World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management

The Constant Pursuit of Petroleum Self Sufficiency

Presentation to the FIESP 14th International Energy Meeting

August 5th & 6th, 2013

Renato T Bertani President -World Petroleum Council CEO – Barra Energia Oil & Gas

Pennsylvania, 1859 Total Depth: 21.2m or 69ft

World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management BE Business Model

• Experienced and capable team

• Initial capital commitment of US$ 1.2bn

• Target high growth opportunities in proven petroleum basins

• Strong relationships with stakeholders

• Position as one of few mid-cap Brazilian independent E&P companies

2

In order to build a new Brazilian independent E&P company

Barra Energia has adopted the following strategy:

Barra Focus Area

Pre-salt

World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management

Algeria Angola Argentina Australia Austria Azerbaijan Bahrain Belgium Brazil Canada China Colombia Croatia Cuba Czech Denmark Egypt Finland France Gabon Germany Hungary India

Indonesia Iran Israel Japan Kazakhstan

Kenya Korea Kuwait Libya Macedonia

Mexico Morocco Mozambique Netherlands Nigeria

Norway Oman Pakistan Panama Peru

Poland Portugal Qatar Romania Russia Saudi Arabia Serbia Sierra Leone Slovakia Slovenia South Africa Spain Suriname Sweden Thailand Trinidad & Tobago Turkey UK Uruguay USA Venezuela Vietnam

MISSION The mission of the World Petroleum Council is to promote the

sustainable development, production and consumption of oil, gas and

other energy resources for the benefit of all

WPC Mission

WPC Member Countries

World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management

670 qua BTU 500 qua BTU 241qua BTU 1 toe = 40 mmBTU

Source: International Energy Agency, 2012

+35%

Energy Consumption Drivers

Key Drivers •Demographics • Economic Development • Environment • Technology • Regulatory Framework

World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management Industry Deliveries

1.00

1.351.25

1.66

1.0

1.7

Cum Prod Reserves Resources

World Oil Resources tn boe

Sources: BP Statistical Review, 2012 EIA, Energy Outlook 2011 USGS various assessments

2000 Now

Technology

Innovation

Capital

*

* Excl Non Conv

World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management

6

The Oil Supply Challenge

Petroleum Liquids: conventional oil and condensate, tight oil, shale oil, extra heavy oil, natural gas liquids and refinery gains Other Liquids: , biofuels, GTL, CTL and kerogen to liquids

Source: EIA AEOutlook 2013 REFERENCE CASE 112

88

Reliable & Affordable Supply

Unconventional Growth: from 3.9 to 13.1mmbo/day in 2035 (4.6%) Main components: Canada oil sands 4.8 USA biofuels 2.2 Brazil biofuels 1.7 Venezuela extra heavy 1.4

World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management

Source: EIA , International Energy Outlook Issue: October 2011

Liquids: Conventional (oil, condensate, natural gas plant liquids, refinery gains) Non-Conventional (oil sands, extra heavy oil, biofuels, GTL, CTL)

Opec and Non Opec Liquid Production Changes

World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management

NW SE

Lula

Carioca

Carcará

Salt

Pre-salt

Post-salt

Terc. Sup.

Terc. Inf.

Maastrict

Camp/San

Sag

Rift

20 km

Mud Line 2,000

0

4,000

6,000

8,000

10,000

Met

ers

____________________ Source: : Company Information, Petrobras.

Barra’s portfolio is centered in one of the most sought after exploration basins in the world

Unmatched petroleum system components:

Rift phase rich source rock

Rift and Sag thick limestone reservoirs

Thick salt layer provides perfect seal

Local salt layer windows allow hydrocarbon upward migration to post salt turbidites reservoirs

Pre-Salt Geologic success ratio (discoveries highly likely to be developed) ~75%, among the largest in any exploration play

General Regional Geological Section - Santos Basin

Comparison of ten Largest Accumulations in Santos Basin Vs. Gulf of Mexico

Vo

lum

e (

Bn

Bo

e)

10,6 10,5

6,5

3,6 3,4 2,1 2.9 1,6 1,5 1,2 0,7 0,7 0,6 0,5 0,5 0,5 0,4 0,4

-

2

4

6

8

10

12

Fran

co

Lib

ra

Lula

Jup

ite

r

Iara

Sap

inh

oa

Ce

rnam

bi

Car

ioca

Thu

nd

er H

ors

e

Tim

be

r

Kn

ott

y H

ead

Tah

iti

Kas

kid

a

Urs

a

Mar

s

Sto

nes

Gre

at W

hit

e

St. M

alo

Pre-salt Province:

The Innovative Thinking Factor

World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management Sustainability Principles

Regulatory Principles Governance Principles

Society

• Steady & transparent access to resources • Stable and balanced contractual terms • Clear HSE rules and rigorous enforcement • Promotion of local, yet globally competitive, goods and services

• Remuneration of risk and capital, assuring shareholder’s long term return • Return of proportional share of wealth to society • Safe operations with positive environmental impact • Ethics and transparency as part of the business model

World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management The Case for Self Sufficiency

• Brazil has a unique opportunity to become a key international energy player for many decades to come • Self sufficiency should not be an objective in itself • Self sufficiency, and more, will be a consequence of the right policies, investment and innovation

World Petroleum Council The Global Forum for Oil and Gas

Science, Technology, Economics and Management

We hope to see you at the 21st WPC

in Moscow, June 15th – 19th, 2014

Responsibly Energising

a Growing World