PETROBRAS AT A GLANCE

HSBC Latin American Investment Summit

April,2013

DISCLAIMER
FORWARD-LOOKING STATEMENTS
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 Companys current views and estimates of f t future economic i circumstances, i t i d t industry conditions, diti 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 forwardlooking 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 Companys 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 g g recently y discovered oil and g 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 2013 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, 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 S-X.

Petrobras Today Fully integrated across the hydrocarbon chain

Exploration p and Production
2.4 mm boed production 293 production fields 96% of Brazilian production 34% of global DW and UDW production

D Downstream t
12 refineries (Brazil) 2.0 mm bpd refining capacity Oil products sales in Brazil: 2,285 Kbpd Oil products output in Brazil:

Distribution i ib i
7,641 service stations 38,1% of market share 20% share of service stations

G and Gas dPower P

9,190 km of gas pipelines in Brazil NG Supply: 74 74.9 9 million m/d 3 LNG Regasification terminals by 2013 with 41 MMm/d capacity 7,028 MW of generation capacity

International
24 countries 0.7 Bn boe of 1P (SPE) 243 th. boed production 231 th. bpd refining capacity

Biofuels i f l
3 Biodiesel Plants Ethanol: opening new markets Largest domestic producer of biodiesel 3rd producer of ethanol in Brazil

1,997 Kbpd

AdjustedEBITDAperSegment(US$bn)(1)
3.0 2.1 1.1
0.9

2012ProvenReserves(SPECriteria) Brazil
1.6

3,2
2,0

13 3.6 1.3 1.3 43.4

15 73Billionboe 15.73
Shallow Water (0-300m) 8%

1.1

4.1

1.4

11

42,2

Onshore 8%

30.6 19.3
6.9 15,0
Deep Water (300-1,500m) 48% Ultra-Deep Water (> 1,500m) 1 500 ) 36%

2009 (2)
E&P RTM

2010 (3)
G&P

2011(3)
Distribution

2012 (3)
International

(1)ExcludesCorporateandElimination(2)Adjustedaccordingtoaverageexchangerate(3)IFRSUSD

Ownership Broad distribution: government, Brazilian and foreign shareholders

Foreign Shareholders Non-Voting Voting

35%

19% 35% 16%

47%

Brazilian Government Non-Voting Voting

12% 6%

12%

18%
Brazilian Non-Govt Shareholders Non-Voting Voting

Brazilian government, by law, must maintain control. Does so with 61% of voting shares. In BM&FBovespa, BM&FBovespa Petrobras is most actively traded stock, stock by shares and volume. volume 2000: ADRs listing on NYSE (PBR and PBR/A)
*Includes:FederalGovernment,BNDES,BNDESPAR,Sov.WealthFund

Relative Position Ranked among the leading integrated energy companies

2012OilandGasProduction(mmboe/d)
25.2 4.2 3.3 3.2 2.6 2.6 2.3 1.7 1.6 0.6
Exxon BP Shell Chevron BR Total ENI
Gs

2012ProvenReserves SEC(bn boe)

16.8 13.3 12.3 11.3 10.8 8.6 6.8 5.2

Conoco
Oil

BG

Exxon

BP

Shell

BR

Chevron

Total

Conoco
Gas

ENI

Statoil
Oil

gCapacity p y( (mmboe/d) / ) 2012Refining

5.5 404

MarketCap p( (US$ $bn) ) March29th,2013

3.7 2.9 2.3 2.2 2.1 1.9 0.9 0.3

Statoil
EXXON CHEVRON SHELL BP TOTAL BR ENI

231

209 134 114 112

82

77

73

Exxon

Shell

BP

BR

Conoco

Total

Chevron

ENI

STATOIL CONOCO

Source: Evaluate Energy (barrels per calendar day, considering company % shareholding and including JVs) and Bloomberg Note: Note: Peer Peer companies companies selected selected above above have have a a majority majority of of capital capital traded traded in in the the public public market. market.

Competitive Advantages Uniquely positioned to integrate upstream and downstream operations

Abundantreserves300km awayfromthemarket

13

Exploration & Production Leaderindeepwaterproduction, withaccesstoabundantoilreserves Newexploratoryfrontier,adjacent toexistingoperations

Downstream Dominantpositioningrowing market,farfromotherrefining centers Balanceandintegrationbetween production,refininganddemand

Gas & Power/ Biofuels/Petrochemicals

Fullydevelopedinfrastructure forprocessingandtransfporting gas g Integrationaccrossfullenergy andhydrocarbonchaininBrazil

6

2013-17 Business and Management Plan Fundamentals

Financiability Assumptions
Investment Grade rating maintenance No new equity issuance Convergence with International Prices (Oil Products) Divestments in Brazil and, mainly abroad mainly,

PERFORMANCE Management focused on reaching physical and financial targets of each project

CAPITAL DISCIPLINE

PRIORITY

Guarantee the expansion of the business with solid financial indicators

Priority for oil and natural gas exploration & production projects in Brazil

2013

2017
7

2013-2017 BMP Investments Approved by Petrobras Board of Directors in 03/15/13

2013-2017 Period US$ 236.7 Billion

27.4% 28%

Financiability Assumptions
Investment Grade Rating maintenance:
4.2%
(US$ 9.9 bi)

Leverage lower than 35% Net Debt/EBITDA lower than 2.5x

E&P
62.3%
(US$ 147.5 bi)

(US$ 64.8 bi)

No new equity issuance Convergence with International Prices (Oil Products) Divestments in Brazil and, mainly, abroad

2 2% 2.2%
(US$ 5.1 bi)

1.1%
(US$ 2.9 bi)

0.4%
(US$ 1.0 bi)

1.0%
(US$ 2.3 bi)

1.4%
(US$ 3.2 bi)

E&P

Downstream

G&E

International

Pbio*

Distribuition

ETM*

Other Areas*
8

* Pbio = Petrobras Biofuel ETM = Engineering, Technology and Materials Other Areas = Financial, Strategy and Corporate

2013-2017 BMP Investments Implementation x Evaluation Total

US$ 236.7 Billion
947 projects

Under Implementation
All E&P projects in Brazil and projects of the remaining segments in phase IV

Under Evaluation
Projects for the remaining segments, excluding E&P, currently in phase I, II and III.

US$ 207.1 Billion

770 projects

US$ 29.6 Billion

177 projects
1.0% 6.1% (US$ 0.3 Billion) (US$ 1 1.8 8 Billion)

62.3% 62 3% (US$ 147.5 Billion)

27.4% (US$ 64.8 Billion)

71.2% 71 2% (US$ 147.5 Billion)

20.9% (US$ 43.2 Billion) 2.9% (US$ 5.9 Billion)

6.4% (US$ 1.9 Billion) 13.5% (US$ 4.0 Billion)

4.2% (US$ 9.9 Billion) 2.2% (US$ 5.1 Billion) 1 1% 1.1% (US$ 2.9 Billion) 1.4% 0.4% (US$ 3.2 Billion) 1.0% (US$ 1.0 Billion) (US$ 2.3 Billion)

1.5% (US$ 3.2 Billion) 0.5% (US$ 1.1 Billion) 1.4% (US$ 2.9 Billion) 1.1% 0.5% (US$ 2.3 Billion) (US$ 1.0 Bililon) 73.0% (US$ 21.6 Billion)

E&P

Downstream

G&E

International

Pbio*

Distribuition

ETM*

Other Areas*

* Pbio = Petrobras Biofuel ETM = Engineering, Technology and Materials Other Areas = Financial, Strategy and Corporate
Phase I: Opportunity Identification; Phase II: Conceptual Project; Phase III: Basic Project ; Phase IV: Execution

2013-2017 Business and Management Plan : Project Portfolio Management INVESTMENTS UNDER IMPLEMENTATION
US$ $ 147.5 Billion US$ $ 43.2 Billion E&P Downstream US$ $ 5.9 Billion Gas & Energy US$ $ 3.2 Billion International US$ $ 2.9 Billion Distribution US$ $ 1.1 Billion Biofuels

US$ 207.1 207 1 bi*

Implementation of Projects under Evaluations contingent on:

Results of TechnicalEconomical Feasibility studies;

US$ 29.6 bi*

Availability of Resources (financiability); Competition for available resources.

E&P

US$ 21.6 Billion Downstream

US$ 4.0 Billion Gas & Energy

US$ 1.9 Billion International

US$ 0.3 Billion Distribution

US$ 1.8 Billion Biofuels

INVESTMENTS UNDER EVALUATION

* US$ 207.1 Billion include ETM (US$ 2,3 bi) and Other Areas (US$ 1,0 bi) investments

10

Programs to Support the 2013-2017 BMP

2013-2017 BMP US$ 236.7 Billion

PROEF Program to Increase Operational Efficiency UO-BC UO-RIO INFRALOG Logistic Infrastructure Optimization Program PRODESIN Divestment Program
Petrobras Local Content Management Take advantage of the industrys capacity to maximize gains to Petrobras

PROCOP Operating Costs Optimization Program

PRC-Poo Program to Reduce Well Costs

PROCOP: Focus on OPEX, operating costs of the Company activities Manageable Operating Costs. PRC-Poo: Focus on CAPEX dedicated to Wells construction Investments in Drilling and Completion.

11

PROCOP: Optimization of the Operational Activities Increasing Productivity and Reducing Unit Costs
B fi will Benefits ill come gradually d ll and d will ill llead d to a totall economy of f R$ 32 Billi Billion b by 2016 2016.
Initiatives Example

Economy of R$ 32 Billion in 4 years

Annual Reduction Targets
9 12

Exploration & Production: Consumption of

chemicals and fuels; Productive drilling rig days; Maritime and air transportation; Onshore well interventions;

Downstream: Consumption C ti of f chemicals h i l and d

catalyzers; Residual production; Scheduled Stoppages routine; excessive lay day at ports; Fleet use; Delivery Schedule;

Manageable C Costs R$ Billion

Transpetro: T t Intervention in vessels, terminals, oil

and gas pipelines, and tanks;

Gas & Energy: NG consumption to produce

; Operating p g cost for the g gas p pipeline p ammonia; network;

Engineering, Technology and Materials:

2013 2014 2015 2016 Supply and inventories of materials; IT costs per user;

Annual Reduction provided by PROCOP Evolution of Manageable Costs

* Expenditures for industrial, administrative and support installations

Corporate e Services: Expenditures with

buildings, trips management. and transportation; HSE
12

PRC-Poo: Program to Reduce Well Costs

Well Construction is a Relevant Portion in Investments
236.7

Other Areas

89.2 147.5 16.3 24.3 Infra-structure and Support Exploration

E&P

147.5 106.9 Production Development

Exploratory and Production Development Well Investments total US$ 75 billion

2013-2017 BMP Investments

Brazil E&P Investments

Increase of drilling rigs fleet and logistic resources Petrobras currently has 69 floating drilling rigs for well construction and maintenance in Brazil Well construction represents: 32% of Petrobras investments in 2013-2017 BMP 51% of Brazil E&P Investments
13

Exploration & Production

2013-2017 Period
US$ 147.5 Billion

73% (106.9)

16% (24.3) 11% (16.3)

Production Development Exploration Infrastructure and Support

14 14

E&P Investments
2013-2017 Period
Exploration
US$ 24.3 Billion

P d ti Development Production D l t
US$ 106.9 Billion

6% (1.4) 24% (5.8) 43% (46.4) Post-Salt Pre-Salt Transfer a s e of o Rights g ts

25% (26.2)

70% (17.1)

32% (34.3)

Aside from Exploration and Production Development, E&P infrastructure investments total US$ 16.3 Billion.
15

Exploratory Success and Increase in Reserves

More than 3 Discoveries per month between January/2012 and February/2013
53 discoveries in the last 14 months (Jan/12 Feb/13), from which 25 were offshore (15 in Pre-salt)

Brazil
Discoveries: 53 Offshore: 25 Onshore: 28 Exploratory Success Ratio: 64% Reserves: 15.7 Billion boe RRR: 103% for the 21st consecutive year R/P: 19.3 years

Pre-Salt
Discoveries: 15, of which 8 pioneers Exploratory Success Ratio: 82% Reserves: 300 km in the SE region, 55% of GDP16 16

RRI: Reserves Replacement Ratio R/P: Reserve / Production

Reserves and Recoverable Volumes Rapid growth in reserves from discoveries in deep waters
Proved Reserves SPEcriteria

OnshorePhase
30000

ShallowWaterPhase

Deep/UltraDeepWaterPhase

25000

PreSalt:Sapinho PreSalt:Lula&Cernambi

15.73biboe

Million Boe

20000 ParkofWhales,Mexilho 15000 Marlim Garoupa 10000 Guaricema 5000 Carmpolis Namorado Roncador

0
1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Onshore

0300m

3001500m

>1500m

Presalts RecoveryVolume*

Transfer of Rights 17

*Lula/Cernambi,Iara,SapinhoandWhalesPark,rangingfrom6.7to7.9Billionboe

Production Curve in Brazil Oil and LNG Post-Salt, Pre-Salt and Transfer of Rights
2012
Baleia Azul (Cid. Anchieta)

2013

2014

2015
Iracema Norte (Cid. Itagua)

2016
Lula Alto Lula Central Lula Sul (P-66) Franco 1 (P-74) Carioca Lula Norte (P 67) (P-67) Franco SW (P-75)

2017
Lula Ext. Sul (P-68) Lula Oeste (P 69) (P-69) Franco Sul (P-76)

2018
NE de Tupi (P-72) Iara NW (P-71) Deep Waters Sergipe

2019
Jpiter Bonito Franco Leste

2020
Espadarte III Florim

Sapinho Pilot (Cid. So Paulo) Bana (Cid Itaja) (Cid.

Roncador IV
(P-62) Sapinho Norte (Cid Ilhabela) (Cid. Iracema Sul (Cid. Mangaratiba)

Lula NE Pilot (Cid. Paraty) Thousands s bpd Papa-Terra (P-63) Roncador III (P-55) Norte Pq. Baleias (P-58) Papa-Terra (P-61)

Sul Pq. Baleias Tartaruga Verde Maromba e Mestia Espadarte I Iara Horst (P-70) Parque dos Doces Franco NW (P-77) Carcar Entorno de Iara (P-73)

4,200
6% 19%

2,500 2,022
5%

2 750 2,750
7% 31%

1,980
7%

2,022 ( 2%)

1% 30% 35%

95%

93%

4-6% p.y. Growth

69%

58%

44%

2011

2012

2013
Post-salt

2014

2015

2016
Transfer of Rights

2017
New Discoveries*

2018

2019

2020

Pre-salt (Concession)

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

18

NEWPRODUCTIONUNITS 20132014
Newplatformsbuiltdomesticallyandabroadwillcontributetoproduction
Project
Sapinho Pilot FPSO Cid. So Paulo Bana and Piracaba FPSO Cid. Itaja Lula NE Pilot FPSO Cid. Paraty y Papa-Terra P-63 Roncador Module III P-55 Parque das Baleias P-58 Papa-Terra P-61 Roncador Module IV P-62 Sapinho Norte FPSO Cid. Ilhabela Lula - Iracema Sul FPSO Cid. Mangaratiba

Capacity
120 kbpd 80 kbpd 120 kbpd 140 kbpd 180 kbpd 180 kbpd
TLWP load out to P-63

1st

Oil

Hull
Cosco Shipyard China Jurong Cingapura Keppel Shipyard Cingapura g p Cosco Shipyard China EAS Brasil Queirz Galvo Rio Grande Floatec Brasfels Camargo Corra/IESA EAS QGOG/SBM China Cosco Shipyard China

Top Side / Integration

Schahin/Modec Brasfels Odebrecht and Teekay Cingapura QGOG/SBM Brasfels Quip Rio Grande Quip Rio Grande Queirz Galvo Rio Grande Floatec Brasfels Camargo Corra/IESA EAS QGOG/SBM SBM/BRASA Not define

L l Content Local C t t
Bid Round Commit. Target

01/05/2013 02/16/2013 05/28/2013 07/15/2013 09/30/2013 11/30/2013 12/31/2013 Mar/2014 Sep/2014 Nov/2014

2 5 2 0 0 0 0 0 2 2

30% 60% 30% 0% 0% 0% 0% 0% 30% 30%

65% 81% 65% 65% 65% 63% 65% 63% 65% 65%

180 kbpd 150 kbpd 150 kbpd

*Note:FPSOCid.XX=Leased/PXX=Owned

19

PROJECT INSTALLATION
Petrobras has a strong track record of platforms installation per year
2006-2012 Petrobras has installed, on average, 5 platforms per year from 2006 to 2011. Ramp up of these units was delayed due to limited availability of drilling rigs2: (2006: 2, 2011: 26) 2013-2016 Between 2013 and 2016 we expect to install an average of 4 units per year. Petrobras will have around 40 drilling rigs available during the next 5 years.

7
Manati 8MMm/d

Track Record of Project Installation1

5 4
PPERPhase 2 5.3MMm/d FPSO SOCidS So Mateus Camarupim 10MMm/d FPSOE.S.PQ DASCONCHAS 100mbpd FPSOCid. Cid NiteroiMLL 100mbpd Frade 100bpd

5
PPERPhase1 2.7MMm/d FPSO CAPIXABA 100mbpd SEILLEAN GOLFINHO 30mbpd P34JUBARTE 60mbpd

P54 180mbpd

5
FPSOCidadede AngradosReis 100bpd FPSOCapixaba (reallocation) 100bpd FPSOCidadede Santos 10MMm/d P57 180mbpd SS11 TIRO/SIDON 20mbpd

5
Cid.Paraty 120mbpd

P52 180mbpd FPSOCIDADE DEVITRIA 100mbpd FPSO PIRANEMA 30mbpd FSOCid.De Maca

P61&P63 140mbpd

PRA1

2
Mexilhao 15MMm/d

P55 180mbpd

FPSOCid.Rio DasOstras 30mbpd P53 MLL 180mbpd

1
Cid.Anchieta 100mbpd

Cid.SoPaulo 120mbpd

P50 180mbpd

FPSOCid.RJ 100mbpd

P51 MLS Md.2180bpd

P56 100mbpd

Cid.Itaja j 80mbpd

2006

2007

2008

2009

2010

2011

2012

2013

1 - Does not include installation of Extended Well Tests / 2 Over 2,000 meters waterdepth

20

OPERATIONALEFFICIENCY
PROEF ProgramtorecoverandmaintainoperationalefficiencyinCamposBasin
ImproveOperationalUnit EfficiencyLevels ReachSustainableLevelsof OperationalEfficiency Improveproduction systemsintegrity ReduceRiskofLossof OperationalEfficiency

UO-BC

PROEF GOALS
UO-RIO

Increasethereliabilitytodeliver productiontargetsofBP201216

E&P Recent Operational Efficiency (%)

Operational Efficiency - E&P Operational Efficiency - UO-BC Operational Efficiency - Without UO-BC Operational Efficiency - UO-RIO

100 95 90 85 80 75 70 65
2009 96 94 92 88

96 95 90

PROEF Targets
94 93 87 85 81 76 71 72 2012 2013 2014 2015 2016 93 92 88 93 94 94 94

90

80

2010

2011

E&P Distribution of Revenues Stable concession terms have led to higher income per barrel
Breakdownofrealizationp pricep perboe p producedinBrazil
US$/boe realization price
120

US$/boe realization price

111

112
100%

%shareof realization price

100
25%

79
80
$31 $ $30

80%
23%

31%

33%

31%

62
60
$13 $12 $22 $20 $20

60%

21% 13%

21%

21%

40

$15 $16 $11 $12 $10 $14 $13

40%
$15

16% 22%

17% 16% 13%

16%

20

$7 $11

$16 $ $14

20%
17%

18% 14%

17% 15%

$9

0%

2009

2010

2011

2012

2009

2010

2011

2012

Lifting Cost

Exploratory costs + DD&A + Others

Income Tax

Production Tax

Net Income

Brent
*Othersincludetaxexpenses,R&D,SG&A

22 22

E&PPROFITABILITY
Productionofoil,notgas,generateshighrealizationprice
Net Production Income (US$/boe)
35 30 25 20 15 5 10 5 0 2007 2008 2009 2010 2011 2012*

Peers

Petrobras

ProductioninBrazilhighlyconcentratedinoil:86%oiland14%gas Highernetprofitperbarrelyieldsbetterreturnthanitspeers Stableregulatoryenvironmentallowsforcapturingthebenefitsoftheincreaseinoilprices

Source:EvaluateEnergy Peers:BP,CVX,XOM,RDS,TOT*Petrobras Preliminary

PROFITABILITY New E&P projects will continue to generate attractive returns

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% .00% 60 70 80 90 100 110

KeyAssumptions:

150,000 150 000bpdFPSOs Productionof500MMbarrels Rampup inlinewithindustry Historicdeclinerate Oilvalue=95%Brent Doesnotincludeexplorationand acquisitioncosts

US$/bbl

Case1 US$12/boeCapex/US$5/boeOpex Case2 US$15/boeCapex/US$7/boeOpex

(expectedscenario)

Case3 US$12/boeCapex/US$5/boeOpexwithoutSpecialInterest(suchasTransferofRights)

The graph illustrates the costbenefit ratio of a standard production development in Brazil, using assumptions based on previous experiences
24

Pre-Salt Production is a Reality Production reached 300 thousand barrels of oil per day in Feb/20/2013
Pre-Salt Production Data
Oil Production reached 300 kbpd (of which 249 kbpd is Petrobras stake), 43% in Santos Basin and 57% in Campos p Basin; This level was reached with only 17 producing wells, 6 in Santos Basin and 11 in Campos Basin; Level reached only 7 years after discovery: Campos C B i 11 years Basin: US Gulf of Mexico: 17 years North Sea: 9 years Production of 1 million bpd operated by Petrobras will be reached by 2017 and the 2.1 million bpd threshold will be reached by 2020. Petrobras Pre-salt productions share: from 5% in 2011 (100.3 (100 3 kbpd) to 6.9% 6 9% in 2012 (136.4 (136 4 kbpd). kbpd)

Technological Challenges Surmounted

High Resolution Seismic: higher exploratory success Geological and numerical modelling: better production behaviour forecast Reduction R d ti of f well ll construction t ti ti time f from 134 days in 2006 to 70 day in 2012: lower costs Selection of new materials: lower costs Qualification of new systems for production gathering: higher competitiveness Separation of CO2 from natural gas in deep waters and reinjection: lower emissions and increase in recovery factor

25

Drilling Rigs Availability Necessity met with imported and domestic units
Drilling Rigs: Imported vs. Domestic
NumberofDrilling N gRigs (W WaterDepth>2.0 000m)
42
8

42
9 8

42
6 17

42
8

42 2

40 26 5
2007

41

42

42

23 34 25 19 11
2019

31

7
2008

8
2009

16
2010 2011 2012 2013 2014 2015 2016 2017

9
2020

2018

Imported Rigs

Brazilian Rigs (Existing)

Brazilian Rigs (New)

28 new domestic drilling rigs from 2016 on: Local Content between 55% and 65% Midtermneedsfordrillingrigsarenowlargelysatisfied.Futureintermediatedemandwillbe limitedtospecificsituationsandneeds. Startingin2016,Brazilianbuiltrigsexpectedtobeginreplacinginternationallybuiltfleetas theircontractsexpire(andsubjecttototalfleetneeds). Ifforanyreasonthedomesticrigsarenotcompletedasscheduled,Petrobrashasthepossibilty ofrenewingsomeorallofexpiringleases.
26

Downstream Investments
Projects Under Implementation US$ 43.2 billion
21% (9.2) 45% (19.4) 11% (4.9) 9% (3.7)

2013-2017 HIGHLIGHTS

Refining capacity expansion on the Under

Implementation Portfolio: RNEST (Pernambuco) and COMPERJ 1st Phase (Rio de Janeiro)

1% (0.3)

6% 6% (2 8) (2.4) (2.8) 1% (0.4)

6% (2,8)

Refining capacity expansion in design phase:

Premium I (Maranho), Premium II (Cear) and COMPERJ 2nd Phase ( (Rio de Janeiro) )

Projects j Under Evaluation US$ 21.6 billion

2% (0.5)

Diesel and Gasoline Quality Portfolio: REPLAN,

RPBC, REGAP, REFAP and RLAM

64% (13.8)

16% (3.5) 8% (1.7) 3% (0.5)

Fleet expansion: PROMEF 45

Oil and Oil Products transportation vessels

7% ( ) (1.5)

Refining Capacity Expansion Fleet Expansion

Operational Improvement Petrochemical

Quality and Conversion Ethanol Logistics

Logistics for Oil Corporate

Downstream 2012-2016 Investments

2012-2016 Investment Profile
Refining Capacity Expansion Operational Improvement Quality and Conversion Logistics for Oil US$ billio on Fleet Expansion Petrochemical Biofuels Projects Under Evaluation

2012

2013

2014

2015

2016

2012-2016 INVESTMENT HIGHLIGHTS

ProjectsUnderEvaluation
Implementation of projects depends mainly on: a Alignment of new refineries costs to a. international standards; b. Regulatory requirements; c Resources Availability (Financiability); c. d. Competition for financial capacity;
28

High utilization factor on the current assets, combining

flexibility to increase margins

End of the first investment cycle in Quality RNEST and 1st Phase of COMPERJ coming online New refineries under evaluation (Phase I)

Integration and Balance Construction of new refineries intended to meet Brazilian demand
INTEGRATION BETWEEN OIL PRODUCTION, REFINING CAPACITY AND DOMESTIC MARKET

Thousbpd
PREMIUM I (2nd phase) 300,000 bpd Oct/2020 COMPERJ (2nd phase) 300 000 bpd 300,000 Jan/2018

4,200

3,472 3,380

2,788 2,255 1,980 1,944

Abreu e Lima Refinery (RNE) 230kbpd 1) Nov/2014 2) May/2015 COMPERJ (1st phase) 165,000 bpd Apr/2015

2,500

2,320
PREMIUM II 300,000 bpd Dec/2017

2,320

1,641 1,393 1,036 1 323 1,323

1,814

2,004

1,798

2,147

PREMIUM I (1st phase) 300,000 bpd Oct/2017

181

... 1980 2000 OilandNGLProduction Brazil

... ... 2010 2012 Totalcrudeoilprocessed Brazil

... 2016 2020* OilProductsMarket(2scenarios)

ProjectsUnderImplementation

ProjectsUnderEvaluation

*2020TotalCrudeOilProcessedmayvarydependingonProjectsUnderEvaluation

29 29

Parity: Seeking convergence with International Prices 9 months: +21.9% in Diesel and +14.9% in Gasoline
Seeking convergence with international prices. prices In the last 9 months: 4 Diesel price readjustments, totaling +21.9%, and 2 Gasoline readjustments (+14.9%).

Average Brazil Price* x Average USGC Price**

260 240 220 200 180 160 140 120 100 80 60 40 20 0
Gains Losses

2008

2009

2010

2011

2012

2013 900
800 700 600 500 400 300 200 100 0

Impo orted Volumes (Thousand bbl / d)

Prices (R$/bbl)

Ja an/09

Ja an/10

Ja an/11

Ja an/12

Ja an/13

No ov/08

ARP USGC (w/ volumes sold in Brazil) ARP Brazil

Gasoline Imports Diesel Imports

(*) considers Diesel, Gasoline, LPG, Jet Fuel and Fuel Oil. (**) USGC price with domestic market prices.

Ma ar/13 30

EBITDA Growing and stable cash flow generation

Adjusted j EBITDABreakdownp perSegment g ( (US$ $bn)*** ) NetIncome(US$bn) bn)*

3.0 1.3 3.6 1.3 2.2 1.7 4.2

19.2
3.2 1.6 2.0

20.1

15.5 11.0
**

1.1 1.1 11 09 0.9

43.4 30.5 19.3

42.0

6.9 15.6

2009

2010

2011

2012

2009

2010

2011

2012

E&P

RTM

G&P

Distribution

International
31

(*)USGAAP(**)IFRS(***)Adjustedaccordingaverageexchangerate.ExcludesCorporateandElimination.

Trade Balance

The image part with relationship ID rId7 was not found in the file.

Rapid demand growth in the last 4 years has led to a shift in the trade balance
2009
(thous.bpd)

5,000 4,700 4,400

DieselSales +24% 24%

+24%

2012
(thous.bpd)

Thousand m m

4 100 4,100 3,800 3,500 3,200 2,900 2,600 2,300

779 705
227

549
152

548
433 184

2,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2,800 2,500 2,200 1,900 1,600 1,300

GasolineSales +3%

+65%

478

397

Thousand m

156
75 81

364

346 18

Exports

Imports

Balance

Exports

Imports 249

1,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Balance

231

Oil

OilProducts
32

Gasoline and Diesel International Prices Taxes account for significant share of pump price in Brazil
Gasoline Retail Prices
2012 Average

The image part with relationship ID rId7 was not found in the file.

Diesel Retail Prices

2012 Average

Brazil

USA

Chile

China

Japan

Germany

Brazil

USA

Chile

China

Japan

Germany

RefineryGatePrice

Anhydrous Alcohol

Taxation

DisttributionMargin

Therefinerygatepriceforgasolineiscurrently37%oftheretailpricewhilefor dieselitis61%
33

Gas & Energy Investments

Projects Under Implementation + Under Evaluation
US$ 9.9 billlion
20% (2.0) 8% (0.8)
19% (1.1) 43% (2 6) (2.6)

Projects Under Implementation US$ 5.9 billion

32% (1.9) 6% (0 3) (0.3)

25% (2.5) 46% (4.6)

Projects Under Evaluation

US$ 4.0 billion
3% (0.1)

2013-2017 HIGHLIGHTS
Conversion of Natural Gas into fertilizers and other gas chemical products:
UFN III at Trs Lagoas (Mato Grosso do Sul)

12% (0.5)

Natural gas processing and transportation: NGPU Cabinas (Rio de Janeiro) Electric energy generation: Thermal Power Plant Baixada Fluminense (Rio de
Janeiro)

34% (1.4)

51% (2.0)

LNG Regasification: Bahia Terminal (Bahia) Units in Design Phase: UFN IV (Esprito Santo) and UFN V (Minas Gerais)

Electric Energy Network

LNG Gas-chemical plants 34

Natural Gas Supply And Demand

(Million m/d)

35

Financial Considerations

Financial Planning Assumptions Financing analysis only incorporates projects under implementation
No equity issuance Investment grade maintenance

Main assumptions for cash flow generation and investment levels

2013-17 BMP is based on constant currencies from 2013.
Brent prices (US$/bbl) Average exchange rate (R$/US$) Leverage Net debt / EBITDA Oil product prices in Brazil Divestments Returns on new E&P projects US$ 107 in 2013, declining to US$ 100 in the long term R$ 2.00 in 2013, strengthening to R$ 1.85 in the long term Limit: < 35% Maximum leverage in 2013 and 2014 (34%), declining after 2015 Limit : < 2.5x Limit will be surpassed in 2013 and will fall below 2.0x after 2015 Convergence to international prices US$ 9.9 billion Pre-salt projects breakeven between US$ 40-45/barrel Big post-salt projects have returns similar to pre-salts

37

Operating Cash Flow and Funding Needs

246.9
9.9 10.7

246.9
39.8

Additional financing needs will be funded exclusively through new debt. No equity issuance is envisaged. Free cash flow, before dividends, after 2015.

61.3 US$ $ Billion

Annual borrowing g needs (2013-2017) ( )

207.1 165.0 Gross US$ 12.3 billion Net US$ 4.3 billion

Net borrowing needs 50% below previous Plan due to: 2017 production, versus 2012, leading to higher operating cash flows Declining downstream investments g Brent p prices ( (US$ 100 vs US$ 90 in the Long-term previous Plan) and long-term F/X rate (R$ 1.85 vs R$ 1.73)
38

Fontes

Usos

Divestments and restructurings Cash utilization Third-party Third party resources (Debt) Operating cash flow (after dividends) Investments Amortization

Leverage

Leverage
BMP Target (< 35%)

Net Debt/EBITDA
BMP Target (< 2,5x)

2013

2014

2015

2016

2017

2013

2014

2015

2016

2017

Declining leverage, within the Companys self-imposed limits Net Debt/EBITDA surpasses limit at some points in time, during the Plan period

39

Capex and Cash Flow Free cash flow turns positive with completion of downstream projects
Capex vs. Operating Cash Flow
US$MM 50000
40000 30000 20000 10000 0
27,888 45,078 Approx. 42,949 , $39billion billi

43,164

OCF2012 E&P

Capex2010 Downstream

Capex2011

Capex2012

Capex2017 Others h

Gas& Energy

20132017BusinessandManagementPlanAssumptions: Capex Downstreamprojectsnotcurrentlyunderimplementationonlyproceed supportedbycashflowsandbalancesheetstrength OperatingCashFlow:Oilproductionincreasesby 750TBPD,generatingadditional operatingcashflow.Importparitywouldeliminatedownstreamlosses

Capital Structure
Net Debt/EBITDA 5 4 3 2 1 0 4Q11 1Q12 2Q12 3Q12 4Q12 1.66 1.61 2.46 2.42 2.77 2 24% 24% 28% 28% Net Debt/Net Capitalization1 30% 40% 30% 20% 10% 0% -10% -20%

R$ Billion Short-term Debt Long-term Debt Total Debt ()C (-) Cash h and d Cash C h Equivalents E i l t 3 = Net Debt US$ Billion Net Debt
1) 2) 3) 4)

12/31/12 15.3 181.0 196.3 48 5 48.5 147.8 72 3 72.3

12/31/11 19.0 136.6 155.6 52 5 52.5 103.0 54 9 54.9 The devaluation of the Real (9%4) also increased net debt. Lower operating cash flow and higher capex resulted in net debt increase.

Net Debt / (Net Debt + Shareholders Equity) Refers to the adjusted EBITDA which excludes equity income and impairment. Includes tradable securities maturing in more than 90 days Period-end commercial selling rate for U.S. dollar

41

Petrobras Ratings Consolidated investment grade position

A- / A3 BBB+ / Baa1 BBB / Baa2 BBB- / Baa3 BB+ / Ba1 BB BB / Ba2 BB- / Ba3 B+/ B1 B/ B2

Investment grade

2000

2001

2002

2003

2004

2005

2006

2007
S&P

2008
Fit h Fitch

2009

2010

2011

2012

M d Moodys

42

Information: Investor Relations +55 21 3224-1510 petroinvest@petrobras.com.br investors@petrobras com investors@petrobras.com www.petrobras.com.br/ir

43