World National Oil Companies Downstream Congress

LONDON, UK. June 2010

Downstream Expansion
in Latin America

Paulo Roberto Costa

Petrobras Downstream Executive Officer
 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",
"should“ and "seek", 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
Overview of Latin America
macroeconomic indicators
Brazil & Latin America: Real GDP Growth (Y-on-Y; % Change)
8.00

Forecast
6.00

4.00
%

2.00

0.00

-2.00

Brazil Latin America Latin America + Mexico

-4.00
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010
The Brazilian Economy has weathered the global economic slowdown with remarkable 
resiliency. 
It is expected to rebound strongly in 2010.
Source: Global Insight
4
 Brazil’s Consumer Confidence Index (2005 = 100)

130.00

120.00

110.00

100.00
Consumer Confidence Index Re E
co c on
90.00 ve o
ry mi
St c
ar
ts
80.00
Sep-05

Mar-06

Sep-06

Mar-07

Sep-07

Mar-08

Sep-08

Mar-09

Sep-09

Mar-10
Consumer confidence signaled an economic turning point for the Brazilian economy in 
April/2009.
The index shows how Brazilian consumers have been perceiving the country 
performance with respect to the current world economic crisis.
Source: FGV (Brazil)
5
Development of downstream
markets: key strategies
 Oil and Liquids Production, Proved Reserves
and Consumption
Oil: Consumption - 2009 Oil: Proved Reserves - 2009 Oil: Production - 2009

100% 100%
100% 4% 10% 12%
7%
8% 15% 8%
75% 75%
75%
23% 30%

50% 50% 50%

57%
27%
22%

25% 25% 25%

17%
31% 10%
5% 10%
0% 0% 3% 0%

12 0 %

10 0 %
Total Asia Pacific Total North America
80%

Total Europe & Eurasia Total Middle East

60%
40%
20%

0%

Total S. & Cent. America Total Africa

1

The  geography of oil: consumers, producers, and reserve owners.

Source: BP Statistical Review 2010

7
 Latin America and Brazil Key Oil Indicators

Oil Proved Reserves (Billion Barrels)* Oil Production (MM bpd)

9,8 10,1
210,6

Pre‐salt estimates will

add up to 16 bn boe
3,0
2,0

14,16

2009 2014
2009
Latin America Brazil Latin America Brazil

Refinery Capacity (MM bpd) Oil Demand (MM bpd)

9,4
8,3
7,9 7,4

2,7
2,0 2,4
1,9

2009 2014*
2009 2014
Latin America Brazil * Firm + Probable Latin America Brazil
*Proved Reserves of Crude Oil and NGL

Source: Woodmackenzie, Cera, Pira, BP(2010) and Petrobras

8
 Brazilian Oil Market Slate Vs International Markets (2009)

100%
13%
20% 19% 21% 19% 20% 18%
90%
27%
5%
80% 3%
10% 14% 10% 14%
70% 8%
25%
28%
60%
31% 54%
50% 36%
50% 44% 38%
40% 32%

30%
49%
20% 38%
32%
28% 28%
22% 22% 23%
10%

0%
US Europe Middle Africa China Japan Latin Brazil*
East America
Light distillates Middle distillates Fuel oil Others

During the last 3 years, gasoline market in Brazil have been contested by ethanol and 
vehicular natural gas. 
The Brazilian investment program, focused on increasing conversion, aims to reduce 
fuel oil production and reduce middle distillates deficit.

Source: BP Statistical Review 2010 and Brazil's National Petroleum Agency (ANP)
9
 Latin America Oil Demand by Product

Latin America Demand Profile

9000
k bpd
8000

7000

6000

5000

4000

3000

2000

1000

0
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014
Gasoline Naphta Jet Diesel/Gasoil Fuel Oil LPG Other

Over the next 5 years, total demand for oil products in Latin America will increase 
2,31% p.y., while diesel demand will rise by 3,41% p.y. and jet by 2.85% p.y..
Gasoline demand is expected to increase by 2,18% p.y. between 2009 and 2014. 

10
 Evolution of Unit Sales of Vehicles – By Fuel In Brazil

DIESEL
3,500 Thousand Cars ETHANOL
3,000 FLEX FUEL
GASOLINE
2,500

2,000

1,500

1,000

500

0
2005 2006 2007 2008 2009 2010(*)

* Total sales until April 2010

Gasoline or Ethanol or both? The decision lies in consumer choice.
High flex‐fuel share in total vehicle sales show the huge potential for competition 
between ethanol and mogas in the near future.  
Source: ANFAVEA
11
 Brazilian Vehicular Fuel Matrix

Gasoline C:
Gasoline + Anhydrous Ethanol
23.3 + 8.2 = 31.5%
23,3% Diesel (Total)
50.9 + 0.5 = 51.4%

50,9%
8,2%
Pure Gasoline
Anhydrous Ethanol
13,7%
Hydrated Ethanol
3,4% Natural Gas
Ethanol (Total) Biodiesel
8.2 + 13.7 = 21.9% Diesel
0,5%
Despite the competition between gasoline and ethanol, diesel has by far the highest 
market share among oil products for vehicular use.
With higher economic growth expected over the next few years, the demand for diesel 
will increase, driven mainly by the transport sector.   
Source: Brazil's National Petroleum Agency (ANP)
12
 Evolution of Brazilian Oil Products Balances

k bpd

GASOLINE
GASOLINE DIESEL
DIESEL

99 112 109 89
99 112 109 64 70 89
34 51 56 43 34 48
34 51 56 43
46 64
34 48 46
64 45
45 43
43 64 45
45 36
36
51
51 70 28
40

20002001
2000 20012002
20022003
20032004
20042005
2005 2006
2006 2007
2007 2008
2008 2009*
2009 2000
20002001
20012002
20022003
2003 2004
2004 2005
2005 2006
2006 2007
2007 2008
2008 2009*
2009

JET
JET FUEL
FUELOIL
OIL
109 126
126 98 113
109 102 98 113 91
84
84 102 91 85
85 70
74
25 21 29
15 20
15 20 17
17 66 22 66 12 15 25
12 15 19 29

2000 2001
2001 2002
2002 2003
2003 2004
2004 2005
2005 2006
2006 2007
2007 2008
2008 2009
2009
2000 * 20002001
2000 2001 2002
2002 2003
2003 2004
2004 2005
2005 2006
2006 2007
2007 2008
2008 2009
2009*
Surplus Deficit

Gasoline exports occur  largely because ethanol and vehicular natural gas provide a 
substantial share of Brazil's light vehicle transportation fuels. 
The Brazilian investment program, focused on increasing conversion, aims to reduce 
fuel oil production and reduce middle distillates deficit.
Source: Brazil's National Petroleum Agency (ANP)
13
 Fast Growing Domestic Demand

(000 b/d)
Others
3.4% p.a.
FO
2,794 Diesel
4,1% p.a. QAV
2,356 325 Naphta
166 Gasoline
1,944 276
1,814 1,907 1,933 126 LPG
1,784 1,776 182 197 195
141 155 155 119 109 103 1187
189 117 108 937
628 687 685 738 782 770
136 170
80 73 76 84 89 94 252 252
241 237 237 250 220 223
315 332 334 403 452
314 314 326
220 201 201 208 215 213 226 242

2000 2004 2005 2007 2008 2009 2014E 2020E

Strong market growth for basic products in 2009‐2020.
Higher profitability and lower demand risk in comparison to Latin America.  

14
 Potential Market of Otto Cycle Fuels

95.000
90.000 4,1
85.000
80.000 %
Gasoline C Flex-fuel Hydrous Ethanol CNG
75.000
Thous. cu.m of gasoline equivalente

70.000
65.000
60.000
55.000
50.000 83,7
45.000 %
40.000
35.000
30.000
25.000
20.000
15.000
10.000
5.000
Consumption of each fuel per motor type (includes motorcycles) 12,2
0 Gasoline C: 25% Ethanol %
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Vehicle sales in Brazil are being increasingly driven by fuel flexibility, following the 
introduction of Flex Fuel units in 2003.
The fast increase in flex‐fuel share in total sales in 2005‐2009 points out a strong 
competition between mogas and ethanol, followed by natural gas, over the next years. 

15
 Refinery Utilization – Latin America and Brazil

Refinery Utilization Factor

100%

90%

80%

70%

60%

50%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Latin America Brasil

Better margins and stronger domestic market led to higher refinery utilization rate in 
Brazil.
It means higher profitability and lower demand risk to refining projects in Brazil when 
compared to Latin America.  
Source: Pira and Brazil's National Petroleum Agency (ANP)
16
Vertically Integrated System to Capture Synergies
within the Value Chain

17
 Enhancing Reserves

Santos Pre-Salt announced recoverable volumes, can

almost double Brazilian reserves.

18
Pursuing New Projects while Maximizing Production
from Existing Assets

Petrobras Total Production (k bpd)

5.382

7,1% p.y.
120
3.907 203

9,4% p.y. 1109

4,9% p.y.
2.723 128
176
2.400 2.525 623
2.217 2.297 2.301 93
2.020
1.810 2.037 101 110 100
97 146
94 96 124 141 384
85 163 142 126 321 316
22 161 277 273 3950
35 168 274
252 251 265 2980

1855 1971 2100

1540 1684 1778 1792
1500 1493
1,183 Pre-Salt
152 Pre-Salt

2002 2003 2004 2005 2006 2007 2008 2009 2010 2014 2020

Oil Production Brazil Gas Production Brazil Oil Production International Gas Production International

* Plus or minus 2,5%

19
 Petrobras’ Refining Infrastructure

REMAN LUBNOR Capacity Troughput

RPCC Refineries (Mbpd) (Mbpd)
Paulínia - Replan (SP) 365 324
Landulpho Alves - Rlam (BA) 279 254
RLAM Duque de Caxias -Reduc (RJ) 242 256
Henrique Lage - Revap (SP) 251 205
Alberto Pasqualini - Refap (RS) 189 142
REGAP Pres. Getúlio Vargas - Repar (PR) 189 183
Pres. Bernardes - RPBC (SP) 170 168
Gabriel Passos - Regap (MG) 151 143
REDUC Manaus - Reman (AM) 46 39
REPLAN
Capuava - Recap (SP) 53 45
Fortaleza - Lubnor (CE) 7 6
REVAP Clara Camarão - RPCC (RN) 26 25

REPAR RPBC Total Brazil 1968 1790

REFAP RECAP

United States 100 98

Argentina 81 54

As Petrobras continues to grow its upstream  Okinawa 100 45

business, the need for a compatible refining  Total Petrobras 2,223 1,962
infrastructure becomes more critical
With limited investment over the last 30 years, 
Petrobras will increase capacity to meet the 
needs of a growing domestic market
20
 Significant Improvements in the Trade Balance

1Q09 (k bpd) 1Q10 (k bpd)

215 192
140
274

451 555
426
347

100 126

Exposts Imports Net Exports Exposts Imports Net Exports

Oil Oil Products Oil Oil Products

Positive net exports by higher oil production, improvements in our refining 
system and reduced internal demand. 

21
Focused Strategy to Add Value to Domestic Crude

Expand refining capacity
in Brazil and 
internationally

Optimize quality to make 
Petrobras the preferred fuels  Improve margins by 
brand for consumers in Brazil  expanding average 
and abroad complexity

Increase production of basic  Use commercial and 
petrochemicals, capturing  logistical partnerships to 
synergies within the  expand presence in 
Petrobras System target markets

22
 Investing During 2010-2014 to Realize These Goals

2009‐2013 Plan 2010‐2014 Plan
Downstream Investments Downstream Investments
US$ 47.8 billion
12%
US$ 78.7 billion
Refining
7%

Pipelines & Terminal 6%
Transport 8% 6%
Refining
Ship Transport
12%
Petrochemicals 73% Pipelines & Terminal
Transport
Ship Transport

Petrochemicals
76%

• Adding values to domestic crude and producing diesel and gasoline in‐line with 
international standards

• Investment targets Fuel Quality, Conversion and Expansion

23
Lessening Imported Crude Requirements for Refining Inputs

Domestic Crude as a Percentage of Total Feedstock Processed

91%

80% 80% 79%

78%
76%

Petrobras’ refining site will be adapted to 
run more domestic crude, therefore 
capturing the light/heavy differential and 
avoiding acidity crude discounts

2001 2003 2005 2007 2009 2020

24
 Domestic Refineries Crude Throughput

Downstream Investments
US$ 78.7 billion
• Adding values to domestic crude and producing diesel and
6% 6%
Refining
gasoline in-line with international standards
12%
Pipelines & Terminal • Investment targets Fuel Quality, Conversion and Expansion
Transport
Ship Transport
3,012
Petrochemicals Premium I
76% 300 tho. bpd
1st Fase:
2014

2,260
Premium I
300 th bpd
REPLAN RNE 2st Fase:
1,779 1,791
(k bpd)

Revamp 230 tho. 2016

33 tho. bpd bpd
2010 2013 Premium II
300 tho. bpd
2017
Comperj
165 tho. Comperj
bpd 165 tho. bpd
1st Fase 2st Fase:
2013 2018

2008 2009 2010 2011 2012 2013 2014 2020

25
 Domestic Refining Greenfields Capacity Additions

(600 kbpd) (300 kbpd)

(Premium I & II)
Diesel 10 ppm (60%), LPG (4%), 
Naphtha (14%),  Jet (12%), OC + 
Terminals and Pipelines
Bunker (10%) 
Operated by Transpetro

(230 kbpd)

Diesel (64%), LPG (3%), Naphtha (6%), 
Bunker (16%), Coke (11%) 

(330 kbpd)

Diesel (53%), LPG (6%), Naphtha
Existing pipelines (1%), Jet (28%),OC (4%), Coke (8%) 
Refineries
Onshore Terminals
Offshore Terminals
Numbers in kbpd are capacities

26
 Domestic Refining Capacity Additions
1.400
K bpd
1.200

1.000

800

600

400

200

0
2010 - 2014

Distilation Capacity Conversion Capacity Hydrotreating Capacity

Until 2014, Brazil will add 736 k bpd of Distillation Capacity, 495k bpd of Conversion 
Capacity and 1273 k bpd of Treating Capacity
Coking units investments will convert Brazilian heavy oil into lighter products at the 
same time that HDT units will reduce sulphur to meet international standards.
Treating investments will allow Brazil to have diesel in metropolitan areas containing a 
maximum sulphur content of 50/10 parts per million, significantly lower than current 
levels in 2009.

27
 CDU Capacity and Petroleum Demand – Latin America
and Brazil
12,000
K bpd

10,000

8,000

6,000

4,000

2,000

-
2005 2006 2007 2008 2009 2010 2014

Refinery Capacity - Brazil Refinery Capacity - Latin America (Firm + Probable)

Refinery Capacity - Latin America (Less Likely) Total Petroleum Demand* - Latin America
Total Petroleum Demand* - Brazil
*Excludes biofuels
Until 2014 Latin America will add 1,53 MM bpd of CDU capacity (Firm + Probable Projects). 
Brazil represents 48% of this addition.
Projects ranked as “Less Likely” account for more 788 k bpd of CDU capacity
Source: Cera, Pira and Petrobras
28
 Conversion Capacity and Light Products Demand – Latin
America and Brazil
6,000
K bpd
5,000

4,000

3,000

2,000

1,000

-
2005 2006 2007 2008 2009 2010 2014

Conversion Capacity - Brazil Conversion Capacity - Latin America (Firm + Probable)

Conversion Capacity - Latin America (Less Likely) Light Products Demand - Brazil
Light Products Demand - Latin America *Gasoline, Naphta, Jet and Diesel

Until 2014 Latin America will add 1,12 MM bpd of Conversion capacity (Firm + Probable 
Projects). Brazil represents 44% of this addition.
Projects ranked as “Less Likely” account for more 463 k bpd of Conversion Capacity

Source: Cera, Pira and Petrobras

29
 CDU Capacity Evolution in Latin America –
(Firm + Probable) & Less Likely
Colombia
900
K bpd Others (Less Likely)
(Barrancabermeja/
Trinidad and Tobago (Less Likely)
Venezuela (Less Likely) Cartagena)
800 Colombia (Less Likely) Expansion
Others
Venezuela
Company: Ecopetrol
700 Peru Trinidad and Tobago  47/90 k bpd CDU
Mexico (Pointe‐A‐Pierre)
600 Cuba New Refinery Ecuador (Manta)
Colombia New Refinery
Company: Petrotrin
Brazil
500 200 k bpd CDU Company:  
Mexico (Minatitlan) Petroecuador
Cuba (Cienfuegos)
400 Expansion 300 k bpd CDU
Expansion
Company:  PEMEX  Company: Cupet
300 100 k bpd CDU 85 k bpd CDU

200

100

0
2010 2011 2012 2013 2014

Considering only firm and probable projects, in 2014 the major refining countries in 
Latin America will be Brazil (2.6 MM bpd), Mexico (1.6 MM bpd) and Venezuela (1.4 
MM bpd) representing more than 60% of the region total capacity.

Source: Pira (Refinery Database) and Petrobras

30
 Conversion Capacity Evolution in Latin America –
(Firm + Probable) & Less Likely
900 K bpd Conversion Units: Coking, FCC and HCC
Others (Less Likely)
800 Trinidad and Tobago (Less Likely)
Trinidad and Tobago 
Venezuela (Less Likely)
Mexico (Less Likely) Mexico (Pointe‐A‐Pierre)
700 34 k bpd Coker
Colombia (Less Likely) (Salamanca)
Others 48 k bpd Coker 27 k bpd FCC
600 Venezuela 27 k bpd HCC
60 k bpd FCC
Mexico
500 Colombia Colombia
Brazil (Barrancabermej)
400 90 k bpd Coker
Mexico (Minatitlan) 58 k bpd HCC
300 56 k bpd Coker (Cartagena) Ecuador
42 k bpd FCC 25 K bpd Coker (Manta)
200 Mexico 57 k bpd FCC 90 k bpd FCC
29 k bpd Coker (Salina)
100 79 k bpd Coker (Tula)

0
2010 2011 2012 2013 2014
-100

Considering firm and probable projects, conversion capacity in 2014 will be also 
concentrated in Brazil (1.2 MM bpd), Mexico (0.67 MM bpd) and Venezuela (0.46 MM 
bpd) representing 65% of the region total capacity.

Source: Pira (Refinery Database) and Petrobras

31
Gasoline and Diesel Sulphur Specifications Through
Latin America Markets

Venezuela

Mexico
Colombia

Ecuador

Peru Brazil

Bolivia

Paraguay

Chile
Argentina Uruguay

Tighter specifications for mogas and diesel from 2013 on.
Source: IFQC, PFC and Petrobras
32
 New Vessels: Investments in Marine Transport

New Vessels Delivery Plan

Critical Marine Transport Resources 2009
2010 to 2013 2013 to 2015
Tankers 51 38 (1) 10 (1)
Drilling Units 5 26 31
Supply and Special Vessels 254 465 491
Production Platforms (2) 41 53 63
Others (Jack-ups and TLWP) 79 81 83
Total 430 663 678
(1) Promef 1 and Promef 2
(2) FPSO and SS

Supply Vessel Large Vessel (VLCC) Production Platform (FPSO)

ƒ Besides Petrobras Investments in Marine Transport, the two stages of EBN Program
(Brazilian Navigation Company ) will allow 39 vessels to be built by Brazilian companies in
shipyards located in Brazil, based on a 15 years charter contract with Petrobras.

33
 Comperj: Contributing to Petrobras Value Chain
Comperj is going to:
Expand the domestic petrochemical Capture synergies from existing regional
market infrastructure
Run Marlim crude as feedstock Improve the balance within the commercial value
chain for oil, oil products and petrochemicals

DOWNSTREAM PETROCHEMICALS

Production
Products
(kta)
Production
Diesel 8,060 Products
(kta)
QAV 1,720 Polypropylene 920
Fuels Coke 1,400 Polyethylene 930
Ethylene 1,245 Styrene 400
Propylene 1,035 Ethylene glycol 380
Petrochemicals Benzene 410
Butadiene 170
p-Xylene 475
Sulphur 45

34
 How to Add Value to Stakeholder

Running our business with operational excellence, capital discipline and sound 
returns

Safe, reliable, and environmentally responsible operations

Focus on client needs

Providing the domestic and international markets with international products 
specifications, mainly through premium and high value products

Advantaged domestic crude processing through enhanced integration with 
Exploration & Production segment and investments in refineries and high 
conversion units  

Investments in refining and petrochemicals technology

Capturing scale gains and synergies in Petrobras System

35
www.petrobras.com.br