XIV Japan Brazil Joint Economic Committee Meeting
CEO José Sergio Gabrielli de Azevedo
August 9th 2011
1
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 2011 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
THE IMPORTANCE OF NATURAL RESOURCES TO JAPAN
Japanese Imports ‐ Jan‐Jun 2011
2,5%
11,0%
0,1%
8,1%
30,4%
20,1%
9,5%
Japan imports almost 100% of its natural resources demands, as it does not produce oil, LNG, coal and iron ore, for instance.
9,4%
Foodstuff
Materials
Fuels
Chemical Products
Manufactured goods
Machines
Transport Equipment
Others
Japan is relatively well positioned in the world’s natural resources supply chain, through joint ventures or development and production project finances
Japanese Fuel Imports ‐ Jan‐Jun 2011
3,80%
1,20%
15,70%
6,60%
2,90%
Petroleum
Petroleum Products
LNG
LPG
Coal
3
BRAZIL ON THE LEADERSHIP OF RECENT DISCOVERIES
Deep water discoveries in Brazil represent 1/3 of the world’s discoveries in the last 5 years New Discoveries 2005‐2010
(33.989 million bbl)
49%
Other Discoveries
Deep water discoveries
38%
51%
Brazil
62%
Others
Deep Water
• Over the last 5 years, more than 50% of the new discoveries (in the world) took place in deep waters
• The development of these new reserves will demand additional capacity in the supply chain
• The expansion of Brazil’s oil and gas supply chain is aligned to this perspective
We expect to double our proven reserves until 2020, keeping finding costs at US$ 2/boe
Source: PFC Energy
4
LONG HISTORY OF TECHNOLOGICAL AND OPERATIONAL LEADERSHIP IN DEEP
WATERS
1977
Enchova
410ft
125m
1988
Marimbá
1,610ft
491m
1994
Marlim
3,370ft
1,027m
1997
Marlim Sul
5,600ft
1,707m
2009
Lula
7,125ft
2,172m
2003
Roncador
6,180ft
1,884m
Offshore production facilities
Deep water production
Global operations in 2009¹
Petrobras
45
Shell
15
StatoilHydro
15
ExxonMobil
13
BP
12
Chevron
12
10
Anadarko
9
Total
CNOOC
8
ConocoPhillips
8
5
ENI/Agip
Others
100
0
Petrobras operates 20% of deep waters global production
Source: PFC Energy
(1) These 15 operators represented 98% of global deep waters production in 2009. Water depth of 1000 feet
20
FPSO
40
Semi
Spar
60
TLP
80
100
Other
5
LONG HISTORY OF BILATERAL RELATIONSHIPS
50/60
ƒ Participation in the reconstruction efforts of the Japanese naval industry in the Post‐war period, through ships procurement in Japanese shipyards
ƒ Construction of the drilling ship Petrobras II – NS‐01
70/80
ƒ Participation of JGC–Japan Gasoline Corporation in the construction of refineries in Brazil
ƒ Three‐party model in the Petrochemical Industry in Camaçari, with the participation of big Japanese companies
ƒ Construction of 4 semisubmersible drilling platforms in Japan (Petrobras IX, X, XI, XII)
90
ƒ Platforms lease sale back ƒ Bolivia‐Brazil gas pipeline financing
ƒ TQC programs in partnership with JUSE
ƒ Toyo Engineering working on RELAM’s modernization
ƒ Participation of Japanese companies in the Albacora Leste and Frade projects
ƒ Urucu’s NGPU financing
ƒ Various project finances
2000
ƒ Various project finances and loans
ƒ Samurai Bonds issuance
ƒ Petrobras Japanese Office begins operations
ƒ Technological cooperation with Kobe Steel Engineering
ƒ Partnerships in international projects
ƒ LPG sales to Idemitsu Oil
ƒ Mitsui becomes Petrobras’
partner in gas distribution
ƒ Employees interchange between Petrobras and Mitsui
ƒ Toyo Engineering works on engineering projects
ƒ MOUs with Mitsui, Itochu Corporation, JOGMEC
ƒ Brazil Japan Ethanol Trading, in partnership with Japan Alcohol Trading ƒ Partnership with Tokyo University
ƒ Partnership with Mitsui and Transocean to build Petrobras 10.000 Drilling Ship
6
LONG HISTORY OF BILATERAL RELATIONSHIPS
2008
ƒ Okinawa Refinery acquisition (Nansei Sekiyu Co)
ƒ JOGMEC’s financing to Nansei
ƒ Technological cooperation with Tokyo’s University
ƒ PROMINP’s presentation to the Japanese market
ƒ NT‐ Guanabara’s lease
ƒ MOUs with Sumitomo Corporation and Mitusbishi Corporation
ƒ Transpetro’s LNG operators are trained at Tokyo Gas’
terminal
2009
ƒ MOUs with Marubeni Co. and Mitsui & Co. to Premium I and Premium II’s studies
ƒ DBJ financing
ƒ Partnership with Sapporo Beer to produce hydrogen from sugar cane
ƒ MOU with JOGMEC to study methane hydrates, ERP, CO2 capture, flex pipes, new tubings for the pre‐salt
ƒ FPSOs contracts (MODEC) ƒ FEED of the FLNG with Saipem‐SBM‐Chiyoda and Technip‐JGC‐MODEC
ƒ LNG Master Agreement with Japanese companies
ƒ Partnership with Mitsubishi Co and Schain Cury to build the second deep water drilling ship ƒ Joint Venture with Mitsui & Co to ethanol trading based in Singapore
ƒ Partnership with Toyo Engineering to micro GTL pilot plant
2010
ƒ LNG Master Agreement with Japanese companies
ƒ Petrobras 10.000 financing with JBIC
ƒ Mitsui & Co. working to build and operate Comperj’s utilities in partnership with Petrobras
ƒ GTL compact on negotiations with Sumitomo Precision
ƒ Sales of E3 gasoline to the Okinawa market
ƒ NANSEI’s financing by DBJ and ODFC
ƒ IHI’s cooperation to rebuild the facilities of the Ishikawajima shipyard in Brazil
ƒ Participation of Japanese companies in two consortiums to study the Floating LNG project
2011
ƒ Under negotiations with KEPCO/Kansai Electric Power Company a contract for oil supply in case of emergencies
ƒ Second phase of employees interchange between Mitsui & Co. and Petrobras
ƒ Specific Agreement with JOGMEC to develop flexible lines
ƒ Expansion of E3 sales in Okinawa (4 gas stations today. Forecast of 20 by year end)
ƒ Examples of recent projects with the participation of Japanese companies:
₋ FPSO Cidade de São Paulo MV23
₋ FPSO Cidade de Angra dos Reis MV22
₋ FPSO Cidade de Santos MV20
₋ FPSO Cidade de Niterói MV18
₋ FSO Cidade de Macaé MV15
₋ FPSO Cidade de Rio de Janeiro
₋ FPSO Fluminense
7
Perspectives of the Brazilian Market
8
GROWTH IN SALES VOLUMES
Sales volumes (thousand boed) 6,6% p.a.
Ferti lizers
7.142
5,6% p.a.
4.957
3.464
17
94
125
542
231
706
3.773
3.847
38
106
290
738
593
17
97
147
634
312
320
997
699
586
17
94
136
79
141
401
Electri c energy
906
Biofuels
480
Interna tiona l sa les
2.317
Exports
1.739
1.453
1.204
1.315
652
718
731
899
1.078
2009
2010
2011
2015
2020
1.097
Na tura l ga s
436
Other di stributors
Sa les to BR
PN 2011‐15 ‐ Volume de Venda s
Tota is do Sis tema Petrobras
9
2011‐2015 INVESTMENTS
Total:
US$ 224,7 billion
International:
US$ 11,2 billion
3% 2% 1%
2%1%2% 1%
6%
7%
4,1
3,8 2,4
13,2
3,1
31%
127,5 (*)
70,6
57%
87%
E&P
Petrochemicals
Corporate
RTM
Distribution
G&E
Biofuels
E&P
RTM
G&E
Distribution
Corporate
(*) US$ 22,8 bi in exploration
10
PRODUCTION
With ample access to new reserves, Petrobras will more than double production on the next decade
6.418
142
246
1.120
3.993
th boe/day
2.386
99
111
321
2.516
2.575
96
132
317
93
144
334
125
180
618
2.772
96
141
435
+ 35 Systems
+ 10 post‐sal projects
+ 8 pre‐salt projects
4.910
+ 1 Transfer of Rights project
3.070
1.855
1.971
2.004
2.100 Additional capacity
Oil: 2.300 th. bpd
2009
2010
Oil Production ‐ Brazil
2011
Transfer of Rights
13
543
2008
845
Pre-Salt
2015
Gas Production ‐ Brazil
Oil Production ‐ Intl
1.148
2020
Gas Production ‐ Intl
• Pre‐salt and Transfer of Rights will represent 69% of the additional production until 2020;
• Pre‐salt’s share of Petrobras’ oil production in Brazil will grow from the current 2% in 2011 to 18% in 2015 and 40,5% in 2020. 11
PRODUCTION, REFINING AND DEMAND IN BRAZIL
PREMIUM I
(second unit)
300 th bpd
(2019)
COMPERJ
(second unit)
165 th bpd
(2018)
Th. bpd
COMPERJ
(First unit)
165 th bpd
(2013)
5.000
PREMIUM II
300 th bpd
(2017)
Abreu e Lima Refinery (RNE)
230 th bpd (2012)
4.000
PREMIUM I
(first unit)
300 th bpd
(2016)
3.327
3.095
3.000
2.643
2.536
2.000
4.910
3.217
3.070
1.000
1.971 1.792
1.933
2.004
1.798
2.147
2.100
1.811
2.208
2.205
0
2009 Oil and NGL Production ‐ Brazil
2010
2011
Throughput ‐ Brazil
2015
2020
Oil Fuels Market (2 scenarios)
12
THANK YOU!
13
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