4th Itaú BBA LATAM Commodities Conference

Maria das Graças Silva Foster

Petrobras’ CEO

September 26th, 2012

4th Itaú BBA LATAM Commodities Conference

2

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

3

Brazil: Economic and Social Development

Consumption Increase

INTEREST RATE

BRAZIL

Sources: Banco Central do Brasil, Meta Selic dez/00 e ago/12; Abiquim. http://www.abiquim.org.br/resinastermoplasticas/estatisticas_33.asp - acesso 29/ago/12; Pesquisa Mensal de Emprego, IBGE. Nova série histórica disponível apenas

de março/02 a maio/12; “De Volta ao País do Futuro: Projeções, Crise Européia e a Nova Classe Média”, FGV, março/12.; Comunicados do IPEA nº 63: PNAD 2009 Primeiras Análises: Distribuição de Renda entre 1995 e 2009. Out/10.

-8.25 p.p.

2012 2000

Sel

ic

(% p

.y.)

CONSUMPTION PER CAPITA OF THERMOPLASTIC RESINS

31

+35%

2010 2000

23

Co

nsu

mp

tio

n

Per

Cap

ita

(Kg

/ h

ab. y

ear)

RISE OF SOCIAL CLASSES

2011

+21.7 p.p.

2003

Cla

ss

A, B

an

d C

(% o

f p

op

ula

tio

n)

UNEMPLOYMENT -5.7 p.p.

2011 2002

Un

emp

loym

ent

Rat

e

(%)

Jobs generation contributing to increase the wage bill.

Income level of families is growing leading to social

mobility.

Reduction in interest rate stimulating productive

investment.

The consumption evolution is a consequence of the

economical growth and a higher power of consumption.

EXTREME POVERTY LEVEL -5.5 p.p.

2009 2001

Improvement in income distribution with poverty reduction.

Po

pu

lati

on

in

Ext

rem

e P

ove

rty

(%)

4

Brazil: Oil Products Market Grows Above World Average

GASOLINE CONSUMPTION

WORLD : +1.3% a.a.

BRAZIL: +3.7% a.a.

• Jan-Aug12 x Jan-Aug11: +23%

Between 2000 and 2011...

DIESEL CONSUMPTION

WORLD : +2.3% a.a.

BRAZIL: +3.3% a.a.

• Jan-Aug12 x Jan-Aug11: +6,7%

JET FUEL CONSUMPTION

WORLD: -0,2% a.a.

BRAZIL: +4,0% a.a.

• Jan-Aug12 x Jan-Aug11: +7,9%

315469

+49%

2011 2000

Gas

olin

e

Dem

and

(kb

pd

)

Die

sel

Dem

and

(kb

pd

)

626 896

+43%

2011 2000

Jet

Fu

el

Dem

and

(kb

pd

) 79

121

+53%

2011 2000

Oil

Fu

el

Dem

and

(kb

pd

)

18984

2011

-56%

2000

OIL FUEL CONSUMPTION

WORLD: -1,8% a.a.

BRAZIL: -7,1% a.a.

• Jan-Aug12 x Jan-Aug11: -5,4%

Sources: Petrobras for Brazil data and Woodmackenzie for international data.

2000

19,616

+15%

2011

22,533

WORLD BRAZIL

2000

20,220

+29%

2011

26,072

2000

6,506

-2%

2011

6,393

2000

9,675

-18%

2011

7,958

5

Petrobras Today:

Proved Reserves + Potential Recoverable Volumes: 31.5 bi boe

Petrobras’ Proved Reserves : 15.7 bi boe

Potential Growth: + 15.8 bi boe

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

2010

20

11

1970

1965

2005

2000

1995

1990

1985

1980

1975

Potential

Growth

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

15.71

Brasil Brasil 32%

19%

49%

• Added Reserves in 2011 = 1.24 billion boe.

• 2005-2010: more than 50% of new discoveries around the world were in deep

water, with Brazil representing 63% of these discoveries. (PFC Energy, jun/11)

• From 2005 to 2012 Petrobras declared 63 discoveries in pre-salt area and

189 in other areas to ANP. (Petrobras, aug/12)

• 2030: Brazil should present the highest growth production among the countries

that are not members of OPEC. (PFC Energy, jun/11)

Shallow-Water (0-300m)

Deep Water (300-1,500m)

Ultra-Deep Water (>1,500m)

Transfer of Rights

Concession – Potential Recoverable Volumes

• Pre-Salt Added Reserves: 1 billion boe. • Reserve/Production Ratio 19.2 year.

35,000

30,000

20,000

25,000

15,000

10,000

5,000

0

Million boe

5.0 bi

boe

10.8 bi

boe

1.3 bi boe 1.2 bi boe

7.9 bi boe

5.3 bi boe

Onshore

6

Oil

and

Nat

ura

l Gas

Pro

du

ctio

n

(mill

ion

bo

e/d

)

Production Increase and Breakdown of Oil and Gas Reserves of Major Companies: 2002 to 2011

PETROBRAS

+6%

2011 2002

-2%

2011 2002

-19%

2011 2002

+2%

2011 2002

16%84%

Gas Oil

53%47% 40%60% 56%44% 38%62%

Oil and Natural Gas Production (million boe/d)

EXXON MOBIL BP SHELL CHEVRON

Gas Oil Res

erve

s

Bre

akd

ow

n (

2010

)

Gas Oil Gas Oil Gas Oil

Fonte: Evaluate Energy e WoodMackenzie, set/12.

Reserves

Breakdown (2010)

0

1

2

3

4

5

2.6 +45%

2011

2.1

0.5

2002

1.8

1.5

0.3

Brazil

Overseas

7

Our Advantage:

The Value of Our Reserves and the Pre-Salt Reality

7

Oil and NGL Production (jan-jul/12): Total Brazil: 2.007 kbpd

Onshore: 210 kbpd

Offshore

• Post-Salt: 1.681 kbpd

• Pre-Salt: 116 kbpd* * Including partners: 148,3 kbpd

Record (incl. partners): 174,2 kbpd (jul/12)

8

Fundamentals of Business and Management Plan 2012-2016

• Management

focused in

accomplishing

physical and

financial targets

of each project

• To ensure

expansion with

solid financial

indicators

• Priority given

to exploration

and production

projects of oil

and natural gas

in Brazil

2012 2016

Financiability Assumptions

• Maintenance of Investment Grade

• There is no issuance of new shares

• Oil Products Import Price Parity

• Divestment of existing assets abroad

PERFORMANCE

CAPITAL

DISCIPLINE

PRIORITY

9

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 Projects with construction

already started Projects in Phase I, II and III

833 projects 147 projects 980 projects

65.8%

(US$ 137.2 Billion)

Projects Under Implementation and Projects Under Evaluation

CONSTRUCTION

10

Business and Management Plan 2012-2016: US$ 236.5 Billion

INVESTMENTS UNDER IMPLEMENTATION

INVESTMENTS UNDER EVALUATION

6%(0,07)

90%

(1,05)

1%

(0,01)

3%

(0,03)

7%

(0,4)

85%

(5,1)

Corporativo

E&P

G&E

R&M Distribuição

Petroquímica

2%

(0,1)

4%

(0,2)

1%

(0,1)

1%

(0,1)

68%

(89,9)

19%

(25,4)

12%

(16,3)

E&P US$ 131.6 billion

+

Downstream US$ 55.8 billion

+

Gas & Power US$ 7.7 billion

+

Distribution US$ 3.2 billion

+

Biofuels US$ 1.2 billion

+

International US$ 6 billion

= US$

208.7 bi

E&P US$ -

+


+


+


+


+

International US$ 4.7 billion

= US$

27.8 bi

G&E

E&P

97%

(US$ 4,6 Bi)

3%

(US$ 0,1 Bi)

6%

(0,5)

20%

(1,5)

32%

(2,5)

7%(0,6)

24%

(1,9)

10%

(0,7)

54%

(3,2)

22%(1,3)

8%

(0,5)

15%

(0,9)

57%

(0,8)

21%

(0,3)

21%(0,3)1%

(0,01)

9%

(4,8)

17%

(9,4)

20%

(11,0)

45%

(24,9)

1%

(0,5)5%

(2,9)

4%

(2,4)

37%

(5,8)

8%(1,2)

41%

(6,4)

3%

(0,5)7%

(1,1)5%

(0,8)

21%

(0,67)

43%

(1,39)

13%

(0,42)

21%

(0,70)

1%

(0,01)

100%

(0,10)

+

11

Appproval of

the Basic

EVTE¹ and

clearance for

execution

(work start)

Systematic Approval of Projects and Organizational Learning

Approval of

EVTE¹ Phase

I

Approval of

EVTE¹

Concptual

Included at

Petrobras

Portfolio

¹EVTE: Technical and Economic Feasibility Study

PROJECTS INITIATION AND PLANNING

PHASE I

Opportunity

Identification

PHASE II

Conceptual

Project

PHASE III

Basic Project

EXPERTISE

ACQUIRED Changes and improvements included in the next project

Normative

Documents Procedures

NORTEC Petrobras Technical

Normalization

MAGES Petrobras

Management Guide.

Projects under Implamentation Projects under Evaluation Projects under Operation

EXPERTISE ACQUIRED: GATHER KNOWLEDGES IN EACH PHASE OF PROJECTS DEVELOPMENT

SINAPSE Register,

Consultation and

interaction

Validation and

Approval of

Knowledge’s

Items

Platform P-57

GASTAU

Phase V

Start up &

Operation

Phase IV

Work

Execution

RNEST

UTE Baixada Fluminense

SINAPSE: Integrated environment that allows the record learning of workforce. Suports the record process, analyses, consolidation, recovery and, mainly, implementation of learned lessons.

12

Premium I and II – International Metrics Typical Chinese Projects

REVAP – São José dos Campos (SP)

Inaugurated in 1980: Project by Snamprogetti.

Site of RNEST – Ago/12

The experience acquired enable the conception of new refineries in MA, CE and RJ, within the international metrics of price, term and standardized technologies.

Capacity: 230 kbpd

Production of Diesel: 161 kbpd (70%)

Current Situation: in construction, 62% physical progress

Start up: November/2014

CAPEX: US$ 17 billions.

Jobs Generated: 43,500 jobs

Local Content: 91%

Place: Qinzhou, China

Capacity (Mbpd): 200

Construction time: 52 months

Start up: Sep/2010

Place: Huizhou, China

Capacity (Mbpd): 240

Construction time: 46 months

Start up: May/2009

First refinery constructed by Petrobras since 1980.

Expertise Acquired

13

2.022

4.200

2.500

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Iracema

Norte Z1

Espadarte III

Florim

Maromba

Bonito

Entorno de

Iara

Norte Pq.

Baleias (P-58)

Roncador IV

(P-62)

Sapinhoá Norte

(Cid. Ilhabela)

Iracema Sul

(Cid.

Mangaratiba)

Lula Alto

P-66

Lula Central

P-67

Lula Sul

P-68

Franco 1

P-74

Carioca Z2

Lula Norte

P-69

Franco 2

P-75

Lula Ext.

Sul P-70

Iara Horst

P-71

NE Tupi

P-76

Carimbé

Aruanã

Iara NW

P-72

Franco 3

P-77

Franco 4

Sul de

Guará

Júpiter

Carcará

P-73

Sul Pq.

Baleias

Franco 5

Espadarte I

Piloto Sapinhoá

(Cid. São Paulo)

Piloto Lula NE

(Cid. Paraty)

Papa-Terra

(P-61 e P-63)

Roncador III

(P-55)

Baleia Azul

(Cid. Anchieta)

Baúna e

Piracaba

(Cid. Itajaí)

Mexilhão

(PMXL-1)

Marlim Sul

(P-56)

Piloto Baúna

e Piracaba

(SS-11)

Cachalote e

Baleia Franca

(Capixaba)

Uruguá /

Tambaú

(Cid. Santos)

Piloto Lula

(Cid. Angra

dos Reis)

Jubarte

(P-57)

UEPs 19 btwn 2012 and 2016

38 btwn 2012 and 2020

Drilling Rigs

LDA > 2.000 m

24 btwn 2012 and 2016

49 btwn 2012 and 2020

The Challenge is Huge!

P-57 – Jubarte Field: Capacity of 180 kbpd Local Content (LC): 69%

Platform P-57 started operation in

December 2010, 3 months before

contractual term, with 69% of local

content and currently is producing

138 kbpd (1Q12) at Jubarte Field.

Jubarte (P-57)

P-62 – Roncador Module IV Start up in Mar/14 - LC 65%

Construction of P-62 180 kbpd of capacity – Ago/12

2.004

Expertise Acquired

14

jan/11 fev/11 mar/11 abr/11 mai/11 jun/11 jul/11 ago/11 set/11 out/11 nov/11 dez/11 jan/12 fev/12 mar/12 abr/12 mai/12 jun/12 jul/12

2Q11

average: 2,018

1Q12

average: 2,066 2Q12

average: 1,970

2.050

2.000

1.950

50

2.200

2.150

2.100

2012 2011 kbpd

5% decrease in production 2Q12/1Q12 (- 96 kbpd) as a result of:

• Operational stoppages(-54 kbpd), lower operational efficiency (-18 kbpd) and interruption of Frade (-15 kbpd).

• Decline of old systems´potential as expected, around 11% p.y. The average rate worldwide for big and giant fields in deepwater is between 10% and 15% p.y.

Start-up of 2 new systems in 2H12:

• FPSO Cidade de Anchieta (Baleia Azul), 100 kbpd capacity, started on 09/10/12, peak in Feb/13

• FPSO Cidade de Itajaí (Baúna e Piracaba), 80 kbpd capacity, built in Singapore, postponed from October to December.

• Authorization to operate production unit SS-11 untill 28/Feb/2013 requested to ANP.

Maintenance of 2012 oil production target (flat when compared to 2011, +/-2%):

• Production recovery only in 4Q12 (scheduled stoppages will continue on 3Q12).

Oil and NGL Production Curve in Brazil: 2011 and 2012

Target 2012: 2,022 kbpd (+/- 2%)

2,001

1,968

2,002

1,963

2,047

2,003 2,020

2,003

2,040

2,069

1,993

2,098

1,989

1,961

1,960

2,061

2,110

2,084

1,940

Feb/11 Mar/11 Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep11 Oct/11 Nov/11 Dec/11 Jan/11 Feb/12 Mar/12 Apr/12 May/12 Jun/12 Jul/12 Jan/12

15

Improve Campos Basin

Operational Unit

efficiency levels

Increase the oil curve delivery

reliability, provided

in 2012-2016 BP

PROEF

Objectives

Operational

efficiency

targets for

Campos

Basin Unit

(%)

Improve production

systems integrity

89 88

80

7174

76

81

8890

2008 2009 2010 2011 2012 2013 2014 2015 2016

Campos Basin Operational Efficiency – UO-BC

Executed

PROEF Targets

PROEF: Initiatives to Recover Operational Efficiency – UO-BC

Operational Efficiency

• Without UO-BC: 94% 95% 94%

• E&P Total: 90% 87% 86%

PROEF Disbursements:

• Well workovers, subsea systems and

platforms intervention through

maintenance units: US$ 5.1 Bi (2012-

16)

PROEF Estimated NPV:

• US$ 1.6 Bn - US$ 3.3 Bn

HC / PAD Fields

UO-BC Assets

16

Z1

Iracema

North

Espadarte III

CO9

(Florim)

Maromba

Bonito

CO8

(Iara

Surround)

Production Units

Construction

19 up to 2016

38 up to 2020

P-58

(Whales Park

North)

P-62

(Roncador

mod. IV)

Cid. Ilhabela

(Sapinhoá

North)

Cid.

Mangaratiba

(Iracema

South)

P-66

(Lula

High)

P-67

(Lula

Central)

P-68

(Lula

South)

P-74

(Franco 1)

Z2

(Carioca)

P-69

(Lula

North)

P-75

(Franco 2)

P-70

(Lula Ext.

South)

P-71

(Iara Horst)

P-76

(NE Tupi)

Afretada

(Carimbé)

Aruanã

P-72

(Iara NW)

P-77

(Franco 3)

CO5

(Franco 4)

CO6

(South of

Guará)

Júpiter

P-73

(Carcará)

Whales

Parq South

CO7

(Franco 5)

Espadarte I

38 Production Units: 2012 – 2020 Production Units: 2012-2013

Oil

and

NG

L P

rod

uct

ion

Cu

rve

(kb

pd

)

Oil Production, Brazil: 2,022 – 4,200 kbpd

Cid. São

Paulo

(Piloto de

Sapinhoá)

Cid. Paraty

(Piloto de Lula

NE)

P-61

P-63 (Papa-

Terra)

P-55

(Roncador

mod. III)

Cid.

Anchieta

(Baleia Azul)

Cid. Itajaí

(Baúna e

Piracaba)

23 Already Contracted

15 to Contract

(from nov/12 to apr/17)

17

FPSO Cidade de Anchieta – Baleia Azul Operating since sep/10/12

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%

18

PHYSICAL PROGRESS OF THE PROJECT – S CURVE

Baleia Azul Project – FPSO Cidade de Anchieta (1st Oil: Sep/12)

Baseline Accomplished Forecast Baseline 2012-2016 BP

IMPLEMENTATION LANDMARKS

1 - Issuance of Preliminary License (LP) (P:Sep-08 / R:Sep-08)

2 – Conclusion of the Opportunity Evaluation Phase (Gate 1) (P:Dec-08 / R:Dec-08) (P: 100% / R: 100%)

3 – Conclusion of the Conceptual Project Phase (Gate 2) (P:Jul-09 / R:Jul-09) (P: 100% / R: 100%)

4 – Conclusion of the Basic Project Phase (Gate 3) (P:Dez-09 / R:Dez-09) (P: 100% / R: 100%)

5 – Beginning of the Construction of the 1st Well (P:Jan-11 / R:Feb-11)

6 – Issuance of the Instalation License (LI) (P:Dec-11 / R:Dec-11)

7 – Arrival of the Unit in the Local (P:Ago-12 / R:Aug-12)

8 – Beginning of Interconnection of the 1st Well (P:Aug-12 / R:Aug-12)

9 – Issuance of the Operating License (LO) (P:Aug-12 / R:Sep-12)

10 – Interconnection of the Last Well (P:Mar-13 / Proj:Mar-13)

Meeting of Critical Analysis (RAC) Monthly: CEO + E&P Director + Engineering, Technology and Materials Director

Fonte :SAP/PNG 12-16: 30/06/12. Data de Medição pela Diretoria de Exploração & Produção: 13/09/12.

Linha de Base: EVTE da Fase III, aprovado em 03/12/2009, Ata DE 4.787. / Projetado: Replanejamento realizado em Julho/12.

19


Baúna e Piracaba Project – FPSO Cidade de Itajaí (1st Oil: Dec/12)


1 - Conclusion of the Opportunity Evaluation Phase (Gate 1) (P:Mar-10 / R:Mar-10) (P: 100% / R: 100%)

2 - Conclusion of the Conceptual Project Phase (Gate 2) (P:May-11 / R:May-11) (P: 100% / R: 100%)

3- Beginning of Construction of the 1st Well (P:Aug-11 / R:Jul-11)

4 - Conclusion of the Basic Project Phase (Gate 3) (P:Sep-11 / R:Sep-11) (P: 100% / R: 100%)

5 -- Issuance of Preliminary License (PL) (P:Jul-12 / Proj:Sep-12)

6 - Issuance of the Instalation License (LI) (P:Aug-12 / Proj:Sep-12)

7 - Issuance of the Operating License (OL) (P:Sep-12 / Proj:Nov-12)

8 - Arrival of the Unit in the Local (P:Sep-12 / R:Dec-12)

9 - Beginning of Interconnection of the 1st Well Baúna (P:Sep-12 / Proj:Dec-12)

10 – Beginning of Construction of the 1st Well Piracaba (P:Mar-13 / Proj:Jan-13)

11 – Beginning of Interconnection of the 1st Well Piracaba (P:Jun-13 / Proj:May-13)

12 - Interconnection of the Last Well (P:Aug-14 / Proj:Aug-14)


apr

oct

apr

oct

apr

oct

apr

oct

apr

oct

apr

oct

apr

oct




Local Content: Mandatory: 60% / Forecast Accomplishment : 81%

20

FPSO Cidade de São Paulo - Sapinhoá Pilot (1st Oil: Jan/13)

Hull Conversion - Cosco (China)

Modules Construction: BrasFels Shipyards– Angra dos Reis (RJ)

13. Arrival Risers Manifolds

14. Operation Cargo Area - 1S

15. Operation Cargo Area - 5S

16. Flare Chimney

Modules Construction: AIBEL (Thailand) 1. Main Gas Compression A

2. Main Gas Compression B

3. Gas Treatment - CO2 Removal

4. Gas Reinjection

5. CO2 Injection

6. Oil Processing – High Pressure

7. Oil Processing – Low Pressure

8. Utilities and Water Injection

Modules Construction: ENAVAL/VEOLIA – Niterói (RJ)

12. Salt Water Treatment

Local Content - Mandatory :30% / Forecast Accomplishment :50%

Modules Construction: BOOMESC (China)

9. Energy Generation

10. E-House MCC – Panels Room

11. Piperack

Enaval - Niteroi (RJ)

Integration: BrasFels Shipyards – Angra dos Reis (RJ)

Modules Integration from hull 1 to 16

Brasfels Shipyard – Angra (RJ)

21

FPSO Cidade de São Paulo

View of BrasFels Shipyard, in Angra dos Reis – RJ (08//31/12).

FPSO - Cidade de São Paulo: Modules Construction and Integration at BrasFels Shipyard

22

PHYSICAL PROJECT MONITORING – ‘S’ CURVE

FPSO Cidade de São Paulo – Sapinhoá Pilot (1st Oil: Jan/13)

IMPLEMENTATION LANDMARKS:

1 – Beginning of Construction of the 1st Well (P:mar-12 / R:feb-12)

2 – Issuance of Preliminary License (LP) (P:may-12/ R:sep-12)

3 – Issuance of the Instalation License (LI) (P:may-12 /Proj:sep-12)

4 – Basic Design Conclusion (Gate 3) (P:july-12 /Proj:oct-12) (P: 89% / R: 90%)

5 – Production Unit (PU) in the Site (P:nov-12 /Proj:nov-12)

6 – Operation License Issue (LO) (P:dec-12 /Proj:dec-12)

7 – 1st Well Interconnection Start (P:dez-12 /Proj:dez-12)

8 - Exports Gas Pipeline Interconnection (P:aug-13 /Proj:aug-13)

9 – Last Well Interconection (P:oct-15 /Proj:oct-15)

Start-Up

BP 12-16: Jan/13

Start-Up Forecast:

Jan/13

Start-Up EVTE:

Dec/12

Monthly Meeting of Critical Analysis (RAC) : CEO + E&P Director + Engineering, Technology and Materials Director



23

FPSO Cidade de Paraty – Lula NE Pilot (1st Oil: May/13)

Modules Construction: Keppel Shipyard - Singapore

1. Energy Generation BB

2. Energy Generation BE

3. Local Equipment Room

4. Maintenance and conversion areas, and moorings

5. Helipad

6. Burners

Modules Construction: BrasFels Shipyard – Angra dos Reis (RJ)

11. Oil A Processing

12. Oil B Processing

13. Gas A Compression

14. Gas B Compression

15. Gas B Treatment

Modules Construction: Nuclep Site Construction (EBSE) –

Itaguaí (RJ)

7. Manifold

8. Cargo Operation and Chemical Storage

9. Gas Injection and Compression

10. Gas A Treatment

Modules Construction: ENAVAL/VEOLIA – Niterói (RJ)

16. Salt Water Treatment

17. Utilities and Water Injection

BrasFels Shipyard - Angra (RJ)

Local Content - Mandatory: 30% / Forecast Accomplishment 30%

Integração: Estaleiro BrasFels – Angra dos Reis (RJ)

Modules Integration from hull 1 to 17

Hull Conversion: Keppel Shipyard - Singapore

Enaval - Niteroi (RJ)

Nuclep - Itaguaí (RJ)

24

1

2

3

4

5

6

FPSO Cid. de

Paraty Modules

FPSO - Cidade de Paraty: Modules Construction and Integration at BrasFels Shipyard

FPSO

Cid. de Paraty

View of BrasFels Shipyard, in Angra dos Reis – RJ (08/31/12).

FPSO Cidade de Paraty Modules: (1) TS072 – Main Gas B Compressor; (2) TS062 – Oil A Treatment; (3) TS063 – Oil B Treatment; (4) TS071 – Main Gas A Compressor; (5) TS075 – Gas B

Treatment; (6) TS073 –CO2 Compressor; (LC: Full modules package contracted attending 65% of Local Content).

25

Canteiro Nuclep - RJ Canteiro Nuclep - RJ

View of Nuclep Construction Site, in Angra dos Reis – RJ (08/31/12).

FPSO Cidade de Paraty (Hull – Singapore and Integration BrasFels): (1) Gas Injection and Compression (LC:65%); (2) Manifold (LC:65%).

11

1

2

FPSO - Cidade de Paraty: Modules Construction at Nuclep Construction

FPSO Cid. de

Paraty Modules

26

0

10

20

30

40

50

60

70

80

90

100

jan-

09

mar

-09

mai

-09

jul-0

9

set-

09

nov-

09

jan-

10

mar

-10

mai

-10

jul-1

0

set-

10

nov-

10

jan-

11

mar

-11

mai

-11

jul-1

1

set-

11

nov-

11

jan-

12

mar

-12

mai

-12

jul-1

2

set-

12

nov-

12

jan-

13

mar

-13

mai

-13

jul-1

3

set-

13

nov-

13

jan-

14

mar

-14

mai

-14

jul-1

4

set-

14

nov-

14

jan-

15

mar

-15

mai

-15

jul-1

5

set-

15

nov-

15

jan-

16

mar

-16

mai

-16

% A

cum

ulad

o

Linha de Base Linha Base - PNG 12-16 Realizado Projetado

Entrada em

Operação Projetada:

28/05/2013

Entrada em Operação

Prevista (PNG 12-16):

28/05/2013

Justif.2 (A)

1

5

2

3

4

67

10

8

Previsto PNG:Realizado:

29,1% 1,1%AcumuladoNo mês

31,8%1,1%

Referência: agosto/12

Justif.2 (B)


Prevista (EVTE):

28/05/13

9



FPSO Cidade de Paraty – Lula NE Pilot (1st Oil: May/13)


1 – Conclusion of Opportunity Evaluation Phase(Gate 1) (P:may-10/R:may-10) (P:100%/R:100%)

2 – Conclusion of Conceptual Project Phase (Gate 2) (P:jul-11/R:jun-11) (P:100%/R:100%)

3 - Beginning of Construction of the 1st Well (P:feb-12 / R:feb-12)

4 - Issuance of Preliminary License (LP) (P:aug-12 / R: sep-12)

5 - Basic Design Conclusion (Gate 3) (P:may-12/R:oct-12) (P:100%/R:95%)

6 - Issuance of the Instalation License (LI) (P:aug-12 /Proj: oct-12)

7 - Production Unit (PU) in the Site (P:mar-13 /Proj:mar-13)

8 - Operation License Issue (LO) (P:mar-13 / Proj:mar-13)

9 - 1st Well Interconnection Start (P:apr-13 / Proj:apr-13)

10 - Last Well Interconection (P:apr-16 / Proj:apr-16)

Monthly Meeting of Critical Analysis (RAC) : CEO + E&P Director + Engineering, Technology and Materials Director


Operational

Start-Up Forecast

(EVTE): May/13

Operational

Start-Up Forecast:

May/13

Operational

Start-Up Forecast:

BP 12-16: May/2013

MTD Accrued

Forecast BP: 1.1% 29.1%

Accomplished: 1.1% 31.8%

Reference: Aug/12

% A

ccru

ed

Baseline Baseline BP 12-16

Accomplished Forecast

27

FPSO P-63 – Papa-Terra (1st Oil: Jul/13)

Modules: Construction Tekfen (Turkey)

9. Z90 Piperack

Modules: Construction QUIP Construction Site–Rio Grande Port

(RS)

10. EBSE – M11 High Separation System

11. EBSE – M12 Low Separation System

12. NATCO – M13 Oil Treatment

13. SULZER/TSL – M51 – Water Treatment and Injection Systems

14. VEOLIA – M52 – Sulphate Reduction Unit

15. QUIP – M-31 Flare Vases

16. QUIP – Flare Spare

17. SULZER/TSL – M83 Chemical Injection System

18. M60 Natural Gas Compression System

Rio Grande Port - Rio Grande (RS)

Local Content - Mandatory: 0% / Accomplished Forecast: 65% Hull: Conversion - Cosco (China)

Modules: Construction COSCO Shipyard (China)

1. M01 Offices, Accommodations and Helideck

2. M21/M22 Manifolds

3. M81 Utilities System

4. M82 Heaters

5. M32/42 Load and Unload Area

6. M41 Laboratory and Workshop

7. M90 Electric Panels

8. M91/92/93 Electricity Generation Systems

Integration: Rio Grande Port (RS)

Integration of Modules 1 to 18 to the hull

28

View of the Honório Bicalho Shipyard (QUIP Construction site), in Rio Grande Port – RS (03/sep/12).

P-63 Modules (Hull converted in China will arrive in Brazil in Dec/12): (1) M60 – Compression; (2) M52 – Sulphate removal; (3) M12 – Low pressure separator; (4) M11 – High pressure separator;

(5) M13 – Electrostatic treatment; (6) M51- Water injection and treatment; (7) F30 - P-63 Flare. (LC: Full package contracted with 65% LC).

1

2 3

4

5

6

7

P-63 – Modules Construction at Rio Grande Port

29

FPSO P-61 – Papa-Terra (1st Oil: Dec/13)

Modules Construction: SIEMENS – Indonesia

1. Electric Modules

Modules Construction: KeppelFELS - Singapore

2. Topside Integration

Local Content - Mandatory: 0% / Accomplished: 65%

Integration: BrasFels Shipyard – Angra dos Reis (RJ)

Topside / Hull Integration

Hull Construction: BrasFels Shipyard – Angra dos Reis (RJ)

BrasFels Shipyard - Angra (RJ)

30

P-61

View of Brasfels Shipyard, in Angra dos Reis – RJ (08/31/12)

P-61 (LC:65%): HULL Construction at TLWP and TOPSIDE Integration (deckbox and modules constructed in Singapore).

P-61: Hull Construction and Integration at BrasFels Shipyard

31

P-55 – Roncador Module 3 (1st Oil: Sep/13)

Modules and Deckbox: Construction of Rio Grande Shipyard –

ERG1 (RS)

3. QUIP - Topside and Integration

4. IESA - M09 – Water Treatment (Sulfate Removal)

5. IESA - M-04 A/B – Gas Compressor

6. IESA - Area 1 - High pressure separator

7. IESA - Area 2 - Low pressure separator

8. IESA - Area 5 - Eletrostatic module / hidrocyclone

9. Dresser-Rand - Area 12 – Power Generation

Modules: Construction Site UTC – Niterói (RJ)

1. UTC - M-07 – Booster compressor and Gas dehydration (T EG)

2. UTC - M-08 – Amines Unit

Rio Grande Shipayard (ERG1)

Atlântico Sul Shipyard (PE)

Local Content - Mandatory: 0% / Accomplished: 65%

Hull: Construction - Atlântico Sul Shipyard – EAS (PE)

Integration: Rio Grande Shipyard – ERG1 (RS)

Modules and deckbox integration from hull 1 to 9

Construction Site UTC

32

View of Rio Grande Shipyard ERG1 – RS (09/03/12)

P-55 (Hull constructed at EAS – PE): (1) Water treatment module; (2) Eletrostatic module; (3) Amines unit module; (4) High pressure separator; (5) Flare Tower; (6) Crane with

capacity of 600t; (7) workshop; (8) Utilities central of shipyard.

8

1

7

6

3 2

5

1

4

P-55 - Modules Construction and Integration at Rio Grande 1 Shipyard

33

0

10

20

30

40

50

60

70

80

90

100

mai

-05

ago-

05

nov-

05

fev-

06

mai

-06

ago-

06

nov-

06

fev-

07

mai

-07

ago-

07

nov-

07

fev-

08

mai

-08

ago-

08

nov-

08

fev-

09

mai

-09

ago-

09

nov-

09

fev-

10

mai

-10

ago-

10

nov-

10

fev-

11

mai

-11

ago-

11

nov-

11

fev-

12

mai

-12

ago-

12

nov-

12

fev-

13

mai

-13

ago-

13

nov-

13

fev-

14

mai

-14

ago-

14

nov-

14

% A

cum

ulad

o

Linha de Base Linha Base - PNG 12-16 Realizado Projetado

Entrada em

Operação

Projetada: set/13

Entrada em

Operação Prevista

(PNG): set/13

Justif.2 (A)

1

5

2

3

4

6

7

9

10

8

Previsto PNG:Realizado:

61,42%0,85 p.p.

AcumuladoNo mês

66,76%1,88 p.p.

Referência: agosto/12

15

13

11

12

Justif.2 (B)

14


Prevista EVTE: jun/12

Justif.1 (A)

Source:SAP/BP 12-16: 06/30/12. Check Date by Exploration & Production Board: 09/13/12.

Baseline: Phase III EVTE, approved in 12/03/2009, Board Minute 4,787. / Forecast: Re-Planning elaborated in July/2012.



1 - Conceptual Designt Conclusion Phase (Gate2) (F:Nov-04 / A:June-05) (R: 100%) 2 - Basic Design Conclusion (Gate 3) (F:Sep-08 / A:Sep-08) (R:100%) 3 - Beginning of Construction of the 1st Well (F:July-10 / A:Apr-11) 4 - Issuance of Preliminary License (LP) ( F: - / A:Sep-11) 5 - Issuance of the Instalation License (LI) (F:July-10 / A:Sep-11) 6 - Manifolds installation Start (F:Apr-12 / A:May-12) 7 - 1

st Well Interconnection Start (F:Aug-12 / A:June-12)

8 - Platform Mating (F:Apr-12 / A:Julyt-12) 9 – Production Unit (PU) Exit from drydock (F:July-12 / Proj:Oct-12) 10 – PU Exit Release of Shipyard (F:May-13 / Proj: May13) 11 - Operation License Issue (LO) (F:Apr-12 / Proj:June-13) 12 - Production Unit Arrival at the Site (F:July-13 / Proj:July-13) 13 - 1

st Wel Interconnection Start (F: Sep-13 / Proj:Sep-13)

14 - 7

st Wel Interconnection Start (P: June-14 / Proj:June-14)

15 - Last Wel Interconnection (F: Dec-14 / Proj: Dec-14)

P-55 – Roncador Module 3 (1st Oil: Sep/13)


Baseline Baseline BP 2012-2016 Accomplished Forecast

Start-Up Forecast:

(EVTE): Jun/12

Start-Up

Forecast:

Sep/13

Start-Up Forecast:

(BP): Sep/13

MTD Accrued

BP Forecast: 0.85 p.p. 61.42%

Accomplished: 1.88 p.p. 66.76%

Reference: August/2012

% A

ccru

ed

34

4.200

2.500

2.022

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Pacific Mistral

(PAD Iracema North)

Schahin Amazonia

(Iguape Drilling)

Schahin Cerrado

(PAD Júpiter

Northeast)

Ocean Rig Mykonos

(ADR LL Central)

Etesco Takatsugu J

(Franco SW)

P-59**

(Peroá)

Ocean Rig Corcovado

(Iracema High)

Deepsea Metro II

(Farfan Bloco BM-

SEAL-11)

Schaihn Sertão

(Roncador)

Sevan Brasil

(Sagitário)

Odn Delba III

(PAD Trachemys –

Quelônio)

P-60**

(Block BM-C-27)

Amaralina Star

(CO South of Tupi)

Odn I - Norbe X

(CO PAD Franco)

Odn II - Norbe XI

(CO Florim)

Odn Tay IV

(RF of Albacora)

Laguna Star

(CO PAD Franco)

Arpoador

(Lula North)

Copacabana

(Franco NE)

Urca

(Franco East)

Guarapari

(NE of Tupi)

Ondina

(Iara Horst)

Cassino

(Lula North)

Grumari

(Carcará 1)

TBN1*

Frade

(Júpiter)

Camburi

(South of

Guará)

Pituba

(Iara NW)

Ipanema

(Júpiter)

Bracuhy

(Carcará)

Itaoca

(Iara NW)

Curumim

(Exploration)

TBN2*

Leblon

(Franco East)

Portogalo

(Iara

Surround)

Salinas

(Exploration)

Boipeba

(Exploration)

Leme

(Franco East)

TBN3*

Mangaratiba

(Florim)

Itaunas

(Exploration)

Interlagos

(Exploration)

Marambaia

(Iara

Surround)

Botinas

(Florim)

Itapema

(Iara NW)

Siri

(Exploration)

TBN 4*

TBN 5*

Comandatuba

(Exploration)

Sahy

(Exploration)

50 New Drilling Rigs: 2012 - 2020

* Under negotiation, to be confirmed in the contracts signature; ** P-59 and P-60 drilling rigs were constructed in Brazil

Drilling Rigs

Construction

25 up to 2016

50 up to 2020

Oil Production, Brazil: 2,022 – 4,200 kbpd

Oil

and

NG

L P

rod

uct

ion

Cu

rve

(kb

pd

)

2,022

2,500

4,200

Drilling Rigs ( 38)

Semisubmersible (10)

Auto raising (2)

Bu

ilt in

Ch

ina,

Sin

gap

ore

an

d K

ore

a

Bu

it in

Bra

zil

55%

< L

oca

l Co

nte

nt

< 6

5%

28 Already Contracted

5 to contract

In the next months

http://www.midwestoilgas.com/

35

Quarter Check-List in Order to Reduce the Risk in

Construction of Drilling

Estaleiro Atlântico Sul – Ipojuca (PE)

Enseada do Paraguaçu - Maragogipe (BA)

Jurong Aracruz - Aracruz (ES)

Estaleiro OSX – São João da Barra (RJ)

São Roque – São Roque do Paraguaçu (BA)

Superpesa – Niterói (RJ)

Mauá – Niterói (RJ)

Brasa – Niterói (RJ)

Canteiro UTC – Niterói (RJ)

Estaleiro BrasFels – Angra (RJ)

Canteiro Nuclep – Itaguaí (RJ)

Inhaúma – Rio de Janeiro (RJ)

DM/TKK Engenharia - Itajaí (SC)

Honório Bicalho - Rio Grande Port (RS) Rio Grande 1 – ERG1 (RS) Rio Grande 2 – ERG2 (RS)

Promar – Ipojuca (PE)

Tomé Engenharia/Ferrostaal (AL)

IESA – Charqueadas (RS)

Forthcoming instalation of new shipyards/construction sites: projects, construction and

capacity to construct of the shipyard to comply with deadlines set in contracts;

Instalation of current shipyards/construction sites: capacity to construct of the shipyard to

comply with deadlines set in contracts;

Contractual Management: participation of technological partner in the shipyard;

Legal Management: abscence of legal barriers to operate the shipyard;

Financial Management: corporate and financial guarantee that do not compromisse the

shipyard operation;

HSE: verification of the feasibility to attend the environmental licensing conditions;

Shipyards/construction site supply chain: capacity to provide critical equipments (ie.: drilling

package, propulsion and generation, and dynamic positioning);

Local Content: capacity to comply with requirements based on international metrics: price, term

and technical specifications.

36

Oil Products Outputs and Utilization Factor Growth

757 785

431441

2Q12

2.035

809

1Q12

1.967

779

Throughput and

Utilization Factor Oil Products Output (*)

(*) Includes Nafta, Jet Oil, Fuel Oil, LPG (with E&P production) and others.

Others*

Diesel

Gasoline

Th

ou

san

d b

bl/d

349 350

94,3%92,5%

0

400

800

1.200

1.600

2.000

2.400

2.800

0

10

20

30

40

50

60

70

80

90

100

%

+2%

2Q12

1.927

1.576

1Q12

1.883

1.534

Oil imported Utilization Factor Domestic Oil

Larger oil products outputs due to otimization in refining assets. Utilization factor above 94% in 2Q12

and records in throughput .

Th

ou

san

d b

bl/d

3%

0,4%

4%

2%

37

(kbpd)

Without new refineries, Brazil will import 35% of oil products demand

.

Brazil Oil Product Market

in 2020

Source: Petrobras

Projects Under

Implementation (Construction)

US$ 55.8 billion

9%

(4,8)

17%

(9,4)

20%

(11,0)

45%

(24,9)

1%

(0,5)5%

(2,9)

4%

(2,4)

Projects Under Evaluation (project)

US$ 15.8 billion

37%

(5,8)

8%(1,2)

41%

(6,4)

3%

(0,5)7%

(1,1)5%

(0,8)

Refining Expansion Importance:

Oil Products Supply and Demand Balance

Déficit

- 514

Demanda

Déficit

- 678

Demanda

1.230

2.166

N, NE e CO

S e SE

Capacidade de

Processamento

552

1.652

Capacidade de

Processamento

RNEST

Comperj

Trem 1

• Premium I – 1st Phase (300 kbpd - Oct/17)

• Premium II (300 kbpd - Dec/17)

• Premium I – 2nd Phase (300 kbpd - Oct/20)

• Comperj - 2nd Phase

(300 kbpd - Jan/18)

• Comperj – 1st Phase

Under Construction

(165 kbpd - Apr/15)

• RNEST

Under Construction

(1st Phase - 115 mil bpd - Nov/14

2nd Phase - 115 mil bpd – May/15)

Déficit

- 514

Demanda

Déficit

- 678

Demanda

1.230

2.166

N, NE e CO

S e SE

Capacidade de

Processamento

552

1.652

Capacidade de

Processamento

RNEST

Comperj

Trem 1

Déficit

- 514

Demanda

Déficit

- 678

Demanda

1.230

2.166

N, NE e CO

S e SE

Capacidade de

Processamento

552

1.652

Capacidade de

Processamento

RNEST

Comperj

Trem 1

Deficit

Déficit

- 514

Demanda

Déficit

- 678

Demanda

1.230

2.166

N, NE e CO

S e SE

Capacidade de

Processamento

552

1.652

Capacidade de

Processamento

RNEST

Comperj

Trem 1

Deficit Demand

N, NE and MW

S and SE

Biofuels

Petrochemical

Fleet Expansion

Refining Capacity Expansion

Logistics for Oil

Quality and Conversion

Operational Improvement

New Refineries under evaluation New Refineries

under construction

Processing

capacity

38




1-Subestation Entrance Energization (Offsite) (P:dec/12 / Proj:dec/12) (P: 94,1%) (R: 95,2%) 2-Conclusion of Atmospheric Dist. Unit - Train I (Onsite - Train 1) (P:apr/13 / Proj:apr/13) (P: 81.2% / R: 82.3%) 3- Integrated Control Center Start up (Infraestrutura) (P:sep/13 / Proj:sep/13) (P: 85,9% / R: 80,9%) 4- Industrial Waste Mngmt. Station Start up (Offsite) (P:dec/13 / Proj:dec/13) (P: 82,4% / R: 82,7%) 5- Construction Conclusion - Pipes extramural (P:jan/14 / Proj:jan/14) (P: 56,8% / R: 59,3%) 6- Water Treatment Station Start up (Offsite) (P:mar/14 / Proj:mar/14) (P: 89,5% / R: 92,3%) 7- Boiler FO Start up (Offsite) (P:apr/14 / Proj:apr/14) (P: 72,2% / R: 62,4%) 8- SNOX Start up (Onsite - Train 1) (P:out/14 / Proj:out/14) (P: 27,4% / R: 20,4%) 9- Phase 1 start up (Onsite - Train 1) (P:nov/14 / Proj:nov/14) (P: 54,2% / R: 52,6%) 10- Phase 2 start up (Onsite Train 2) (P:may/15 / Proj:may/15) (P: 44,7% / R: 44,4%)

Justif.1(A)

RNEST: Physical S Curve

Meeting of Critical Analysis (RAC) Monthly: CEO + Downstream Director + Engineering, Technology and Materials Director



39

Financial • Improve cashflow generation in the BP 2012-2016

Operational • Increase productivity in operational acitivities from internal and external

benchmarks

Organizational • Implement management model focus on cost efficiency

Purpose

Purposes of PROCOP:

Cost Optimization Program

• US$ 32 billion: management costs of Petrobras in 2011

• Activities in Brazil: E&P, Downstream and Gas&Power

• Processes related to production and operational support: Oil and gas production, refining, oil and oil products logistics, natural gas logistic,

power generation, fertilizer production, IT, equipments supply, oil , oil products and

parts storage

Scope

40

Preliminary view:

focus areas and reduction of

the potential I

Details, Quantification and

Accountability

Consolidation and

Communication III II

Work Plan 2012 – Focusing on Operational Processes: Production, Refining, O&G Logistics,

Power Generation, Fertilizers, IT, Equipments Supply and Oil, Oil Products and Parts Storage

June-July August-November December

Current Focus

Mapping areas of greatest

potential for optimization.

• Deviation of ~10-30% (in

some cases more) in relation

to internal and external

benchmarks

• ~20 focus areas selected for

Phase II

Work teams are deepening the

focus areas in order to define

concrete targets

• Implementation of targets

year over year (until 2016),

linked to operational

indicators

• Accountability, Milestones

and Schedule

• Multi-annual Plan of

Implementation

Optimization to be implemented

from January 2013 on

PROCOP Current status: Details and Quantifications

41

Financial Indicators in 1H12:

Debt and Leverage

45,9 57,9

R$ billion

Total Debt

44,6

Cash and Cash Equivalent

Net Debt

2Q12

179.2

45.9

133.2

1Q12

164.1

57.9

106.2

2,46

1,61

2Q12 1Q12

Increase in Net Debt mainly due to FX rate devaluation (R$ 1.82/US$ in 1Q12

and R$ 2.02/US$ in 2Q12), besides raise fundings in the amount of R$ 7.6 bi in

2Q12.

2Q12 EBITDA mainly influenced by:

– Write-off dry and subcomercials wells;

– Lower oil exports and higher oil products demand in the domestic market

supplied by imports, mainly of gasoline and diesel; and

– Hgher LNG imports, to supply eletric power system.

Factors that influenced 1H12

28

24

1Q12 2Q12

Net Debt/ EBITDA < 2.5x Leverage (%) < 35%

42

Financial Planning Assumptions

Main assumptions for cash flow generation and investment levels

Brent prices (bbl) US$ 110.82 in 2012, declining to US$ 90 in the long term

Average exchange rate (R$/US$) R$ 1.90 in 2012, strengthening to R$ 1.73 in the long term

Leverage < 35%

Net debt / Ebitda < 2,5x

Oil products prices in Brazil International parity

Projects under implementation Incorporated in the financial planning

Projects under evaluation To be incorporated in the financial planning, contingent upon approval in

each phase

Divestments US$ 14.8 billion (the majority in 2012, the remainder in 2013)

Cash utilization US$ 15 billion

Third-party resources in the 2012-2016 period:

Gross - US$ 16 billion / Net - US$ 8.7 billion

No equity issuance Solid investment grade maintenance

43

Business and Management Plan 2012-2016:

Management of Portfolio Projects

INVESTMENTS UNDER IMPLEMENTATION

INVESTMENTS UNDER EVALUATION

6%(0,07)

90%

(1,05)

1%

(0,01)

3%

(0,03)

7%

(0,4)

85%

(5,1)

Corporativo

E&P

G&E

R&M Distribuição

Petroquímica

2%

(0,1)

4%

(0,2)

1%

(0,1)

1%

(0,1)

68%

(89,9)

19%

(25,4)

12%

(16,3)

E&P US$ 131.6 billion

+


+


+


+


+

International US$ 6 billion

= US$

208.7 bi

E&P

US$ -

+

Downstream

US$ 15.8 billion

+

Gas & Power

US$ 5.9 billion

+

Distribution

US$ 0.1 billion

+

Biofuels

US$ 1.4 billion

+

International

US$ 4.7 billion

= US$

27.8 bi

G&E

E&P

97%

(US$ 4,6 Bi)

3%

(US$ 0,1 Bi)

6%

(0,5)

20%

(1,5)

32%

(2,5)

7%(0,6)

24%

(1,9)

10%

(0,7)

54%

(3,2)

22%(1,3)

8%

(0,5)

15%

(0,9)

57%

(0,8)

21%

(0,3)

21%(0,3)1%

(0,01)

9%

(4,8)

17%

(9,4)

20%

(11,0)

45%

(24,9)

1%

(0,5)5%

(2,9)

4%

(2,4)

37%

(5,8)

8%(1,2)

41%

(6,4)

3%

(0,5)7%

(1,1)5%

(0,8)

21%

(0,67)

43%

(1,39)

13%

(0,42)

21%

(0,70)

1%

(0,01)

100%

(0,10)

44

Thank You

4th Itaú BBA LATAM Commodities Conference

Investor Relations

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