petrobras at a glance, pre-salt and new regulatory...
TRANSCRIPT
1 Petrobras at a Glance, Pre-salt and New Regulatory Model
BRAZIL ENERGY CONFERENCE October,2009
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.
The 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.
CAUTIONARY STATEMENT FOR US INVESTORS
DISCLAIMER
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Market Value as of September 2, 2009
2008 Oil & Gas Production
2008 Refining Capacity
2008 Proven Reserves (SEC)
A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY
Note: Peer companies selected above have a majority of capital traded in the public markets.
Source: Evaluate Energy and Company reports
Source: Bloomberg
Source: Evaluate Energy and Company reports
Source: PFC Energy WRMS (barrels per calendar day, considering company % shareholding and including JVs)
(bln
boe
)
(mm
boe/
d)(U
S$ b
n)
23.0
17.9
11.7 11.2 11.2 10.5 10.2
6.6 5.6
XOM BP RDS PBR CVX TOT COP ENI STL
3.9 3.8
3.2
2.5 2.4 2.4 2.31.9 1.8
XOM BP RDS CVX PBR COP TOT STL ENI
(mcb
/d)
299828
2,223 2,083
5,675
2,6002,9173,119
3,905
XOM RDS BP COP TOT PBR CVX ENI STL
327.7
169.3 164.9 164.2136.5 131.9
93.368.1 65.8
XOM RDS PBR BP CVX TOT ENI STL COP
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Business Plan 2008-12
26%
1%2%
6%
4%2%
59%
E&P
RTC
G&E
Petrochemicals
Biofuels
Distribution
Corporate
US$ 112.4 billion
65.129.6
6.74.3 2.6
1.52.5
Business Plan 2009-2013
25%
2%2%
7%
3%2%
59%
E&P
RTC
G&E
Petrochemicals
Biofuels
Distribution
Corporate
US$ 174.4 billion
104.6 (*)43.4
11.8
5.6 3.02.8
3.2
(*) US$ 17.0 billion allocated to Exploration
CAREFULLY CRAFTED SPENDING PROGRAM TO SUPPORT OUR VISION
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PN 2009-13 | Brazil/International
91%
9%
158.2
16.2
Brazil
International
US$ 174.4 billion
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Petrobras Total Production (x 1000 boe/d)
1.335
2324424
1.500
2523522
1.540
25116185
1.493
26516894
1.684
27416396
1.778
277142101
1.792
273126110
1.855
321124100
2.050*
463142103
2.680
634
210131
3.920
1.177
409
223
2001 2002 2003 2004 2005 2006 2007 2008 2009 ..... 2013 2020.....
* Consider +- 2,5%
8.8% p.y.
2,4002,3012,2972,2172,0202,0371,8101,635
5.6% p.y.
7.5% p.y.
2,758
3,655
5,729
Oil production - Brazil Gas production - Brazil Oil production - International Gas production - International
PURSUING NEW PROJECTS WHILE MAXIMIZING PRODUCTION FROM EXISTING ASSETS
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VERTICALLY INTEGRATED SYSTEM TO CAPTURE SYNERGIES WITHIN THE VALUE CHAIN
PetrobrasOther Companies
Upstream Operations Downstream Operations
Existing PipelinesRefineriesMarine Terminal In Land Terminal
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7
GROWING OPTIONS IN BIOFUELS AND LOW-CARBON TECHNOLOGIES
BA
MG
CE
Montes Claros
Quixadá
Candeias
Petrobras’ Biodiesel Plants
Participate in Brazilian ethanol chain and develop global markets for Brazilian ethanol
Participate sustainably in the biodiesel business in Brazil and with selective international investments
Develop competitive technologies to produce biofuels from residual biomass
STRATEGY: To establish a global presence in the biofuels segment, with a particular focus on biodiesel and ethanol
84%
16%
Ethanol Biodiesel
INVESTMENTS IN BIOFUELSUS$ 2.8 BILLION
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PN – 2009-2013BRAZILIAN SE BASINS IN COMPARISON WITH GULF OF MEXICOBRAZILIAN SE BASINS IN COMPARISON WITH GULF OF MEXICO
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THE PRE-SALT REGION
• Total Area: 149,000 km2• Area Under Concession: 41,772 km2 (28%)• Area Not Under Concession: 107,228 km² (72%)• Area With Petrobras Interest: 35,739 km2 (24%)
The big blue area represents the expected Pre-salt location, with great potential for oil presence
Currently, there is a production acceleration program in Jubarte (Whales’ Park) and an extended well test in Tupi (Santos Basin)
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SANTOS PRE-SALT CLUSTER VS. CAMPOS BASIN
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20,000
25,000
30,000
Santos and Campos Basins Pre-Salt
(Tupi, Iara, Guará and Whale’s Park)**
thousand boe~ 25-30 bn boe
Proven Reserves* + Santos and Campos Basins
Pre-Salt (Tupi, Iara, Guará and
Whale’s Park)**
5,000
10,000
15,000
2008 Proven Reserves*
14,0930
ANNOUNCED RECOVERABLE VOLUMES IN SANTOS AND CAMPOS BASINS PRE-SALT
* SPE Criteria
** include Petrobras and Partners
Higher estimates +5,400
Lower estimates 10,600
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Petrobras Pre-salt Oil Production (000 b/d)
2013 2015 2017 2020
62 152
160422
463
873
632
1.183
Pre-Salt Petrobras Pre-Salt Partners
219
1,3361,815
582
Pre-salt Capex Through 2020
Petrobras Total Pre-salt Capex (Production Development)
Santos Basin Pre-salt
Espírito Santo Pre-salt (includes post-salt fields)
2009-2013 2009-202028.9
18.4
10.3
111.4
98.8
12.6
PRE-SALT OIL PRODUCTION
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Prod
uctio
n (b
pd)
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
1.800.00
1.600.00
1.200.00
1.000.00
800.00
400.00
0
Numbers of Years
Production since founding of Petrobras (1954)
Discovery of Garoupa in the Campos basin (1954)
Discovery of giant fields in Campos basin inc. Albacora/Marlim
Discovery of the Pre-Salt, including Parati (2006)
2.000.000
IMPRESSIVE RECORD OF ACCELERATING DEVELOPMENT
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Pre-saltand
Strategic Areas
Transfer of Rights with
Compensation
Production Sharing
AgreementPetrobras Operator
Other Companies Through Bidding Process
Other Areas Current Concession Model
Up to 5 billion boe
Petrobras 100%
NEW REGULATORY FRAMEWORK
There will be no regulatory changes in the areas under concession, including the pre-salt area already granted
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PRODUCTION SHARING AGREEMENTS
Profit Oil
Cost Oil
Companies
Government
Production sharing agreements Petrobras will operate all blocks under this regime, with a minimum stake of 30% Consortium between Petrobras, Petro-sal and the winning bidder will be managed by the
Operational Committee Petrobras will be able to participate in the bidding process to increase its stake
The winning bidder will be the company that offers the highest percentage of “profit oil” for the Brazilian Government
Petrobras will have to follow the same percentage offered by the winning bidder
The Brazilian Government will not assume the risks of the activities, except when it decides to invest directly
Prior to contracting, the Government will evaluate the potential of the areas and may contract Petrobras directly
Graphs are showing only hypothetical values
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E&P TRANSFER OF RIGHTS WITH COMPENSATION
Government may transfer to Petrobras, for compensation, without bidding, therights to explore and produce oil in the pre-salt areas not under concession.These areas may or may not be contiguous
Transfer of rights limited to a maximum produced of 5 billion boe. Petrobraswill be the owner of produced volumes
Oil values shall be determined by technical reports prepared by qualified third parties contracted by the government (ANP) and Petrobras, taking into account best industry practices
The transaction includes a clause of reappraisal of reserves value with amaximum deadline of 24 months
If the value of appraisal rises, Petrobras will pay the difference to theGovernment. If price falls, the contrary will happen
Royalties will be paid by Petrobras and distributed according to the Law nº 9.478/97. No special participation payment is expected
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TRANSFER OF RIGHTS APPRAISAL
Oil reservoir
Appraisal need to consider
Oil Volume
Production Curve
Capex
Production Costs
Discount Rate
Fiscal Environment (government participation)
Reserves development/ Knowledge
Future Oil prices
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PETROBRAS’ INCREASE IN CAPITAL
At the same time of the “transfer of rights”, the Company will have an increase incapital, which shall be approved by the Extraordinary General Meeting : Granting of shareholders’ right to exercise their preemptive rights to subscribe for
additional shares Increase in capital will follow the current proportion of the different classes of shares All common shareholders will have voting rights
Appraisal of reserves in R$
Petrobras’ increase in capital
(to be approved by the EGM)
Petrobras will receive cash from
minority shareholders
Petrobras will pay the transfer of
rights with compensation to the federal govt
Graphs are showing only hypothetical values
Increase in capital could be done by Brazilian Government using treasury bills Petrobras will pay the “transfer of rights” with the same treasury bills that will receive
from the GovernmentResult: Increase of Petrobras’ financial capacity to invest, specially in the pre-salt area
