"Petrobras Strategy: Focus on Social and Environmental Performance"
1. PETROBRAS
Petrobras Strategy:
Focus on Social and Environmental
Performance
1
2. PETROBRAS
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.
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.
2
5. PETROBRAS
Company Overview
An integrated energy company with US$ 74 billion in gross revenue
(2005 US GAAP)
Exploration • Proven Reserves: 11.8 billion boe (SEC 2005)
and Production • Oil and Gas Production: 2.22 million boed (2005)
Refining, • 16 Refineries • Capacity: 2,114 thousand bpd
Transport
• Pipelines: 18,854 miles • Vessels (own fleet): 50
and Marketing
• 6,933 service stations (34% share in the Brazilian
Distribution market), 746 in Argentina and 105 in Bolivia
Natural Gas • Sales of Natural Gas: 1.83 bcf/day
• Ethene Production: 460,000 tons/year
Petrochemicals • Styrene Production: 250,000 tons/year
• Polystyrene Production: 120,000 tons/year
Operational data includes Petrobras Energia 5
6. PETROBRAS
Activities in the World
Regional Presence
New York United Kingdom
USA Japan
Houston
Iran China
Pakistan
Libya
Mexico
Nigeria
Colombia Venezuela
Equatorial Tanzania
Ecuador BRASIL Guinea Angola
Peru
Bolivia Rio de Janeiro
Paraguay
Uruguay
Argentina
Headquarters Refining Gas & Power
Trading E&P Representation Office
6
7. PETROBRAS
Publicly traded peer comparison
Proven reserves (SEC - billion boe) – Dec. 2005 Oil and gas production (million boe) - 2005
ExxonMobil
22,4 ExxonMobil 1.484
Lukoil* 20,1 BP 1.448
Petrochina* 18,5 Shell 1.267
BP 17,6 Petrochina* 945
Yukos* 13,0 Chevron Texaco 919
Chevron Texaco 12,1 Total 908
11,8
7th Petrobras 809
Petrobras
ConocoPhillips 660
7th
Shell 11,5
Total 11,1 Yukos* 624
ConocoPhillips 9,4
Lukoil* 614
ENI 6,8
ENI 593
Statoil 427
Statoil 4,3 Repsol 416
Sinopec* 3,8
3,3
Sinopec 309
Repsol
Reserve life (years) – Dec. 2005 Refining capacity (thousand bpd) - 2005
Lukoil* 32,7 XOM 6.343
Yukos* 20,8 RDS 4.026
Petrochina* 19,6 Sinopec 2.998
ExxonMobil 15,1 BP 2.747
Petrobras 14,6 TOT 2.708
ConocoPhillips 14,2 5th COP 2.275
Chevron Texaco 13,1 PetroChina 2.202
Sinopec 12,3 CVX 2.195
Total 12,2 Petrobras 2.114 9th
BP 12,2 Yukos 1.223
ENI 11,5 Repsol 1.175
Statoil 10,1 Lukoil 1.139
Shell 9,0 ENI** 524
Repsol 8,0 Statoil 296
Source: Evaluate Energy and Company Reports 7
8. PETROBRAS
Vertical Integration Comparison
Majors Average *
4,793
3,176
2,735
National Oil Companies Average **
1,579
1,630
4,329
2011: Petrobras
New Refinery will add 200
thous. bpd capacity 2,296
2010:
Pasadena Refinery revamp
concluded – processing 70
2,114
thous. bpd of heavy oil
Product Sales (thous. bpd)
2,217
Refining (thous. bpd)
3,400 Production (thous. boed)
Year 2011
* Majors: BP, Exxon, Total, Royal Dutch Shell, Chevron, Conoco and Repsol-YPF *** 2004 figures, except for Petrobras (2005)
** NOIC: PEMEX, PDVSA, Saudi Amraco, KPC, Pertamina and Sonatrach Source: PIW Intelligence and Petrobras 8
9. PETROBRAS
Diversified Shareholder Base
• More than 400,000 investors in Brazil and abroad
• 60% of the economic value of Petrobras in private hands
• Almost 40% of the stocks with international investors
9.5%
10.9% 20.3% 26.4% 31.2% 31.5% Foreign
46.4% 10.3% 39,8%
18.0% 9.9% 8.0% 8.3%
25.1% 23.1% Bovespa
20.7% 20.4%
28,7%
53.6% 61.6%
44.4% 40.6% 40.1% 39.8%
Oct/1992 Jul/2000 After Aug/00 After Jul/01 Dec/2003 Sep/06
offering offering
Governm ent (1) (%) Bovespa Brazil Bovespa Foreign ADRs
Free
46,4 38,4 55,6 59,4 59,9 60,2
Float
(1)
Includes BNDES / BNDESPAR 9
10. PETROBRAS
Dividend Payout and Dividend Yield
52, 06% Dividend Payout
43, 37%
34, 82%
30, 7% 32, 22% 29, 7% 31, 5%
25, 9% 26, 60% 5%
26, 28, 3% 28, 17% 6%
29, 28, 20% 29, 9% 29, 90%
1998 1999 2000 2001 2002 2003 2004 2005
% o f Net P ro fit % o f A djusted Net P ro fit
Dividend Yield
6 ,5% 6 ,8 %
6 ,3 % 6 ,2 %
5, 4 %
4 ,9 % 4 ,8 %
4 ,6 % 4 ,6 % 4 , 3 %4 , 7% 3 ,9 %4 ,3 %
3 ,4 %
2 , 0 % 1,8 %
1998 1999 2000 2001 2002 2003 2004 2005
Ordinary Shares Preferential Shares
Dividend Yield: Dividend declared for each year / Share price at end of same 10
year
11. US$ million
-
Pe
50
100
150
200
250
300
350
400
Ci
a. tr
V al
ob
ra
e s*
do
Ri US$ 359 million
o
Do
PETROBRAS
ce
*
US$ 256 million
BP
US$ 247 million
No
ki
Am a
ér
ic US$ 223 million
a
M
óv
il*
El US$ 150 million
an
Co
rp
.
US$ 128 million
1H06 daily average
Ce
m
ex
BH US$ 123 million
P
Bi
ll
Turnover (traded volume) in NYSE
ito
n
US$ 118 million
To
ta
l
US$ 111 million
Te
na
ris
US$ 101 million
* All firm's ADR programs
Source: Bloomberg
11
Market Focus
12. PETROBRAS
A Petrobras
Strategic Planning
Governance
Economical Sustainability
Environmental Responsibility
Social Responsibility
Acknowledgment
12
13. PETROBRAS
Corporate Strategy
Corporate Strategy
Social and Environmental
Growth Profitability Responsibility
Lead the Latin American oil, natural gas, oil products and biofuels market, working as an
Liderar o mercado de petróleo, gás natural e derivados na América Latina,
integrated energy company, empresa integrada de energia, com expansão renewable energy and
atuando como with selective expansion in petrochemical, seletiva
international activities.
da petroquímica e da atividade internacional.
Consolidate and Develop and lead Selectively Selectively Expand participation
increase the domestic expand expand interest in biofuels market,
competitive natural gas market international in the lead the domestic
advantages in and perform in an activities in an petrochemicals biodiesel production
the Brazilian and integrated manner integrated market and increase
South American in the gas and manner with the participation in the
oil and oil power market in Company’s ethanol business
products market South America business
Operational, management, technological and human resources excellence
13
14. PETROBRAS
Drivers & Strategies
Drivers Business Strategies
E&P
Develop market and monetize • Focus on light oil and natural gas
natural gas reserves in Brazil production and reserve growth
Downstream
Reduce dependence on light oil
• Expand conversion capacity and improve
and oil product imports
quality of refined products
• Increase bio-refining capacity, biomass,
Improve oil product quality in petrochemical and fertilizers businesses
Brazil and abroad • Promote Brazilian biodiesel production and
export ethanol
Reduce carbon intensity of Distribution
operations and products • Increase market-share in Brazil for oil
products and biofuels
Assure future demand and add Gas & Energy
value to heavy oil exports • Develop and establish a profitable and
reliable natural gas market including LNG
Exploit competitive advantage International
from deep water exploration • Expand E&P in Gulf of Mexico and Africa
technology abroad • Undertake investments in refining
conversion capacity and quality
14
15. PETROBRAS
Vision 2015
Petrobras will be an integrated
energy company with a strong
international presence and a
leading force in Latin America,
working with a focus on
profitability and social and
environmental responsibility.
15
16. PETROBRAS
Investment Plan
Business Plan 2007-2011
US$ 87.1 billion
56% 14%
49.3 U
S$
12
49,3 .1
bi
31.0
23,0 US$ 75.0 bi
1.8
1,8
2.3 3.3 23.0
3% 2,2 3,3 7,5 26%
7.5
1.0
3% 1.0
4% 12.4
9% 86%
E&P Downstream G&E Brazil International
Petrochemical Distribution Corporate
Note: Includes International
16
17. PETROBRAS
Technological Programs: Research & Development
PROFEX PROCAP
Exploration Deep Water
PROTER PROGER
Refining PROAMB
Renewable
Environment
Energy
PROPES
PROMOB Heavy Oil
Basin Modeling
PROREC INOVA PROGAS
PRAVAP PROTRAN Optimization & Fuel Innovation Gas
Enranced Oil Recovery Transportation Reliability
17
19. PETROBRAS
Corporate Governance Structure
Board Committees:
Fiscal Council
Board • Audit
Strategic
Board of Directors Commit
tees • Environment
definitions and • Compensation and Succession
supervision Audit Board Ombudsman
Rapporteur Management Committees:
CEO • Downstream
Executive Board • E&P
• Gas and Energy
Strategy Officers
• Human Resources
execution and • HSE
development of
operations Business
• Analysis of Corporate
Committees Structure and Management
• Information Technology
Management • Internal Control
Committees
• Information Security
• Risk
• Social and Environmental
Responsibility
• Marketing and Brands
19
20. PETROBRAS
Governance
Petrobras Audit System
Federal Accounts Court - TCU
Fiscal Council Audit Committee
External Audit
SEC
Internal Audit
CVM
Business Unit Audits CNV
Corporate Audits
• ISO 9000
• Management Quality
• BS 8800/OHSAS
Audit
18001
• HSE
• ISO 14001
• etc
• etc
20
21. PETROBRAS
Transparency
Transparency with Stakeholders
• Signed the Partnering Against Corruption Initiative (PACI) -
January/2005
• Signed the Global Compact – October/2003 – board member
• Website, Webcasts, roadshows, chats with investors and
press
• Ombudsman in all subsidies
• Client Channel, Supplier channel, call center, Green
telephone, emergency telephone, 0800 service phone
• Extractive Industry Transparency Initiative (EITI)
• Public selection of corporate sponsorship projects
21
22. PETROBRAS
General Ombudsman
Communication and Denunciation Line
• Reports directly to the Board of Directors
• Receives suggestions, complaints, claims, denunciation or exposes general
problems;
• Guarantees confidentiality, independence, impartiality and neutrality
• Follows all Sarbanes-Oxley requirements;
• Forwards to the audit committee financial reports, accounting, audit and
internal controls issues;
16000
14000
Number of Demands
12000
10000 Internal
8000 Demands
6000 External
Demands
4000
2000 Total
0
2003 2004 2005
22
24. PETROBRAS
Oil and Gas Production
• 632 thous. bpd of oil exports in Thousand boed 7.5% p.a.
2011; 4,556
• US$ 49.3 billion CAPEX in the
278
2007-2011 period;
7.8% p.a.
• 3 new refineries
3,493 742
185
383 724
2,403
2,036 2,020 2,217
101
96 551
85 94 133
163 289
161 168
274
250 265
2, 812
2, 374
1, 880
1, 540 1, 684
1, 493
2003 2004 2005 T a r ge t 2 0 0 6 T a rg e t 2 0 1 1 2015
For ecas t
Oi l and N GL - B r az i l N at ur al Gas - B r az i l
Oi l a nd N GL - I nt e r nac i ona l N at ur al Gas - I nt er naci onal
24
25. PETROBRAS
Natural Gas Supply Extension
New investments will reduce the country’s dependence on imported gas
Belém
• In 2011 domestic natural gas production will
Manaus
double compared to 2005.
Recife • US$ 22 billion investments in the natural gas
Salvador
chain in the 2007-2011 period
Brasília • Demand Flexibilization – studying LNG imports
Existing
thourgh the Brazilian coast using floating
Gaspipes storage and regasification units (FSRU or SRV)
São Paulo
New Gaspipes
2007-11 BP
• Quickest way to respond to increases in
Porto Alegre
demand;
• More efficient and less polluting than
diesel;
• ~20MM m3/day up to the end of 2008.
• US$ 1.6 billion investments up to 2011
25
26. PETROBRAS
Oil & Gas Reserves
• Strong investments in production will optimize the development of Petrobras’
proven reserves, aiming light oil production and a minimum reserve/production
ratio of 15 years.
• Petrobras had a 55% success ratio for our exploration wells during 2005, with 38
wells classified as discovery or producing wells.
Undeveloped Reserves / Total Reserves* (2005)
60,0%
54,3% 53,1%
51,5% 50,5%
50,0%
43,8%
40,5% 39,7%
40,0%
34,3%
30,0% 29,7%
30,0%
25,0%
20,3%
20,0%
12,9%
10,0%
0,0% n
C
na
l
as
il
c
BP
s
PF
l
l
il
ta
el
oi
ro
ko
pe
ob
llip
O
i
To
Sh
at
br
ev
Ch
-Y
O
Lu
no
nM
i
St
tr o
Ph
CN
ol
Ch
tr o
Si
xo
ps
Pe
co
Pe
Ex
Re
no
17
Co
* Source: Evaluate Energy 26
27. PETROBRAS
Petrobras
Biofuels
Experience:
Going Beyond
Legal
Compliance
- Brazilian Conditions
- Legal Requirements
- Petrobras Strategy
- Research and Development
27
28. PETROBRAS
Brazilian Conditions
Land use in Brazil:
Type Area
(Mha)
• Total country 851
• Native Amazon Forest 370
• Secondary Amazon Forest and Others 180
• Native Forests 6
• Pasture 197
• Temporary Cultures 59
• Permanent Cultures 7.6
• Available land 263
• Available land with low impact (*) 90
Source: FAO, 2002 and EMBRAPA (*) 28
30. PETROBRAS
Brazilian Conditions
Raw Material Comparison
Raw Material Energy Output / Energy Input
Wheat 1.2
Corn 1.3 – 1.8
Sugar Beet 1.9
Sugar Cane
(under Brazilian production conditions) 8.3
Production / ha Quantity of Ethanol Energy Output /
Raw Material (kg) / ha Energy Input
Sugar Cane 85,000 7,080 liter 8.3
Corn 10,000 4,000 liter 1.3 – 1.8
30
31. PETROBRAS
Brazilian Experience
Fuel Ethanol Program Evolution
Ethanol Program of
Program Gasohol and Emission Renewable
Implanted Ethanol Cars Controls Gasohol and
Hydrogen
(BLENDS) (2nd oil shock) (PROCONVE) Flex fuel Cars
Program for oil imports
reduction Environmental Benefits
70’s 80´S 90´S 00´S Future
31
36. PETROBRAS
Legal Requirements
Biodiesel Requirement
Law 11.097/2005 – established minimal percentage for biodiesel mix in diesel
2008
2005
to From 2012
to
2012 on
2007
(2% required) (5% required)
(2% allowable)
(5% allowable)
Brazilian market Brazilian market Brazilian market
0 – 5.2 million barrels 5.2 – 15.7 million barrels 15.7 million barrels
Anhydrous Ethanol Requirement
• Addition of 20-25% of anhydrous ethyl alcohol fuel to gasoline as per Agriculture
Ministry determination
36
37. PETROBRAS
Legal Requirements
Voluntary Social Seal
• Given to biodiesel producers that:
• Purchase a minimum percentage of raw materials from family
agriculture:
• 50% NE and semi-arid region
• 10% NW and CW region
• 30% SE and S region
• Sing a formal contracts with the family agriculture that includes:
• Contract period
• Value to purchase and price readjustment criteria
• Raw material delivery conditions
• Safeguards for each party
• Identification and agreement that a representative of the farmers
participated in the negotiations
• Assure assistance and technical training for the agriculture families
37
38. PETROBRAS
Federal Taxes
Alíquotas de PIS/COFINS
(em R$/litro)
R$ 0,151 / litro General 0,218
R$ 0,0 / litro Agrobusiness + N/NE +
Semi-Árid + 0,151
mamona/palma
Family Agriculture
in any reqion 0,070
R$ 0,218 / litro
Family Agriculture +
N/NE + Semi-Árid +
mamona/palma
0
R$ 0,070 / litro
38
39. PETROBRAS
Petrobras Strategy
Business Plan (2007-2011)
2007-2011 Investments 2011 Target
Biodiesel Production 855 Thous. m3/year
Process 425 Thous. m3/year
H-Bio (Bio-Refining)
of vegetable oil
Alcohol pipelines
3.5 million m3 Ethanol Exports
Alcohol Vessel Project
Wind Power
Additional 240 MW Installed Capacity of
Photovoltaic Power Generation from Renewable
Sources
Other Renewable Energy Sources
Investments of US$ 0.7 billion in development of renewable energy sources
and biofuels
Petrobras currently has 280 MW of renewable energy installed capacity
39
40. PETROBRAS
Petrobras Strategy
3 Biodiesel Production Projects Quixadá
Capacity: 171 thousand m3/year
CE
Investments: ~ US$ 60 million
Inputs
Family Agriculture: castor, pinhão manso,
cotton, and palm. Complementary: soy.
BA
Start up: 4 Q/2007
Candeias
Raw Material Costs US$/bbl
Pinhão Manso Oil 43 MG
Montes
Palm Oil 46
Claros
Soy Oil 73
Animal Fat 41 semi-arid region
Source: UOP
All Petrobras Biodiesel has Social Fuel Seal
40
42. PETROBRAS
Petrobras Strategy
Already over 2900 stations offering Biodiesel
January 2007
September 2006
January 2007 October 2006
October 2007
September 2006
B100 sales estimates up to Dec 2006:
• 26,688 m3 for 3520 stations
• 25,000 m3 for 3000 large consumers
42
44. PETROBRAS
Production Chain and Technology Paths
• H-Bio: refining process that utilizes vegetable oils as an input, in order to obtain diesel oil;
• Hydrogenation of a blend of diesel and vegetable oils;
Hydrogen Diesel
Agribusiness Processed Fractions
Seeds Oil
Farming Crushing Refinery
or Diesel
or
Transerestification Biodiesel
Ethanol
Distributors
or
or
B2 or B5 Diesel
Methanol mixture
Stations
Glycerin + Others
Complementary and not competitive processes 44
45. PETROBRAS
Renewable Energy Research Program
Vegetable/animal oil hydrogenation
100 liters
soy bean oil
+ + +
2,1 Nm3
fuel gas
96 liters 2,2 Nm3 8,8 liters
propane water
diesel oil
45
46. PETROBRAS
Petrobras Strategy
Potential H-Bio Use
2006-2007
• H-BIO in 4 refineries – using up to 256 thousand m3/year of vegetable oil
• 9.1% of total soy oil export
• Equivalent to 15% of Diesel imports
2008
• H-BIO in 5 refineries
• Using up tp 425 thousand m3/year of vegetable oil
• 15.1 % of total soy oil export
• Equivalent to 25% of Diesel imports
Main advantages:
• No waste
• Simple logistics
• Improves diesel quality
• Flexible vegetable oil source
*do total de óleo de soja exportado 2288 mil m³ são de óleo bruto e 535 mil m³ de óleo refinado
**volume estimado de diesel a ser importado em 2006 = 1.709 mil m3 Sources: Abiove e Petrobras
46
47. PETROBRAS
Facts about Ethanol Market in 2005
• Ethanol global market is 46.5 Billion Liters (2005)
• Ethanol as a Fuel is 30.6 Billion Liters (67% of total ethanol
production)
• Today the ethanol consumption is 2.6% of gasoline MKT
• 10% of ethanol in gasoline will represent 118 Billion Lt
1 Ton Sugar Cane
~
=
1.2 boe
SUGAR
153 KG 608 x 103 KCAL
BAGASSE
(50% UMIDADE)
276 KG
598 x 103 KCAL
LEAVES (*)
(15% HUMIDY) 512 x 103 KCAL
165 KG
1 Ton-Field 1 boe
1718 x 103 KCAL 1718 x 103 KCAL 1,386 x 103 KCAL
47
48. PETROBRAS
Petrobras Strategy
Ethanol Export Logistics
New Ethanol Pipeline
(800 km)
New Water Way
for Ethanol Ethanol Export
8.0 Million m3 in 2012
Marine Terminal
Rio de Janeiro
Marine Terminal
São Paulo 48
49. PETROBRAS
Petrobras Strategy
Brazil-Japan Ethanol Inc.
• Recently, Petrobras incorporated Brazil-Japan Ethanol Inc.
• The company will import and distribute Brazilian-produced
ethanol in Japan;
• Development of technical and commercial solutions for the
reliable and long term supply of alcohol in the Japanese
market;
• Petrobras will break into one of the most complex and
important energy markets in the World:
• ethanol logistics distribution
• fuel distribution sector in Japan.
Others
• Exploiting opportunities for sales and technology transfer in
Ecuador, Venezuela, Cuba and Nigeria.
49
50. PETROBRAS
Solar and Wind
Solar Energy
• Photovoltaic pumping units
• Largest photovoltaic park in Latin America installed in the
Research Center (CENPES)
• Thermo-solar energy in business units
• Development of Brazilian photovoltaic cells
Hybrid System
• Community with 200 inhabitants and 62 residences (S. Tomé –
Pará)
• Objective: autonomous and sustainable management by the
community
Wind Energy
• Wind plant in Macau and Rio Grande
• Identification of wind potential in strategic interest areas
• Currently studying partnership projects
50
51. PETROBRAS
Renewable Energy Research Program
• Budget: US$ 32 million
• 66 R&D projects
• 6 Research Lines
• Biofuels • Solar Photovoltaic
• Biomass • Solar Thermal
• Wind • Other renewables
Example: Hydrogen
• H2 sustainable production Hydrogen Hybrid Bus
• Bio-hydrogen • High-end technology
• H2 storage in nanotubes • Development with local
partners
• Distribution and supply
technologies • Operation will start Dec 2006
51
52. PS8
PETROBRAS
Renewable Energy Research Program
Lignocellulosic Bioethanol
• Raw material: sugar cane bagasse
• Proprietary process
• Successful ongoing bench-scale
experiments
• Patent issued
• End of tests: 4thQ 2006
• Pilot plant start-up: 1sQ 2008
• Demonstration plant start-up: 3rdQ 2010
52
57. PETROBRAS
Evolution of HSE Management
Strategic
PSP – Agenda –
Process HSE
Safety Excellence
Pipeline
Program
Integrity
Program
Program of
HSE
Certification Excellence in
Corporate
ISO 14.001/ Environmental Guidelines
OHSAS Management
18.001 (PEGASO)
1997 2000 2001 2002 2005
Investment: Jan / 2000 to Dec / 2005: R$ 3.8 billion in more than
4.000 projects
55
58. PETROBRAS
Eco-efficiency of Operations
Spills – cubic meters
SOx Emissions – tons
3.00 Oil and NGL Production (Mbpd)
HSE
Excellence
Insurance Premium/ Insurance Value 2.82
Program
2.50
1,846
2.00
5,983
1.90 PSP – Process Safety Program
158,620
1.53
1.50
Pipeline
Integrity
Program
1.00 0.95
PEGASO 0.90
MPL* 2011 = 137,210 t
1,323
0.50
0.42 HSE
Corporate MPL* 2011 = 601 m3 151,617
Guidelines
269
0.00
2000
1
2001
2
2002
3
2003
4
2004
5
2005
6
*MPL = Maximum Permissible Limit 56
59. PETROBRAS
Eco-efficiency of Operations
• Waste, Effluent and Emissions Inventory
• Emissions Inventory includes: CO2, CH4, CO, SOx, NOx, N2O, MP, COV , flare
and fuel consumption
• Water availability assessment in critical watersheds
• Pre-qualification and audit water treatment companies
Petrobras and Peers - Spills (m3) *
spilled oil (m3)/ production (bpd)
12000 3,50
10000 3,00
2,50
spilled oil (m3)
8000
2,00
6000
1,50
4000
1,00
2000 0,50
0 0,00
bp shell Total ExxonMobil Statoil Petrobras
2002 2003 2004 2005 spill/prod
*spilled oil that reached the environment 57
60. PETROBRAS
Biodiversity
• Investments around US$ 6.9 million in E&P:
• Baseline and impact assessment of Deep Water in UN-BC (2001-2004)
• Monitoring of Sergipe and Alagoas Basin (2001-2004)
• Monitoring of Potiguar and Ceará Basins (2001 - 2005)
• Integrated remote sensing for surface monitoring for hydrocarbons from
accidental or natural events
• Environmental sensitivity study around 108 mil km2 of pipelines and 6 thousand
km around coastal terminals
• R$ 9 million research for ecosystems in Guanabara Bay
58
61. PETROBRAS
Climate Change
• Goal 2006-2011: Avoided GHG emissions of 18.49 million ton of CO2eq
GHG Reduction Strategy based on:
• Carbon credits
25,00 • Eco-Efficiency of operation and 160,00
products
• Carbon sequestration 140,00
• Change fuels to natural gas and
20,00
renewables 120,00
• Energy Efficiency
M Ton/Mbpd
100,00
15,00
M Ton
80,00
10,00
60,00
40,00
5,00
20,00
0,00 0,00
bp Chevron Exxon Shell Total 2004
Petrobras 2005
Petrobras
Direct CO2 Eq (M ton) Emissions
Carbon Intensity: Direct CO2 Eq/Production+processed load (Mbpd) 59
62. PETROBRAS
Climate Change
Carbon Sequestration Projects
Portfolio
• CO2 Separation and Capture (4 projects)
• Underground Geologic Repositories (1
project)
• CO2 Carbonation (1 project)
• Carbon fixation in biomass (8 projects)
• Reforestation pilot (até 50 ha)
• Consortium with cultures for income
generation
• Methodology validation to estimate
amount of fixed carbon
• Biomes: Atlantic Forest, Amazonia
Rainforest, Cerrado, Araucária,
Restinga, Caatinga
• Species accelerated growth
• Microalgaes
60
63. PETROBRAS
Energy Efficiency
CONPET Program
• EconomizAr Project – Reduced 13% of diesel consumption, equal to
approximately 50,000 bpd
• Transportar – Up to 12/05, 530 11,5
Number of Times
4,600 evaluations in 2,300 520 11,1 522
510 10,8 11,0
vehicles from 300
Million GJ
500 488 10,5
companies. 57,279 490
479 479 10,5
ton/year CO2 avoided 480
10,4 465
470 10,2 471 10,0
emissions. 460
• Natural gas bus powered 450 9,7 9,5
440
• CONPET in School 430 9,0
• National Award 2000 2001 2002 2003 2004 2005
• Brazilian Label Program – Conpet
Seal
Petrobras Enegy Consumption
Sales/Petrobras Energy Consumption
• Energy Efficiency Program in Petrobras – since
1991
61
64. PETROBRAS
Sponsored Projects – Petrobras Ambiental
Theme: WATER - Freshwater and Marine, including their biodiversity
Modules I and II Requirements: The projects shall
• Module I : Public Selection contemplate the following actions:
• Module II : Local Initiatives • Self-sufficiency Planning
• Module III : Existing Projects • Environmental Education
• Processes, Experiences and Results
• Module IV : Volunteers Systematization
• Accompanying and valuation instruments
The Program admits four main types of guidance:
• Recovery and conservation of environments that have a
water body (surface, underground, coastal or marine)
• Implementation of integrated water resources
management
• Promotion of rational use of water resources
• Environmental integrity of the water bodies around
Petrobras facilities.
Investments of US$ 15 million in 186 projects
*Free conversion using average exchange rate 62
66. PETROBRAS
Human Resources
HR Practices in Petrobras Employees Satisfaction Index
goal
• Gender Commission 80%
• Ambiance Survey 70%
• Ethics Code
60%
• Woman Assistance Program
• Petrobras University – 154 50%
hours per year average of 40%
training per employee
30%
• Personal Performance
1996 1998 2000 2002 2003 2004 2005
Management
• New employees training % of Women in Management Positions
• Leader Performance
11
• Result: 3,17% turnover 10,4
• Petrobras chosen by university
students as the dream 9,6
9,5
company* 9,4
2001 2002 2003 2004 2005
* Source: Research accomplished in 2005 by RH Júnior Consulting 64
