in Brazil, impacting the pace of interconnection of wells. Delays in the delivery of the platforms by the shipyards and bigger than expected scope for off-shore activities. Longer time for the execution of innovative projects, such as the BSRs (monobuoys) and systems P-63/P-61/TAD. 10

11 Production growth target of 7.5% (± 1 p.p.) maintained 2, Average: 1,931 th. bpd Th. bpd 1Q13 2Q13 3Q13 4Q13 2,600 Average Average Average Average ,500 FPSO Cid. São Paulo Jan 5 th FPSO Cid. Paraty P-55 Jun 6 th Dec 31 st 1Q14 Average Average: 2,075 th. bpd ± 1% P-58 Mar 17th 2Q14 3Q14 4Q14 Cid. Ilhabela 2,300 2,200 FPSO Cidade de Itajaí Feb 16 th P-63 Nov 12th P-62 May 12 th 3 rd Quarter 2,100 2,000 1,900 1,800 1,965 1,920 1,846 1,924 1,892 1,979 1,888 1,908 1,979 1,960 1,957 1,964 1,917 1,923 1,926 3 rd Quarter 3 rd Quarter P-61 Cid. Mangaratiba 4 th Quarter 0 Realized TAD jan-13 feb-13 mar-13 apr-13 may-13 jun-13 jul-13 aug-13 sep-13 oct-13 nov-13 dec-13 Factors that support production growth:» New systems: P-62 (May 12 th ), P-61/TAD (3Q14), FPSO Cidade de Ilhabela (3Q14) and FPSO Cidade de Mangaratiba (4Q14).» Connection of 65 production wells in 2014, of which 20 have already been connected by 05/09/2014.» PLSV fleet increase: 11 vessels in 1Q14, 13 vessels in 2Q14, 16 vessels in 3Q14 and 19 vessels in 4Q13.» PLSV productivity increase: from 99 km / PLSV / year in 1Q13 to 129 km / PLSV / year in 1Q14 (+30%). jan-14 feb-14 mar-14 apr-14 may-14 jun-14 jul-14 aug-14 sep-14 oct-14 nov-14 dez-14 11

12 Our critical resources needs are fulfilled New Production Units New UDW Drilling Rigs¹ above 2000m New PLSVs² Current fleet: 55 Current fleet: 40 Current fleet: 11 Sete Brasil drilling rigs will largely replace the internationally built rigs 1) Rigs above 2000m 2) PLSV = Pipe Laying Support Vessel 12

13 Production Wells Expected to be Connected in 2014 New Production Wells in 2014 New Injection Wells in Connected Completed Drilled Total Connected Completed Drilled Total In 2014, up to April, 20 wells connections were done with 30% more efficiency (km/plsv/year) than in the last year. 13

14 Buoyancy Supported Risers Dimensions: 33ft x 130ft x 170ft A pioneer concept for subsea systems: a giant buoy to support rigid risers. Which fields? Sapinhoá Field (FPSO Cid. de São Paulo) Lula NE Field (FPSO Cid. de Paraty) Operational status: All 4 buoyancies are installed. Time for installation: 1 st buoy: 164 days 2 nd buoy: 55 days The Results: In 2013: more 17 mil bpd In 2014: more 19,5 mil bpd 15

15 Maintaining Existing Systems

16 Main Operational Units MG Vitória Cangoá Camarupim ESGolfinho Carapó Peroá Canapu UO-ES 7 production units 287 kbpd Parque das Baleias Albacora Garoupa Roncador UO-RIO 17 production units 840 kbpd PR SC Curitiba SP Tubarão Estrela do Mar Coral Caravela Cavalo Marinho São Paulo Piracucá Guaiamá Baúna Piracaba Mexilhão Sagitário Merluza Santos Basin RJ Rio de Janeiro Pirapitanga Carapiá Búzios Florim Iara Parati Iracema Lapa Lula Bem-te-vi/Carcará Sapinhoá Caramba S. Guará Tambaú Pampo Carataí Maromba Ent. Iara Jupiter Sul de Lula Peroba Tambuatá Libra Papa-Terra Carapicu Xerelete Marlim Barracuda Campos Basin 100 km UO-BC 34 production units 372 kbpd UO-BS 8 production units 142 kbpd UO-SUL 1 production units 71 kbpd 18

17 Program to Increase Operational Efficiency (PROEF) UO-BC Recovering wells and subsea systems. Total Expenditure* US$ 1,897 mm NPV* US$ 1,080 mm Production gain: +43 kbpd in the 1Q14. Operational Efficiency(%) Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Apr/14 Oil + NGL Production (kbpd) With PROEF Without PROEF 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Apr/14 UO-RIO Integrity improvement and optimization in the usage of resources. Total Expenditure* US$ 3.2 mm NPV* US$ 1,340 mm Production gain +15 kbpd in the 1Q14. Operational Efficiency(%) Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Apr/14 Oil + NGL Production (kbpd) With PROEF 775 Without PROEF 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Apr/14 19 * By February 2014

18 Legacy Oil accounts for 80% of the production target for 2014 Reservoirs potential decline rate Decline Rates - CERA 2.5 SOURCE LARGE FIELDS SMALL FIELDS 2 Onshore 5,3% 6,2% OIL POTENTIAL (MM BPD) Decline rate 1Q14 x 1Q13 10% Deep waters 12,0% 19,8% Shallow waters 7,5% 12,1% CERA: Cambridge Energy Research Associates Authors: Jackson/Eastwwod, 01/2012 Deep waters = water depth > 300m Large fields = reserves > 500 mm bbl The control over the reservoirs decline rate ensures the oil production forecast for the year 20

19 Higher productivity guaranteed the maintenance of lifting cost More operational activities with constant oil production; Stabilized unitary costs with a downward trend increase in productivity and cost reduction BRL/boe USD/boe Average: R$ /boe Average: R$ /boe +27% % 2012 Average: R$ /boe Average: R$ /boe Average: R$ /boe % 2013 Average: -1% R$ /boe 1Q 2014: R$ /boe 1Q 2014: R$ /boe 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q E +18% +1% Average FX (R$/US$) % of costs in US$ Oil production (th. bpd) 2,022 1,980 1,931 1,922 2,088 Pre-salt production (th. bpd) Days of workovers (PROEF) 1,402 2,966 3, ,711 21

20 The BMP counts with the gains of PROCOP Costs reduction between 2013 and 2016, with nominal values of R$ 37,5 billion 34.8 Ligting Cost (R$/boe) ,9% a.a. -7,2% a.a Optimization of routine processes and resources used in the production of oil & gas. Excellence level in the management of materials and spares. Adequacy of overhead

21 Pre-salt Update

22 The Pre-Salt Province Average Water Depth: 2,100 m Distance from the coast: 300 km Salt thickness: 2 km MG 13% Consortium without Petrobras Reservoir average depth: 5 km Recoverable Volumes Lula: 6.5 bi boe Lula Iracema area: 1.8 bi boe Sapinhoá: 2.1 bi boe Transfer of Rights: 5.0 bi boe Total: 15.4 bi boe São Paulo Remaining areas mil km² 69% Areas under concession 45.6 mil km² 31% 87% Petrobras and associates Rio de Janeiro RJ Campos Basin 7,000 km 2 (1.7 million acres) 100 km Curitiba * Comerciality declaration of Lula (6,5 bi boe), Lula Iracema (1,8 bi boe), Sapinhoá (2,1 bi boe) e Lapa (459 mi boe) Santos Basin Pre-Salt 15,000 km 2 (3.7 million acres) 650 US GoM blocks Concession Transfer of Rights Production Sharing 24

23 The Pre-Salt Province 9 production units + 2 EWT FPSO Cid. MG Anchieta 5 p; wells FPSO Capixaba 1 p. well P-58 1 p. well 22 production wells (10 PPSBS, 5 BC/RJ e 7 BC/ES) FPSO Cid. Angra dos Reis 4 p. wells Rio de Janeiro FPSO Cid. Niterói RJ 1 p. well FPSO Cid. Paraty 2 p. wells São Paulo FPSO Cid. São Vicente 1 p. well P-48 1 p. well P-53 3 p. wells FPSO Dynamic Producer 1 p. well Curitiba FPSO Cid. São Paulo 2 p. wells Concession Transfer of Rights Production Sharing 25

24 Pre-Salt Production Highlights Monthly Production Average (kbpd) Campos Basin Santos Basin Daily Production Record 470 kbpd in May 11 st High Productivity Wells (kbpd - peak) SPS-77 (Sapinhoá Pilot) LL-02 (Lula Pilot) BAZ-04 (Baleia Azul) Cumulative production Aug/08 to Apr/ million bbl Lifting Cost 2013 (US$/boe) April Lula Petrobras E&P Lula Nordeste Pilot on stream since June 2013 with only 1 production well 26

25 Pre-salt Drilling Activity in the Santos Basin Pre-salt Cluster 55% Reduction of drilling time from 134 to 60 days ( )* Drilling + completion record (2013): 109 days % Exploratory success in the pre-salt province in >90% Exploratory success in the pre-salt province since injection wells 21 production wells Active Rigs Development Exploration exploratory wells * dryhole 27

26 Wells Construction in Santos Pre-salt Total Duration Drilling Completion (including WCT) % p.a % p.a Duration (days/well) Duration (days/well) 28

27 Libra 40% 20% 20% 10% 10% L2 L3 L1 L4 L5 L6 L7 L8 L9 L10 L11 L12 Unique Characteristics Very thick Pre-salt reservoirs Good reservoir quality (porosity / permeability) Light Oil (~ 27 API) Libra Concession Transfer of Rights Production Sharing The Libra partnership offers a vast array of opportunities Very strong oil companies Integrated Project Team Openness to new ideas 29

28 New Units

29 FPSO Cidade de Ilhabela - Sapinhoá Norte Sail away by Jul/2014 1st oil: 2H kbpd oil 6 MM m³/d gas 8p + 7i wells

30 FPSO Cidade de Mangaratiba - Iracema Sul Sail away by Aug/2014 1st oil: 2H kppd oil 8 MM m³/d gas 8p + 7i wells

31 P-66 - Lula Sul (Replicant) 1st oil: 2016 The first of 8 new build FPSOs (Replicants)

32 P-74 Búzios I 1st oil: 2016 The first of 4 Converted FPSOs

33 Conclusion

34 CONCLUSION To achieve our 7,5% (+-1%) growth in production in 2014, we are counting on: Arrival of 8 PLSV, making a total of 19 PLSVs (12 to pre-salt) by the end of 2014 Out off the 10 new units planed for , 7 are already producing, one is in its final stage (P-61) and the other 2 are almost done (92% and 93%). The BSR technology are now field proof with all the buoy installed. Highly productivity of the pre-salt fields (the last wells are producing kbpd). The decline rate of our fields are slightly better then the market benchmarks. PROEF is bringing great results by reducing the decline rate of our existing fields and also by improving the efficiency of our production systems. PROCOP is proving very important for the upstream department of Petrobras because is decreasing the lifting cost. The Pre-salt production is increasing in a sustainable manner and is showing the high productivity of its fields (average production of 410 kbpd in April). 39

35 CONCLUSION Petrobras is a businesses driven company and our focus now is the increase of production. Our board is directly involved in this matter. We are getting more efficient in drilling and completing wells the Pre-salt layer, with an average duration reduction of 13% yearly from 2012 to 2014, a remarkable outcome, since it accounts for 51% of our E&P investments. We are all very excited about Libra and committed to deliver a great project achieving production and cost targets. 40

36 THANK YOU! INFORMATION Investor Relations