1 PETROBRAS AT A GLANCE Theodore M. Helms Executive Manager Investor Relations [email protected] Marcos V. G. Silva Institutional Investors Coordinator Investor Relations [email protected] June / July 2008 P-51
Jul 03, 2015
1
PETROBRAS AT A GLANCE
Theodore M. HelmsExecutive ManagerInvestor [email protected]
Marcos V. G. SilvaInstitutional Investors CoordinatorInvestor [email protected]
June / July 2008
P-51
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.
Cautionary Statement for US investorsThe 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.
Forward Looking Statements Disclaimer
3
Petrobras Overview
4
Brazilian Constitution Amended
Nov 1995
PetrobrasNYSE Listing
August 2000
First PublicAuction of OilExploration Areas
June 1999
Full
Deregulation
January 2002
Brazil Self-Sufficient in Oil
April 2006
Petrobras: An Investment Grade, Publicly Traded, Major International Oil Company
• Incorporated in 1953 as government monopoly for all hydrocarbon activities in Brazil
• Originally established as a refinery of imported crude oil
• Became net exporter in 2006
• 60% of total equity capital (common and preferred) is now publicly traded
• Government maintains controlling interest with 55% of voting shares
• Market cap of approximately $260 billion, NYSE Listed, quarterly disclosure in US GAAP
• Foreign currency ratings from Moody’s of Baa1, Standard & Poors (BBB), and Fitch (BBB) (3, 1, and 1 notch above sovereign, respectively)
Upgraded to Investment Grade Issuer
October 2005
Crossed the$100 billion dollar Market Cap mark
2006
2MM bpd, $200MM market cap, Discovery of new oil frontier 2007
5
53.6% 61.6%44.4% 40.6% 40.1% 39.9%
46.4% 18.0%25.1% 23.1% 20.7% 21.9%
10.3% 9.9% 8.0%
30.3%
7.9%
10.9% 31.2%26.4%20.3%9.5%
Oct/1992 Jul/2000 After Aug/00offering
After Jul/01offering
Dec/2003 May/08
Governm ent (1) (%) Bovespa Brazil Bovespa Foreign ADRs
(1) Includes BNDES / BNDESPAR
Foreign38.2%
Free Float 46.4 38.4 55.6 59.4 59.9 60.1
Bovespa29,8%
Diversified Shareholder Base• 60% of the economic value of Petrobras in private hands, but Government maintains control w/55% of voting
shares• More than 500,000 investors in Brazil and abroad• NYSE Listed, quarterly disclosure in US GAAP
6
For Year Ended 2005 2006 2007 Net Revenues 56.3 72.3 87.7 EBITDA 17.6 22.9 25.3 Capex 10.4 14.9 21.0 Total Debt(1) 21.2 21.3 21.9 Cash & Cash Equivalents 9.9 12.7 7.0 Net Debt 11.3 8.7 14.9 Total Equity 32.9 44.3 65.2 Total Assets 78.6 98.7 129.7
Notes:1 Includes capital leases2 For tthe year ended December 31, 2006. Excludes losses in gas and energy, corporate results and eliminations
Summary Financials (US$ billion) Income from Operations(2)
Corporate Organization and Key Operating Results
Exploration & Production
Downstream(Supply)
Gas & Energy
Biofuels
Distribution
Petrochemicals
Downstream16%
Domestic E&P81%
Distribution3%
International
7
284 259218 207
468
160204
145
51
0
100
200
300
400
500
ExxonMobil
Petrobr as Shel l BP Chevron Total Eni Conoco Repsol
2007 Proven Reserves (SEC)
Market Value as of June 06, 2008
2007 Oil & Gas Production
2007 Refining Capacity
World Class Integrated Public Energy Company
(Bln boe) (‘000s bpepd)
17.6
11.7 11.7 11.2
22.5
10.110.8
6.52.4
0.0
5.0
10.0
15.0
20.0
25.0
ExxonMobil
BP Shell Petrobras Chevron Conoco Total Enl Repsol
1,039
1,7362,3012,3162,3242,593
3,2683,771
4,180
0
1,000
2,000
3,000
4,000
ExxonMobi l
BP Shel l Chevron Conoco Total Petr obr as Eni Repsol
(US$Bln)(‘000s boepd)
7481,039
2,1152,1672,5982,7302,769
3,953
6,299
01,000
2,000
3,000
4,0005,000
6,000
7,000
Exxo nM ob il
She ll B P C ono co Tot al P e trobrasC hev ro n R e pso l En i
Source: Company Filings, Company Website Source: Company Filings
Source: Company Filings, FactSetSource: Company Filings, Company Website
8
Downstream OperationsUpstream Operations
- Proved Domestic Reserves of 13,92 Billion BOE (SPE)- - Southeast Basins responsible for more than 80% of Brazil’s
oil production- - 2007 domestic oil average daily Production of 1,792 k bpd
Balanced Vertical Integration
11 refineries in Brazil- 2007 domestic throughput of 1,795 k bpd - 2007 oil products domestic consumption of 1,725 k
bpd
9
Upstream Overview
10
Proven Reserves (SPE) evolution in Brazil
13,92
3.8
6,0
11,01
11
Oil Production Development and Targets
10 bpd
3
G3467G3467
ONSHORE OFFSHORE <= 300m OFFSHORE > 300m TARGET
0
500
1.000
1.500
2.000
2.500
3.000
Year
Thou
sand
bpd
1950
2421
2812
12
12.5212.35 13.0412.00
0.880.88
1.021.23
2003 2004 2005 2006 2007
Production(0.70 billion boe)
13.02 13.23 13.75
Production(0.67 billion boe)
Reserves Replacement
Index
(174%)
Reserves Replacement
Index
(131%)
Production(0.60 billion boe)
Reserves Replacement
Index
(170%)
12.60
....along with a organic reserves replacement
Internal Reserves Replacement Ratio (SPE)
The goal it to keep a minimum 100% Replacement Ratio
Production(0.70 billion boe)
Reserves Replacement
Index
(124%)
13.92
13
Onshore
Offshore (0-300m)
Offshore (300-1500m)
Offshore (>1500m)
Proven Reserves by Category
Long-Term Record of Increasing Reserves
85%
6%9%
Non-Assoc. Gas
Assoc. Gas
Oil and Condensate
56%
23%
11%10%
By Depth
< 31o API Heavy /Intermediate
> 31o API Light
74%26%
By Gravity
Oil vs. Gas
Worldwide Proved Reserves of Petrobras(Reviewed and Certified by DeGolyer and MacNaughton since 2001)
Note: Reflects both SEC and SPE (Society of Petroleum Engineers) method and includes both Brazilian and international reserves.
9.8 9.310.5
11.6 11.8 11.8 11.5 11.7
2000 2001 2002 2003 2004 2005 2006 2007
SEC SPE (inc. SEC)
Bill
ion
BB
LS
15.014.914.914.5
12.1
10.710.4
8%
92%Bra zi lInte rnat io nal
By Location
15.0
14
E&P - rapidly growing production profile
2 .8 122 .4 2 1
6 4 3
6 3 7
515
2 8 5151
18 3
809 869 1 , 004 1 , 132 1 , 271 1 , 336 1 , 500 1 , 540 1 , 493152 163
179197
221 232252 250 265
1, 7921, 778
716
1 , 684
273277
134
274
12616335
445360
45473825
161 168142
109
10 9 11 1016
20 24 23 85 9496 101
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007O il and N GL - B razil N a tural Gas - B razilO il and N GL - Inte rnat io nal N a tural Gas - Interna t io na l
Thou
sand
boe
d
885 1,0081,090 1,238
1,5051,565 1,636
1,810 2,036 2,020 2,217
8.3% p.y.
2,298
3,494
4,153
8.7% p.y.
7.7% p.y.
* Includes non consolidated production
*
*
2012 Target
2015 Forecast
2,300
15
2,421
1.792
1.950*2,191
2,2962,374
1,600
1,800
2,000
2,200
2,400
2,600
2007 2008 2009 2010 2011 2012
Rio de JaneiroEspadarte Mód II
100.000 bpd6/jan/07
Rio de JaneiroEspadarte Mód II
100.000 bpd6/jan/07
Main Projects in Brazil – 2007-2012Main Projects in Brazil – 2007-2012
RoncadorP-52
180.000 bpdNov ember 2007
RoncadorP-52
180.000 bpdNov ember 2007
RoncadorP-54
180.000 bpdNov ember 2007
RoncadorP-54
180.000 bpdNov ember 2007
Piranem a30.000 bpd10/oct/07
Piranem a30.000 bpd10/oct/07
Cidade de VitóriaGolf inho Mód. 2
100.000 bpdNov ember 2007
Cidade de VitóriaGolf inho Mód. 2
100.000 bpdNov ember 2007
Marlim LesteP-53
180.000 bpd2008
Marlim LesteP-53
180.000 bpd2008
Marlim Sul Módulo 2P-51
180.000 bpd2008
Marlim Sul Módulo 2P-51
180.000 bpd2008
Cidade NiteróiJabuti (FPSO)100.000 bpd
2008
Cidade NiteróiJabuti (FPSO)100.000 bpd
2008
Parque das Conchas
100.000 bpd
2009
Parque das Conchas
100.000 bpd
2009
Frade100.000 bpd
2009
Frade100.000 bpd
2009
Cachalote & Baleia Franca
FPSO Capixaba
100,000 bpd
2010
Cachalote & Baleia Franca
FPSO Capixaba
100,000 bpd
2010
Marlim SulMódulo 3 –
P-56100.000 bpd
2011
Marlim SulMódulo 3 –
P-56100.000 bpd
2011
Espadarte
Módulo 3
100.000 bpd
2012
Espadarte
Módulo 3
100.000 bpd
2012
Jubarte
P-57
180.000 bpd
2012
Jubarte
P-57
180.000 bpd
2012
Obs.: This curve does not include Tupi’s Pilot System Production
* Target may vary +/- 2.5%
TupiEWTUp to
30.000 bpd2009
TupiEWTUp to
30.000 bpd2009
Tupi
Pilot Sy stem
Up to 100.000 bpd
2010
Tupi
Pilot Sy stem
Up to 100.000 bpd
2010
Roncador
Module 4
P-62
100.000 bpd
2012
Roncador
Module 4
P-62
100.000 bpd
2012
16
Mauá-JurongNiterói/RJ2012ContractedOil:100.000 bpd
Gas: 6MM m3/diaRoncadorP-62
Mauá-JurongNiterói/RJ2009Under constructionGas: 15MM m3/diaMexilhãoPMXL-1
Atlântico SulSuape/PE
Rio Grande/RS2013Hull contracted. Basic
project under revision.Oil: 180.000 bpdGas: 6MM m3/diaRoncadorP-55
ProsafeKeppels - Cingapura2S08Under constructionOil: 35.000 bpd
Gas: 10 MM m3/diaCamarupimCidade SãoMateus*
2011
2011
2S08
2S08
2S08
Start-up
Oil: 180.000 bpdGas: 2MM m3/dia
Oil:100.000 bpdGas: 6MM m3/dia
Oil: 180.000 bpdGas: 6MM m3/dia
Oil: 180.000 bpdGas: 6MM m3/dia
Oil: 100.000 bpdGas: 3,5 MM m3/dia
Capacity
Brasfels -FSTP Keppel & Technip
Angra/RJ
Under construction(P-51 Clone)Marlim SulP-56
SBMShipyard N/AContractedJubarteP-57
QuipRio Grande/RSUnder construction Marlim LesteP-53
Nuclep/BrasfelsAngra/RJUnder constructionMarlim SulP-51
ModecSipem - DubaiUnder constructionJabutiFPSO Cidade
de Niterói*
ShipyardStatusFieldUnits
E&P: UPCOMING UNITS
* Leased
17
3.3 3.0 3.4 4.3 5.7 6.6 7.7 8.73.3 4.0 5.1 6.49.0 11.1 11.7
16.2
24.4 24.8 28.8
38.2
54.4
65.172.5
96.9
0.00
20.00
40.00
60.00
80.00
100.00
2001 2002 2003 2004 2005 2006 2007 1Q08
US
$/bo
e
Lifting Cost Gov. Take Brent
8.5 10.714.7 17.7 19.4
Lifting Costs including Government Participation
24.9
7.0
18
15.20 14.45 14.66 15.22 15.16
18.92 20.58 23.2625.76 28.04
0
10
20
30
40
50
1Q07 2Q07 3Q07 4Q07 1Q08
Lifting Cost (R$) Gov. Part.(R$)
7.20 7.33 7.65 8.60 8.66
9.04 10.62 12.4814.56 16.16
88.796.9
74.968.857.8
0
10
20
30
40
1Q07 2Q07 3Q07 4Q07 1Q080
20
40
60
80
100
120
Lifting Cost (US$) Gov.Part. (US$) Brent
US$/barrel R$/barrel
20.1317.95
37.9235.03
23.16
40.98
24.82
43.20
Lifting Cost in Brazil
16.24
34.12
Lifting Cost relatively stable both in Dollar and Reais terms despite higher oil prices and continued ramp up of new production units. Government participation increased as a reflect of higher international crude oil prices.
19
Distribution of the Realization Price of a Barrel of Domestically Produced Oil ($)
$ pe
r B
arre
l Rea
lizat
ion
Pric
e
$3.22 $3.04 $3.48 $4.28 $5.73 $6.59 $7.70$2.15 $2.15 $1.46 $2.06$2.20
$2.89$4.42$2.07
$2.54$3.84
$5.01
$6.88$8.36
$9.74
$3.29$3.42 $5.14
$6.44
$9.00
$11.05
$11.69
$4.26$5.34
$8.42
$9.29
$13.25
$15.93
$18.67
$(10.00)
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
2001 2002 2003 2004 2005 2006 2007
Lifting DD&A Exploratory costs SG&A R&D Other Other COGS Income Tax Government take Net Income
Regulatory framework lets government and companies profit from higher oil prices.
20
Distribution of the Realization Price of a Barrel of Domestically Produced Oil (%)
% S
hare
of
Real
izat
ion
Pric
e
18.2% 14.9% 14.5% 14.6% 14.2% 13.8% 13.8%
11.7% 12.4%
16.0% 17.0% 17.0% 17.5% 17.5%
18.6% 16.8%
21.4%21.9% 22.3% 23.2% 21.0%
24.1% 26.2%35.1% 31.6% 32.9% 33.4% 33.5%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
2001 2002 2003 2004 2005 2006 2007
Lif ting DD&A Exploratory costs SG&A R&D Other Other COGS Income Tax Government take Net Income
21
Royalties and Special Participation
Royalties
• Rates vary according to the area (from 5% to 10% per producing field) and are established in each concession contract. The reference price is published for each field, according to the characteristics of the oil / gas, by the Brazilian regulator – ANP.
Special Participation
• Progressive tax (from 10% to 40%) applied over the operating income from oil and gas production. Tax depends on the year of production, daily production and location (Land, Offshore Shallow Water or Offshore Deep Water).
3,506 3,8901,1311,576
1,954
2,989
3,850 3,729
1,200 1,422 1,716 2,573
01,0002,0003,0004,0005,0006,0007,0008,000
2002 2003 2004 2005 2006 2007
Royalties Special Participation
US$
Mill
ion
*
2,3312,998
3,670
5,562
7,356 7,619
* Values in BR GAAP converted to USD by historical forex rate
22
Special Participation – Progressive Tax
10% 20%30% 35%
First Year of
Production
Second Year of
Production
Third Year of
Production
After the ThirdYear of
Production
40%
20 25 30 35
16.7 21.7 26.7 31.7
13.3 18.3 23.3 28.3
10 15 20 25
Dai
ly p
rodu
ctio
n (t
hous
and
m3 /d
ay)
6.3
conv
ersi
on F
acto
r
15
11.7
8.3
5
Special Participation frame for deep water shelves:
Tax Rates
23
Exploration Perspectives
24
Main Discoveries - 2002/2007Main Discoveries - 2002/2007
CamposProducible Heavy Oil & Light Oil
SantosLight Oil & Natural Gas
Espirito SantoLight Oil & Natural Gas
Sergipe-AlagoasLight Oil
Proven Reserves...............: 3,80 B Proven Reserves...............: 3,80 B boeboeProb.&Poss. Res...............: 4,50 B Prob.&Poss. Res...............: 4,50 B boeboeUnder Evaluation (2007).: 4,70 Under Evaluation (2007).: 4,70 B B boeboe
~ 13.0 billion boer (2002-2007)
25
Oilfields discovered/defined in 2002-2007 in the Southeastern offshore basins
26
152 Million Yearsago
Earth developmentEarth development
27
Earth Planet as today
Earth developmentEarth development
28
Pre Salt ProvincePre Salt Province
Tested WellsHC Campu s
Explo ratory B lock’s
Pre Salt R eservoirs
29
Recent Oil/Gas discoveries 2006-2007 - Cluster BlocksRecent Oil/Gas discoveries 2006-2007 - Cluster Blocks
Pre-salt Cluster
15,000 km2
Tupi: 5 a 8 bi boe
Production to date: 7 bi boeActual Production: 1.6 MMboepdProducing Wells: 542 Area: 7,000 km2
30
Santos Basin Pre-Salt Seismic Section
31
BM-S-21(Caramba)
BM-S-24(Jupiter)
BM-S-8(Bem-te-Vi)
BM-S-10(Parati)
BM-S-11(Tupi)
BM-S-22
BM-S-9(Carioca)
BM-S-17
BM-S-42
31
BM-S-50
BM-S-52(Corcovado)
(Yara)
(Guará)
Wells Being Drilled
Wells Drilled
Pre Salt – Santos BasinPre Salt – Santos Basin
32
1 Oil Production
Capacity
1Riser to export Gas
1000 thous. m3Flare Capacity
Wells
2.170 mWater Depth
28 – 42 º API
30,000 bpd
Oil Range
Capacity to Process Oil
FPSO – Leased*
1st Oil: March/2009
* Leased from BW Offshore
Extended Well Test -TupiExtended Well Test -Tupi
33
Capacity
5 oil production (+4 extra)2 water injection (+3 extra)
1 gas injection (+1 extra)Wells
20 – 30 º APIOil degree
100 mil bpd60 mil bpd
Water InjectionWater Production
2.145 mWater Depth
4 million m3 /d
100,000. bpd
Capacity of Gas Compression
Capacity to Process Oil
1st Oil: Dec./2010
Tupi Pilot System– Production UnitTupi Pilot System– Production Unit
34
UTGCA
UGNRPBC
TEFRAN
TUPI Area
URG
PMXL
PMLZ-1
170 Km
248 Km
212 Km
145 Km
To service the Pilot
Gas Pipeline for Tupi’s Pilot SystemGas Pipeline for Tupi’s Pilot System
PlannedExisting
Under Construction
35
Consortia for the Pre-salt blocks in Santos Basin
2 blocks 100% Petrobras
3 Appraisal Plans approved
5 blocks with partners, Petrobras operates
1 block as non-operating partner
Jupiter
Caramba
TupiParatiCariocaBem-te-vi
ANP Name
BR (60%), BG (40%)BM-S-52BR (60%), BG (20%), REPSOL (20%)BM-S-50BR (100%)BM-S-42BR (80%), PETROGAL (20%)RJS-652 AreaBM-S-24
ESSO (40%), AMERADA (40%), BR (20%)BM-S-22BR (80%), PETROGAL (20%)SPS-51 AreaBM-S-21BR (100%)BM-S-17BR (65%), BG (25%), PETROGAL (10%)RJS-628 AreaBM-S-11BR (65%), BG (25%), PARTEX (10%)RJS-617 AreaBM-S10BR (45%), BG (30%), REPSOL (25%)SPS-50 AreaBM-S-9BR (66%), SHELL (20%), PETROGAL (14%)BM-S-8
ConsortiumAppraisal PlanBlock
36
Pre-salt discoveries in Espírito Santo State (Campos Basin)
GaseneGasene
77 km
Catuá
Jubarte
Cachalote
Ostra
Abalone
Argonauta
Náutil usFranca
Azul
Anã
Pirambú
Caxar éuMangangá
20 km
N
S
4-ESS-149 1-ESS-122
1-ESS-116
3-ESS-110HPA
4-ESS-135
1-ESS-119
BLA
BAZ
CTU
1-ESS-125
3-ESS-175
1-ESS-103
6-CHT-4
4-ESS-172
4-ESS-172-ES 4-ESS-175-ES
1-ESS-103A-ESJUB
BFR
CHT
MGG
NAU
PRB
CXR
Well tests showed high productivities in the pre-salt reservoirs.
37
63
28
+ 28 new units to be leased
From 2013 to
2017
12179628Total per year
5
18
5
2007
6
• Pride South Atlantic• O. Yorktown• Pride Mexico • Borgny Dolphin• Ocean Concord• Falcon-100
Start Up 2008
35
•Delba V•Delba VI•Scorpion•Delba VII•Delba VIII•Norbe IX•Schahin 1•Schahin 2•Norbe VIII•Petroserv•Etesco 8•Sevan Brasil
Start Up 2012
23
•Delba IV
Start Up 2011
2215Cumulative
•Gold Star•Schahin I•Norbe VI•Delba III•SSV Victoria•West Orion
•Lone Star•Schahin III•Petrorig II•Sevan Driller•West Taurus•West Eminence•Dave Beard
≥ 2000m
•Olinda Star•Ocean Worker
1000-1999m
•Petrobras XIV0-999m
Start Up 2010Start Up 2009Water Depth
New Rigs & Drilling Unit Contracting
• Stena Drillmax e Dep Water Millennium are not being considered since they are being negotiated in the Spot Market
38
TOTAL:
794 exploration wells
40% overall success ratio
2007 59%
1998/2007~ 560,000 km 2D seismic~ 140,000 km2 3D seismic
Exploration Activity (1998 - 2007) Wells & Seismic
• Espírito Santo 55 wells offshore• Campos 205 wells offshore• Santos 80 wells offshore• Other Basins
335 wells onshore103 wells offshore
0%
100%
200%
300%
400%
2003 2004 2005 2006 2007
Reserve Replacement Ratio (SPE/ANP Criteria)
39
Exploratory Wells 2008-2012
Exploration: US$ 13.8 billion
Exploration: US$ 13.8 billion
Potiguar (88)onshore: 70offshore: 18
SEAL& REC & TUC (90)onshore: 70offshore: 20
Bahia Sul (26)
Esp.Santo (85(85))onshore: 45onshore: 45offshore: 40offshore: 40
Campos (74)(74)
Santos (80)(80)
Solimões (23)Ceara & Potiguar
AP (8)
Pelotas (2)(2)
São Francisco (4)
Petrobras
Other Companies
Equatorial Margin (12)
40
E&P Concessions in Brazil
Petrobras & Partners
Other Companies
Active concessions
Jan/2007
Exploration Blocks 64 80 144 218 362
Exploration EP´s 5 5 10 0 10
Production 285 20 305 29 334
Concessions Total Brazil100%
W.I Parnerships TotalOther
Companies
Petrobras Concessions
354 105 706Total 459 247
Exploration Blocks 64 80 144 218 362
Exploration EP´s 5 5 10 0 10
Production 285 20 305 29 334
Concessions Total Brazil100%
W.I Parnerships TotalOther
Companies
Petrobras Concessions
354 105 706Total 459 247
Note: number of concession contracts (not considering the concessions from the 9th Bidding Round)
41
Downstream Overview
42
237 257330 340 386 432249 282 281 28184 96 129 173728 779
9021105
116
138
198228
287
345
208 217
120 95
0
500
1000
1500
2000
2500
3000
2007 2010 2015 2020
LPG Gasoline Naphta Jet Fuel Diesel Fuel Oil Others
Domestic Oil Products Market
Thous. bpd
2,337
1,918
2,732
2,039
2.76% p.y.
43
Maintaining Balanced integration between Refining and Production
2,167
Total Refining Capacity (‘000s. bpd)Domestic Oil Production (‘000s. boed)
1,792
2,412Year 2012
2011: New Refinery in
Brazil to add 200 ‘000s. Bpd cap.New Refinery in
Texas expanded & upgraded
28%
13%
18%
4%
8%
8%
21%
Fuel QualityConversion
ExpansionHSETransportationPipelines
Others 6,112
2,264
2,270
1,083
5,353
3,938
8,619
Total Downstream Spending of $29.6 Billion
44
1.9501.792 2.191 2.296 2.374 2.421
22
23
24
25
26
27
28
29
30
2007 2008 2009 2010 2011 2012-4.000
-3.000
-2.000
-1.000
0
1.000
2.000
3.000
Average Processed API Average Produced API Domestic Production
• Increasing the capacity of processing low API degree oil.
• In 2012 our refineries will have the capacity to process most of our heavy oil produced
Thous. b/dAPI
Deg
ree
How Petrobras is dealing with these challenges?
45
319450
352 370 390
105
109
94 118 148
209
125
2003 2004 2005 2006 2007 2012
424
233 181263 335 353
213228
260246 262
454
141
2003 2004 2005 2006 2007 2012Oil Oil Products
446 409523
581 615559
446488
334
595538
Net Exports of Oil and Oil Products
Exports (‘000s barrels/day) Imports (‘000s barrels/day)
46
Corporate Targets – Downstream
2,061 2,6591,795
251348
348
92
78
90
-200300
80013001800
23002800
33003800
2007 2012 2015 0102030405060708090100
Throughput - Brazil Throughput - International Domestic Crude Oil as a % of total
2,0462,409
3,007
47
Average Realization Price - ARP
20
40
60
80
100
120
Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08
A R P B raz i l ( U S$/ b b l) A verage B rent Price( U S$/ b b l) A R P ( U S$/ b bl wit h V ol . So ld in B R l)
104.25
96.90
93.90
1Q08Average
96.77
88.69
89.08
4Q07Average
68.86
57.75
71.50
1Q07Average
• Up to 4Q07, ARP in Brazil affirmed our policy of aligning the domestic prices with international prices in the mid/long term;• From 4Q07, due to a sustained increase in international prices, the spread between prices in Brazil and in USA led to the readjustment of diesel (15%) and gasoline (10%) prices effective as of may 2nd.
48
Complexo Petroquímico do Rio de Janeiro - COMPERJ
•Total Investment: US$ 8.4 billion (Petrobras Investment US$4.6 billion);• Throughput capacity: 150 thousand heavy oil barrels (Marlim oil from Campos Basin);• Start Up: 2012• Refining and Petrochemical Integrated Complex that through the use of new technologies process heavy oil to obtain oil products and first and second generation petrochemical products.
• Total Investment: US$ 4.1 billion (Petrobras Investment US$2.4 billion);• Throughput capacity: 200 thousand heavy oil barrels (60% Petrobras oil / 40% PDVSA oil);• Focusing diesel and LPG production maximization, the new refinery will aim the growth of oil products demand in the Northeast.
•The Northeast Region, which responds for 19% of oil products demand and holds only one refinery in Bahia, will no longer be a fuel importer (either from refineries in Brazil or abroad);• Costs reduction: oil products transportation are more expensive than for crude oil;• Start Up: 2011
Downstream Business Strategy
New Refinery in Pernambuco
49
Downstream Business Strategy – Northeast Region
Refinery in Rio Grande do Norte
Premium Refinery in Ceará
• Petrobras will deploy its 12th refinery in the state of Rio Grande do Norte.
• New plant to produce gasoline and improve the quality of other oil products (Jet fuel, Diesel and LPG) produced in existing facilities in Guamaré.
• Capacity: 80,000 bpd. Start-up scheduled for 2010.
• Petrobras will study, together with Ceará State, the possibility of installing a Premium refinery;
• Capacity: 300,000 bpd;
• The refinery’s first operation phase is scheduled to start in 2014.
• Petrobras will study, together with Maranhão State, the possibility of installing a Premium refinery;
• Capacity: 600,000 bpd;
• The refinery’s first operation phase is scheduled to start in 2013.
Premium Refinery in Maranhão
50
Downstream Business Strategy
Refinery in the USA• Petrobras has acquired 50% of the Pasadena Refinery System Inc. (PRSI), located in Texas, USA;
• Capacity of 100,000 bbl/day, will be upgraded to handle up to 70,000 bbl/day of heavy oil and feedstock;
Refinery in Japan
• Petrobras signed the purchase document of 87.5% interest in theJapanese Company Nansei Sekiyu Kabushiki Kaisha (NSS)- with total value of approximately US$ 50 million
Acquisition includes: a refinery with capacity of 100 thousand bpd, that process light crude oil and high quality
products, a crude oil and products terminal with storage capacity of 9.6 million barrels, three piers with
capacity to receive product vessels of up to 97 thousand deadweight tonnage (dwt),a mono buoy for Very Large Crude vessels (VLCC) of up to 280 thousand dwt.
The use of terminal capacity is planned to boost the commercialization of biofuels in Japan and other Asian markets and complement current trading of crude oil and products into Asian market of approximately 100,000 bpd.
51
Petrochemical Overview
52
Petrochemical: capturing synergies
• Packages• Bags• Bottles• Etc.
Production
• Oil • Gas
1st Generation
• Ethane• Benzene• P-Xilene• Propane
2nd Generation
• Styrene• Ethylene Glycol• Polyethylene• PTA• Polypropylene
3rd Generation
Other Partners
• Expanding operations in 1st and 2nd generation processes and capturing synergies related to the production of oil, gas, refining and petrochemicals;• Developing new technologies for the chemical industry: evolution of fluid catalytic cracking (FCC) and biodegradable polymers and biopolymers.
53
Current petrochemical structure in Brazil
Braskem
1,280 kta ethane530 kta propane
1,265 kta PE560 kta PP
6.8% PETROQUISA44.6% Grupo Odebrecht
44.9% Others
300 kta PP
40% PETROQUISA60% Braskem
RIOPOLÍMEROS (RIOPOL)
540 kta PP16.7% PETROQUISA
33.3% UNIPAR33.3% SZPQ
16.7% BNDES
PETROQUÍMICA TRIUNFO85.04% PETROQUISA
14.6% PETROPLASTIC0.7% TRESUARY
160 kta PE
550 kta PE180 kta PP
COPESUL
37.3% PETROBRAS62.7% Braskem
1,200 kta ethane600 kta propane
40.0% PETROBRAS60.0% Braskem
SUZANO PETROQUÍMICA (SZPQ)
IPIRANGA PETROQUÍMICA (IPQ)
685 kta PP76.6% PETROBRAS
23.4% others
POLIETILENOS UNIÃO (PU) +DOW
274 kta PE 100% UNIPARUNIÃO DIVISÃO QUÍMICA (UDQ)
100% UNIPAR210 ktacumene
PETROUÍMICA PAULÍNIA (PPSA)
500 kta ethane250 kta propane
17.44% PETROQUISA51.4% UNIPAR
8.4% SZPQ22.76% OTHERS
PETROQUÍMICA UNIÃ0 (PQU)
54
Structure of petrochemical industry, upon final consolidation
500 th.tpy ethane
250 th.tpy propylene
210 th.tpy cumene814 th.tpy PE
685 Kta PP
Sociedade Petroquímica
40.0% PETROBRAS/PETROQUISA60.0% UNIPAR
Benefits to Petrobras and the Brazilian Petrochemical industry:
Petrobras becomes a significant minority shareholder in each complex;
Integration, scale, and synergies Ensures competitiveness of the Brazilian petrochemical industry;
Expands financing and investment capacity for expansion
2,480 th.tpy ethane
1,130 th.tpy propylene
1,975 th.tpy PE
1,040 th.tpy PP
Braskem
25.0% PETROBRAS/PETROQUISA37.2% Grupo Odebrecht
37.8% Others
55
International Overview
56
International - Overview
Hous ton
Colombia
Argentina
Angola
United Kingdom.
USA
BRAZIL
Bolivia Rio de Janeiro
NigeriaVenezuela
EcuadorPeru
Mexico
Tanzania
Iran
EXPLORATION AND PRODUCTIONTRADING
HEAD OFFICE
REFININGREPRESENTATIVE OFFIC E
New York
Tokyo
Beijing
Singapore
Libya
Mozambique
Uruguay
Turkey
Core Areas:
• Refining
• Add value to Brazilian heavy oil exports
• E&P: West Africa & Gulf of Mexico:
• Apply deep water and deep well drilling technology.
• Latin America:
• Leadership as an integrated energy company
Senegal
Jordan
Pakistan
India
Portugal
Paragay
Okinawa
57
International – Investment Breakdown
32%
19%
19%
9%6%
15%
USA Under Ev aluationArgentina NigeriaAngola Others
70%
3%
1%
1%
25%E&P RTCP G&E Distr. Corp.
10.5
3.70.5
4.9
1.7
2.8
2.7
1.4
0.9
112285
515151
183
108
2007 2012 Target 2015 ForecastOil and NGL Natural Gas
Thou
s. b
oed
70% will be directed to
E&P
2008-12 PeriodUS$ 15 billion
58
- US regulators approved Petrobras plans to bring first FPSO (*) to the US Gulf of Mexico
- Technologies new to US Gulf of Mexico, including disconnectable turret buoy, allowing the vessel to move offsite during hurricanes, and transportation via shuttle tanker
(*) FPSO – Floating, Production, Storage and Offloadingfacility. Petrobras has an extensive experience in the use of FPSO with fifteen units currently under operation offshore Brazil.
CascadeCascade
ChinookChinook
FPSOShuttle Tanker
FSHR
Tree
ControlUmbilical Power
Umbilical
Flowline
Gas ExportPipeline
ManifoldCascadeCascade
ChinookChinook
FPSOShuttle Tanker
FSHR
Tree
ControlUmbilical Power
Umbilical
Flowline
Gas ExportPipeline
Manifold
Cascade-Chinook Development
- Petrobras America operated fields - Water Depth ~ 2,500 meters (8,200 feet)
SOURCE: PETROBRAS AMERICA INC
59
International – West Africa
2,000m
1,000m
2,000m
1,000m
Operator of new Block OPL 315 with stake of 45%
Start up / Production Peak:AGBAMI (PB 13%, Operator: Chevron):
- First oil: 2008 / Peak: 250,000 bpd in 2009 (total)Petrobras stake: 32,500 bpdAKPO (PB 20% - Operator: Total):
- First oil: 2008 / Peak: 175,000 bpd in 2009 (total)Petrobras stake: from 70,000 to 100,000 bpd
6 blocks (1 in production)
Operator in prolific Block 18 with 30% stake (First oil: 2010)
60
Gas and Energy Overview
61
Participation of the Natural Gas in the Brazilian Energy Matrix
Source: MME, BEN 2006
• In 16 years, natural gas participation in the energy matrix increased 370%, boosted by the ramp up of Campos Basin production and Gasbol pipeline.
Increasing demand for Natural Gas
4.7%
9.4%
2.0%
1970 1980 1989 1990 1998 1999 2000 2002 2004 2006
Campos Basin
Gasbol
62
Million cu.m/day
Natural Gas Supply Vs. Demand
1998Termeletric Industrial Other Uses*
134
•Other uses: vehicle, residential / commercial, refineries e fertilizer plants•Source: Petrobras and MME
E&P
Bolivia
LNG
0
20
40
60
80
100
120
140
160
2000 2007 20122012
25,3
18,4
49,2
10,9 16,1 5,572,9
30,0
Average Demand Average Supply
31,1
12,51,91,7
9,40,50,9
134
48,0
42,1
43,9
63
Domestic Natural Gas Supply Curve
28.0
45.7
64.171.1 71.3 70.8
0
10
20
30
40
50
60
70
80
2007 2008 2009 2010 2011 2012
Parque das Conchas
Parque das Conchas
Marlim LesteP-53
Marlim LesteP-53
FradeFrade
RoncadorP-52
RoncadorP-52
RoncadorP-54
RoncadorP-54
Marlim SulMódulo 2
P-51
Marlim SulMódulo 2
P-51
Rio de JaneiroEspadarte Mód IIRio de Janeiro
Espadarte Mód II
Cidade NiteróiJabuti(FPSO)
Cidade NiteróiJabuti(FPSO)
Cidade de VitóriaGolfinho Mód. 2
Cidade de VitóriaGolfinho Mód. 2
Marlim SulMódulo 3 - P-56
Marlim SulMódulo 3 - P-56
Albacora(water
injection)
Albacora(water
injection)
Barracuda
(infill drilling)
Barracuda
(infill drilling)
Espadarte
Módulo 3
Espadarte
Módulo 3
Jubarte
P-57
Jubarte
P-57
Peroá-CangoáPeroá-Cangoá
Urucu Urucu
CanapuCanapu
MexilhãoMexilhão
Uruguá -TambaúUruguá -Tambaú
Non-associeted natural gas
Associated natural gas
CamarupimCamarupim
LagostaLagosta
Million m3d
Bacia Campos Bacia Campos
ManatiManati
PirapitangaPirapitanga
64
Vitória
PlataformsPlataforms of of UNUN--BC and UNBC and UN--RIORIO
REDUCREDUC
CabiúnasCabiúnasCampinasCampinas
Upgrade of Upgrade of UTGC to 20 MM UTGC to 20 MM m3/dm3/d
Ubu
Belo Belo HorizonteHorizonte
CaraguatatubaCaraguatatubaRio de JaneiroRio de Janeiro
CaraguatatubaCaraguatatuba
GuararemaGuararema
Lagoa Parda
Customization of Customization of UPGN UPGN CubatãoCubatão to 25 to 25 MM m3/dMM m3/d
GaroupaGaroupaNamoradoNamorado
EnchovaEnchova
Peroá/CangoáPeroá/Cangoá
MerluzaMerluza
LagostaLagosta
P-51 Marlim Sul Módulo 2
Golfinho Módulo 2
P-52 Roncador Módulo 1AP-54 Roncador Módulo 2
MexilhãoMexilhão UruguáUruguá
TambaúTambaú
CanapuCanapu
P-53 Marlim Leste
TOTAL SOUTHEASTEND OF 2010:55 MM m3/d(+ 39,2 MM m3/d)
Upgrade of Upgrade of CabiúnasCabiúnas/ REDUC/ REDUCto 23 MM m3/dto 23 MM m3/d
MarlimMarlim LesteLeste –– MóduloMódulo 2 (2 (JabutiJabuti))
Upgrade of UTGCA to 15 Upgrade of UTGCA to 15 MM m3/dMM m3/d
CamarupimCamarupim
CubatãoCaraguatatuba
ESSESS--168168
ESSESS--160160
200820082008
200820082008
200820082008
200920092009
201020102010Cabiúnas
CacimbasParque das Conchas
UPGN UPGN CapixabaCapixaba SouthSouth25 MM m25 MM m3/d/d
PLANGAS TargetsPLANGAS Targets20082008 -- 40 MM m40 MM m33/d/d2010 2010 -- 55 MM m55 MM m33/d/d
Natural Gas supply extension in SoutheastNatural Gas supply extension in Southeast
65
LNG - Infra-Estrutura & LicencingLNG - Infra-Estrutura & Licencing
VT1: Golar WinterCompany: Golar LNG Ltd.To be delivered in: apr/ 2009
VT2: Golar SpiritCompany: Golar LNG Ltd.Delivered in: may /2008
Projects being developed
Pacem 7mm cu.m/d – jul/2008 Guanabara Bay 14 mm cu.m/d sep/2008
66
Existing pipelines
Pipelines in construction
Manaus
Belém
Recife
Cacimbas – Catu (GASENE)
Caraguatatuba – Taubaté
Brasília
Catu – Carmópolis – Pilar
Gasduc III
Gaspal II / Gasan II
Urucu-Coari-Manaus
Gasbel IIJaperi-Reduc
Pilar-Ipojuca
Açu-Serra do Mel
LNG Terminals Expansão de Capacidade
Gasbol SulNatural Gas Production
Salvador
Network Extension
2003 – 5,282 km
2006 – 5,324 km
2007 – 6,481 km
2008 – 7,511 km
2009 – 9,031 km
+ 3,749 km+ 3,749 km
Investment: US$ 4.5 bi between 2008-2012(includes LNG Regas.)
Natural gas pipelines network
67
Renewables
68
Renewable Energy and Biofuels (2008-2012)Renewable Energy and Biofuels (2008-2012)2008-2012 Investments 2012 Target
Biodiesel Plants Availability of 938 Thousand m3/year
H-Bio (Bio-Refining) Vegetable oil Processing 1.6 million m³/year
Installed Capacity of Generation of Electric Power from 365 MW
Renewable Sources
Ethanol pipelinesExport of 4.7 billion m³/year of
Ethanol
Aeolic Energy29%
46%
21%
4%
Biofuels
Pipelines and Ethanol Pipelines
Others
H-Bio
US$ 1.5 billion Investments
•Total avoided GHG emissions: 3.93 MM tons CO2 equivalent
Ethanol Project Vessel
Solar EnergyOther Sources of
Renewable Energy
Guamaré Biodiesel Plant
Begun operation of the First Ethanol Lignocellulosis Pilot Plant, in Brazil.
The pilot phase is focused on the optimization of the production process of the bio ethanol (second generation fuel which diminishes environmental impacts)
Semi- Industrial bio ethanol plant: Forecast 2010
Lignocellulosis
69
RAW MATERIALProduction / ha
(kg)Quantity of Ethanol/ ha
Energy out/ Energy
in
SUGAR CANE 85,000 7.080 liter 8,3
CORN 10,000 4.000 liter 1,3 - 1,8
Raw Material ComparisonRaw Material Comparison
851370180
6197
597,626390
• Total country• Native Amazon Forest• Secondary Amazon Forest and Others • Native Forests• Pasture• Temporary Crops• Permanent Crops• Available land • Available land with low impact (*)
Area (MMha)
Type (Land use in Brazil)
Source: FAO, 2002 and EMBRAPA (*)
Current Market Distribution of World ethanol consumption
Today the ethanol consumption is 2,6% of gasoline MKT Increasing ethanol to 10% of gasoline will
represent 118 Billion Lt (more than 2 million barrels per day)
70
Original drivers were energy security and economic attractiveness;
Today environmental benefits are also a consideration.
CNG
ETHANOL
GASOLINE
Source: MME, BEN 2006
120000
140000
1976 1980 1984 1988 1992 1996 2000 2007
In this period, ethanol utilization avoided 675 million tons CO2 emissions.
1972
Brazil is the 1st country to reap benefits from Ethanol
Fuel demand for Otto Cycle Vehicles
160000
10000
80000
60000
40000
20000
01000
BEP
Accumulated effective economy:1,2 Billion boe ~ US$ 61 bi
70
Ethanol
71
Petrobras Investments to Export Ethanol
New Ethanol Pipeline (1.150 Km)
New Water Way for Ethanol
New Pipeline (1412 km)
New Ethanol Pipeline (919Km)
São Paulo Marine Terminal
Rio de JaneiroMarine Terminal
Replan – Ilha Dág ua Pipeline (Current flow)
Tietê- Par aná Water way
Senador C anedo – São Sebasti ão Pipeline
Replan – Bras ília Pipeli ne (OSBRA)
Replan – Guarar ema Pipeline
Existing Pipeline
Future Pipeline
Existing T ermi nal
Future T er minal
Exportation
Target: Export 4.75 MM cu.m/year in 2012
Large storage capacity necessary to regulate supplyPipelines reduce transport costs; improve energy efficiency
Ethanol collection, storage and distribution centers are spread out through producing and
consuming regions
Large scale marine terminals improve efficiency
72
Financial Considerations
73
Profitability Profitability
To grow production and oil and
gas reserves sustainably,
being recognized for excellence in
E&P operations
To expand integrated
operations in refining,
commercialization, logistics and
distribution with a focus on the
Atlantic Basin
Develop and lead the
Brazilian natural gas market and operate on an
integrated basis in the gas and electric energy markets with a focus on South
America
Expand operations in
petrochemicals in Brazil and
South America on an integrated basis with the PETROBRAS Group’s other
businesses
Operate on a global basis in biofuels
commercialization and logistics,
leading the domestic production of biodiesel and
expanding participation in the ethanol segment
Expand operations in target markets for oil, oil products, petrochemicals, gas and energy, biofuels and distribution, being a world benchmark as an integrated energy company
Corporate Strategy
IntegratedIntegratedGrowthGrowth
Gas & EnergyE&P Downstream (RTC) Distribution Petrochemicals Biofuels
Operational, management, technological and human resources excellence
Commitment to sustainable developmentSocial and Environmental Social and Environmental
ResponsibilityResponsibility
Corporate Strategy
74
104.486.7Projected Net Cash Flow (Including Dividends)
1416Return on Capital Employed (ROCE) (%)
2025Net Debt/ Net Debt + Shareholders’ Equity (Leverage) (%)
112.483.5Projected Investments for 2008-2012
2008 – 40.002009-2011 – 35.00
2.50
2007-2011 Plan
2.18FX rate (R$/US$)2008 – 55.002009 – 50.002010 – 45.00
2011-2012 – 35.00
Brent for Funding (US$/bbl)
2008-2012 PlanIndexes
(*) PPP – purchase power parity
Petrobras’ Business Plan
75
6%4%
1%2%26%
58%
2%
65.1
29.6
6.74.3
2.62.6
Investment Plan by Business Segment
2008-12 PeriodUS$ 112.4 billion
E&P RTC G&EPetrochemical Distribution Corporate Biofuel
1.5
• US$ 65.1 billion directed to E&P:
• Exploration: US$ 13.8 billion
• Production: US$ 51.3 billion
13%
87%
Brasil Internacional
97.4
15.0
Note: Includes International
76
Investments – Segments breakdown
25,9
14,3
5,6
6,8
0,8
1,4
US$ Million
2007 (US GAAP) 2007 (BR GAAP) Budget 2008*
Exploration & Production 9.448 20.813 25.902
Supply 4.488 10.536 14.312
Gas & Energy 3.223 4.817 5.636
International 2.864 6.574 6.828
Distribution 327 1.670 781 Corporate 628 875 1.406 Total Investments 20.978 45.285 54.865
R$ Million
*Forecast R$/US$ = 1,80 (average)
*R$/US$ = 1,7713 (date12/31/2007)
77
CFFO(including W.C.)
Capex
Dividends
Consolidated Cash Flows74.3 BN 2003-2007
Source: Petrobras and Bloomberg
Strong returns have enable company to grow without increasing debt
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
2003 2004 2005 2006 2007
Historical ROCEU.S. GAAP
Operating Income and Assets by Segment -2007
(US GAAP – US$ Millions)
7,5961,83810,61514,48048,529PP&E (inc. Dep.)
291
446
Distri-bution
Int’lGas & Energy
Downstream (Brazil)
E&P(Brazil)
1,1446,0239,37113,558O/w Construction in Progress
(815)(834)2,78514,072Net Op. Inc.
Sources Uses
Inc. Debt
78
25%
34%
30% 30% 29% 29%
-
2.000
4.000
6.000
8.000
10.000
12.000
14.000
2002 2003 2004 2005 2006 200710%
15%
20%
25%
30%
35%
40%
45%
50%
Net Income Dividend Dividend as % of Net Income
Shareholder Remuneration
• According to the Brazilian Corporate Law, shareholders are entitled to a mandatory dividend of 25% of the annual net income.• In the last years, Petrobras has been paying an average of 29 to 30%.
79
Total Shareholder Return versus the oil industry
Total Shareholder's Return
15.8%
7.5%
6.0%
6.0%
7.6%
95.7%
36.1%
123.8%
44.5%
79.2%
30.2% 31.5%39.5%
22.8%34.1%
0%
20%
40%
60%
80%
100%
120%
140%
2003 2004 2005 2006 2007
Shares increase Dividends Amex Oil Index (*)Source: Bloomberg * includes dividends for comparison purposes
111,5%
43,6%
85,2%
50,5%
131,4%
PBR’s yield surpassed Amex Oil in the last 5 years
80
Capital Structure and Credit Metrics
(US$ MM)
2007 2006 2005 Cash and Cash Equivalents 9,871 12,688 6,987 Total Debt 21,895 21,338 21,177
Net Debt 14,908 8,650 11,306
Shareholders Equity 65,179 44,299 32,917 Net Income 13,138 12,826 10,344 EBITDA 25,333 22,923 17,638 Net Debt / Book Capital 18% 16% 26% Net Debt/ Market Capital 6% 8% 15% Net Debt / Boe Production (X) 15.4 10.3 13.9 Net Debt / Proved Reserves (X) 1.1 0.8 1.0 Reserves/Production (Years, SPE Criteria) 18.9 18.9 19.6
81
2007 2006 2005
Cash Flow from Operating ActivitiesNet Income 13,138$ 12,826$ 10,344$ Depreciation 5,544$ 3,673$ 2,926$ Other (inc.W.C.) 3,982$ 4,578$ 1,845$
CFFO 22,664$ 21,077$ 15,115$
Net Cash used in Investing ActivitiesCapex and other (20,768)$ (14,470)$ (10,376)$ Acquisitions (1,551)$ (416)$ -$ Puchase Marketable Seceurities (1,707)$ 205$ 169$
Total Investments (24,026)$ (14,681)$ (10,207)$
Cash Flow From Financing ActivitiesAmortizations (6,670)$ (4,167)$ (2,652)$ Additions to Debt 4,542$ 2,957$ 2,131$ Dividends and other (3,860)$ (3,144)$ (2,104)$
Net from Financing (5,988)$ (4,354)$ (2,625)$
Increase (decrease) in cash and cash equivalents (7,350)$ 2,042$ 2,283$ 1,649$ 775$ 732$
Year ended December 31
Effect of exchange rate changes on cash and cash equivalents
Cash Flow
82
Investment final considerations
Operational Strengths Financial Strengths
World class energy company, dominant in a market with diverse and abundant opportunitiesLong term record of increasing reserve baseSuperior production growth leading to net exportsGrowing refinery complexity improving marginsInternational pricing environment
Investment grade ratings (Baa1/BBB-) from Moody’s and S&PSEC registrant; quarterly US GAAP disclosure, SOX compliantPublicly-traded entity; NYSE listedDiversified and stable funding sourcesGrowth plan self-financingAttractive relative value versus Republic of Brazil and other high grade energy issuers
83
Thank You
Petrobras at a Glance - Results and Perspectives
For more information, visit our website: http://www.petrobras.com.br/ri/english