HSEE Health, Safety, Environment and Energy Efficiency Energy Efficiency Case Study – PETROBRAS Claudio Rücker Energy Efficiency Sector Workshop US-Brazil Binational Energy Working Group (Energy Efficiency) CEPEL – Rio de Janeiro – RJ – Brazil 10 / 08 / 2011

HSEE 1.Petrobras Main Figures 2.Petrobras 2020 Strategic Plan 3.Energy Efficiency Context in Petrobras 4.Energy Efficiency Example Cases 5.EZR Cogeneration Case 6.Challenges for Petrobras Agenda

HSEE 1.Petrobras Main Figures 2.Petrobras 2020 Strategic Plan 3.Energy Efficiency Context in Petrobras 4.Energy Efficiency Example Cases 5.EZR Cogeneration Case 6.Challenges for Petrobras Agenda

HSEE ,966 Km 7,197 Investments : R$ 71 billion Net Profit: R$ billion Global Presence: 28 countries Reserves: billion barrels of oil and gas equiv. Net Revenue: R$ billion Shareholders: 463,870 Daily Production: 2,526,000 barrels per day 52 owned 78 fixed 55 floating Petrobras Main Figures (2009 data)

HSEE ,966 Km 7,197 Production Platforms: 133 (86 fixed; 47 floating) Vessel Fleet:172 (52 belonging to Petrobras) Biofuels: 5 plants Wind Energy: 1 pilot plant Fertilizers: 2 plants Refineries: 15 Yield of the Refineries: 2,034,000 bdd Pipelines: 25,966 km Thermoelectric Plants: 18 plants Service Stations: Nearly 8, owned 78 fixed 55 floating Petrobras Main Figures (2009 data)

HSEE 1.Petrobras Main Figures 2.Petrobras 2020 Strategic Plan 3.Energy Efficiency Context in Petrobras 4.Energy Efficiency Example Cases 5.EZR Cogeneration Case 6.Challenges for Petrobras Agenda

HSEE Petrobras Main Figures Increased to 6.4 MM boe/d in 2020, as informed in the recent Business Plan

HSEE Petrobras Main Figures

HSEE Research and Development

HSEE Corporate Quinquennial Goals quantified Intensity Indexes and goals established for each B.A. Board of Directors analyses results quarterly Energy EfficiencyEmissions Strategic Objectives Maximize efficiency and minimize the intensity of GHG emissions, reaching levels of excellence in the Oil & Gas industry, contributing to business sustainability Energy Annual Report Energy Performance Challenges

HSEE 1.Petrobras Main Figures 2.Petrobras 2020 Strategic Plan 3.Energy Efficiency Context in Petrobras 4.Energy Efficiency Example Cases 5.EZR Cogeneration Case 6.Challenges for Petrobras Agenda

HSEE Source: WEO World Energy Outlook IEA Energy Efficiency and Climate Change

HSEE Source: BP Energy Outlook 2030 (January/2011) Energy Efficiency and Climate Change

HSEE Corporate Policies and Guidelines Corporate Leadership Leaders in the Operations Units Design Guidelines Performance Indicators Measurement Goals - Benchmark Supply Chain Management Energy Critical Analysis Correction of Deviations Modeling Process Optimization - Advanced Control - "RTO" Management Process

HSEE Corporate Policies and Guidelines Corporate Leadership Leaders in the Operations Units Design Guidelines Performance Indicators Measurement Goals - Benchmark Supply Chain Management Energy Critical Analysis Correction of Deviations Modeling Process Optimization - Advanced Control - "RTO" Management Process PDCA Information Management Systems - PRIORITY PRIORITY

HSEE Corporate Financial Planning and Risk Management Finance Accounting Tax Investor Relations Health, Safety, Environment and Energy Efficiency Materials Research and Development (Cenpes) Engineering Information Technology Shared Services Corporate Marketing and Trade Logistics and Part. in Natural Gas Operations and Part. in Energy Energy Development Gas Chemicals and Liquefaction Corporate Technical Support to Businesses Business Development South Cone LA Americas, Africa and Eurasia Corporate Production Engineering Services Exploration North-Northeast South-Southwest Pre-salt Corporate Logistics Refining Marketing and Commercialization Petrochemicals Major Projects Program PETROBRAS ORGANIZATION CHART Business Strategy and Performance New Businesses Human Resources Management Systems Development Legal Department Corporate Communication Internal Audit Ombudsman’s Office Petrobras Secretary Office CEO’s Office CEO Senior Management Business Committee Board of Directors Audit Committee FinanceServicesGas and EnergyInternational Exploration and Production Downstream

HSEE Source: 2009 Petrobras Consumption Report Energy Efficiency can result in substantial outcome increases for the Company (363 boed) (236 boed) Thousands b/d, year 2009 Consumption per activity (thousands b/d, year 2009) Energy consumption in Petrobras totalizes 259,000 b/d and represents about 10% of its total production Consumption represents ~10% of production

HSEE Ratio between a produced good or an accomplished service and the quantity of energy consumed for that In case of Petrobras: Produce more with less energy intensity What´s Energy Efficiency?

HSEE –Reduce 10% and 5% the energy intensity, between 2009 and 2015, in its Downstream and Thermal Plants, respectively –Reduce 65% the natural gas flaring, between 2009 and 2015, in its Upstream operations –Considering R&D and projects of energy efficiency, Petrobras will invest US$ 1.2 billion until 2015 Petrobras Energy Efficiency Goals

HSEE –Downstream: Motorization of large condensate turbines, energy integration, process units optimization, modernization of thermoelectric systems –Thermal Plants: Convertion symple cycle in combined cycle thermal plants –Upstream: natural gas compression and logistics investments Main Projects

HSEE 1.Petrobras Main Figures 2.Petrobras 2020 Strategic Plan 3.Energy Efficiency Context in Petrobras 4.Energy Efficiency Example Cases 5.EZR Cogeneration Case 6.Challenges for Petrobras Agenda

HSEE Example of Advanced Control in a Gas Process Unit Investiment: US$ 270,000 Results: –Earnings: US$ 14 million (in energy efficiency and production) –Extra production: 16,410,000 m³ LGN/year (increase of 9%) –Energy economy: 2 to 10% Example of energy efficiency projects

HSEE Furnaces and Boilers Soot Blowing Modernization Projects Refinery Case Example: –Investment: US$ 1.74 million –Energy economy: 305 b/d –Carbon emission avoided: 38,000 tons CO2/year Example of energy efficiency projects

HSEE Condensate and Steam Modernization Projects Fertilizer Plant Example Case : –Investiment: US$ 1.5 million –Condensate recuperated: 20 t/h –Natural gas economy: 4,920 m 3 /day –Carbon emissions avoided: 3,700 ton CO 2 /year Example of energy efficiency projects

HSEE Fluid Catalytic Cracking (FCC) Turboexpanders Recovery energy by substituting pressure reducing valves by a turbine coupled to an electric generator 5 refineries 98 MW of total installed capacity Example of energy efficiency projects

HSEE Variable Speed Driver Projects Refinery Example Case (6 pumps) –Investiment: US$ 1.7 million –Energy Economy: 800 MWh/year –Carbon emissions avoided: 83 ton CO2/year Fonte: WEG Example of energy efficiency projects

HSEE Dessalinization Units Projects Offshore Platforms Dessalinization Example Case : 3 production units Reducing of potable water transportation by ships Dessalinization water capacity: 255 m³/day Investment: US$ 1.7 million Energy economy: 5.2 b/d Carbon emissions avoided: 829 ton CO 2 /year Example of energy efficiency projects

HSEE Heat Recovery Projects Process Unit Example Case : Reduce 70% of furnace thermal demand Investments: US$ 15 million Energy economy: 55,000 m³/day of natural gas Carbon emissions avoided: 40,000 tCO 2 /year Example of energy efficiency projects

HSEE Thermal Solar Energy Projects Onshore Oil Well Case Example: To take the paraffin off from the well column Energy economy: 0.35 b/d Carbon emissions avoided: 35 ton CO 2 /year Example of energy efficiency projects

HSEE 1.Petrobras Main Figures 2.Petrobras 2020 Strategic Plan 3.Energy Efficiency Context in Petrobras 4.Energy Efficiency Example Cases 5.EZR Cogeneration Case 6.Challenges for Petrobras Agenda

HSEE EZR Cogeneration Plant This project consists of an integration of two different Business Areas of Petrobras (Downstream and Gas & Energy): –The RPBC Refinery old boilers were with low energy efficiency –The Gas & Energy was looking for new thermal plants business opportunties

HSEE EZR Cogeneration Plant – Main Equipments 1 Gas Turbine: MW (ISO) 1 HRSG (120 bar; 42 bar; 12 bar) 1 Condensate Steam Turbine: 55 MW 2 Auxiliary Boilers Startup in in pre-operation

HSEE Combined Cycle Thermal Plant Steam Electricity Steam 415 t/h 196 MW Fuel Efficiency = 82% Efficiency = 77,5% Fuel 19,541 TJ/year 12,953 TJ/year Without integration Fuel = 23,360 TJ/a With integration - cogen Fuel = 19,541 TJ/year Energy Economy 3,819 TJ/year 1,771 b/d Electricity 196 MW Fuel Efficiency = 60% 10,407 TJ/year RPBC BoilersEZR Cogeneration Plant Global Efficiency = 69%Global Efficiency = 82% EZR Cogeneration Plant – Energy Economy

HSEE Combined Cycle Thermal Plant Steam Electricity Steam 415 t/h 196 MW Fuel Efficiency = 82% Efficiency = 77,5% Fuel Without integrationWith integration - cogen CO 2 Avoided Electricity 196 MW Fuel Efficiency = 60% RPBC BoilersEZR Cogeneration Plant EZR Cogeneration Plant – Carbon Emissions 1,532,500 tCO 2 /year1,136,500 tCO 2 /year396,000 tCO 2 /year 85% FO 15% NG 951,500 tCO 2 /year 100% NG 581,000tCO 2 /year 78% NG 22% RG 1,136,500 tCO 2 /year CO 2 Index = 0,34 tCO 2 /MWh CO 2 Index = 0,26 tCO 2 /MWh

HSEE Results: –Energy economy: 1,771 b/d –Carbon emisisons avoided: 396,000 ton CO 2 /year –Lower carbon intensity in Petrobras energy profile –Lower NOx emissions EZR Cogeneration Plant – Conclusion

HSEE 1.Petrobras Main Figures 2.Petrobras 2020 Strategic Plan 3.Energy Efficiency Context in Petrobras 4.Energy Efficiency Example Cases 5.EZR Cogeneration Case 6.Challenges for Petrobras Agenda

HSEE Implement a new management model for Energy Efficiency -Future vision -KPIs and goals -New corporative standards Insertion of Energy Efficiency requirements in Petrobras new design models -More efficient designs -Consider the carbon emission Projects of energy efficiency in the actual plants -Priorize energy efficiency projects in the Company portfolio 2 3 Operational Efficiency Increases Profitability Increases Company Image Prepare to Future Scenarios 1 Energy Efficiency Challenges in Petrobras

HSEE Thanks! Claudio Rücker Energy Efficiency Sector