RNEST - Refinaria Abreu Lima, Ipojuca - PE

HOUSTON HOUSTON -- MarchMarch -- 20102010

Abreu e Lima RefineryA Refinery in Pernambuco

Disclaimer

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.

Disclaimer

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.

Pernambuco

Petrobras in Numbers

Market value: US$ 165 billion (Jul. – 2009)

Service stations: more than 8,000 Employees: 74,258 (Feb. – 2009)

Production platforms: 112 Thermoelectrical power plants: 10

Refineries: 16

Oil & Gas production: 2,474,680 bpd (2009)

Pipelines: 25.197 km/ 15.748 miles

Petrobras is present in 28 countries.

Worldwide Activities

Improve oil product quality in Brazil and abroad

Petrobras’ Main Drivers& Strategies

Business StrategiesE&P• Focus on light oil and natural gas production

and reserve growth

Downstream• Expand conversion capacity and improve

quality of refined products• Increase bio-refining capacity, biomass,

petrochemical and fertilizers businesses• Promote Brazilian biodiesel production and

export ethanol

Distribution• Increase market-share in Brazil for oil

products and biofuels

Gas & Energy• Develop and establish a profitable and

reliable natural gas market including LNG

International• Expand E&P in Gulf of Mexico and Africa• Undertake investments in refining conversion

capacity and quality

Develop market and monetize natural gas reserves in Brazil

Reduce dependence on light oil and oil product imports

Reduce carbon intensity of operations and products

Exploit competitive advantage from deep water exploration technology abroad

Assure future demand and add value to heavy oil exports

Petrobras discovers reservoirs in pre-salt layer - News

The largest oil discovery in at least 20 years coul d put Brazil among the leading oil producers.

Brazil pre-saltbasins localization

With Significant Upside Potential

Petrobras Total Production (k bpd)

1,335 1,500 1,540 1,493 1,684 1,792 1,855 2,0502,680

3,920

232252 251 265

274 277 273 321463

634

1177

252 269265 250 243 224

244

341

632

1,778

6070

2001 2002 2003 2004 2005 2006 2007 2008 2009 2013 2020

Oil Production - Brazil Gas Production - Brazil International Production (oil + gas)

8.8% avgp.a.

5.6% CAGR

5,72

97.5% avgp.a.

3,65

52,75

7

Program To Support PETROBRAS Vision

Business Plan 2009-2013

25%

2%2%

7%

3%

2%

59%

E&P

RTC

G&E

Petrochemicals

Biofuels

Distribution

Corporate

US$ 174.4 billion

104.6 (*)43.4

11.8

5.6 3.0

2.8

3.2

(*) US$ 17.0 billion allocated to Exploration

≈ US$ 175 billion

The PETROBRAS Soul

� A company controlled by the Brazilian State with 68 % of outside stockholders;

� A triple bottom line company (profitability + socia l + environmental targets);

� Extensive training policies;

� Driven by Knowledge and Technology (R&D Center);

� Developing Brazilian Industry with local orders;

� When placing orders, PETROBRAS favors local compani es.

� It is totally linked with the strategy of the Gover nment;

� As you may be aware presently there is a very stro ng policy to place orders to local companies;

The PETROBRAS Soul

“Brazilian companies” means:

companies which have

manufacturing processes and

after-sales services

in Brazil, thus creating jobs and

collecting taxes in the country.

Petrobras recognizes in the local supplying market, opportunities to improve cost effectiveness and quality standards for the present and future projects;

Local suppliers usually provide After Sales faster and friendlier when compared with the foreign companies;

Petrobras focuses on competitiveness and sustainability in the supply market (in Brazil or abroad);

The Petrobras Local Content policy is connected and contributes to the Petrobras Social Responsibility Policy.

Supply Policy to maximize Local Content

Petrobras Local Content

Policy

Local Content – Supply

Policy

Program To Support PETROBRAS Vision

Items Un. TOTAL

Wet Christmas Tree un 500

Well Head un 500

Flexible Lines km 4.000

Manifolds un 30

Production pipes t 42.000

Umbilical km 2.200

Dry Christmas Tree un 1.700

Onshore well head un 1.700Reactors / Heat Exchangers

unun

2802000

Oil and water splitter un 50

Storage Tankersun 1.800

Turrets un550

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) t240.00

0

Structure Steel Plat. Hull t

700.000

Power Generatorsun 500

Filters un 300

Flares un 30

A new Refinery

4. Petrobras environmental commitment demanded b etter qualityproducts.

The solution found was to construct a new refinery in Brazil dedicated to process heavy oil

The Refinery

1. PETROBRAS has discovered huge quantities of heavy and extra-heavy oil in Brazil;

2. Brazil needs more diesel for domestic consump tion, mainly in the Northeast;

3. Local demand for oil products has been growin g;

Domestic Market ProfileEvolution

7%

41%

6%

19%

14%

12%

2010

33%

22%

5%

32%

7%

60’s

31%

25%

5%

28%

4%7%

70’s

21%

36%

4%

15%

11%

12%

80’s

16%

37%

4%

17%

12%

13%

90’s

Brazil 1950 - 2010

38%

19%

34%

3%

50’s

6%

LPG

Fuel Oil

Diesel

Jet Fuel

Gasoline

Naphtha

CAPEX : US$ 12 billion

Overview

Capacity : 230,000 bpd of 16 API / crude

Production :

� LPG 1,600 m3/d� Naphtha for Petrochemicals 1,900 m3/d� Diesel (50 or 10 ppm S) 25,800 m3/d (70%)� Heavy Coker Gasoil (Bunker) 2,000 ton/d� Coke (High and Low Sulfur) 5,200 ton/d

Start Up : 2012

Target Market : Brazil North-Northeast Regions

Construction : 20,000 Jobs created

- We hope to start the refining operations in 2012.

Critical Feasibility Factors

- The bidding process is being finished;

- There are 3 months of continuous rain in this area ;

Construction Schedule

Critical Feasibility Factors

Environmental Considerations

- The Petrobras policy is to be a benchmark for envi ronmental issues;

- The refinery is just 10 miles away from tropical h oliday resorts;

- Concerns about effluent disposal and atmospheric p ollution will be solved using the best available technology;

- The Pernambuco State Environmental Agency has been working closely with us.

Construction

1. The earthworks are in the final phase.

2. There are two independent refining units to process different grade heavy oils. There is a time lag in the construc tion phasing.

3. PETROBRAS have been purchasing the main equipment in the international and local markets and outsourcing t he construction with local contractors.

4. We have already contracted 70% construction work and 30% of bids are still open but are under consideration.

Earthwork2008

Dec/2009 Construction works

Jan/2010 Construction works

Dec/2009 Construction works

Janeiro/2010


Drum(Monte Mor, Brazil)

Water Pumps(Jundiaí, Brazil)

HDT D Compressors(Belo Horizonte, Brazil)

Heat Exchangers(Sorocaba, Brazil)

Coke DrumsLarsen (India)

Naphtha HDT ReactorsConfab (Brazil)

Suape Port Complex

The potential growth in this region is enormous because:

Beach Resorts

Refinery

Suape Port Complex

The refinery is being installed

in the SUAPE Complex

SUAPE Port accesses North America,

Europe and Africa easily

It is located in the center of the growing Northeast region

SUAPE Port

Extensive available

area behind the port

Refinery

SUAPE Port

Petrochemical Plants

Infrastructure available (railroads / expressways)

Refinery

NEWExpressway

NEWExpressway

PetrochemicalPlants

Railroads

Shipyards

Capacity to receive large

ships (Suezmax)

P1P1

P2P2

P3P3

P4P4P5P5

Improving Port Facilities

New Pier

Suape PortDec/2009

New PierDec/2009

Suape PortDec/2009

There will be a plentiful supply of trained labor due to recent Federal, State and company training programs 7,000 ready profes sionals

10,000 under training

Professional Training Program

Suape

- The authorities from all segments have been collaborating closely with all investors.

Pernambuco

SUAPE

- State Government is providing tax holidays;

Basic Legislation: Law11.508/2007, with an amendment through law 11.732/2008.

Fiscal Incentives (for companies located within the FTZ):

• FTZ - SUAPE - First Free Trade Zone approved in Brazil;

• Free of All Import Tariffs: IPI, AFRMM, PIS/COFINS, PIS/COFINS-Import (including machinery and equipment to be used).

• Free of All State Tax;

• Simplified export and import procedures;

• Conditions guaranteed for a minimum of 20 + 20 years.

• Domestic Operations Limited to 20% of gross sales;

• Export Operations Minimum of 80% of gross sales;

• 75% reduction in income tax for 10 years;

• FTZ - SUAPE will start in August 2011;

• FTZ – SUAPE will be managed by private companies.

Current Legislation: Main Characteristics

Free Trade Zone

FTZ - SUAPE

Shipyards

RefineryRefinery

SUAPE Port

Expressway

FTZ

Federal Highway

BR-101

Free Trade Zone

FTZ - SUAPE

FTZ-SUAPE

SUAPE-Port

BR-101

Free Trade Zone

FTZ - SUAPEFederal Highway BR 101

Suape Area

Other projects being installed in the area include new shipyards, petrochemical plants, a future steel mill and an industrial park.

FUTURE

� PETROBRAS is maintaining its investments presented in the US$ 175 billion Strategic Plan with refineries, pipelines, subsea equipment, platforms, and oil tankers. As you are already awar e, the policy is to buy products manufactured locally.

� This refinery in Pernambuco is one of the most impor tant PETROBRAS onshore investment projects over the last 30 years.

� In the same place there are four anchor projects (P ort + Shipyards + Refinery + Petrochemical Plants). Their demands wi ll give incentive to establish other factories, plants, service companie s, etc.

� Due to the coming boom any investors will be able t o benefit from infrastructure, and trained technicians already in place.

FUTURE

• There are huge opportunities for already installed and newcomersin the Brazilian suppliers market (ex: service and engineering companies facing the demand, as per Petrobras inve stment project portfolio).

• In order to carry out such portfolio, Petrobras is looking forward to establishing stable long term business relationship s with companies that are willing to invest in Brazil.

FUTURE

� We see that SUAPE could easily become an oil & gas, shipbuildingand offshore industry hub to support local demand a nd to export around the world

Gulf ofMexico

Campos Basin

NigeriaVenezuela

� Several equipment suppliers have been evaluating th e possibility of installing plants in SUAPE

SUAPEAngola

SUAPE

Houston / Corpus Christ, Texas

Cingapura

Dalian, China

Ilha Koje, Corea

Batam

Bayou

Calgary

� SUAPE business development team can help you too!

FUTURE

� The local governments (State and Municipality) have demonstrated skill in resolving concerns and taking PETROBRAS to SUAPE

It is time for Brazil

So … if you are looking at Brazil and your business is oil, gas, shipbuilding, offshore equipment or petrochemicals…

…the new frontier is Pernambuco!

Thank you !

SEE YOU IN SUAPE

We would like to invite

PESA to visit

SUAPE Port Complexin Pernambuco

Today - Target

Porto de Galinhas - SUAPE

Porto de Galinhas - SUAPEPorto de Galinhas - SUAPE

Beach Resorts - Suape

Porto de Galinhas - SUAPE

Pernambuco - Brazil

Marcelino Guedes GomesPETROBRAS

Refinaria Abreu e Limae.mail:[email protected]

Abreu e Lima RefineryA Refinery in Pernambuco

www.petrobras.com

www.suapeglobal.com

RNEST - Refinaria Abreu Lima, Ipojuca - PE

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