business opportunities in o&g sector in brazil. joint ... -...

1

Business Opportunities in O&G Sector in Brazil. Joint Ventures Between Brazilian and Japanese Companies.

2

The presentation may contain forecasts about future events. Such forecasts merely reflect the expectations of the Company's management. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein. The Company is not obliged to update the presentation/such forecasts in light of new information or future developments.

Cautionary Statement for US investorsThe United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as oil and gas resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.

Forward Looking Statements Disclaimer

3

Petrobras Overview

4

Brazilian Constitution Amended

Nov 1995

PetrobrasNYSE Listing

August 2000

First PublicAuction of OilExploration Areas

June 1999

Full

Deregulation

January 2002

Brazil Self-Sufficient in Oil

April 2006

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 2006

• 60% of total equity capital (common and preferred) is now publicly traded

• Government maintains controlling interest with 55% of voting shares

• Market cap of approximately $260 billion, NYSE Listed, quarterly disclosure in US GAAP

• Foreign currency ratings from Moody’s of Baa1, Standard & Poors (BBB), and Fitch (BBB) (3, 1, and 1 notch above sovereign, respectively)

Upgraded to Investment Grade Issuer

October 2005

Crossed the$100 billion dollar Market Cap mark

2006

2MM bpd, $200MM market cap, Discovery of new oil frontier 2007

5

For Year Ended 2005 2006 2007 Net Revenues 56.3 72.3 87.7 EBITDA 17.6 22.9 25.3 Capex 10.4 14.9 21.0 Total Debt(1) 21.2 21.3 21.9 Cash & Cash Equivalents 9.9 12.7 7.0 Net Debt 11.3 8.7 14.9 Total Equity 32.9 44.3 65.2 Total Assets 78.6 98.7 129.7

Notes:1 Includes capital leases2 For the year ended December 31, 2006. Excludes losses in gas and energy, corporate results and

eliminations

Summary Financials (US$ bln) Income from Operations(2)

Corporate Organization and Key Operating Results

Exploration and

ProductionDownstream Gas and

Energy BiofuelsDistribution Petrochemicals

Downstream16%

Domestic E&P81%

Distribution3%

6

10.533 11.639 11.820 11.775 11.458 11.704

1.8102.036 2.020

2.217 2.298 2.301

2002 2003 2004 2005 2006 20070

1

1

2

2

3

Reserves MM BOEProduction M BOE/d

(M BBL/d)

(424) (559) (446) (488) (538)

446 409 523 581 615

ExportsImports

25,7236,13 40,75

58,58

79,9770,92

2002 2003 2004 2005 2006 2007

Production and Reserves (SEC)

Market Value (as of May 26, 2008)

Average Realization Price

Imports vs. Exports

2003 20052004 2006 2007

$’s/BBL

Improving Metrics and Proven Track Record

050.000

100.000150.000200.000250.000300.000350.000

Jan-02

Aug-02

Mar-03

Oct-03

May-04

Dec-04

Jul-05

Mar-06

Oct-06

May-07

Dec-07

296,772

(US$mm)

May08

Fonte: Evaluate Energy and Company Reports 2007 (*) Eni – Refining Throughputs

7

220 218 202 179

460

138177 12143

0100200300400500

ExxonMobil

Shell Total Eni Repsol

2006 Proven Reserves (SEC)

Market Value as of March 14, 2008

2007 Oil & Gas Production

2006 Refining Capacity

EniConocoPhillipsChevronBP

World Class Integrated Public Energy Company

(Bln boe) (‘000s boepd)

17,413,7 11,6 11,5

22,1

10,711,26,3

3,2

0,05,0

10,015,020,025,0

ExxonMobil

Shell Petrobras Total Repsol 1.039

1.7362.3012.3162.3242.593

3.2683.7714.180

0

1.000

2.000

3.000

4.000

ExxonMobil

BP Shell Chevron Conoco Total Petrobras Eni Repsol

Petrobras

(US$Bln) (‘000s boepd)

ChevronBP ConocoShell Total

(1)

ConocoPhillips Repsol

5341.234

2.1952.2082.2272.7002.8234.040

6.400

02.0004.000

6.0008.000

ExxonMobil

BP Petrobras Chevron Eni

Source: Company Filings, Company Website Source: Company Filings

Source: Company Filings, FactSet Source: Company Filings, Company Website

(1)

8

Upstream Overview

9

E&P - rapidly growing production profile

2 .8 122 .4 2 1

6 4 3

6 3 7

515

2 8 5151

18 3

8 0 9 8 6 9 1. 0 0 4 1. 13 2 1. 2 7 1 1. 3 3 6 1. 5 0 0 1. 5 4 0 1. 4 9 315 2 16 3

17 919 7

2 2 1 2 3 22 5 2 2 5 0 2 6 5

1. 7 9 21. 7 7 8

7 16

1. 6 8 4

2 7 32 7 7

13 4

2 7 4

12 616 33 5

4 45 36 0

4 54 73 82 5

16 1 16 814 2

10 9

10 9 1110

162 0 2 4

2 3 8 5 9 49 6 10 1

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Oil and N GL - B razil N atural Gas - B razilOil and N GL - Internat io nal N atural Gas - Internat io nal

Thou

sand

boe

d

885 1.0081.090 1.238

1.5051.565 1.636

1.810 2.036 2.020 2.217

8,3% p.y.

2.298

3.494

4.153

8,7% p.y.

7,7% p.y.

* Includes non consolidated production

*

*

2012 Target

2015 Forecast

2.300

10

2.421

1.792

1.950*2.191

2.2962.374

1.600

1.800

2.000

2.200

2.400

2.600

2007 2008 2009 2010 2011 2012

Rio de JaneiroEspadarte Mód II

100.000 bpd6/jan/07

Rio de JaneiroEspadarte Mód II

100.000 bpd6/jan/07

Main Projects in Brazil – 2007-2012

RoncadorP-52

180.000 bpdNovember 2007

RoncadorP-52


RoncadorP-54


RoncadorP-54


Piranema30.000 bpd10/oct/07

Piranema30.000 bpd10/oct/07

Cidade de VitóriaGolfinho Mód. 2


Cidade de VitóriaGolfinho Mód. 2


Marlim LesteP-53

180.000 bpd2008

Marlim LesteP-53

180.000 bpd2008

Marlim Sul Módulo 2P-51

180.000 bpd2008

Marlim Sul Módulo 2P-51

180.000 bpd2008

Cidade NiteróiJabuti (FPSO)100.000 bpd

2008

Cidade NiteróiJabuti (FPSO)100.000 bpd

2008

Parque das Conchas

100.000 bpd

2009

Parque das Conchas

100.000 bpd

2009

Frade100.000 bpd

2009

Frade100.000 bpd

2009

Cachalote & Baleia Franca

FPSO Capixaba

100,000 bpd

2010

Cachalote & Baleia Franca

FPSO Capixaba

100,000 bpd

2010

Marlim SulMódulo 3 –

P-56100.000 bpd

2011

Marlim SulMódulo 3 –

P-56100.000 bpd

2011

Espadarte

Módulo 3

100.000 bpd

2012

Espadarte

Módulo 3

100.000 bpd

2012

Jubarte

P-57

180.000 bpd

2012

Jubarte

P-57

180.000 bpd

2012

Obs.: This curve does not include Tupi’s Pilot System Production

* Target may vary +/- 2.5%

TupiEWTUp to

30.000 bpd2009

TupiEWTUp to

30.000 bpd2009

Tupi

Pilot System

Up to 100.000 bpd

2010

Tupi

Pilot System

Up to 100.000 bpd

2010

Roncador

Module 4

P-62

100.000 bpd

2012

Roncador

Module 4

P-62

100.000 bpd

2012

11

Exploration Perspectives

12

Campos

Santos

EspíritoSanto

Golfinho/Canapú/ Peroá/Cangoá

Merluza/ Lagosta

Parquedas Baleias

Light Oil

Papa-Terra

BS-500

Pre-salt Cluster Blocks

Mexilhão

Roncador

Exploratory Perspectives in Brazilian Southeastern Margin

13

BM-S-21(Caramba)

BM-S-24(Jupiter)

BM-S-8(Bem-te-Vi)

BM-S-10(Parati)

BM-S-11(Tupi)

BM-S-22

BM-S-9(Carioca)

BM-S-17

BM-S-42

13

BM-S-50

BM-S-52(Corcovado)

(Yara)

(Guará)

Wells Being Drilled

Wells Drilled

Pre Salt – Santos Basin

14

E&P: UPCOMING UNITS

* Leased

Mauá-JurongNiterói/RJ2012ContractedOil:100.000 bpd

Gas: 6MM m3/diaRoncadorP-62

Mauá-JurongNiterói/RJ2009Under constructionGas: 15MM m3/diaMexilhãoPMXL-1

Atlântico SulSuape/PE

Rio Grande/RS2013

Hull contracted. Basic project under

revision.

Oil: 180.000 bpdGas: 6MM m3/diaRoncadorP-55

ProsafeKeppels -Cingapura

2S08Under constructionOil: 35.000 bpdGas: 10 MM m3/diaCamarupimCidade São

Mateus*

2011

2011

2S08

2S08

2S08

Start-up

Oil: 180.000 bpdGas: 2MM m3/dia

Oil:100.000 bpdGas: 6MM m3/dia



Oil: 100.000 bpdGas: 3,5 MM m3/dia

Capacity

Brasfels -FSTP Keppel & Technip

Angra/RJ

Under construction(P-51 Clone)Marlim SulP-56

SBMShipyard N/AContractedJubarteP-57

QuipRio Grande/RSUnder construction Marlim LesteP-53

Nuclep/BrasfelsAngra/RJUnder constructionMarlim SulP-51

ModecSipem - DubaiUnder constructionJabutiFPSO Cidade

de Niterói*

ShipyardStatusFieldUnits

15

E&P: Rigs

11

•Delba V•Delba VI•Scorpion•Delba VII•Delba VIII•Norbe IX•Schahin 1•Schahin 2•Norbe VIII•Petroserv•Etesco 8

Start Up 2012

28

• + 28 New Units to be leased

From 2013 to 2017

2

•Delba IV•Sevan Brasil

Start Up 2011

79Total

•Gold Star•Schahin I•Norbe VI•Delba III•SSV Victoria•W. Orion

•Lone Star•Schahin III•Petrorig II•Sevan Driller•W. Taurus•W.Eminence•Dave Beard

≥ 2000m

•Olinda Star•Ocean Worker

1000-1999m

•Petrobras XIV0-999m

Start Up 2010Start Up 2009Water Depth

• Stena Drillmax e Dep Water Millennium are not being considered since they are being negotiated in the Spot Market

• 29 Rigs contracted plus 28 to be leased up to 2017 making a total of 57 new drilling rigs.

16

New Vessels to be ContractedNew Vessels to be Contracted

Navio-sondaBarco de Apoio Navio de grande porte (VLCC) Plataforma de Produção (FPSO)Plataforma de Produção (FPSO)

Large Vessels

Supply Vessels

FPSO/SS

Others (jack-ups, TLWP)

Total

Leased/ Being Leased To be Leased26

24

6

3

59

44

122

8

1

175

17

Downstream Overview

18

Maintaining Balanced integration between Refining and Production

2,167

Total Refining Capacity (‘000s. bpd)Domestic Oil Production (‘000s. boed)

1,792

2,412Year 2012

2011: New Refinery in

Brazil to add 200 ‘000s. Bpd cap.New Refinery in

Texas expanded & upgraded

28%

13%

18%

4%

8%

8%

21%

Fuel QualityConversion

ExpansionHSE

TransportationPipelines

Others 6,112

2,264

2,270

1,083

5,353

3,938

8,619

Total Downstream Spending of $29.6 Billion

19

Complexo Petroquímico do Rio de Janeiro - COMPERJ

•Total Investment: US$ 8.4 billion (Petrobras Investment US$4.6 billion);• Throughput capacity: 150 thousand heavy oil barrels (Marlim oil from Campos Basin);• Start Up: 2012• Refining and Petrochemical Integrated Complex that through the use of new technologies process heavy oil to obtain oil products and first and second generation petrochemical products.

• Total Investment: US$ 4.1 billion (Petrobras Investment US$2.4 billion);• Throughput capacity: 200 thousand heavy oil barrels (60% Petrobras oil / 40% PDVSA oil);• Focusing diesel and LPG production maximization, the new refinery will aim the growth of oil products demand in the Northeast.

•The Northeast Region, which responds for 19% of oil products demand and holds only one refinery in Bahia, will no longer be a fuel importer (either from refineries in Brazil or abroad);• Costs reduction: oil products transportation are more expensive than for crude oil;• Start Up: 2011

Downstream Business Strategy

New Refinery in Pernambuco

20

Downstream Business Strategy – Northeast Region

Refinery in Rio Grande do Norte

Premium Refinery in Ceará

• Petrobras will deploy its 12th refinery in the state of Rio Grande do Norte.

• New plant to produce gasoline and improve the quality of other oil products (Jet fuel, Diesel and LPG) produced in existing facilities in Guamaré.

• Capacity: 80,000 bpd. Start-up scheduled for 2010.

• Petrobras will study, together with Ceará State, the possibility of installing a Premium refinery;

• Capacity: 300,000 bpd;

• The refinery’s first operation phase is scheduled to start in 2014.

• Petrobras will study, together with Maranhão State, the possibility of installing a Premium refinery;

• Capacity: 600,000 bpd;

• The refinery’s first operation phase is scheduled to start in 2013.

Premium Refinery in Maranhão

21

International Overview

22

International - Overview

Houston

Colombia

Argentina

Angola

United Kingdom.

USA

BRAZIL

Bolivia Rio de Janeiro

NigeriaVenezuela

EcuadorPeru

Mexico

Tanzania

Iran

EXPLORATION AND PRODUCTIONTRADING

HEAD OFFICE

REFININGREPRESENTATIVE OFFICE

New York

Tokyo

Beijing

Singapore

Libya

Mozambique

Uruguay

Turkey

Core Areas:

• Refining

• Add value to Brazilian heavy oil exports

• E&P: West Africa & Gulf of Mexico:

• Apply deep water and deep well drilling technology.

• Latin America:

• Leadership as an integrated energy company

Senegal

Jordan

Pakistan

India

Portugal

Paragay

Okinawa

23

Gas and Energy Overview

24

Domestic Natural Gas Market*

27,5

42,1

19,1

43,9

72,9

30,0

31,1

48,0120

20

40

60

80

100

120

140

160

2007 2012

Thermoelectric Industry Other

Million m3/day134 134

(*) considering maximum dispatch of every thermoelectric power plant• Other: vehicular, residential / commercial, refineries and fertilizer units. (**) Adjusted to STD Heat Value (9,400 Kcal/kg)

E&P**

Bolívia

LNG

58.6

Supply 2012

25

Plangás: Increasing Natural Gas Supply in the Southeast Region

• From the current 15.8 million cubic meters per day to 40 million in 2008 and 55 million in 2010.• Main Projects:

• Marlim and Roncador field in the Campos Basin, Merluza in Santos Basin and Peroá in Espírito Santo Basin.

Total Southeast in 2008: 40 MM m3/d

Additional: + 24,5 MM m3/d

Total Southeast in 2010: 55 MM m3/d

Additional: + 39,2 MM m3/d

Peroá Extension to 10MM m3/d

UTGC Extensionto 20MM m3/d

Cabiúnas/ReducExtension to 23MM m3/d

UTGCA Extension to 15MM m3/d

UPGN Cubatão Adaptation to 15MM m3/d

26

Pipelines Network

Manaus

Belém

Natal

Recife

Salvador

Rio de JaneiroSão Paulo

Porto Alegre

Cacimbas – Catu

Cabiúnas – Vitória

Caraguatatuba – Taubaté

Brasília

Catu – Carmópolis – Pilar

Campinas – Rio

Gasduc III e Japeri-Reduc

Gaspal II / Gasan II

Vitória -Cacimbas

Coari-Manaus

Gasbel II

Existing Pipelines

New Pipelines

Paulinia - Jacutinga

Expansão Gasbol Sul

GASENE

27

Renewables

28

Renewable Energy and Biofuels (2008-2012)

2008-2012 Investments 2012 Target

Biodiesel Plants Availability of 938 Thousand m3/year

H-Bio (Bio-Refining) Vegetable oil Processing 1.6 million m³/year

Installed Capacity of Generation of Electric Power from 365 MW Renewable Sources

Ethanol pipelinesExport of 4.7 billion m³/year of Ethanol

Aeolic Energy

29%

46%

21%

4%

Biofuels

Pipelines and Ethanol Pipelines

Others

H-Bio

US$ 1.5 billionInvestments

Total avoided GHG emissions: 3.93 MM tons CO2 equivalent

Ethanol Project Vessel

Solar Energy

Other Sources of Renewable Energy

29

Petrobras Investments to Export Ethanol

New Ethanol Pipeline (1.150 Km)

New Water Way for Ethanol

New Pipeline (1412 km)

New Ethanol Pipeline (919Km)

São Paulo Marine Terminal

Rio de JaneiroMarine Terminal

Replan – Ilha Dágua Pipeline (Current flow)

Tietê-Paraná Water way

Senador Canedo – São Sebastião Pipeline

Replan – Brasília Pipeline (OSBRA)

Replan – Guararema Pipeline

Existing Pipeline

Future Pipeline

Existing Terminal

Future Terminal

Exportation

Target: Export 4.75 MM cu.m/year in 2012

Large storage capacity necessary to regulate supplyPipelines reduce transport costs; improve energy efficiency

Ethanol collection, storage and distribution centers are spread out through producing and

consuming regions

Large scale marine terminals improve efficiency

30

Financial Considerations

31

104.486.7Projected Net Cash Flow (Including Dividends)

1416Return on Capital Employed (ROCE) (%)

2025Net Debt/ Net Debt + Shareholders’ Equity (Leverage) (%)

112.483.5Projected Investments for 2008-2012

2008 – 40.002009-2011 – 35.00

2.50

2007-2011 Plan

2.18FX rate (R$/US$)

2008 – 55.002009 – 50.002010 – 45.00

2011-2012 – 35.00

Brent for Funding (US$/bbl)

2008-2012 PlanIndexes

(*) PPP – purchase power parity

PETROBRAS BUSINESS PLAN

32

6%4%

1%2%26%

58%

2%

65.1

29.6

6.74.3

2.62.6

Investment Plan by Business Segment2008-12 Period

US$ 112.4 billion

E&P RTC G&EPetrochemical Distribution Corporate Biofuel

1.5

• US$ 65.1 billion directed to E&P:

• Exploration: US$ 13.8 billion

• Production: US$ 51.3 billion

13%

87%

Brasil Internacional

97.4

15.0

Note: Includes International

33

CFFO(including W.C.)

Capex

Dividends

Consolidated Cash Flows74.3 BN 2003-2007

Source: Petrobras and Bloomberg

Strong returns have enable company to grow without increasing debt

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

2003 2004 2005 2006 2007

Historical ROCEU.S. GAAP

Operating Income and Assets by Segment -2007

(US GAAP – US$ Millions)

7,5961,83810,61514,48048,529PP&E (inc. Dep.)

291

446

Distri-bution

Int’lGas & Energy

Downstream (Brazil)

E&P(Brazil)

1,1446,0239,37113,558O/w Construction in Progress

(815)(834)2,78514,072Net Op. Inc.

Sources Uses

Inc. Debt

34

Capital Structure and Credit Metrics

(US$ MM)

2005 2006 2007 Cash and Cash Equivalents 9,871 12,688 6,987 Total Debt 21,177 21,338 21,895

Net Debt 11,306 8,650 14,908

Shareholders Equity 32,917 44,299 65,179 Net Income 10,344 12,826 13,138 EBITDA 17,638 22,923 25,333 Net Debt / Book Capital 26% 16% 18% Net Debt/ Market Capital 15% 8% 6% Net Debt / Boe Production (X) 13.9 10.3 15.4 Net Debt / Proved Reserves (X) 1.0 0.8 1.1 Reserves/Production (Years, SPE Criteria) 19.6 18.9 18.9

35

Infrastructure Enhancement

Critical Items Supply (imports)Drilling EquipmentsDynamic Positioning and Propeller SystemsSteel Manufacturing Process and Supply

Skilled Work Force for Construction and Operation

Financiability

Brazilian Oil Indutry Main Chalengies

Brasfels Shipyard at Angra dos Reis. P-51 and P-56 construction sites.

Rio Grande Shipyard under construction. Designed for platforms construction.

36

Results Expected

• Fulifl PETROBRAS Demand for Equipments ;

• Brazil O&G Industry Development into a Competitive Global Player.

PETROBRAS is committed to achieve its business interests with social and economic development responsibilities. It should assure an efficient supply chain of critical resources to its projects and perform its mission to enhance the sustainable development of Brazil and of the other countries where it is established.

Final Remarks

37

Thank You

Petrobras at a Glance - Results and Perspectives

For more information, visit our website: http://www.petrobras.com.br/ri/english

business opportunities in o&g sector in brazil. joint ... -...

Documents