Francisco NepomucenoPetrobras E&P London Office

Francisco NepomucenoPetrobras E&P London Office

London, June 23th 2010

World National Oil Companies Congress 2010World National Oil Companies Congress 2010

Petrobras Deep water experience -Overcoming the technological challenges

Petrobras Deep water experience -Overcoming the technological challenges

THE END OF EASY OIL - DEEPWATER AND FRONTIER E&P

Laboratory Tank for Testing Offshore Platforms

PETROBRAS - OVERVIEW

PRE-SALT DISCOVERIES IN PACE WITH TECHNOLOGY

ECONOMICS

REMARKS

PRESENTATION SUMMARY

Petrobras Overview

2000 2009

Reserves (SPE) 10.4 14.9* billion boeProduction 1.6 2.5 million boe/dRevenues 35.5 115.9 billion US$Total CAPEX 3.6 35.1 billion US$

Current Petrobras Technology Strategy - An Overview

* Not included the new discoveries of the pre-salt in Santos Basin

(Tho

us. b

oe/d

ay)

1,500 1,540 1,493 1,684 1,778 1,792 1,855 1,971 2,100

2,980

3,950252 251 265

274 277 273 321 316384

623

1109

35 161 168163 142 126 124 141

146

176

203

85 94 96 101 110 100 9793

128

120

22

2002 2003 2004 2005 2006 2007 2008 2009 2010 2014 2020

Oil Production - Brazil Gas Production - Brazil Oil Production - International Gas Production - International

2,4002,3012,2972,2172,0202,0371,810

2,525

4.9% p.y.

2,723

5,382

3,9077.1% p.y.

9.4% p.y.

1.183152

Pre-Salt241

1, 078

PETROBRAS PRODUCTION GROWTHPETROBRAS PRODUCTION GROWTH

PETROBRAS STRATEGYPETROBRAS STRATEGY

New Frontier Exploration in pace with the advance in Technology

Petrobras reveals four major geological plays in deep water in the last 30 years:

- Tertiary turbidites- Cretaceous turbidites- Albian carbonates- Aptian (pre-salt) carbonates

PRE-SALT DISCOVERIES IN PACE WITH TECHNOLOGY

400

m40

0 m

1.00

0 m

1.00

0 m

2.00

0 m

2.00

0 m

0 20 40 60 km

Cabo Frio

Campos

Rio de Janeiro

Macaé

AlbacoraAlbacora

175 km

RoncadorRoncador

BarracudaBarracuda

MarlimMarlim

Marlim SulMarlim Sul

CaratingaCaratinga

Tertiary Turbidites:Deep Water Oil / Gas Discoveries 1974-2002

High productive Well

Well Productivity - 6000 bpd (vertical Wells)

- 15 – 40.000 bpd (Horizontal Wells)

Horizontal wells - 4 - 6 months to drill and complete (1990’s)

2 – 3 months (2009)

Gravel Packer – Efficient to avoid sand Production

Horizontal well Injection – 40.000 bpd of water

Reservoir Characteristics.Shallow oil reservoirUnconsolidated sandstoneHeavy Oil

Petrobras has drilled more than 300 horizontal in deep water

Cretaceous Turbidites:Expanding Frontiers: Oil beyond Campos Basin Oil / Gas Discoveries 2003-2006

Cretaceous Turbidites:Expanding Frontiers: Oil beyond Campos Basin Oil / Gas Discoveries 2003-2006

Mexilhão

TambauUrugua

Merluza

Papa terra

Golfinho

Whalepark

Pre-salt DiscoveriesDeep Water Oil/Gas Discoveries 2006-2009

Deep water oil fields 1984-2002Pre-Salt discoveries 2007-2008Recent discoveries 2008-2009

Shallow water oil fields 1974-1984

Campos Basin

Santos Basin

Peroá

MexilhãoTambauUrugua

Tiro/sidon

MerluzaPiracuca

Papa terra

Whalepark

Golfinho

Cluster pre-salt

The big blue area represents the expected Pre-salt location, with great potential for oil presence

The Pre-salt RegionThe Pre-salt Region

Wells drilled

Santos

Whale’s Park

Wells tested

FieldsExploratory blocksPre salt

Total area of the Province: 149,000 km2Area under concession: 41,772 km2 (28%)Area not under concession: 107,228 km2 (72%)Area with Petrobras interest: 35,739 km2 (24%)

C ≈ 800 kmL ≈ 200 km

150 km 150 km

20 km

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

0

Lâmina d’água atual

Internal High

Structural Low

External High

SaltSalt

Pre-salt Ultra Deep Water – Petroleum System Conception

World Energy Outlook-2009

Presalt

Pre-Salt Challenges: EconomicsPre-Salt Challenges: EconomicsLong-term oil-supply cost curve

Economic ChallengesCAPEX DISTRIBUTION

18%

19%

31%

9%

20%

2%0%1%

Residual Value Processing Plants Exportation GatheringFPU Completion Drilling Abandonment

Productivity of all the wells tested until now exceeded 10.000 bpd

Tupi well extended testing has produced 15.000 bpd since apr/2009, restricted by gas flaring limited to 500 thousand m3/d.

The last two well tests (Iracema and Guara) have shown that both wells may produce more than 50.000 bpd.

This high productivity is due to the highly fractured reservoir.

Pre-Salt CharacteristicsPre-Salt Characteristics

Logistic Issues – Approximately 300 km to shore– People transport (air and sea)– Fluids and cargo transportation

Reservoir Issues– Carbonate Reservoir Characterization

– High productivity wells

CO2 Issues – Capture, Separation, Storage and Re‐injection

– All CO2 will be injected into the reservoir – WAG: Environmental and EOR

Main Pre-salt ChallengesMain Pre-salt Challenges

Closing RemarksClosing RemarksPetrobras and its partners are revealing the potential of a very 

promising play at Santos Basin, offshore Brazil.  So far we haveannounced 9.1 to 14 billion barrels of oil and gas equivalent in 3 of the 8 exploration areas operated by Petrobras in that area.

Petrobras has technology to develop these field in a economic base. Domestic production growth between 2013 and 2020 to more than 5 millions boepd and almost half will come from pre salt production.

HMS is the most strong value in Petrobras exploration and production. 

Technology, people and strategic partnerships with IOCs, service contractors and suppliers: key to success

Thank You.Thank You.