PRE-SALT —Achievements and Legacy

OTC 2015MAY 5th, 2015 • HOUSTON, TEXAS, USA

Solange da Silva GuedesE&P Director

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FORWARD-LOOKING STATEMENTS:

DISCLAIMER

The presentation may contain forward-looking statements about future

events within the meaning of Section 27A of the Securities Act of 1933, as

amended, and Section 21E of the Securities Exchange Act of 1934, as

amended, that are not based on historical facts and are not assurances of

future results. Such forward-looking statements merely reflect the

Company’s current views and estimates of future economic

circumstances, industry conditions, company performance and financial

results. Such terms as "anticipate", "believe", "expect", "forecast", "intend",

"plan", "project", "seek", "should", along with similar or analogous

expressions, are used to identify such forward-looking statements.

Readers are cautioned that these statements are only projections and may

differ materially from actual future results or events. Readers are referred

to the documents filed by the Company with the SEC, specifically the

Company’s most recent Annual Report on Form 20-F, which identify

important risk factors that could cause actual results to differ from those

contained in the forward-looking statements, including, among other

things, risks relating to general economic and business conditions,

including crude oil and other commodity prices, refining margins and

prevailing exchange rates, uncertainties inherent in making estimates of

our oil and gas reserves including recently discovered oil and gas

reserves, international and Brazilian political, economic and social

developments, receipt of governmental approvals and licenses and our

ability to obtain financing.

We undertake no obligation to publicly update or revise any

forward-looking statements, whether as a result of new

information or future events or for any other reason. Figures for

2014 on are estimates or targets.

All forward-looking statements are expressly qualified in their

entirety by this cautionary statement, and you should not place

reliance on any forward-looking statement contained in this

presentation.

NON-SEC COMPLIANT OIL AND GAS RESERVES:

CAUTIONARY STATEMENT FOR US INVESTORS

We present certain data in this presentation, such as oil and gas

resources, that we are not permitted to present in documents filed

with the United States Securities and Exchange Commission

(SEC) under new Subpart 1200 to Regulation S-K because such

terms do not qualify as proved, probable or possible reserves

under Rule 4-10(a) of Regulation S-X.

Disclaimer

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Agenda—

Pre-salt context

Performing as planned

Supporting the future

3

Agenda—

Pre-salt context

Performing as planned

Supporting the future

4

As known, the Brazilian Pre-Salt was discovered in 2006 and covers an area of 149,000 square kilometers—

Concession blocks

Transfer of rights area

Production sharing contract5

The pre-salt is managed in an harmonic way, with several partners and three regulatory models—

Santos Basin - Concession Model

BMS-8

BMS-9

BMS-11

BMS-21

BMS-24

BMS-50

(66%) (10%) (10%) (14%)

(45%) (30%) (25%)

(65%) (25%) (10%)

(80%) (20%)

(80%) (20%)

(60%) (20%) (20%)

Santos Basin

Production Sharing AgreementModel

(40%)

(20%)

(20%)

(10%)

(10%)

Santos Basin Transfer of Rights Contract

(100%)

Concession blocks

Transfer of rights area

Production sharing contract6

Campos Basin - Concession Model

(100%)

Xerelete

Alb. Leste

BM-C-33

(41,175%) (41,175%) (17,65%)

(90%)

(35%) (35%)

(10%)

(30%)

Other concessions

Mount Everest

8,8 km

Since the 80’s, Petrobras has been innovating in ultra-deepwater—

1st oil fieldfound in

Campos Basin

OTC

Award

1992

1st FPSO Production

System

OTC

Award

2001

1st comercial discovery from

Pre-Salt

OTC

Award

2015

Deepest

flexible riser

water depth

8

8 km

0 km

K2 MOUNTAIN(8,6 km)

Source: iStock/Petrobras images

Today, the Pre-salt production is already supported by 12 production systems and 55 wells—

Concession contracts

Transfer of rights contract

Production sharing contract

FPSO Cid. ParatyLula

FPSO Cid. Angra dos ReisLula

FPSO Cid. MangaratibaLula

FPSO Cid. São PauloSapinhoá

FPSO Cid. IlhabelaSapinhoá

FPSO Dynamic ProducerExtended Well Tests

Petrobras 48Carimbé

Petrobras 53Tracajá

FPSO Cid. AnchietaBaleia Azul

Petrobras 58Parque das Baleias

FPSO CapixabaBaleia Franca

FPSO Cid. NiteróiMarlim Leste

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Agenda

—

Pre-Salt context

Performing as planned

Supporting the future

10

OTC 2015Solange da Silva Guedes

OTC 2011José Miranda Formigli

OTC 2013Carlos Tadeu da Costa Fraga

OTC 2009José Miranda Formigli

The development strategy has been accomplished over the years and shared with the industry through OTC—

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To take advantage of all Pre-Salt potential, a long-term vision for planning was required—

Phase 0:

Information

Gathering

Phase 1a:

Production

Development

Phase 1b:

Technological

Innovation

12

A specific methodology and a new integrated workflow in characterizing the reservoir were developed…

—

In the earlier 2000’s, Petrobras and partners

decided to acquire

20,000 km2 of 3Dover the main Pre-salt

areas

Better algorithmic and velocity models

Improvement in Pre-Salt reservoir

imaging

13

Seismic AcquisitionSeismic

ProcessingSeismic

Interpretation

117 exploratory wells drilled from 2005 to March 2015

Pre-Salt Exploratory Success Rate: > 90%

10 EWTs from Apr/2009 to Mar/2015

FPSO Cidade de São Vicente FPSO Dynamic Producer

Pilot Project:

First supergiant Field, LulaOn stream since Oct/2010

FPSO Cidade de Angra dos Reis (Lula Pilot)

… which allowed important exploratory results, setting the path to production development

—

���

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As mentioned in OTC 2011, the first project in Phase 1a was the Sapinhoá Pilot that was put on stream in 2013—

Sapinhoá ProjectFPSO Cidade de São Paulo

1st Oil: Q1 / 2013

Project on stream.

15

���

Lula NE ProjectFPSO Cidade de Paraty

As mentioned in 2011, we planned to put on stream others mega projects through 2014. The Pre-Salt production by June 2013 was about 310 kbpd—

As announced at OTC 2011…

1st Oil: Q2 / 201316

���…project on stream.

1st Oil: Q2 / 2013

On March 2014, the average production was about 395 kbpd—

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Norte Parque das Baleias ProjectFPSO Petrobras 58

As announced at OTC 2013…

1st Oil: Q4 / 2013

���…project on stream.

1st Oil: Q1 / 2014

With these 5 new units, production achieved an average of 666 kbpd on December 2014—

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Iracema Sul ProjectFPSO Cidade de Mangaratiba

As announced at OTC 2011…

1st Oil: Q4 / 2014

���…project on stream.

1st Oil: Q4 / 2014

On November 2014, the average production was over 600 kbpd. It nearly doubled in less than 8 months—

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Sapinhoá Norte ProjectFPSO Cidade de Ilhabela

As announced at OTC 2011…

1st Oil: Q3 / 2014

���…project on stream.

1st Oil: Q4 / 2014

September/08Jubarte field - EWT P-34

May/09Lula field (Tupi lead) - EWTFPSO BW Cid. São Vicente

July/10Cachalote FieldFPSO Capixaba

October/10Lula field pilotFPSO Cid. Angra dos Reis

December/10Caratinga FieldP-48

February/11

Marlim Leste Field

P-53

September/12Pirambu and Baleia Azul fieldsFPSO Cid. de Anchieta

January/13Sapinhoá Field FPSO Cid. São Paulo

June/13Lula NE Field FPSO Cid. Paraty

July/13

Marlim Leste Field

FPSO Cidade de Niterói

March/14Baleia Azul, Baleia Franca andJubarte fieldsP-58

October/14Iracema Sul AreaFPSO Cid. Mangaratiba

November/14Sapinhoá Norte FieldFPSO Cid. Ilhabela

The pre-salt layer daily production record was 737 kbpd in Feb 2015 —

� ���Daily record (Feb 26th): 737

Thousand bpd

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Average monthly production (kbpd)

Reservoir Well Construction Subsea Topside and Processing Facilities

Deepest Offshore Well 2,173 m Water Depth –

Injecting Gas with CO2

Dec/2014

Water Alternating GasInjection Method (WAG) in Ultra-deepwatersDec/2012

Water depth record for a

Subsea Well Drilled with

Pressured Mud-Cap DrillingJun/2014

Intelligent Completion in Ultra-deepwater Satellite Wells with High

Potencial for Carbonate ScalingMar/2011

Buoy SupportingRisers Jan/2014

First Steel Catenary Risers with lined pipesJan/2014

Deepest Steel LazyWave RiserMar/2015

Deepest FlexibleRisers - 2,220 m WD Dec/2014

First Application of FlexibleRisers with Integrated TensileArmor Wire MonitoringSystem2nd semester/2015

First CO2 Separation from Associated Natural Gas in Ultra-deepwater with CO2

Re-injectionSep/2011

���Daily record (Feb 26th): 737

Thousand bpd

Those results were supported by innovative technologies… —

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Average monthly production (kbpd)

… and above average well productivity… —

Top 5 productive wells: all over 30 kbpd

Top Wells - Sapinhoá Field

1. SPH-7: 42 kbpd

2. SPH-5: 36 kbpd

3. SPH-1: 36 kbpd

Top Wells - Lula Field

4. LL-27: 35 kbpd

5. RJS-681: 34 kbpd

���

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… all to support the production goal of 1 MM bpd by 2017, as mentioned in OTC 2009—

The Production more than doubled in 24 months

feb/13 jun/14 feb/15

300 kbpd

520 kbpd

737 kbpd (peak)

2,5 x2,5 x

���

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Agenda

—

Pre-salt context

Performing as planned

Supporting the future

24

Slide 25All the strategies and efforts pursued so far gave Petrobras strong competitive advantages related to cost reduction and productivity improvement

—

Competitive advantage

on lower oil price scenario

New

Technologies

Learning Curve

AccelerationStandardization

Cost Reduction Productivity Improvement

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RESERVOIRCHARACTERIZATION

RESERVOIRCHARACTERIZATION

HIGH PRESSURE

SEPARATION

LOWERCOMPLETIONDECOUPLING

LOWERCOMPLETIONDECOUPLINGH2S REMOVAL

SYSTEMS

FPUs PROCESSING

CAPACITYFPUs PROCESSING

CAPACITY

INTELLIGENT COMPLETIONINTELLIGENT COMPLETION

OCEAN BOTTOM SENSORS

OCEAN BOTTOM SENSORS

NANO-TECHNOLOGY

CONTROLED SALINITY WATER

INJECTION

CO2 SEPARATION SYSTEMS

New technologies are already under evaluation—

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Accelerated Learning Curve will continue to be applied …—

The importance of these optimization programswill continue as the Pre-salt campaign moves forward

Structured assessment of Learning Curves ...

... to identify optimization initiatives ...

Objective: accelerateexperience effects

Optimization dimensions

Sourcing strategy

New technologies

Improved planning, processes & design

Metrics & incentives

Scope: most criticalwells & subsea items

... that were the basis for optimization programs

Initial cost optimizationprogram …

... expanded into specificprograms for wells &

subsea systems 40+ initiatives

Cumulative Volume

Unit

Cost

…. once we achieved an impressive result at a massive campaign of offshore well construction. —

54% of time reduction from 2010 to 2014

54% of time reduction from 2010 to 2014

0%

20%

40%

60%

80%

100%

2010 2011 2012 2013 2014

Drilling Completion

Time reduction in well construction through

Accelerated Learning Curve

Lula and Sapinhoá Fields

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25 drilling rigs130 wells drilled

Standardized equipment are the key for Cost optimization and effective Risk Management

Pre-Salt scale provides optimization through standardization—

Based on the successful experience in Campos Basin, Petrobras has been continuously investing in equipment standardization for Pre-salt development

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Subsea tree standardization Subsea manifolds standardization Flexible pipes standardization

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Drop in oil prices puts pressure on suppliers—

5566 73

99

6380

111 112 10999

40

90

140

Brent

Industry CAPEX and OPEX behavior compared to Brent prices

(US$/bbl)

126

167

198

221201 209

220230 232 229

132151

168 172 171 174184 192 198 199

100

150

200

250

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Infl

ati

on

index

Capex / Investimento Opex / Operação

Source: Bloomberg

Source: IHS Energy - Upstream Capital Costs Index (UCCI) e Upstream Operating Costs Index (UOCI)

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Petrobras has an unique combination of costs, productivity and efficiency. As a consequence, a very competitive portfolio. —

9.1

14.6

15.0

Pre-salt

Petrobras Average

Other Operators

Source: Evaluate Energy

Current projects’ average return2014 Lifting Cost* (US$/boe)

Inte

rna

lR

ate

of

Re

turn

(%)

Other Operators

Petrobras

2014 Operational Efficiency (%)

Source: Wood Mackenzie Corporate Benchmarking Tool -

Publicly Traded Companies (04/28/15)

Pre-salt last three years average: 92.4%

* without government take

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Petrobras and its partners have a phenomenal portfolio which puts Brazil in a leading position in ultra-deepwater development—

“The enormous amount of knowledge already gained allowed Petrobras and its partners to overcome the challenges which the pre-salt brought to the development of the production.”

- Carlos Alves, Petrogal Brasil CEO

“It is a privilege to count with a solid partner like Petrobras, a leading specialist and true reference in deep and ultra deep water.”

- Nelson Silva, BG Brasil Chairman

“Petrobras is a first rate operator and what the company is doing in the pre-salt could not be accomplished by any other company in the world on its own.”

- Tomas Blanco, Repsol Sinopec Brasil CEO

YESTERDAY, TODAY AND ALWAYS

OVERCOMING CHALLENGES

YESTERDAY, TODAY AND ALWAYS

ALL OF THEM