1. Brazil’s Oil Riches: First found in people’s minds, again Presentation to the University of Houston C. T. Bauer College of Business Global Energy Management Institute Renato T Bertani October 2008

2. The Current Energy Matrix: fossil fuels are by far the largest source of energy Total Consumption: 462 quadrillion btu OECDNON OECD Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains) Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL) Source: EIA, Sept08 Total Consumption: 462 quadrillion btu

3. Fossil Fuels will continue as the main source of energy Source: EIA, Sept 08 Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains) Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL)

4. $80 $150?? STABILITY VOLATILITY GAS PRICE $/BOE GAS PRICE $/BOE OIL PRICE $/BO $40 Long Term Price Scenarios

5. A journey towards the blue waters (where the big fish roam!!) A journey towards the blue waters (where the big fish roam!!)

6. Blue water, big fishes

7. Source: F. Nepomuceno, 2008 Petrobras Pre salt source, post salt reservoirs

8. Source: F. Nepomuceno, 2008 Petrobras Campos Basin Post Salt Giant Fields Upper Cretaceous Reservoirs ● Turbidites ● High porosity and permeability ● Heavy oil Tecnologies ● Semi submersibles and FPSOs ● Gravel packing ● Subsea completion

9. OIL AND GAS RESERVES – SPE CRITERIA Onshore Shallow water (0-300m) Deep water (>300m) Steady and steep reserves growth

10. Petrobras Oil Production – kb/day Steady oil production growth

11. Lower Aptian Paleogeography (122 m.y.)

12. Pre Salt Reservoirs and Recent Analog Source: José Formigli, 2008, Petrobras

13. Pre Salt: seeing and believing

14. Source: F. Nepomuceno, 2008 Petrobras Pre salt source, pre salt reservoirs

15. PRE SALT DISCOVERIES OFFSHORE BRAZIL Source: O Globo Sept 25,08 The Santos Basin Pre Salt Cluster

16. The Pre Salt Province Source: José Formigli, 2008, Petrobras

17. Technological Challenges Reservoir characterization Well Drilling and Completion Well deviation in salt zones CO2 resistant materials Highly deviated wells Subsea Engineering WD: 2,200m and deeper High Pressure, CO2 Flow assurance and artificial lifting Floating Production Units Mooring Interaction with risers Direct access to wells (SPARS, other alternatives Technologies Source: José Formigli, 2008, Petrobras

18. Logistics Challenge Source: José Formigli, 2008, Petrobras

19. Supply Challenges......and Opportunities Supply Challenges......and Opportunities Petrobras Contracting Program TenderedTo be tenderedTotal Large Ships Supply Boats Production Units (FPSO/SS) Other (JackUps, TLWP) TOTAL Source: José Gabrielli, 2008, Petrobras

20. Petrobras Technological Programs The key to success Petrobras Technological Programs The key to success

21. Many Thanks!