Petrobras –Opportunities in

Brazil

Ultimo Melo MarizPurchasing Manager - E&P Services

Aberdeen - February 10th, 2010Aberdeen - February 10th, 2010

Subsea 2010 Conference

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.

DISCLOSURE

Outline

Petrobras Overview

Pre-Salt Area: A New Frontier

Business Plan 2009-2013

Supplying Petrobras

Conclusions

Net Operating Revenue

US$ 87.7 billion

16 Refineries / 12 in BrazilYield from Refineries: 1.965 million bpd

Capacity: 2.114 million bpd

16 Refineries / 12 in BrazilYield from Refineries: 1.965 million bpd

Capacity: 2.114 million bpd

Reserves (SPE)14 billion boe

Daily Production2.57 million boe

Reserves (SPE)14 billion boe

Daily Production2.57 million boe

Thermoelectric: 10Capacity: 1,848MWThermoelectric: 10Capacity: 1,848MW

Hydroelectric: 2Capacity: 1,685MW

Hydroelectric: 2Capacity: 1,685MWAnnual Ammonia Production: 235,000 ton

Annual Urea Production: 700,000 tonAnnual Ammonia Production: 235,000 ton

Annual Urea Production: 700,000 ton

Gas Stationmore than 8,000

Gas Stationmore than 8,000

Pipelines: 23,100 kmTanker Fleet

Owned by Petrobras: 54Freighted: 99

Pipelines: 23,100 kmTanker Fleet

Owned by Petrobras: 54Freighted: 99

October, 2009

Production Platforms: 112 (77 fixed; 35 floating)

Production Platforms: 112 (77 fixed; 35 floating)

An Integrated Energy Company

CAPEX (2009-2013)US$ 174.4 billion

CAPEX (2009-2013)US$ 174.4 billion

Market valueUS$ 199.6

billion

Presence in 28 countries

A Company Driven by TechnologySuccessive records in drilling and completion

OTCOTC19921992

OTCOTC20012001

US$ 1 Billion invested in R&D in the last 5 years

US$ 1 Billion invested in R&D in the last 5 years

Domestic Exploration & ProductionProven Reserves

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

BUSINESS PLAN - A CAREFULLY CRAFTED SPENDING PROGRAM TO SUPPORT THE GROWTH

17

In Brazil In Brazil 92.0 billion92.0 billion

Exploration 13.9 billion Exploration 13.9 billion Production Development 69.7 billionProduction Development 69.7 billionOther * 8.4 billionOther * 8.4 billion

E&P US$ 104.6 billionE&P US$ 104.6 billion

Develop an integrated global natural gas network to supply Petrobras’ markets

Discover and develop resources in Brazil and

internationally, maintaining a reserves-to-production

ratio of 15 years

Delineate and develop the pre-salt cluster and

new oil provinces in Southeast Brazil

Increase production in Brazil and abroad,

optimizing the use of existing infrastructure

Apply innovative deepwater expertise in

new high-potential frontier provinces in

Brazil and abroad

Business Plan 2009-2013 Upstream Strategy

Production in boe (barrels of equivalent oil)

1.335 1.500 1.540 1.493 1.684 1.778 1.792 1.855 2.0502.680

3.920

232252 251 265

274 277 273 321463

634

1.177

161 168163 142 126 124

142

210

409

131

223

3544

10310010910196

94852324

2001 2002 2003 2004 2005 2006 2007 2008 2009 2013 2020

Oil production - Brazil Gas production - Brazil Oil Product - International Gas Product - International

2,3082,3052,2232,0272,042

1,8121,637

2,400

Petrobras Total Production (1,000 boe)

3,655

2,757

5,7297.5% p.y.

8.8% p.y.

5.6% p.y.

Oil and GasProduction Targets

2,680

2,580

2,430

2,250

2,050

1,855

1400

1600

1800

2000

2200

2400

2600

2800

2008 2009 2010 2011 2012 2013

FPSO Frade100,000 bpd

Jun20/09

FPSO Frade100,000 bpd

Jun20/09

Parque das Conchas

FPSO Espírito Santo

100,000 bpdSep/29/09

Parque das Conchas

FPSO Espírito Santo

100,000 bpdSep/29/09

Marlim SulModule 2SS P-51

180,000 bpdJan24/09

Marlim SulModule 2SS P-51

180,000 bpdJan24/09

Marlim LesteFPSO Cidade de

Niterói100,000 bpdFeb26//09

Marlim LesteFPSO Cidade de

Niterói100,000 bpdFeb26//09

Thousand bpd

Marlim Sul

SS P-56Module 3

100,000 bpd

Marlim Sul

SS P-56Module 3

100,000 bpd

Jubarte FPSO P-57180,000 bpd

Jubarte FPSO P-57180,000 bpd

Upstream - Major Oil Projects

Tupi PilotFPSO Cidade de Angra dos Reis

100,000 bpd

Tupi PilotFPSO Cidade de Angra dos Reis

100,000 bpd

Tupi TLDFPSO BW Cidade

de S.Vicente30,000 bpdMay01/09

Tupi TLDFPSO BW Cidade

de S.Vicente30,000 bpdMay01/09

Cachalote eBaleia Franca

FPSO Capixaba100,000 bpd

Cachalote eBaleia Franca

FPSO Capixaba100,000 bpd

Roncador FPSO P-62Module 4

100,000 bpd

Roncador FPSO P-62Module 4

100,000 bpd

Marlim LesteFPU P-53

180,000 bpdNov30/08

Marlim LesteFPU P-53

180,000 bpdNov30/08ü

CachaloteFPSO Seillean

25,000 bpdDec16/08

CachaloteFPSO Seillean

25,000 bpdDec16/08 ü

ü

ü

Roncador SS P-55Module 3

180,000 bpd

Roncador SS P-55Module 3

180,000 bpd

Papa-Terra TLWP P-61 &FPSO P-63150,000 bpd

Papa-Terra TLWP P-61 &FPSO P-63150,000 bpd

Guará 1 PilotFPSO

120,000 bpd

Guará 1 PilotFPSO

120,000 bpd

Anticipation of Baleia Azul

FPSO Espadarte

100,000 bpd

Anticipation of Baleia Azul

FPSO Espadarte

100,000 bpd

BadejoFPSO Cidade Rio

das Ostras15.000 bpdMar31/08

BadejoFPSO Cidade Rio

das Ostras15.000 bpdMar31/08ü

Pre-Salt Projects

ü

ü

ü

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 large blue area represents the expected Pre-salt location, with great potential for oil presence§ Currently, there is a production acceleration program in Jubarte (Parque das Baleias) and an

extended well test in Tupi (Santos Basin)

Salt drilling

Sea bed

Evaporitic session

§ Deviation of the wells into the salt zone. § Hydraulic fracture in horizontal wells.§ Wellbore materials, resistant to high CO2 content.§ Slow penetration in the reservoir.§ Extended Reach Wells.

Pre-Salt ChallengesWell Drilling and Completion

§ Qualification of risers for water depth of 2,195m (7,200 ft), considering CO2 and high pressure.

§ Flowlines for high pressure gas injection (10,000 psi plus).

Pre-Salt ChallengesSubsea Engineering

§ Preventing hydrate formation § Wax deposition in long pipelines§ Scaling control§ Temperature management along the subsea lines

Photo P-34 Petrobras’ FPSO

Pre-Salt ChallengesFlow Assurance and Artificial Lift

Pre-Salt ChallengesLogistic Issues

• Approximately 300 km to shore• Limited infrastructure in shallow waters• High demand:

• People transport (air and sea)• Fluids and cargo transportation

• Impact on vessel specifications(type, size, speed) and FPU operation

philosophy

16

Itens Un. TOTAL

Reactors un 280Oil and water splitter un 50Storage Tankers un 1.800Turrets un 550

Itens Un. TOTAL

Power Generators un 500Filters un 300Flares un 30

Items Un. TOTALWet Christmas Tree un 500Well Head un 500Flexible Lines km 4.000Manifolds un 30Producing pipes t 42.000Umbilical km 2.200Dry Christmas Tree un 1.700Onshore well head un 1.700

Items Un. TOTALPumps un 8.000Compressors un 700Winch un 450Crane un 200Engines un 1.000Turbines un 350Structure Steal (Hull) t 240.000

Structure Steal (Platforms Hull) t 700.000

EQUIPMENT DEMAND FOR THE NEXT 5 YEARS

TECHNICALTECHNICAL

ECONOMICECONOMICHSEHSE

SOCIAL SOCIAL RESPONSIBILITYRESPONSIBILITY

LEGALLEGAL

MANDATORY REQUIREMENTS TO BE LISTED

REGISTER OF GOODS AND SERVICES SUPPLIERS

Access www.petrobras.com.br → select “Centro de Negócios” →

select “Canal Fornecedor” → select “Instructions for Suppliers from

other Countries”

→

→BIDS

Brazilian Law → DL 2745 → establishes clear rules for Petrobras and your suppliers when Petrobras has 100% of the concession (block)

or

Rules of the JOA → Contract Award → for concession in partnership (case of present Pre-Salt area)

What is the reason to have a Local Content Policy?

Brazilian Regulatory Agency (ANP)

Minimum Local Content

requirement in 9 bidding rounds of exploratory blocks

(since 1997)

Petrobras recognizes opportunities to improve cost effectiveness and quality standards in the local supplying market

Local suppliers usually provide After Sales faster and friendlier when compared with foreign companies

Financing Agent (BNDES – Brazilian development bank) requires minimum local content for financing

concession

The Petrobras Local Content policy is connected and contributes to the Petrobras Social Responsibility Policy

LOCAL CONTENT – SUPPLY POLICYLOCAL CONTENT – SUPPLY POLICY

üPetrobras has a robust project portfolio, which is atypical in the current economical situation

üThere are tremendous opportunities for already installed companies and newcomers in the Brazilian oil & gas supply chain due to the scale provided by Petrobras’ upstream portfolio

ü In order to carry out such portfolio, Petrobras is looking forward to establishing stable long term business relationships with all available companies that are willing to invest in Brazil

Conclusions

Thank you

For more information contact:Petróleo Brasileiro S.A – PETROBRAS

Exploration & Production

E-mail: ultimo@petrobras.com.brAv. República do Chile, 65 – 11th floor

ZC: 20031-912 – Rio de Janeiro, RJ+ 55 21 3224-2600