"petrobras america inc. “business strategy and results"
TRANSCRIPT
PETROBRAS AMERICA INC.BUSINESS STRATEGY AND RESULTS
Presentation toGlobal Energy Conference
Merrill Lynch NYC – October 06
Renato T Bertani [email protected] 917 3718
Note: Includes International
31.0
12.41.0
1.0
49.3
23.07.5
3.32.31.8
E&P Downstream G&EPetrochemical Distribution Corporate
9%4%
3% 26%
56%
3%
Business Plan 2007-2011US$ 87.1 billion
86%
14%
Brazil International
US$ 12.1 bi
US$ 75.0 bi
PETROBRAS GROUP Investment Plan
49,3
23,0
7,53,32,21,8
2 , 3 7 42 , 8 1 2
5 5 1
7 2 4
7 4 2
1 8 5
2 7 8
3 8 3
2 0 1 5
F o r e c a s t
1 , 6 8 4 1 , 8 8 01 , 5 4 0 1 , 4 9 3
2 5 0 2 6 5 2 7 4
2 8 9
1 3 3
1 6 1 1 6 81 6 3
8 5
1 0 1
9 49 6
2 0 0 3 2 0 0 4 2 0 0 5 T a r g e t 2 0 0 6
O i l a n d N G L - B r a z i l N a t u r a l G a s - B r a z i l
O i l a n d N G L - I n t e r n a c i o n a l N a t u r a l G a s - I n t e r n a c i o n a l
2,036 2,020 2,217 2,403
3,493
4,556Thousand boed
7.8% p.a.
7.5% p.a.
T a r g e t 2 0 1 1
PETROBRAS GROUP UpstreamProduction targets – Oil & NGL and Natural Gas
(*) Domestic Imports and Private Refineries
International Production383
Brazilian Production2.374
383 584+
1.710
Imports309
584
Brazilian Throughput 1.877
Brazilian Oil ProductsConsumption 2.099
Oil 167
Oil Products (*)142
International Sales967
80
Liquid products flow
Thous. bpd
STRATEGIC DRIVERS FOR INVESTMENTSIN THE USA
• INVESTMENT OPPORTUNITIES • PETROBRAS EXPERTISE AND TECHNOLOGY• PORTFOLIO DIVERSIFICATION• LONG TERM GROWTH OPTIONS• MARKET POSITION• OIL (AND BIO FUELS) SURPLUS
EXPLORATION AND PRODUCTIONEXPLORATION AND PRODUCTION
SMALL PLAYERSHALLOW WATERS
LEADING PLAYERLARGE RESERVESNEW FRONTIERS
INNOVATIONTECHNOLOGY
RISK MITIGATION• OPTIONALITY• MATERIALITY• REPEATABILITY
UNITED STATES
MEXICO
HoustonNew Orleans
Cascade
ChinookSt Malo
PRODUCING FIELDSDISCOVERIESPROSPECTS
Coulomb NorthZion
Bryce Sedona
Hadrian
Hadrian S
Monte Belo
Claudius
Flavian
Aurelian
Aransas
Goliad
Big Bend
• New frontier, new province
Deep Shelf Gas Prospects
• New frontier, mature province
Aquarius
CentaurusAndromeda
Cygnus
Crater
Aquila
Pegasus
Scorpio
• Challenging paradigms, inactive province
Cottonwood
• Improving seismic resolution, active province
SEA LEVEL
Williams TowerWilliams TowerHeight 901 ftHeight 901 ft
The Lower Tertiary Play
CASCADE AND CHINOOK
DEVELOPMENT
FIRST OIL:
2009CascadeCascade
ChinookChinook
FPSOShuttle Tanker
FSHR
Tree
ControlUmbilical
PowerUmbilical
Flowline
Gas ExportPipeline
ManifoldCascadeCascade
ChinookChinook
FPSOShuttle Tanker
FSHR
Tree
ControlUmbilical
PowerUmbilical
Flowline
Gas ExportPipeline
Manifold
T u r re t
F la re b o o m
T o p s id e P ro c e s s in g
O ff lo a d in g
L iv in g Q u a r te rs
T u r re t
F la re b o o m
T o p s id e P ro c e s s in g
O ff lo a d in g
L iv in g Q u a r te rs
T u r re t
F la re b o o m
T o p s id e P ro c e s s in g
O ff lo a d in g
L iv in g Q u a r te rs
BLACKBEARD WELL
• Interrupted before target at 30,070ft• Confirmed geological model• Extreme P&T• Technological challenges
MEGAMATA WELL
• Drilling, 21,000ft• $ 18 MM• TARGET REACHED!!!
ANDROMEDAWELL PROJ.
TVD=22.000’
LOW. MIOC.
TOP OLIG. (?)
A A’NW SE
6.000’
9.000’
12.000’
16.000’
20.000’
Andromeda ProspectAndromeda Prospect
• ON BUDGET• ON SCHEDULE (FIRST OIL 1Q 2007)• PRODUCTION RATE: 20 KBOE/D
Megamata, AndromedaDeep gas, WGoM Expl2006
Devel (first oil 1Q07)Cottonwood2005
ProducingCoulomb2004
Appr/DevelChinook, St Malo2003
Appr/DevelCascade2002
RESULTS
ASSETS• 6 Producing fields• 1 field under development• 3 discoveries under app/devl• 30-40 prospects inventory• 2 expl wells drilling
4 FOCUS AREAS320 LEASES• 170 operated• 200 deep and ultra deep water
LEASE POSITION
UPSTREAM SUMMARY
INVESTMENTS & EBITDA
0
200
400
600
800
1000
1200
1400
2006 2008 2010 2012 2014
MM
USD
DEVELOPMENT
EXPLORATIONEBITDA
PRODUCTION
0
20
40
60
80
100
120
140
160
2006 2008 2010 2012 2014
MB
OE/
day
EXPL
APPRAISALFIELDS
PETROBRAS ANNOUCES PURCHASE OF 50% OF TOTAL SHARES OF
PASADENA REFINERY SYSTEM
PRSISTRATEGIC LOCATION
LAND FOR EXPANSIONSHIP CHANNELINDUSTRIAL AREAMAIN PRODUCT PIPES
REFINING INVESTMENTS & EBITDA
0
50
100
150
200
250
300
350
400
2006 2008 2010 2012
MM
US
D
EXPANSION REVAMP
EBITDA
• Investments 2007 - 2011:US$ 1072mm
• Investments 2007 - 2011:US$ 1072mm
REFINING THROUGHPUT
0
20
40
60
80
100
120
2006 2008 2010 2012 2014
MB
OE/
day
HEAVY CRUDE
LIGHT CRUDE
UPSTREAM TAX POSITION
-600
-400
-200
0
200
400
600
800
1000
20062008
20102012
2014
MM
US$
Taxable Rev Tax Credits
REFINING TAX POSITION
0
20
40
60
80
100
120
140
160
2006 2008 2010 2012 2014
MM
US$
Taxable Rev Tax Credits
FISCAL SYNERGIES
The ride is rough...but it may be rewarding!
THANK YOU VERY MUCH