Santos Basin Development

Santos Basin Development

November, 2012

DISCLAIMER

The presentation may contain forward-looking statements about future events within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are not based on historical facts and are not assurances of future results. Such forward-looking statements merely reflect the Company’s current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by the Company with the SEC, specifically the Company’s most recent Annual Report on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties inherent in making estimates of our oil and gas reserves including recently discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason. Figures for 2012 on are estimates or targets.

All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this presentation.

NON-SEC COMPLIANT OIL AND GAS RESERVES:

CAUTIONARY STATEMENT FOR US INVESTORS

We present certain data in this presentation, such as oil and gas resources, that we are not permitted to present in documents filed with the United States Securities and Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K because such terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X.

FORWARD-LOOKING STATEMENTS

20% OF THE DOMESTIC NATURAL GAS SUPPLY

5% OF THE DOMESTIC OIL PRODUCTION

SANTOS BASIN DEVELOPMENT CURRENT PARTICIPATION

SANTOS BASIN PRODUCTION AREAS

South Area

Merluza Area

Uruguá Area

Pre-Salt Area

Mexilhão Area

UTGCA UGN

RPBC

TEFRAN

Lula

Uruguá-Tambaú

Mexilhão

Merluza-Lagosta

174 Km

Merluza-RPBC (1993, May), Lagosta (2009, April)

Uruguá-Mexilhão and Mexilhão-UTGCA (Abril/2011), Lula-Mexilhão (2011, September)

REVAP

SANTOS BASIN GAS PIPELINES

SANTOS BASIN PRODUCTION SYSTEMS

BAÚNA E PIRACABA (SS-11)

MERLUZA (PMLZ-1)

MEXILHÃO (PMXL-1)


7

FPWSO DYNAMIC PRODUCER

FPSO BW CIDADE DE SÃO VICENTE

SANTOS BASIN PRODUCTION SYSTEMS Extended Well Test and Early Production Systems

URUGUÁ – TAMBAÚ (FPSO CIDADE DE SANTOS)


LULA (FPSO CIDADE DE ANGRA DOS REIS)


CARAGUATATUBA - UTGCA (ONSHORE GAS PROCESSING PLANT)


11

OPERATION SUPPORT FACILITIES IN SANTOS CITY Opened: 2006, March (temporary installation)

OPERATION SUPPORT FACILITIES IN SANTOS CITY Opened: 2007, December (temporary installation)

INTEGRATED OPERATIONS CENTER (PILOT) IN SANTOS CITY Opened: 2009, July

OPERATION SUPPORT FACILITIES (including the Geology Lab) Opened: 2009, October (temporary installation)

Petrographic Description

Petrophysical Analysis

Data Analysis

• Stratigraphic Studies

• Sedimentological Analysis

• Petrophysical Characterization

GEOLOGY LAB

IT AND TELECOMMUNICATIONS SUPPORT IN SANTOS CITY Opened: 2010, November (4 floors)

SUPPORT FACILITIES IN SANTOS CITY Opened: 2011, March (temporary installation)

OPERATION SUPPORT FACILITIES IN SANTOS CITY Opened: 2011, November (temporary installation)

SANTOS BASIN DEVELOPMENT BP 2012-2016 AND STRATEGIC PLAN 2020 (FUTURE PARTICIPATION OF THE SANTOS BASIN)

DOMESTIC OIL PRODUCTION AND NATURAL GAS SUPPLY (IMPORTANCE OF SANTOS BASIN)

• BP: 38 new Production Systems until 2020

• 25 in Santos Basin

• 24 in the Pre-Salt area

• Challenge: maximizing operational performance

95%69% 42%

5%30%

28%1%

19%

12%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Post-salt Pre-salt (Concession) Transfer of Rights New Discoveries*

PRODUCTION CURVE IN BRAZIL - OIL AND LNG Post-Salt, Pre-Salt and Transfer of Rights

Th

ou

san

ds b

pd

Production Curve in Brazil – Oil and LNG Production

(*) Includes new opportunities in blocks where discoveries have already been found

2014

Norte Pq.

Baleias (P-58)

Roncador IV

(P-62)

Sapinhoá Norte

(Cid. Ilhabela)

Iracema Sul

(Cid.

Mangaratiba)

2016

Lula Alto

Lula Central

Lula Sul

Franco 1

Carioca 1

Lula Norte

Franco 2

2012

Baleia Azul

(Cid. Anchieta)

Baúna e Piracaba

(Cid. Itajaí)

2013

Piloto Sapinhoá

(Cid. São Paulo)

Piloto Lula NE

(Cid. Paraty)

Papa-Terra

(P-61 e P-63)

Roncador III

(P-55)

2015

Iracema Norte

2017

Lula Ext. Sul

Iara Horst

NE Tupi

Carimbé

Aruanã

Iara NW

Franco 3

2018

Franco 4

Sul de Guará

Júpiter

Carcará

Sul Pq. Baleias

Franco 5

Espadarte I

2020

Espadarte III

Florim

2019

Maromba

Bonito

Entorno de Iara

2,022

2,500

4,200

Stable Prod. (± 2%) 4-6% p.y. Growth

NATURAL GAS SUPPLY AND DEMAND (MILLION m³/d) DEMAND SUPPLY

Total

Demand

24 24 24

666

Thermo Power Plants Demand: Petrobras + Third Parties

Total

Supply 139

123

21 2511

553

Downstream

Fertilizers 26

Petrobras Demand: Downstream + Fertilizers

Non–thermal power

2016

Bolivian Supply

Domestic NG Supply

Supply via LNG Regasification Terminals

32 34 35

1112 12

6

Inflexible

Flexible

2016

NG Distributors Demand

46 (8,0 GW)

PCS 9.400 kcal/m³

44 62 756

64

North Region

Other Regions

68

2020

81

41

Guanabara Bay

Pecém

Bahia

Firm

Flexible

30 30

152

52 (9,3 GW)

2020

2016 2020

51 65

30

147

2011

48

21

99

2011

44 (7,5 GW)

41

2011

14

99

2016 2020 2011

41

2016 2020 2011 2016 2020 2011

30

To be contracted

20 20

14 14

14

7 7 7

The current reserve / production of

Petrobras corresponds to 19.2 years

In 2011, the Brazilian total increase in

reserves was 1.24 billion boe. Of this

total, 0.98 billion boe refers to Pre-Salt

Over the past 20 years, the proved reserves in Brazil increased by 164%

DOMESTIC PROVED RESERVES AND EXPLORATORY SUCCESS

+164%

+3%

5,96 7,53

9,65

13,23

15,28 15,71

Exploratory Success (Brazil)

Pre-Salt:

94%* ( 2011)

40% 57% 59%

2009 2010 2011 1991 1995 2000 2005 2010 2011

Proved Reserves (billion boe) * Index of exploratory success in the fields operated by

Petrobras in the Pre-salt Area of Santos Basin

-

5.000

10.000

15.000

20.000

25.000

30.000

Onshore 0-300m 300-1500m > 1500m Pre-salt's Recovery Volume Transfer of Rights

* Lula/Iracema, Iara, Guará and Whales Park, ranging from 7.3 to 8.5 Billion boe

RESERVES AND RECOVERABLE VOLUMES Rapid growth in reserves from discoveries in deep waters

Million boe

Garoupa Namorado

Marlim

Roncador

Whales Park, Mexilhão

Pre-salt: Lula and Iracema

15,70 Bi boe

Carmópolis Guaricema

Pre-salt: Sapinhoá

Shallow-water

Proved Reserves – SPE criteria

MAIN DISCOVERIES IN 2012

Date Basin Field Participation Quality of

the Oil

Estimated Recoverable Volume

Water

Depth (m)

Feb -12 Solimões Igarapé Chibata BR (100%) 41º API Production capacity:

1,400 bpd of oil 45k m3 of gas

3,295 (Onshore)

Feb -12 Santos Franco NW (TR) BR (100%) 28º API (Pre-Salt) Right to produce up to

3.058 Bi boe 1,860

Feb -12 Santos Carioca Sela BR(45%) BG(30%) RPS(25%) 27º API (Pre-Salt) Not Disclosed 2,149

Feb -12 Santos Bauna e Piracaba BR (100%) 34º API (Bauna)

32º API (Picaraba) 113 MM boe (Bauna)

83 MM boe (Piracaba) shallow water

Feb -12 Campos Pão de Açucar BR(30%) RPS(35%) STO(35%) Pre-Salt Oil > 700 MM boe of oil 545 MM boe of gas

2,800

Mar-12 Santos Tupi Northeast (TR) BR (100%) 26º Oil API (Pre-Salt) Right to produce up to

428 MM boe 2,131

Mar-12 Santos Carcará BR(66%) PGL(14%)

BARRA(10%) QG(10%) 31º Oil API (Pre-Salt) Not Disclosed 2,027

Apr-12 Santos Iara Oeste BR(65%) BG(25%) PGL(10%) 21º to 26º API (Pre-Salt) 3 to 4 Bi boe (BMS-11) 2,150

Apr-12 Santos Dolomita Sul BR (100%) Pre-salt Oil Not Disclosed 1,747

June-12 Santos Sul de Guará (TR) BR(45%) BG(30%) RPS(25%) 27º API (Pre-Salt) Right to produce up to

319 MM boe 2,202

July -12 Esp.Santo Grana Padano BR (40%) IBV(30%) ANADARKO(30%)

15º API Not Disclosed 1,208

Aug-12 Ceará Pecém BR (60%) BP(40%) Oil Not Disclosed 2,129

Aug-12 Santos Franco SW (TR) BR (100%) 28º to 30º Oil API Right to produce up to

3.058 Bi barrels oil 2,024

Aug-12 Sergipe Alagoas Barra BR (60%) IBV(40%) 38º API Not disclosed 2,433

Aug-12 Sergipe Alagoas Moita Bonita BR (100%) light oil, gas and

condensate Not disclosed 2,775

Note: TR = Transfer of Rights

2012-2016 CAPEX Implementation Vs. Evaluation

US$ 208.7 Billion US$ 27.8 Billion US$ 236.5 Billion

28%

** E&P abroad

RTM E&P Petrochemical Distribution Biofuel Corporate G&E

60.0%

(US$ 141.8 Billion)

27.7%

(US$ 65.5 Billion)

1.3%

(US$ 3.0 Billion)

1.6%

(US$ 3.8 Billion)

1.5%

(US$ 3.6 Billion)

2.1%

(US$ 5.0 Billion)

5.8%

(US$ 13.8 Billion

24.8%

US$ 51.7 Billion

1.4%

(US$ 3.0 Billion)

0.9%

(US$ 1.9 Billion)

1.7%

(US$ 3.5 Billion)

1.8%

(US$ 3.7 Billion)

3.7%

(US$ 7.8 Billion)

17% (**)

(US$ 4.6 Billion)

50%

(US$ 13.9 Billion)

21%

(US$ 6.0 Billion)

5%

(US$ 1.3 Billion)

0%

(US$ 0.1 Billion)

7%

(US$ 1.9 Billion)

Under Implementation Under Evaluation

+ = 2012-2016 BP All E&P projects in Brazil and projects of the

remaining segments in phase IV* Projects for the remaining segments

currently in phase I, II and III.

833 projects 147 projects 980 projects

* Includes budget already designated for projects under evaluation for RTM, G&E, Petrochemical, Distribution, Biofuels and Corporate

65.8%

(US$ 137.2 Billion)

2012-2016 CAPEX Exploration & Production

69% (US$ 89,9 Bi)

19% (US$ 25,4 Bi)

12% (US$ 16,3 Bi)

Infrastructure and Support

Exploration

Production Development

E&P US$ 131.6 billion*

* Does not include International E&P investments

Exploration US$ 25.4 Billion

Production Development US$ 89.9 Billion

8%

(2) 69%

(17.5)

24%

(6)

Transfer of Rights

Post-Salt

Pre-Salt

49%

(43.7)

34%

(30.2)

18%

(16.3)

Transfer of Rights

Post-Salt

Pre-Salt

EXPLORATION INVESTMENTS IN BRAZIL Focus on New Frontiers

Pre-salt 24% (6.0)

69% (17.5)

Transfer of Rights

Post-salt

8% (2.0)

Investments focused on:

• New Frontiers (Equatorial Margin and East Margin), to ensure a continued R/P ratio higher than 15 years

• Consolidation and appraisal of the Pre-salt and Transfer of rights areas

Co

nso

lidat

ion

an

d A

pp

rais

al

New

Fron

tiers Finding Cost (US$ / boe)

Petrobras Costs Lower than the Majors

(2007-2011): US$ 3.2 to 4.5 / boe

Equatorial Margin

East Margin

1.56 Concession Areas

March, 2012

Petrobras Other Companies

US$ 25.4 billion

Project Capacity 1st Oil Hull Top Side /

Integration

Local Content

Commit. Target

Baleia Azul

FPSO Cid. Anchieta 100 kbpd Sep/2012 Existing

SBM

Cingapura 0% 44%

Baúna and Piracaba

FPSO Cid. Itajaí 80 kbpd Dec/2012

Jurong

Cingapura

Odebrecht and Teekay

Cingapura 60% 81%

Sapinhoá Pilot

FPSO Cid. São Paulo 120 kbpd Jan/2013

Cosco Shipyard

China

Schahin/Modec

Brasfels 30% 50%

Lula NE Pilot

FPSO Cid. Paraty 120 kbpd May/2013

Keppel Shipyard

Cingapura

QGOG/SBM

Brasfels 30% 30%

Papa-Terra

P-63 140 kbpd July/2013

Cosco Shipyard

China

Quip

Rio Grande 0% 65%

Roncador Module III

P-55 180 kbpd Sep/2013

EAS

Brasil

Quip

Rio Grande 0% 65%

Papa-Terra

P-61

Natural

Gas Oct/2013

Floatec

Brasfels

Floatec

Brasfels 0% 65%

Parque das Baleias

P-58 180 kbpd Jan/2014

Queiróz Galvão

Rio Grande

Queiróz Galvão

Rio Grande 0% 58%

Roncador Module IV

P-62 180 kbpd Mar/2014

Camargo Corrêa/IESA

EAS

Camargo Corrêa/IESA

EAS 0% 65%

Sapinhoá Norte

FPSO Cid. Ilhabela 150 kbpd Sep/2014

QGOG/SBM

China

QGOG/SBM

SBM/BRASA 30% 47%

Lula - Iracema Sul

FPSO Cid. Mangaratiba 150 kbpd Nov/2014

Cosco Shipyard

China Not define 30% 47%

NEW PRODUCTION UNITS - 2012-2014 New platforms built domestically and abroad will contribute to production

* Note: “FPSO Cid. XX” = Leased / “P-XX” = Owned 29

FPSO Cidade de Anchieta – Baleia Azul Operating since Sep 10th, 2012

Production Ramp up

(bpd)

Sep/12 29,700

Oct/12 52,185

Nov/12 52,185

Dec/12 72,000

Peak (100 kbpd): Feb/13

Interconnection of

Producing Wells

1st Well sep/10/12

2nd Well sep/21/12

3rd Well sep/26/12

4th Well nov/12/12

5th Well nov/13/12

Local Content - Mandatory: 0% Forecast Accomplishment : 44%

BrasFels Shipyard - RJ

1

2

3

Cid. São Paulo Cid. Paraty

P-61

View of BrasFels Shipyard, in Angra dos Reis – RJ (Aug 31st, 2012)

(1) P-61 (LC:65%): Construction of the HULL of the TLWP and integration of TOPSIDE (deckbox and modules constructed in Singapore).

(2) FPSO Cidade de São Paulo (LC:65%): Conversion of the HULL in China and integration of 15 modules, constructed in Brasfels (5 mod), Enaval (1 mod), Thailand (8 mod) and China (2

mod).

(3) FPSO Cidade de Paraty (LC:65%): Conversion of the HULL and integration of 15 modules constructed in (5), Nuclep (4), Enaval (2) and Singapore (4).

4.200

2.500

2.022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Cid. São Paulo

Cid. Paraty

P-61

Current Jobs: 7,000

http://www.midwestoilgas.com/


NEW PRODUCTION UNITS Platforms under construction or already contracted will meet mid-term needs

8 Replicant FPSOs for Pre-Salt

• Oil Production Capacity: 150,000 bpd per unit

• Installation in Pre-salt areas BMS-9 and BMS-11

• Hulls under construction at Rio Grande Shipyard

• Contracts approved for the construction and integration of the topside modules of the six first units: DM/TKK, IESA, Tome/Ferrostaal, Mendes Jr/OSX

• These contracts total US$ 4,5 billion

• The two remaining topside modules and integration package contracts are expected to be awarded by 2013 with the same companies

4 VLCCs Conversion to FPSOs

• Oil Production Capacity: 150,000 bpd per unit

• Installation in Transfer of Rights Areas (Franco and Nordeste de Tupi)

• Conversion will be made at the Inhauma Shipyard

• Two units will be converted by 2014 and the other two by 2015

• The next stage will involve installing the oil and gas processing and production plant modules and integrating the units

Rio Grande Shipyard – ERG1 - RS

View of Rio Grande Shipyard ERG1 – RS (Sep 3rd, 2012)

(1) Steel plates of Ecovix; (2) Sub-blocks of the Hulls of the replicants of Ecovix; (3) QUIP modules for Topside and integration of P-55; (4) Modules of the IESA; (5) Pre edification area , with

details for the yellow blocks of the Goliath crane type of the Konecranes (biggest crane in the world: 210m high and capacity of 2 thousand ton) delivered in Aug/12; (6) Work integration of P-55;

(7) Work construction of Rio Grande Shipyard ERG 2, where will be constructed 3 Drilling Rigs of Setebrasil (NS Cassino, NS Curumim e NS Salinas)

1

2

3

3

4

5

6

7

P-55

P-69

P-66

P-67

P-68

P-70

P-71

P-72

P-73

Empregos Atuais: 3.500

4.200

2.500

2.022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

P-66

P-67

P-68

P-69

P-55

P-70

P-71

P-73

Current Jobs: 3,500





Inhaúma Shipyard- RJ

Overview of Inhaúma Shipyard, in Rio de Janeiro – RJ (Aug 31st, 2012)

(1) P-74: Hull´s conversion of VLCC ship (structural reinforcement of the hull, enlargement, reform and adaptation of arrangement, installations of equipments and adaptation of anchorage

system).

1

4.200

2.500

2.022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

P-74

Current Jobs: 109



DRILLING RIGS AVAILABILITY Necessity met with imported and domestic units

Nu

mb

er o

f D

rilli

ng

Rig

s (W

ater

Dep

th >

2.0

00

m)

33 new domestic drilling rigs from 2016 on: Local Content between 55% and 65%

Drilling Rigs: Imported vs. Domestic

42 42 42 42 42

• Mid-term needs for drilling rigs are now largely satisfied. Future intermediate demand will be limited to specific situations and needs.

• Starting in 2016, Brazilian built rigs expected to begin replacing internationally built fleet as their contracts expire (and subject to total fleet needs).

• If for any reason the domestic rigs are not completed as scheduled, Petrobras has the possibility of renewing some or all of expiring leases.

NATURAL GAS FLOW Projects to transport natural gas to the coast include gas pipelines and FLNG

• Distance of about 300 km from the coast

• Huge demand of air and sea transportation

• Complexity of the gas network

• Operation of 20 own platforms and the onshore gas processing plant, involving different partners in 18 platforms

• Wells and platforms with large production, demanding efficient surveillance and monitoring

• Operational and environmental risks

• Need for quick and efficient response to any contingencies

COMPLEXITY OF THE OPERATIONS IN SANTOS BASIN

• 25,000 m2 of land

• 3 towers for about 2,200 people each

• First tower: occupation in early 2014

FUTURE PETROBRAS OPERATIONS SUPPORT FACILITIES IN SANTOS CITY

Around 2,900 m2 of the second basement and the 4th floor with another 1,190 m2 area

FUTURE INTEGRATED OPERATIONS CENTER IN SANTOS CITY in Santos Basin Operations Unit (to be opened: early 2014)

CONSTRUCTION SITE (Overview – October/2012) FUTURE PETROBRAS OPERATIONS SUPPORT FACILITIES IN SANTOS CITY

CONSTRUCTION SITE (Overview – Nov 1st, 2012) FUTURE PETROBRAS OPERATIONS SUPPORT FACILITIES IN SANTOS CITY

CONSTRUCTION SITE (Overview – Nov 4th, 2012) FUTURE PETROBRAS OPERATIONS SUPPORT FACILITIES IN SANTOS CITY

• Predictive solutions for maintenance and integrity of equipment (Condition Based Maintenance, Critical Equipment Management and Monitoring of Electrical Facilities)

• Contingency and Telemedicine

• Operational Support

• Solutions to support the processes integration and predictive analyses, throughout the surveillance for:

Topside and process plant operations

Well operations

Reservoir geology and engineering

• Integrated Planning and Logistics (IPL)

• Integration of projects implementation

• Collaboration with suppliers and vendors

• Drilling Center

SANTOS BASIN INTEGRATED OPERATIONS CENTER (Main Solutions to ensure high operational performance)

CHALLENGES • Maximizing scale, standardization and integration (critical resources) and developing infrastructure and logistics • Developing new technologies and industry to meet local content requirements • Maximizing operational performance

OPPORTUNITIES • Abundant oil and gas reserves • A growing oil production and natural gas supply • Monetizing natural gas

CONCLUSION – SANTOS BASIN DEVELOPMENT A Portfolio of opportunities and challenges

45

Information:

Investor Relations

+55 21 3224-1510

[email protected]

[email protected]

www.petrobras.com.br/ir