Refining, transportation & marketing (rtc), and petrochemicals

1

Refining, Transportation & Marketing (RTM), and Petrochemicals

Paulo Roberto Costa

Downstream Director

26th October, 2011

2

This presentation may contain forward-looking statements. Such statements reflect only the expectations of the Company's management regarding the future conditions of the economy, the industry, the performance and financial results of the Company, among other factors. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar expressions, are used to identify such statements. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Consequently, these statements do not represent assurance of future results of the Company. Therefore, the Company's future results of operations may differ from current expectations, and readers must not base their expectations solely on the information presented herein. The Company is not obliged to update the presentation and forward-looking statements in light of new information or future developments. Amounts informed for the year 2011 and upcoming years are either estimates or targets.

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally viable under existing economic and operating conditions. We use certain terms in this presentation, such as discoveries, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC.

Cautionary statement for U.S. investors:

DISCLAIMER

3

Exploration & Production

Gas and Power

Downstream

• Focus on production in deep and ultra-deep waters;

• Licensed blocks guarantee access to reserves and economies of scale;

• New exploratory frontier, adjacent to existing operations.

• Dominant position in a growing market, far from other refining centers;

•Balance and integration between production, refining and demand.

• Gas infrastructure develeped for processand and transfer of gas;

• Complete flexibility to consume domestic and imported gas.

Biofuels

• High productivitiy of Brazilian ethanol;

• Large areas of available unused agricultural land;

• Large consumer market, with fleet and distribution in place.

BUSINESS MODEL Operating as an integrated balanced oil company, dominant in Brazil

4

0

5.000

10.000

15.000

20.000

25.000

30.000

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

Million boe Proved Reserves – SPE criteria

* Lula/Cernambi, Iara, Guará and Whales Park, ranging from 8.1 to 9.6 Billion boe

*

Garoupa Namorado

Marlim

Roncador

Whales Park, Mexilhão

Pre-salt: Lula and Cernambi 15,28 Bi boe

Carmópolis Guaricema

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

5

106 211 230 21475

400 292 189

42

749

1.601

0

400

800

1200

1600

2000

1980 1990 2000 2010

Deep and ultra-deep water

Shallow Water

Onshore

181

2.004

1.271

653

8,2% p.y. in the last 30 years

Mil

bp

d

FPSO Cidade de Santos

• 123 offshore units (45 floating e 78 fixed)

• 25 new units installed in the last 5 years

FPSO Cidade de Angra dos Reis P-56

P-57

PRODUCTION Petrobras history is to grow production by expanding into new frontiers

6

1.855 1.971 2.004

321 317 334 435

618

1.120

111 132 144141

180

246

2.100

99 9693 96

125

142

2008 2009 2010 2011 2015 2020

Oil Production- Brazil Natural Gas Production - Brazil Oil Production - International Natural Gas Production - International

2,386 2,516

6,418

3,993

1,148 543

Pre-Salt ’00

0 b

oe

/day

2,772

845 Transfer of Rights

13

+10 Post-Salt Projects

+8 Pre-Salt Projects

+1 Transfer of Rights

+ 35 Systems

Added Capacity

Oil: 2,300,000 bpd

2,575

Note: Does not include Non-Consolidated International Production.

• Pre-salt and Transfer of Rights will represent 69% of the additional capacity up to 2020;

• Pre-Salt participation in the total production will enhance from the current 2% to 18% in 2015 and 40.5% in 2020.

3,070

4,910

PRODUCTION With access to abundant reserves, Petrobras can more than double production

7

8

Distance

Crude freight

Product freight

• Lead-Times

• Tanks

• Inventories

• Ships

Allocation

18

A GROWING MARKET IN BRAZIL CREATES DOWNSTREAM A GROWING MARKET IN BRAZIL CREATES DOWNSTREAM OPPORTUNITIESOPPORTUNITIES……

Petroleum Consumption(per capita)

Source: BP Statistical Review

Note:

1. Includes France, Germany, Italy and the UK

27.1

14.815.3

3.7

0.6 0.3

25.0

16.0

12.4

4.5

1.40.8

21.7

12.6

10.7

4.6

2.3

1.0

US Japan OECD Brazil China India

1980 2000 2009

OECD1

Growth

40

21%

4%

7%

10%

Light

36%

6%

9%

21%

Medium Distillated

43%

5%

38%

Others

Fuel Oil

Special

Naphtha

LPG

Gasoline

Jet Fuel

Diesel

Intermediary

4%

15%

19%

4%

11%

15%

65%

15%

50%

Productivity of existing refineries – 2020

LightMedium Distillated Others

Productivity of new refineries – 2020

• Increase in global demand for medium-distillated products tends to lead to an increase in price versus the gasoline price.

PRODUCTSNew refineries will produce higher value-added oil products

Margins and

Refining Profile

MONETIZING THE RESERVES Brazilian market is an attractive and sustainable way to monetize part of Petrobras reserves

Sustainable

Competitive

Advantage

50

-3

-2

-1

0

1

2

3

4

5

6

7

-3

-2

-1

0

1

2

3

4

5

6

7

07 0806 1009

Competitors Range

1 1

1

1

6

PBR

Downstream Net Profit Margin (%)

Source: Reuters Knowledge

Net Profit Margin = Net Profit / Total Revenue

Competitors: XOM (US), XOM (non-US), CVX, RDS, COP

Downstream profitability…

Adjusted EBITDA Breakdown per Segment (US$ bn) 1

TO COME

25.0

35.4

19.3

5.2

-1.6

11.0

0.8

1.4

1.1

-0.8-0.2

0.90.5

0.2

1.1

2007 2008 2009 1S09 1S10

E&P Downstream Distribuition G&E International

Return and Risks

8

Growth Potential

9

-6

-4

-2

0

2

4

2011* 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 -6

-4

-2

0

2

4

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 2011*

-4

-2

0

2

4

6

8

10

12

2003 2002 2011* 2010 2009 2008 2007 2006 2005 2004 2001 2000

Percentage points (p.p.) of Demand growth above GDP growth

Historical GDP

Historical Demand

5,5

4,5

4,1

3,8

11-20 Demand Forecast

11-20 GDP Forecast

-1,0 -0,3

Historical average p.p. difference Historical p.p. difference

Forecast

Lower

GDP

Higher

GDP

During recent years, the Demand growth in Brazil has increased

its’ speed when compared with GDP growth …

GDP and Demand growth rates (yearly)

Lower

GDP

Higher

GDP

10

In 2010, for the first time in our history, the number of travels interstate by

plane exceeded the travels by bus

6.000

7.000

8.000

9.000

10.000

11.000

12.000

13.000

jan 12 jan 11 jan 10 jan 09 jan 08 jan 07

+12%a.a.

4.000

5.000

6.000

7.000

8.000

9.000

10.000

jan 10 jan 09 jan 08 jan 07

+12%a.a.

jan 12 jan 11

Source: ANAC

JET FUEL MARKET A sharp growth in the air transportation industry has been observed in recent years

Number of passengers carried - air

transportation (thousand) Seats / Km available

11

AIR TRANSPORTATION The significant reduction in the airline tickets prices associated with the expansion of income in Brazil led to an accelerated growth in the sector

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1,0

1,1

2004 2003 2002

-62%

2005 2007 2012 2006 2008 2009 2010 2011

R$ 2011

Source: ANAC http://www2.anac.gov.br/estatistica/tarifasaereas/

Yield Revenue R$ (deflated by IPCA)

Economic indicator that expresses the unit revenue earned by

airlines per each paying passenger per kilometer in Brazil

12

CONCENTRATED TRANSPORT MATRIX The Brazilian transportation matrix strongly depends on trucks

Sources: Plano Nacional de Logística e Transportes 2010 (PNLT), Ministério dos Transportes,

Anuário do transporte de carga and Eurostat - 2007

Average Trucks Fleet Age (y)

81%

46%

43%

43%

37%

25%

11%

11%

25%

13%

17%

8%

50%

32%

Brazil

China

USA

53% 4%

43%

Australia

Canada

Russia

58%

Trucks Maritime and Others Trains Brazil

Spain

USA

Germany

England

13

90

100

110

120

130

140

150

160

170

180

+52%

1Q

10

1Q

09

1Q

08

1Q

07

1Q

06

1Q

05

1Q

04

1Q

03

1Q

02

1Q

01

1Q

00

Agriculture GDP

GDP

The cargo transportation matrix in Brazil is highly dependent upon trucks, with

the growth in economic activity boosting diesel demand.

132

104

100

105

110

115

120

125

130

135

140

145

jan 2011 jan 2010 jan 2009 jan 2008

DIESEL DEMAND The diesel demand has also increased sharply

... not only based on recovery of the industrial

activity, ...

... but also due to agricultural activity growth in

Brazil over time

Index - Industrial Output

14

+9%

Jan-Jun 11 2010 2009 2008 2007 2006

8,7%

5,5%

4,1%

Jan-Jun 11 Jan-Jun 10

13,4%

Jan-Jun 11 Jan-Jun 10

2010

+17%

2007 Jan-Jun 11 2008 2006 2009

9,7%

• The 1S2011 sales exceeded

expected growth, keeping a faster-

than-GDP growth.

• The same higher-than-GDP

acceleration was verified during

first semester 2011.

Jet Sales (2006 to 2011/jun)

Diesel Sales (2006 to 2011/jun)

MIDDLE DISTILLATE DEMAND EVOLUTION Strong diesel and jet fuel consumption growth in Brazil have been observed following the economic growth…

15

0,6

3,7

15,314,8

27,1

1,4

4,5

12,4

16,0

25,0

2,5

4,9

9,9

12,8

22,32010

2000

1980

90

95

100

105

110

115

120

125

130

2002 2003 2004 2005 2006 2007 2008 2009 2010

OEDC World Brazil US

Source: BP Statistical Review 2011

OECD

Total Oil Consumption Per capita consumption

Barrels per year (Index =100 in 2002)

HIGH GROWTH POTENTIAL Low per capita consumption supports demand growth in developing countries

16

Licenses for new vehicles

17,4

6,0 3,7

2,6 2,7 2,1 1,5 0,8

11,8

5,0 3,2 2,7 2,2

18,0

3,5 3,0 4,0

United States Japan Germany France Italy China Brazil India

2000

2010

2015

Mill

ion

of

un

its

814

592 545 599 688

47 153

16

208

United States Japan Germany France Italy China Brazil India

2010 2015

Number of vehicles per 1000 habitants

POTENTIAL INCREASE OF OIL PRODUCTS CONSUMPTION Brazil still has a low motorization rate

17

GROWTH DEMAND Economic growth and improved living standards will lead to a significant increase in oil products demand in Brazil

Sourse: Petrobras (Plano Estratégico 2020)

708 761951

1.2191.472

315 314

402

507

567

189 108

98

124

128

602 593

696

792

928

2000 2005 2010 2015 2020

3.095

2.147

2.643

+3,8%

p.y.

(GDP: 4,1% p.y.)

Tho

usa

nd

bp

d

1.814 1.776

Others

Fuel oil

Gasoline

Middle destilates

18

DOWNSTREAM EXPANSION

Reduced dependence on imports of oil products

* Source: IEA – 2010 World Energy Statistics

** Without considering Capacity Expansion

2006 2007 2008 2011E 2009 2010

Brazil (2020)**

Indonesia

Mexico

Spain

Japan China

Germany

France

Brazil (2010)

USA

Net Imports as a percentage of total demand (%)*

’000 bpd

Increase in import levels will lead to higher

logistical costs... ... and to high levels of exposure to

international supply

19

Demand 2001-2010 Demand 2010-2015

3,1% 763

579

1,4% 1.384

1.224

4,9% 968

763

1.675 3,9%

1.384

REGIONAL GROWTH In the last decade the growth has been and will be higher in the North, Northeast and Mid-west regions of Brazil

20

Market in 2015 Market in 2010

… increasing the need for new capacities in these regions

• Increase in demand in the Central-West, Northeast, and North explains the concentration of investments in the Northeast;

• Tax incentives combined with environmental restrictions also contribute to the concentration in the region.

552

Deficit

-416

Demand

968

Capacity

1.652

Deficit

-23

Demand

1.675

Capacity

299

-464

763

82

1.466

1.384

Deficit Demand Capacity

Superavit Demand Capacity

21

INTEGRATION AND BALANCE Construction of new refineries intended to meet Brazilian demand

• No new refineries built since 1980 • Demand now exceeds refining capacity, with demand growing 20% last two years and growing

0

1000

2000

3000

4000

5000

1980 2000 2010 2015 2020

Oil and NGL Production - Brazil Total crude oil processed – Brazil Oil Products Market (2 scenarios)

Abreu e Lima Refinery (RNE) 230,000 bpd

(2012)

COMPERJ (1st phase)

165,000 bpd (2013)

PREMIUM I (1st phase)

300,000 bpd (2016)

PREMIUM I (2nd phase) 300,000 bpd

(2019)

PREMIUM II 300,000 bpd

(2017)

COMPERJ (2nd phase) 165,000 bpd

(2018)

Thous bpd

2,536

2,643 3,095

3,327

1,641

2,205

3,217

181

2,004

3,070

4,910

1,393 1,798

1,036

2,147 1,814

1,323

... ... ... ...

22

Refining Profile and Margins

23

REFINING MARGINS Conservative assumptions compared to historical data and consultants’ forecast

The forecasts indicate an average Crack 321 Spread of US$ 8,5/ bbl and an

average Light-Heavy differential of US$ 21,8 / bbl between 2011-2020.

* (Unleaded USG + N2 Diesel USG)/2 – Fuel Oil 3% USG * (Unleaded USG*2 + N2 Diesel USG)/3 - Brent

0

5

10

15

20

25

30

35

40

45

50

10,6

Crack 321* and 2011 - 2020 average forecast

50

45

Avg

PBR Range

Consultants Range (US$/bbl)

Light-Heavy* and 2011 - 2020 average forecast

Avg

(US$/bbl)

0

10

20

30

40

50

60

70

80

jan 12 jan 11 jan 10 jan 09 jan 08 jan 07 jan 06

27

PBR Range

Consultants Range

Consultants’ forecasts include: Cera (3 Scenarios), Pira (3 Scenarios) and Woodmackenzie

24

REFINING MARGINS Margins can have large amplitude according to the type of processed oil and product yields

-5

0

5

10

15

20

25

30

2010 2009 2008 2007 2006 2005 2004 2003 2002

USG Maya Coking

USG LLS Cracking

NWE Brent Cracking

NWE Brent Topping

PBR Downstream Margin

$/bbl (US$ of 2010)

Source: Margens internacionais - PIRA

19

11

6+6

-8

USG

Maya

Coking

PBR

Downstream

Margin

USG LLS

Cracking

25

PETROBRAS X MAYA COKING Comparison shows that the effect of the different oil processed and the average produtivity explain the deviation of our margins in relation to Maya Coking

US$/bbl 2010

Petrobras vs. Maya Coking (average 2002-2010)

3

5

11

19

Maya Coking Margin

Raw material cost effect

Produtivity effect

Petrobras Margin

26

10% 65%

31% 26%

27%

0

10

20

30

40

50

60

70

PREMIUM

64%

38%

COMPERJ

68%

36%

RNE

65%

Existing

Refineries

(2010)

37%

HCC

FCC

Coker

CONVERSION New refineries will have significant higher conversion than existing refineries , allowing less costs of raw material

Average Cost of Oil (2020)

-5,8

-2,3

PREMIUM Existent

Refineries

Brent

(US$/bbl)

Convertion Capacity/ Destilation Capacity

27

21%

4%

7%

10%

Light

36%

6%

9%

21%

Medium Distillated

43%

5%

38%

Others

Fuel Oil

Special

Naphtha

LPG

Gasoline

Jet Fuel

Diesel

Intermediary

4%

15%

19%

4%

11%

15%

65%

15%

50%

Productivity of existing refineries – 2020

Light Medium Distillated Others

Productivity of new refineries – 2020

• Increase in global demand for medium-distillated products tends to lead to an increase in price versus the gasoline price.

PRODUCTS New refineries will produce higher value-added oil products

28

PRICES OF DISTILLATES In recent years, we have been approximating to the import parity

Ave

rag

e

20

02

-20

10

Jet Fuel Diesel

8,0

PBR

90,0

US

88,1

USGC

82,0

USGC

87,3

PBR

93,9

US

8,0

85,8

US$/bbl (actual value)

Distillates had a prize in the last 8 years of US$/bbl in relation to the U.S. Gulf prices,

similar to cost freight + internalization

… and these are the products that the new refineries will be

focus

29

• Design competition based on the lowest final cost

• Selection of UOP - international company with extensive refining experience

• Single design integrating all the refinery on-site and off-site

• Designer involved from conceptual design to technical assistance in the start up

• Scale economies (RPRE: 300kbpd modules)

• Maximum standardization of equipments specification

• Scheduling the construction stage allowing long-term planning for equipment suppliers

• Reuse of the executive project allowing the incorporation of lessons learned

Age (years)

Scale (’000 bpd)

RESOURCE OPTIMIZATION AT PREMIUM REFINERIES

Current downstream cost

(US$ / bbl in 2010)

Lower refining costs due to design

quality and scale

Economies of scale and new implementation

strategies to reduce Capex, including:

30 30

Scope Optimized RNEST

RPRE

(projetct under development -

preliminary data)

Expected Effects

Middle Distillate

Hydrotreatment Unit 6 reactors 1 reactor

weight/capacity: 80% less

Less Interconnections

Middle Distillate

Hydrotreatment Unit 2 fired heaters 1 fired heater

weight/capacity: 60% less

Less Interconnections

Coker Unit 6 coke drums 4 coke drums

Less: interconnection / platforms

of access / instruments / valves

etc.

Tank farm 58 tanks

for 230 kbpd

70 tanks

for 600 kbpd

Scale economy, less

interconnection

Pipelines

83 bridges:

20 of 96m (average)

63 of 18m (average)

Pipe-rack Elimination of the bridges and

increased productivity

Electric System

Interconnection Underground structure

Cable-rack

(above grade)

Less excavation, less impact on

rainfall in the construction, less

volume of concrete

FACTORS THAT WILL IMPACT THE COST OF THE PREMIUM REFINERIES Project under development already allows us to evaluate some optimizations

31

Market Location

32

LOGISTICS Distance from the Brazilian coast to refining centers is at least 5.000 miles, or 16 to 33 days of travel

Crude

Processing in Brazil implies:

• Lower Lead-Times

• Reduced Tankage needs

• Lower Inventories

• Reduced need for ships

5.500 16 days

5.400 16 days

8.000 24 days

11.200 33 days

Distance in miles / days of travel

33

LOGISTICS

These distances have relevant freight costs to reach the different markets

Crude

Products

2,8

2,8

7,7

4,1

4,9 5,4

Processing in Brazil implies:

• Lower Lead-Times

• Reduced Tankage needs

• Lower Inventories

• Reduced need for ships

Freight cost ($/bbl)

34

Adding Refining Capacity (2011-2016)

736 703

Europe Africa

153

Latin

America

437

Ex URSS

1.755

North

America

Middle East

1.997

Asia

3.204

New Refineries

Expansion

GLOBAL REFINING Regions with fast growth continue to invest in refining

• Small refineries and with low complexity being closed in stagnant markets

• New large-scale refineries, high complexity, adapted to process heavy oil in growing markets

Source: Pira, Petrobras, 2011

Th

ou

san

d b

pd

35

Risk and Return

36

Return rate (%)

Key Assumptions:

• Refinery with trains of 300 k bpd

• Refining scheme with HCC, Coque and HDT

•Refining costs in line with the current refineries that has the same scale

• Integrated Analysis

• Production for the domestic market

• Does not include tax benefits in the operation of the asset

Case 3 - Capex US$ 50.000/bpd

Case 1 – Capex US$ 30.000/bpd

Case 2 – Capex US$ 40.000/bpd

Profitability New refining projects have return rate above the cost of capital

Margin

US$/bbl

Expected Scenario

0

2

4

6

8

10

12

14

16

18

13 14 15 16 17 18 19 20 21 22 23

37

RISK MITIGATION The expansion of refining also allows us to mitigate risks from upstream, as in 2009, beyond the benefit of the integration

Adjusted EBITDA by Segment (US$ bi)

Note: (*) Calculated by the average exchange rates and considering the 12 months ended 30/06/11

19

31

41

1

35

2 33

2008 2009 2010

1 1

35

0

1 0 1 2

40

2011*

-2

11

4

2 1

2 1

48

International

G&E

Distribution

Downstream

E&P

38

Refining Capacity

Oil Production

BUSINESS INTEGRATION Petrobras will increase the importance in the industry through growing the oil production and expanding the Downstream

For other companies, capacity in 2010.

0

1

2

3

4

5

6

0 1 2 3 4 5 6

1980

2010

2020

39

28%

51%

Supply

Pre-Salt Projects

21%

Plangás

30%

Others

70%

Oil

US$ 3,5 billion US$ 4,4 billion

Capex for Fleet Expansion Capex for Logistics for Oil

SUPPORTTING UPSTREAM OPERATIONS This integrated performance can be verified in Capex of "downstream" dedicated to support upstream operations

40 (*) Vendas do Abastecimento, não incluem as eliminações com a BR

+14%

1H11

392

1H10

343

PRODUCTION SALES

1.873

+5%

1H11 1H10

1.786

1.985

+7%

1H11 1H10

+6%

1H11

734

1H10

692

+16%

1H11

413

1H10

357

+9%

1H11

812

1H10

747

Die

sel

k bpd

FLEXIBILITY The existence of a flexible domestic refining capacity mitigates the risk of fluctuations in the demand

PRODUCTION

SALES

PRODUCTION SALES

Ga

so

lin

e

Oil

Pro

du

cts

41

Final Remarks

42

US$70.6 billion

• Refining Capacity Expansion: Abreu e Lima

Refinery, Premium I and II, and Comperj;

• Quality and Conversion: Modernization,

conversion, and hydrodesulfurization;

• Operating improvement: maintenance and

optimization, HSEE, and R&D;

• Fleet Expansion

• Logistics for Oil: oil supply for refineries and

infrastructure for oil exports.

1.1% 4.5%

26.4%

0.8% 15.2%

Logistics for Oil

International

Fleet Expansion

Quality and Conversion

Refining Capacity Expansion

Operating improvement

1.0%

23.9%

13.9%

4.9%

Petrochemical Investments amount to US$3.8 billion

NEW REFINERIES, FUEL QUALITY AND MODERNIZATION SUM UP TO 74% OF RTM INVESTMENTS

43

US$ 16 billion

1.01.0

3.2

4.9

5.9

7.0

4.5

2.3

1.1

0.20.1

15 14 13 12 11 10 9 8 7 6 5

-15%p.y.

DECREASING INVESTMENTS IN QUALITY

US$16 billion in 2011-15 Reduction in sulfur level

Avg. Sulfur Level – Diesel (ppm)

<250

44

2011 2012 2013 2014 2015

1000

ppm Trnasition 50 ppm

RECAP

Diesel and

Gasoline

REFAP

Gasoline

REGAP

Gasoline

RLAM

Gasoline

RPBC

Gasoline

REPAR

Gasoline

REPLAN

Gasoline

REVAP

Gasoline

2011 2012 2013 2014 2015 and

beyond

Diesel S-1800

Diesel S-500

Diesel S-50

Diesel S-10

RECAP

Diesel and

Gasoline

RLAM

Diesel

REFAP

Diesel

REPLAN

Diesel

REGAP

Diesel

RPBC

Diesel

REGAP

Revamp

HDT

Gasoline Quality Diesel Quality:

… reassuring Petrobras’ commitment with sustainability and sulfur emission reduction over time.

REDUC

Gasoline

REDUC

Diesel REPAR

Diesel

QUALITY INVESTMENTS New units in existing refineries are being built

45

70%

95%

69%70%67%

86%

36%

15%

0

20

40

60

80

100

Hydrorefining Capacity relative to Distillation Capacity

23%

23% (current)

59% (2015)

74% (2020)

Adding value to domestic crude oil by producing diesel and gasoline in-line with international standards.

Underinvested over the past years requires catching up with hydrorefining capacity (for removal of sulfur)

HYDROREFINING INVESTMENTS Catch up phase to meet international standards for quality products

46

Increase petrochemicals and biopolymers production preferably through capital stock in Brazil and abroad

• Operate in an integrated manner with the other business of Petrobras, in the production of basic and second-generation petrochemicals and biopolymers;

• Focus on developing assets in Brazil;

• Develop COMPERJ seeking partnerships;

Operate in the petrochemical sector in activities that are integrated manner

with the other businesses of the Petrobras system

PETROCHEMICAL AREA

PETROCHEMICAL STRATEGY

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Preserving our unique position in the Brazilian market as the best way to monetize our crude reserves

Shifting the refining system towards middle distillates production while increasing fuel quality standards

Reducing import levels through refining capacity expansion and domestic crude processing maximization

Optimizing capital allocation through new refining modules concept and implementation strategy

Creating efficient and reliable infrastructure to get the best value of crude oil export operations

Mitigate risks and use the flexibilities in the existing refining facilities to optimize the product portfolio

FINAL REMARKS Adding value in Refining, Transportation and Marketing (RTC) and Petrochemicals

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Information:

Investor Relations

+55 21 3224-1510

[email protected]

www.petrobras.com.br/ir