IMO 2020Petrobras view

December 2019Due to Agenda incompatibility, Claudia Valeria Carreiro de Sousa was

delegated by Claudio Mastella to this panel.

Claudia SousaGeneral Manager

Domestic Market - Dirty Products

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Disclaimer

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2

3

MEPC Resolution

—

Approval in October 2016

Marine Environment Protection

Committee 70th session (MEPC70)

%S

2000 2010 2015 2020

1,5

1,0

0,5

4,5

3,5

0,1

ECA

World CAP

0,5%0,1%

IMO will enforce a new 0.5% global sulphur

content cap on fuel from 1st January 2020.

Marine fuels in Emission Control Areas (ECA)

remain limited to 0.1% S.

Emission Control

Areas

Annex VI – MARPOL Pollution Prevention from Ships

3year

Comercial World Fleet

> 90 thousand ships

HSFO replacement

million mt

in bunker market

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Market Overview—

WS

Shipping

Increase in diesel demand

15 usd/bbl ULSD

GNL/Scrubberslow penetration

Refining investments

not sufficient for coking of HSFO

surplus and not relevant for its

desulphurization

Bunker 2020 = Mixing of fuels:

LSFO, gasoils, diesel.

Spread 0.5%S vs. 3.5%S

48 usd/bbl (~300 usd/t)

Refing margins

50%- 100%

mainly for complex systems

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Market Overview

—

Increase in

global demandmore than

4xhistorical average

Compliant

fuel/HSFO ratio

A B C D

Rational: LSFO be valued at

____________gasoil price levels

source 50%

price

pressurein distillates

more than

May increase

0,0

1,0

2,0

3,0

4,0

5,0LNG LSFO Gasoil and Distillates

5

2%

World

Market

share

12 supply points

Blending

operations at the

largests hubs in

the world

Market cap

50%

11,000operations/y

Strategic route for

bulk, commodities e

containers

Expertise in global

trading

Potential

Market

9 MM mt/y

LSFO Contracts

Management

PETROBRAS in this context—

Sweet OILComplex refining

and logistics

system

Relevant exporter

of LSFO

World supplier

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São Luís

CE

Petrobras on compliance

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Evaluation of

product exchange

opportunities Surplus to

Asian Market

Compliant fuel in our system:

Sales began on 1st October

2019;

More than 700 thousand mt of

compliant fuel sold;

Improvements in our logistics.

Market evaluation:

Streams evaluation for blending;

Conversation with market

players;

Negotiation of compliant marine

fuel and fuel oil streams.

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Excellent scenario

for Petrobras

sweet oils

Expansion of:

local bunker market;

margins;

and trading

Improvement in

refining margins

and investments

monetization

Optimization of

domestic market

supply

Supply in external market

reliability for clients and own

fleet

Petrobras committed to maritime pollution control

and compliance achievement

Expectation—

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Thank you !!

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