PETROBRAS Business Plan: an opportunity for foreign investments in Brazil

Transcription

1 1 PETROBRAS Business Plan: an opportunity for foreign investments in Brazil Mario J D Tavares President Adviser Hamburg, 2nd December, 2009

2 2 Disclaimer 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. Figures for 2009 on are estimates or targets. Cautionary Statement for US investors The 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.

3 3 Objectives Introduce Petrobras; Business Plan ; Investment opportunities in Brazil; Brazilian equipment supply industry.

4 Introducing Petrobras 4

5 5 An Integrated Energy Corporation Exploration Drilling Transportation Production Refining and Petrochemical Gas Energy Distribution R & D

6 (mcb/d) (bln boe) (mmboe/d) (US$ bn) 6 Publicly Traded Peer Comparison 2008 Proven Reserves (SEC) 2008 Oil & Gas Production 23,0 4º º 17, ,7 11,2 11,2 10,5 10, ,6 5,6 XOM BP RDS PBR CVX TOT COP ENI STL Source: Evaluate Energy and Company reports 2008 Refining Capacity XOM BP RDS CVX PBR COP TOT STL ENI Source: Evaluate Energy and Company reports Market Value as of March 19, ,675 3,905 6º º 3,119 2,917 2,600 2,223 2, XOM RDS BP COP TOT PBR CVX ENI STL Source: PFC Energy WRMS (barrels per calendar day, considering company % shareholding and including JVs) XOM RDS CVX PBR BP TOT ENI STL COP Source: Bloomberg Note: Peer companies selected above have a majority of capital traded in the public markets.

7 7 Petrobras:... background 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 April thousand employees (May 2009) 60 % of total equity capital (common and preferred) is now publicly traded Government maintains controlling interest with 58 % of voting shares Foreign currency ratings from Moody s (Baa1), Standard & Poors (BBB-), and Fitch (BBB-) (3, 1, and 1 notch above sovereign, respectively) Net revenue: US$ billion (2008) Net profit: US$ 19.9 billion (2008)

8 Business Plan

9 9 Investment Plan by Business Segment Business Plan % 2% 2% 3% 7% US$ billion E&P RTC G&E 25% (*) Business Plan = US$ billions 59% Petrochemicals Distribution Biofuels Corporate

10 10 Historic Investments US$ million

11 11 E&P - rapidly growing production profile Petrobras Total Production (000 b/d) 7.5% p.y. 5, % p.y. 8.8% p.y. 2,757 3, , ,042 2,027 1, ,305 2,308 2,400 2,

12 million boe/d Main Oil and Gas Production Projects in Brazil Key Projects (million bpd) MANATI expansion LAGOSTA CANAPU CAMARUPIM URUCU 2.51 URUGUÁ TAMBAÚ MEXILHÃO JURUÁ ARACANGA Oil and gas More than 30 new 2.68platforms to Oilbe P-62 constructed RONCADOR 2.05 JABUTI EWT Tupi P-51 MARLIM SUL FRADE PARQUE DAS CONCHAS TUPI Pilot CACHALOTE. BALEIA FRANCA, BALEIA ANÃ P-57 JUBARTE P-56 MARLIM SUL BALEIA AZUL P55 RONCADOR P-61 PAPA-TERRA P-63 PAPA-TERRA GUARÁ 1 or IARA 1 TUPI 1 Pilot Expansion

13 13 The Pre-Salt Province in Brazil Total area of the Province: 112,000 km 2 Area under concession: 41,000 km 2 (38%) Area not under concession: 71,000 km 2 (62%) MINA GERAIS Area with Petrobras interest: 35,000 km 2 (31%) ESPIRITO SANTO SÃO PAULO RIO DE JANEIRO PARANÁ Tested wells Campos HC Exploratory Blocks Pre-Salt reservoirs

14 14 Downstream Investments Downstream Investments (US$ 47.8 billion) Refining (1,28 million bpd green field refining capacity) 7% 12% Pipelines & Terminal Transport Ship Transport (42 new ships, from Bunkers to Suezmax) 8% Petrochemicals 73%

15 15 Domestic Oil Products Market Petrobras Total Refining Throughput (million bpd) (000 b/d) 2, % p.y , ,906 1, % p.y Others FO Diesel QAV Naphta Gasoline LPG E 2020E

16 16 Renewable Energy and Biofuels Biofuels Investments (US$ 2.8 billion) 16% 84% Ethanol (new 1,150 km ethanol pipeline) Biodiesel

17 17 Investment opportunities in Brazil

18 18 Amount to bid in Brazil US$ billions Exploration & Production Refineries, ethanol pipelines & ships 54.8 Gas infra-structure & gas power plants 7.0 1) From the 2nd semester of 2010 onwards 2) 1.00 US$ = 2.00 R$ 3) Equipment + Services 4) Projects with FID

19 19 a few examples Abreu COMPERJ e Lima GASENE Refinery Baía Pipeline da Guanabara LNG Offshore Facility

20 20 Brazilian equipment supply industry

21 21 Commitment with national suppliers Petrobras Business Plan assumes Brazilian Content to be 64 % of total capital spending, generating annual average purchases of US$ 20.2 billion (*) from local suppliers Business Segment Domestic Investments Purchased in the Domestic Market (*) Annual average purchases in the domestic market for the previous Plan was approximately US$ 12.6 billions US$ billion Brazilian Content (%) E&P 92,0 48,9 53% Downstream 47,8 37,8 79% G&E 10,6 7,4 70% Distribution 2,1 2,1 100% Biofuels 2,1 1,8 85% Corporate Areas 3,6 2,9 80% Total 158,2 100,9 64%

22 22 Main equipment quantities ( ) ITEM UNIT Quantity Pumps Units 8,000 Compressors Units 700 Cranes Units 450 Steel (structures) tonnes 940,000 Flares Units 30 Power Generators Units 500 Tanks Units 1,800 Processing tower Units 550 Reactors Units 280 ITEM UNIT Quantity Wet christmas trees Units 500 Offshore wellheads Units 500 Dry christmas trees Units 1,700 Onshore wellheads Units 1,700 Manifolds Units 30 Umbilicals km 2,200 Production pipes tonnes 42,000 Flexible pipes km 4,000 Turbines Units 350

23 23 Equipment with local supply constraint Special alloys for tubing and casings (13 Cr, Super 13 Cr, Duplex, Super Duplex); Turbo generators; Polyester mooring cables; Fiber glass pipelines; Electrical cables for CSP; Drilling bits; Steam generators (25-50 x 10 6 BTU/d); HCC reactors ( mm wall width, 200 Kgf/cm 2 ); Special alloy boilers, reactors, towers, and pressure vessels; Heat exchangers for H 2 S traces (ASTM A 387 degree 11); Reformer furnaces.

24 24 Conclusions Petrobras Business Plan ensures a sustainable investment portfolio; The main opportunity for new investors are: Investors interested in selling machinery to upgrade Brazilian oil base-industry; Investor interested in upgrading factories already installed in Brazil; Investors interested in installing their factories in Brazil, to sell equipment for the oil industry.

25 25 QUESTION AND ANSWER Visit our website:

26 26 Thank you for your attention PETROBRAS Business Plan: an opportunity for foreign investments in Brazil Mario J D Tavares President Adviser (mario.tavares@petrobras.com.br) Hamburg, 2nd December, 2009