1. 1. PETROBRAS A NEW ROLE IN THE GAME Mr. Jos Sergio Gabrielli CEO October 26th, 2009October, 2009 1
2. 2. DISCLAIMERThe presentation may contain forecastsCAUTIONARY STATEMENT about future events. Such forecasts merelyFOR US INVESTORS reflect the expectations of the Company's management. Such terms as "anticipate", The United States Securities and Exchange "believe", "expect", "forecast", "intend",Commission permits oil and gas companies, "plan", "project", "seek", "should", along with in their filings with the SEC, to disclose only similar or analogous expressions, are usedproved reserves that a company has to identify such forecasts. These predictions demonstrated by actual production or evidently involve risks and uncertainties, whether foreseen or not by the Company. conclusive formation tests to be Therefore, the future results of operations economically and legally producible under may differ from current expectations, and existing economic and operating conditions. readers must not base their expectationsWe use certain terms in this exclusively on the information presentedpresentation, such as oil and gas herein. The Company is not obliged to resources, that the SECs guidelines update the presentation/such forecastsstrictly prohibit us from including in in light of new information or future filings with the SEC. developments. 2
3. 3. COMPETITIVE POSITIONING AMONG PEERSMarket Value as of October 12, 2009 337.0 199.6 (US$ bn) 176.0 164.5147.7 141.6CAPEX 1H09 vs. 1H08102.576.2 75.920% 18%XOM PBR RDSBPCVXTOT ENICOPSTL11% Source: Bloomberg3% STL XOM RDS ENICOPBP PBRBGCVX -1% -1%Oil and Gas production 1H09 vs. 1H08TOT-6% 6%5% -12%4%4%-17% 2% 1%ENIXOMRDSTOT PBR COPCVXBPSTLBG-1%-37%-2% Source: Company reports and web site-4% Source: Company reports and web site -6%3
4. 4. HIGH EQUITY TURNOVER AND DIVERSIFIED SHAREHOLDER BASE Shareholder BaseTurnover NYSE & Bovespa (Daily Average Turnover)(% category and US$MM) 9,5%Foreign20,3% 10,9%26,4%31,2% 29,5%37,4% Turnover 2009YTD/2005 = 512%46,4%10,3% 219 483 992 1,9301,344 18,0%9,9% 8,0% 7,9% Bovespa25,1%30,6%43% 43%Nyse23,1% 22,7%47% 50%20,7% 53% PBR PBR/A 61,6%25%21%20%53,6%20%19%44,4% 40,6% 39,9% 6% Boves40,1%6%5%5%5% pa31%PETR325%27% 26%22%PETR4 Oct/1992 Jul/2000 After Aug/00 After Jul/01 Dec/2003 Dec/08200520062007 2008 2009 YTDofferingoffering Government (1)Bovespa ForeignPETR3 (Bovespa) PETR4 (Bovespa)PBR/A (Nyse)PBR (Nyse)Bovespa BrazilADRs 4(1) Includes BNDES / BNDESPAR
5. 5. BUSINESS PLAN 2009-20132,2703,012 OIL AND GAS PRODUCTIONREFINING CAPACITY5,729(Thousand boe/d) Premium I7.5% a.a.223 (Thousand bpd)) 600 Th. bpd. 6% a.a 4092010: 43 TH. BPDandPremium II 3,6551,1772011: 255 TH. BPD 300 Th. bpd2,7571311,7791,791 2012: 150 TH. BPD2,308 2,400 210103 634 109100 142 8.8% a.a. 126124 463 273 3213,9202,6801,7921,855 2,0502007 2008 2009 2013 2020 O il P roduction - B razil G as R poduction - B razil O il P roduction - International G as P roduction - International2008 2009201020112012 2013 2020GAS & ENERGYCAPEX - US$174.4 Billions 1st investment cycle (up to 2010) 2%2% 2% E&P3%+ 2, 332 km pipelines 5.6 RTC 7% 3.0+ 19 new power plants11.8 2.8 G&E+ 1,236 MW3.2+ LNG Terminal - Baa de GuanabaraPetrochemicals Distribution 43,4 104.6 (*) 2nd investment cycle (2011 on ) 25%59% Biofuels + 307 km pipelines Corporate + new compressor stations (*) US$ 17.0 billion allocated to + 2 LNG terminals (Regas-Flex Terminal) Exploration + Natural Gas plants5
6. 6. CURRENT INTERNATIONAL PRESENCE Exploration & Production EnergyRefining Gas sector activitiesDistribution Representative officeCommercializationCooperation agreement Operations inExpanding activities in America, 27 countries Europe, Africa and Asia. Petrochemicals Head officeJAPAN - Nansei Sekiyu refinery in Okinawa: Capacity to process 100 thousand bpd, storage for 9.6 million barrels of oil products and provide logistical support for the distribution of Petrobras products to the Asian market 6
7. 7. PRE SALT REGION: A PROMISING FUTUREThe big blue area represents the expected Pre-salt location, with great potential for oil presence Currently, Campos basin is responsible for 87% of the Companies' total production, however, when comparing with Santos basin region one may see how promising the region is. 7
8. 8. ENHANCING RESERVESSantos Pre-Salt announced recoverable volumes, can almost double Brazilian reserves.mi boe~ 25-30 bn boe30,000 25,000 20,000 15,000Higher estimates +5,40010,000 5,000 14,093 Lower estimates 10,6000 2008 Proven Santos and Campos Basins Proven Reserves* +Reserves* Pre-Salt Santos and Campos Basins (Tupi, Iara, Guar and Whales Pre-SaltPark)** (Tupi, Iara, Guar and Whales Park)** *SPE Criteria ** include Petrobras and Partners 8
9. 9. PURSUING NEW PROJECTS WHILE MAXIMIZING PRODUCTION FROM EXISTING ASSETSPetrobras Total Production (x 1000 boe/d)5,729 2237.5% p.y. 4091.177 3,6555.6% p.y.8.8% p.y. 1312,758210 634 2,400 103 2,217 2,2972,301 142 1,8102,037 2,020101 110100 1,635 96 124463 228594142 12624 163321 35 161168 277 2733.92044 274 252251265232 2.680 1.8552.050*1.684 1.7781.792 1.5001.5401.493 1.33520012002 20032004 2005 200620072008 2009.....2013.....2020Oil production - BrazilGas production - BrazilOil production - International Gas production - International * Consider +- 2,5%9
10. 10. IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT 2.000.000 1.800.001.600.00Production (bpd)1.200.00 1.000.00 800.00 400.000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 Numbers of YearsProduction since foundingDiscovery of Garoupa inDiscovery of giant fields in CamposDiscovery of the Pre-Salt,of Petrobras (1954)the Campos basin (1954)basin including Albacora/Marlimsince Parati (2006) 10
11. 11. DEVELOPMENT STRATEGYScenario for the Pre-SaltSeveral blocks Operational Similar geologicalacquired at thePartnerships characteristics same periodOperational PartnershipsChallenging Waterdepth, shoredistance, salt layer,After massive exploratory efforts led to huge discoveries MajorHigh InvestmentImpact on severalTechnological Need areas of Petrobras ChallengesPLANSALSantos Basin Pre-Salt Development Master Plan 11
12. 12. COMMERCIAL CHALLENGES Take advantage of possible synergiesand scale to pursue cost reduction Local content current successfulexamples: Supply vessel construction Subsea equipment Tubulars Motors, Valves etc Repeatability and scale Hull Factory Batch contracts for process modules Standardization program for well and subsea hardware (trees, lines, ) FPSO Flex 12
13. 13. USING CONTRACTS AND LEASES TO SECURE NEEDED DRILLING ASSETS AND FPSOSWater Depth20082009 2010 20112012 2013 - 20180-999m11 1 1000-18 2 1999m 2000m 5 596 + 28 to be leasedTotal per 3479* 7 928**year Rigs Available in 7176 the market > 2400m 30 RIGS CONTRACTED PLUS 28 TO BE LEASED UP TO 2018, MAKING A TOTAL OF 58 DRILLING RIGS:23 being delivered between 2009 and 20119 will be chartered via international bidding, being delivered in 2012 Meeting Petrobras short-term needs, while the national industry prepares itself for additional orders.28 will be built in Brazil, being delivered between 2013 and 2018 FIRST 2 FPSOS TO BE CHARTERED (2013-2014): Oil Production: 120,000 bpd, Gas Compression: 5 M m/d ADDITIONAL 8 FPSOS (2015-2016):Construction of the hulls at the Rio Grande Shipyard, all identical units, manufactured in series* 2 rigs will be dismissed in 2013 13 13**30 rigs contracted plus 28 to be leased up to 2018, making a total of 58 new drilling rigs
14. 14. NEW EQUIPMENT TO BE CONTRACTEDItemsUn. TOTALItemsUn.TOTALWet Christmas Tree un500Pumpsun 8.000Well Headun500Compressorsun700Flexible Lines km 4.000 Winchun450Manifoldsun 30Craneun200Producing pipes t42.000 Enginesun 1.000Umbilicalkm 2.200 Turbines un350Dry Christmas Tree un 1.700 Structure Steal (Hull)t 240.000Onshore well headun 1.700 Structure Steal (Platforms Hull)t 700.000 ItensUn.TOTALItens Un. TOTALReactorsun280 Power Generatorsun 500Oil and water splitterun50Filters un 300Storage Tankers un1.800 Flaresun30Turrets un55014
15. 15. TECHNOLOGICAL INNOVATION FOR THE NEXTDECADESPETROBRAS RESEARCH CENTERPartnership with over 120 universities and research centers in Brazil, and 70 Institutions abroad. Investments in TechnologyTechnological programs2009-2013US$ 4.0 billion25%1.0Basin Deep andHeavy FrontierUltra-deep EnhancedModeling Oil Pre-saltRefining 47%Areas Waters Oil 1.9Recovery 5% 0.20.923% Optimization Bio FuelsE&P Downstream Fuel Natural GasClimate PRO-CO&Transportation EnvironmentInnovation ChangesReliabilityG&E Corp. (Cenpes)15
16. 16. MANAGING RESERVOIR UNCERTAINTIES Reservoir Quality Predictability- best EOR method Subsea Layout Production System Integrity Flexible FPSOs Topsides CO2 Processing & Handling Flow Assurance 16
17. 17. Santos Pre-Salt Cluster Vs. Campos ACCELERATED PROJECT DEVELOPMENT BasinPRE SALT RESERVE DEVELOPMENT USING FAST TRACK PROJECTS - EXPECTED RESULTS: Anticipation of revenues Revenue Anticipation;Possible optimized Possible optimized recovery usingrecovery alternate water and CO2 injection; Capex Optimization Time to first oil reduction Year 0Year 2 Year 4Year 6 Year 8 Year 10 Year 12Year 14Year 16Year 18 Year 20Year 22Year 24 Year 26 Year 28 Year 30Year 32 Year 34 Fast Track Project Standard Project 17
18. 18. PETROBRAS: GLOBAL PRESENCE IN THE BIOFUEL SEGMENT BIOFUELS CAPEX 2009-2013US$ 2.8 BILLION16% Ethanol Biodiesel 84% Ethanol Exports (thousand m)Brazilian Biodiesel Market and 4,5 (thousand m)Petrobras Production Target*427003,5 40.6% p.y.2200317.9% p.y. 2,5 1700 211424,225 1,5 1200 1971700 0,5 1,081 401 Petrobras5350 200 Market-share (20%)(29%)2009 2013-3002009 2013 18 * Base case: Demand B5 in 2013
19. 19. ETHANOL: ANOTHER GOOD OPPORTUNITY TO BECAME A GLOBAL PLAYERNorth andEurope CURRENT MARKET DISTRIBUTION OF WORLD CONSUMPTION Central America37%Brazil 9.8%Ethanol global market is 46.5 Billions LitersEthanol as a Fuel is 30.6 Billions Liters, or 67% of total ethanol 35%productionTODAY the ethanol consumption is 2,6% of gasoline MKSouthincreasing ethanol to 10% of gasoline will represent 118 Billions Lt America Asia38% 16.2%TOMORROW Potential ethanol production would grow by more than 100% based on Lignocelluloses Biomass technologySUGARCANE ETHANOL PROVIDES THE LOWER AND BRAZIL: LEADER IN ETHANOL EFFICIENT PRODUCTION BEST PAYBACK TIME RATIO FOR CARBON EMISSION 420ENERGYRAW MATERIAL OUTPUT/ENERGY320 INPUT Payback Time (Yrs) Wheat 1.2Corn1.3 1.8Sugar Beet1.9 8693Sugar Cane (under37 17Brazilian Production8.3BR AmazonBR Cerrado to IndonesianUS CentralCondictions)to Soy BR Cerrado toIndonesianPeatland Tropical Grassland to Soy BiodieselSugarcane Lowland TropicalBiodiesel Rainforest to Palm Corn Etanol Ethanol Rainforest to PalmOil Biodiesel Oil Biodiesel19 19
20. 20. FUEL ETHANOL USE AROUND THE WORLD Ethanol blending Existing programmes Programmes under implementation No ethanol blending20 Source: IFQC, 2007
21. 21. COMPETITIVE BRAZILIAN ETHANOLProduction Costs US $ / B a rre l 15 4 US $ / B a rrel US $ / B a rre lUS$ / B arre lUS$ / B arre l7551 46 32EU (cereals)USA (Corn) Australia (SugarThailand (SugarBrazil (Sugar Cane)Cane)Cane)Sorce: DATAGRO (in New trends to the ethanol supply chain in brazil, Simoes, R.B., Master Thesis, University VanTilburg, holanda, jul-2006)Brazilian ethanol: growing expectation64 602,556 2,6522,57,7 8,3 472,57,143 2,5 6,6382,56,129 33 2,4 4,9 billion liters251,8 3,9 1,04,1 53,21,14,246,149,64,238,7 42,5 31,334,9 2427,620,32008 2009 201020112012 2013 20142015 2016 2017 Sorce:MME (10 Years Energiy Plan PDE 2006 2017 ver.2) Fuel in domestic MarketExport Other Uses21
22. 22. PETROBRAS: FIRST SERVICE STATION WITH ETHANOL IN JAPAN Initiated operation on 1st of september 2009; Located in Kawasaki; E3 Fuel Commercialization. Initial instalation in two pumps;Expectation of 100 m3/month;Target 2010 (march): 10 service stations and 1,000 m3/month. 22
23. 23. For more information:Investor Relationswww.petrobras.com.br/ri+55 21 3224-1510petroinvest@petrobras.com.br 23