PETROBRAS Strategic & Business Plan 2009-2013

PETROBRAS Strategic & Business Plan 2009-2013 Opportunities for foreign suppliers Houston, May 5 th 2009 OTC 2009 Paulo Sérgio Rodrigues Alonso D.Sc. Materials Engineering Manager 1

DISCLOSURE 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 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. 2

PRESENTATION OUTLINE Main objectives; PETROBRAS Overview; Strategic and Business Plans Highlights: E&P; Downstream; Petrochemical; Gas and Energy; Critical Goods and Services and equipment quantities; PETROBRAS Strategies for purchasing goods and services; Register Requirements for Foreign Suppliers; PROMINP Governmental Program and Local Content; Conclusions. 3

MAIN OBJECTIVES To provide a broad overview of PETROBRAS main investment programs, included in the Strategic and Business Plan for the period 2008-2012, aiming to expand the basis of selected goods and services foreign suppliers interested to come to Brazil and register with the Company in order to participate in the projects Vendor Lists. 4

Petrobras Overview 5

A WORLD-CLASS, PUBLIC, INTEGRATED ENERGY COMPANY Among its peers, Petrobras has the: 4 th largest Proven Reserves; 5 th largest Oil & Gas Production; 6 th largest Refining Capacity; 6 th largest Market Value. STRATEGIC VISION: TO BE ONE OF THE WORLD S FIVE LARGEST PUBLICLY TRADED OIL PRODUCERS 30,000 Production Target: 2020 25,000 Reserves (mm boe) 20,000 15,000 Production Target: 2009 Production Target: 2013 BP XOM 10,000 PBR TOT COP CVX RDS 5,000 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 Production (mboe/d) 2007 (SEC) reserves and production Source: Bloomberg and Company Reports (2007 SEC Proven Reserves Data, 9M08 Oil & Gas Production data, 2008 Refining Capacity data and 2008 Market Value data) 6

DOMINANT POSITION IN A LARGE AND GROWING EMERGING MARKET 20.7 7.9 2007 Total Oil Consumption by Country (mmbo/d) Brazil is world s eighthlargest oil consumer Total Oil Consumption mb/d (index) 160 Brazil OECD World 150 Brazil oil consumption growing at 2.4% p.a. OECD oil consumption growing at 1% p.a. 140 130 120 110 100 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: BP Statistical Review 2008, PFC Energy 7

HIGH-POTENTIAL PORTFOLIO IN ONE OF THE WORLD S MOST EXCITING PROVINCES... Kashagan Sakhalin II Sakhalin I Thunder Horse 82% of our total crude production currently comes from Campos Basin Roncador Marlim Albacora Iara Jupiter Tupi Carioca Dalia Agbami Akpo Shah Deniz Khurais Kizomba Girassol, Jaz, Rosa Development of the Santos Basin sub-salt play will drive our longterm production growth Kurmangazi Azadega n Anaran Significant light oil and gas discoveries have been made in the Espirito Santo Basin Circle size indicates estimated reserves 8

Strategic and Business Plans highlights 9

VISION 2020 AND CHARACTERISTICS Vision 2020 We will be one of the largest integrated energy companies in the world and the preferred choice among our stakeholders Vision 2020 Characteristics Our operations will be notable for: Strong international presence; World scale prominence in biofuels; Operational excellence in management, technology and human resources; Profitability; Benchmark in social and environmental responsibility; Commitment to sustainable development. 10

AND A CAREFULLY CRAFTED SPENDING PROGRAM TO SUPPORT THAT VISION International Investments US$ 15.9 billion Business Plan 2009-2013 US$ 174.4 billion 8% 5% 1% 2% 2% 2% 3% 7% 5.6 3.0 11.8 2.8 3.2 E&P RTC G&E Petrochemicals 7% 25% 43.4 104.6 (*) 59% Distribution Biofuels Corporate 79% (*) US$ 17.0 billion allocated to Exploration E&P RTCP G&E Distribution Corporate 11

CENPES Total Area:114.000 m 2 Building:75.000 m 2 137 Laboratories 30 Pilot plants Expansion CENPES Expansion and Dataprocessing integrated Center: Total Area: 190.000 m 2 Building: 114.000 m 2 Partnership with over 120 universities and research centers in Brazil, and 70 Institutions abroad Investments in Technology 2009-2013 US$ 4.0 billion Technological programs 25% 5% 0.2 1.0 0.9 1.9 47% Frontier Areas Basin Modeling Deep and Ultra-deep Waters Heavy Oil Enhanced Oil Recovery Pre-salt Refining 23% E&P G&E Downstream Corp. (Cenpes) Optimization & Reliability Fuel Innovation Transportatio n Natural Gas Renewable Energy and Bio Fuels Environment Climate Changes 12

E&P Business Segment 13

E&P: FOCUSED & DISCIPLINED INVESTMENT Total Investments Total Investments of US$ 104.6 billion in E&P through 2013, of which US$ 92 billion will be spent in Brazil 12% 13% Expected Costs of Production* 140 58% Exploration Development 17% Production costs (US$/bbl-2008) 120 100 80 60 40 20 Produced MENA Deepwater and Ultra-deep water Other conventi onal oil CO₂ - EOR EO R Arctic Heavy oil and bitumen Oil Shales Gas to liquids Petrobras expected maximum break-even cost Coal to liquids Santos Pre-salt International 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Reserves (bn bbls) * Source: IEA Outlook 2008 14

Tested wells Campos HC Exploratory Blocks Pre-Salt reservoirs 15 PRE-SALT PROVINCE 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

SANTOS BASIN PRE-SALT CLUSTER 50 km BM-S-21 BR 80% BM-S-8 BR 66% Bem-te-vi Caramba BM-S-10 BR 65% Rio de Janeiro Parati Carioca Azulão BM-S-22 BR 20% Guara BM-S-11 BR 65% Tupi BM-S-9 BR 45% Iara BM-S-24 BR 80% Major discoveries include: Tupi, Iara, Carioca, Guara, Jupiter, Parati, Bem-te-vi and Caramba Multi-billion barrel reserves potential Good oil quality: medium-light Seismic activity and appraisal wells underway Recoverable resources announced: 5-8 bn boe in Tupi and 3-4 bn boe in Iara Three production systems by 2014: Tupi, Iara and Guara 16

ESPÍRITO SANTO PRE-SALT UTG Cacimbas MG UTG Sul Capixaba Presidente Kennedy RJ Rio Doce Terminal Barra do Riacho Anchieta Marataizes UPGN Lagoa Parda Aracruz Guarapari CHT Linhares JUB Baleia Azul CXR VITÓRIA Vila Velha Camarupim PRB Carapó Sul Capixaba Gas pipeline 12 83 km 4,5 MM m 3 /d ARG Baleia Franca NAU Golfinho OST ABA Cangoá 24 66 km 25 MM m 3 /d Canapu Peroá Sul-Norte Capixaba Gas pipeline 12 a 24 160 km 7 a 15 MM m 3 /d Infrastructure in-place P-34 at Jubarte field, first pre-salt production: excellent results, prod. up to 18 k b/d FPSO Seillean started in dec/08 as pilot system of Cachalote (CHT) field FPSO Capixaba will move from Golfinho field to Cachalote/Baleia Franca (BFR) in 1H10 FPSO Pipa II will start in 2H10 as Baleia Azul (BAZ) pilot system Baleia Azul first definitive production unit by 4Q12 Natural gas production transported via pipeline Catuá 17

MAJOR OIL PROJECTS 2800 2600 2400 2200 2000 1800 1600 Thousand bpd Badejo FPSO Cidade Rio das Ostras 15.000 bpd 31/mar08 Marlim Leste FPU P-53 180,000 bpd 30/nov/08 1,855 Cachalote FPSO Seillean 25,000 bpd 16/dec/08 Marlim Sul Module 2 SS P-51 180,000 bpd 24/jan/09 Marlim Leste FPSO Cidade de Niterói 100,000 bpd 26/feb/09 Tupi TLD FPSO BW Cidade de S.Vicente 30,000 bpd FPSO Frade 100,000 bpd Parque das Conchas FPSO Espírito Santo 100,000 bpd 2,050 Tupi Pilot FPSO Cidade de Angra dos Reis 100,000 bpd 2,250 Cachalote e Baleia Franca FPSO Capixaba 100,000 bpd Marlim Sul SS P-56 Module 3 100,000 bpd 2,430 Jubarte FPSO P-57 180,000 bpd Anticipation of Baleia Azul FPSO Espadarte 100,000 bpd Pre-Salt Projects 2,580 2,680 Roncador FPSO P-62 Module 4 100,000 bpd Roncador SS P-55 Module 3 180,000 bpd Papa-Terra TLWP P-61 & FPSO P-63 150,000 bpd Guará 1 Pilot FPSO 100,000 bpd 1400 2008 2009 2010 2011 2012 2013 PN 2009-2013 18

CIDADE DO RIO DE JANEIRO FPSO(CAPACITY 100.000 BPD), PRODUCTION ON 06/01/07 AT ESPADARTE FIELD 19

PIRANEMA FPSO (CAPACITY 30.000 BPD), PRODUCTION ON 10/10/07 20

P-52 DECK MATING 21

P-52 - BRASFELS SHIPYARD- ANGRA DOS REIS 22

2020 PETROBRAS STRATEGIC & BUSINESS PLAN P-54 - MAUÁ JURONG SHIPYARD- NITERÓI 23

P-54 LEAVING THE SHIPYARD ON 19-Out-2007 24

P-54 LEAVING THE SHIPYARD ON 19-Out-2007 25

Downstream Business Segment 26

DOMESTIC CRUDE THROUGHPUT (THOUSAND BPD) Refining Pipelines & Terminal Transport Ship Transport Petrochemicals Downstream Investments US$ 47.8 billion 8% 7% 12% 73% Adding values to domestic crude and producing diesel and gasoline in-line with international standards Investment targets Fuel Quality, Conversion and Expansion UPB 150 tho. bpd Dez/2012 Premium I 300 tho. bpd 1st Phase: 2013 2nd Phase: 2015 2,270 Premium II 300 tho. bpd 1st Phase: 2014 2nd Phase: 2016 3,012 1,779 1,791 RNE 230 tho. bpd 2011 REPLAN Revamp 33 tho. bpd 2010 REPAR Revamp 25 tho. bpd 2011 2008 2009 2010 2011 2012 2013 2020 27

NEW INVESTMENTS NEW REFINERIES 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Start up:end of 2.012 Start up: 1 st quarter 2.011 Start up 2013 and 2015 Start up: 2013 and 2015 28

NEW INVESTMENTS - PREMIUM REFINERIES Feedstock oil basis: Marlim 20 LPG PETROCHEMICAL NAPHTHA AVIATION QUEROSENE DIESEL PETROCHEMICAL COKE 5% 20% 11% 50% 8% BUNKER 3% Premium I MA Premium II - CE Capacity 600 mil bpd 300 mil bpd Operation 2013 e 2015 (2 phases) 2013 e 2015 (2 phases) Market GLP, Nafta e QAV (Brasil) e Diesel 10 ppm (Europa) 29

REFINERIES INVESTMENTS done present planned 30

TERMINALS 26 water terminals, operated by means of monobuoys or buoy arrays 20 onshore terminals. INVESTMENTS IN LOGISTICS PIPELINES AND TERMINALS Os investimentos previstos atendem às necessidades da carteira exploratória e de desenvolvimento da produção Total Investments: US$ 3.7 billion between da Petrobras 2009-2013; Main Projects: Storage extension in Santos and Paranaguá ports; Increase in effluents treatment in São Sebastião (TEBAR), São Fransisco do Sul (TEFRAN), Cabiúnas, Ilha Grande (TEBIG) and TEDUT Terminals; Implantation of the Program Adequação de Suprimento de Petróleo (PASP) and the Plano Diretor de Dutos, in São Paulo State, through interventions in the OSVAT and OSCAN Systems, and new pier for the São Sebastião Terminal; Improvements in the oil product outflow system in Santos and Paranaguá ports and Madre de Deus Terminal(TEMADRE). 31

Petrochemical Business Segment 32

COMPERJ Site: Itaboraí -RJ; Capacity: 1300 kta ethylene; 700 kta P-Xylene; 881 kta Propylene; 608 kta Benzene; 157 kta Butadiene Total Investment: US$ 8.5 billion; Feedstocks: Heavy crude oil from Campos basin; Start up: 2012. 33

COMPERJ OUTPUTS Products UPB Production (kta) 1 st Generation Products UPA Production (kta) 2 nd Generation Fuels (UPB) Petrochemical Feedstocks (UPB) Diesel 535 Naphtha 284 Coke 700 Ethylene 1.300 Propylene 881 Benzene 608 Butadiene 157 p-xylene 700 Sulfur 45 Polypropylene (PP) 850 Poliethylene (PE) 800 Styrene 500 Ethylene glicol 600 PTA 500 PET 600 34

COMPERJ MAP LOCATION Itaboraí 35

Gas and Energy Business Segment 36

G&E INVESTMENTS G&E Investments US$ 10.6 billion 2009 2013 1,477 926 4.528 3.692 Natural Gas US$ 8.2 billion Energy US$ 2.4 billion Projects in Portfolio Projects in Portfolio US$ million New Investments Proposed New Investments Proposed 37

MAIN PROJECTS: GAS & ENERGY Main Projects US$ million Gas Pipelines: Gasene, Northeast and Southeast Network, South Section of Gasbol, Urucu-Coari-Manaus and Gasduc III LNG Liquefied Natural Gas Thermo-Electrics: Cubatão, Três Lagoas, Canoas and Termoaçu Wind Power Generation G&E in Argentina and Other Countries Total investments US$ 10.6 billion 38

Critical goods and services and equipment quantities 39

E&P CRITICAL EQUIPMENT: OPPORTUNITIES FOR FOREIGN SUPPLIERS Production pipelines alloy coatings (13 Cr, Super 13 Cr); Turbo compressors (6-10 Mw ); Polyester Mooring cables; Mooring systems; Drilling pipelines; Fiber glass pipelines; Electrical cables for CSP; Control Systems for well control, oil and gas metering systems, drilling activities; Offshore drilling rigs; Gravel packing; Drilling bits; Steam generators (25-50 x 10 6 BTU/d); Special submarine valves. 40

CRITICAL SERVICES FOR E&P ACTIVITIES: OPPORTUNITIES FOR FOREIGN SUPPLIERS Drilling; Workover services; Flexible lines and umbilicals laying services; Support to diving; Support to ROV; Support to mooring activities; Special vessels; Submarine interconnection services. 41

CRITICAL EQUIPMENT AND SERVICES FOR REFINING ACTIVITIES: OPPORTUNITIES FOR FOREIGN SUPPLIERS Equipment HCC Reactors (250-300 mm wall width, 200 Kgf/cm 2 ); Boiler works with special alloys (reactors, towers, pressure vessels); Boilers (steam generators); Heat exchangers working with H 2 S traces (ASTM A 387 degree 11); API pumps; Structural packing for refining process towers; Services Basic Design; Thermal Projects Design. 42

CRITICAL EQUIPMENT FOR G&E ACTIVITIES: OPPORTUNITIES FOR FOREIGN SUPPLIERS Pipelines in the range of 14-42 inches diameter with longitudinal welding. Petrobras standards do not accept helicoidal welding. 43

NEW EQUIPMENTS TO BE CONTRACTED Drilling ships and semi submersible drilling platforms 29 RIGS CONTRACTED PLUS 28 TO BE LEASED UP TO 2017, MAKING A TOTAL OF 57 DRILLING RIGS 17 being delivered between 2009 and 2011 12 will be chartered via international bidding, being delivered in 2012 Meeting Petrobras short term needs, while the national industry prepares itself for the remaining units 28 will be built in Brazil and operated by Brazilian companies, being delivered between 2013 and 2017 Items Un. TOTAL Wet Christmas Tree un 500 Well Head un 500 Flexible Lines km 4.000 Manifolds un 30 Producing pipes t 42.000 Umbilical km 2.200 Dry Christmas Tree un 1.700 Onshore well head un 1.700 Items Un. TOTAL Reactors un 280 Oil and water splitter un 50 Storage Tankers un 1.800 Turrets un 550 Items Un. TOTAL Pumps un 8.000 Compressors un 700 Winch un 450 Crane un 200 Engines un 1.000 Turbines un 350 Structure Steel (Hull) t 940.000 Items Un. TOTAL Power Generators un 500 Filters un 300 Flares un 30 44

Petrobras supply strategies for goods and services 45

SUPPLY STRATEGIES FOR GOODS AND SERVICES US$ 7.0 Bi Manufacturers Distributors Retailers Equipment Chemicals Spare parts Etc. Seismic US$ 25.8 Bi Service providers Drilling Transport Etc. As per 2008 US$12.4 Bi EPC Shipyards Constructors Platform Refinery Revamps Etc. 46

Up-dated Petrobras Vendor Register Requirements 47

REGISTER OF GOODS AND SERVICES SUPPLIERS Requirements, Concepts and Ranking MANDATORY REQUIREMENTS and RANKING REQUIREMENTS 5 CRITERIA SOCIAL TECHNICAL RESPONSIBILITY HSE ECONOMIC LEGAL 48

REGISTRATION FOR MATERIAL SUPPLIERS TECHNICAL REQUIREMENTS FOR MATERIALS Depending on the material or equipment, the supplier must comply with the following requirements: Tradition (Main Sales, Reference Letters); Facilities for Technical Assistance (Automation Systems, Rotating Machinery, etc); Mandatory Product Certification (API, ASME,...); Other Specific Requirements. 49

REGISTRATION FOR SERVICES SUPPLIERS TECHNICAL REQUIREMENTS FOR SERVICES Depending on services criticality, the supplier must comply with the following requirements: Tradition (List of Services Provided continuity and Reference Letters); List of Equipment relating to services provided; Main personnel curricula vitae; Other specific requirements. 50

SUPPLIERS REGISTRATION LEGAL REQUIREMENTS MATERIALS & SERVICES Brazilian companies: Proof of being legally constituted in Brazil; Proof of being regular with Brazilian taxes; See details on registration website. Foreign companies: Proof of being legally constituted in its home country, issued by a Governmental Authority; Legal Representative in Brazil (mandatory); Commercial Representative (is not registered, but only indicated by and linked to the supplier): Not mandatory (may be the own company); May be the same or other than the Legal representative. 51

SUPPLIERS REGISTRATION ECONOMICAL REQUIREMENTS MATERIALS & SERVICES Annual Reports with Audited Financial Statements; Proof that the company is not bankrupt (bank statement or company declaration by its president). 52

SUPPLIERS REGISTRATION MANAGEMENT and SOCIAL RESPONSIBILITY MATERIALS ISO-9001 - certification mandatory for suppliers of material & equipment which require technical qualification. SERVICES Compliance with some requirements of ISO-9001 for special services. MATERIALS & SERVICES Petrobras stimulates suppliers to improve Social Responsibility actions. 53

SUPPLIERS REGISTRATION HELTH, SAFETY and ENVIRONMENT SERVICES ISO-14001 and OSHAS-18001: Certification is not mandatory; Petrobras evaluates how does the suppliers implement these standards requirements (0 to 10). MATERIALS PETROBRAS requires supplier formal declaration of compliance with legal requirements. Petrobras evaluates how the suppliers implement some standards requirements of ISO 14001 and OSHAS 18001 (not mandatory) (0 to 10). 54

REGISTER OF SUPPLIERS OF GOODS AND SERVICES General information is obtained at Petrobras website: www.petrobras.com.br Options (icons): English; Business, Material Channel, Registration Guide. Corporate registration process must be carried out in Petrobras headquarters, in Rio de Janeiro. 55

PROMINP Governmental Program and Local Content 56

PROMINP BRAZILIAN OIL & GAS NATIONAL INDUSTRY MOBILIZATION PROGRAM MINISTRY OF MINES AND ENERGY (MME) Program s promoter and manager PETROBRAS Leading operator in Brazil ABIMAQ BNDES ABEMI SINAVAL BRAZILIAN PETROLEUM INSTITUTE (IBP) Coordinator for the participation of the other operators ABDIB IBP PROMINP ONIP ABCE NATIONAL ORGANIZATION OF THE OIL INDUSTRY (ONIP) Coordinator for the participation of class associations (suppliers) 57

COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICES Adequacy of The National Supply Industrial Complex GOOD AND SERVICES SUPPLY PATH imports 5. Incentive for international companies to establish operations in Brazill imports Increase in National Supply Capacity of G&S 4. Incentive for association between national and international companies 3. Incentive for new national entrants 2. Develop competition among medium competitive sectors National Industry 1. Increase productivity capacity of highly competitive sectors Current Demand Future Demand Source: Promimp, 2008 57

GLOBAL LOCAL CONTENT 4 TH QUARTER 2008 PROMINP $ Target National $ Target Total Target LCI $ Accomplished Total $ Accomplished National Accomplished LCI (US$bi) 58

CONCLUSIONS Huge Strategic Plan for the period 2009-2013; Plenty of opportunities for foreign suppliers planning to establish in Brazil and address the Latin America Market; Strong industrial basis in Brazil, for the Oil and Gas segment representing today 15% of GDP; Opportunities shall be focused on critical goods and services not available in a competitive basis in local market; Foreign suppliers must be aware of the specific laws framework and Local Content requirements; incentives should be assigned by Government Offices once the intention to manufacture in Brazil is assured; Partnership with a local supplier operating in the same business area should be considered.. 59

PETROLEO BRASILEIRO S.A. PETROBRAS The Challenge is our Energy Paulo Sergio Rodrigues Alonso D.Sc. Materials Engineering Manager alonso@petrobras.com.br 60