The document discusses Petrobras' business plan and investments from 2012-2016, which total $236.5 billion. It outlines the company's focus on developing pre-salt reserves and increasing local content. Projections indicate Brazil will lead non-OPEC supply growth through 2030 due to development of newly discovered pre-salt reserves.

1. PROCUREMENT
POLICY
AND CRITICAL
EQUIPMENT SUPPLY

2. DISCLOSURE & IMPORTANT NOTICE
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.

3. PRESENTATION SUMMARY
1. Business Plan
2. Pre-salt Overview
3. Local Content
4. Brazilian Companies
5. Relevant equipment demand for the
period 2012-2017
6. Suppliers Qualification & Register
7. Conclusion

4. BUSINESS PLAN

5. Investments during the 2012-2016 period
Under Implementation Under Evaluation
2012-2016 BP = All E&P projects in Brazil and projects of the
remaining segments in phase IV*
+ Projects for the remaining segments currently
in phase I, II and III.
US$ 236.5 Billion US$ 208.7 Billion US$ 27.8 Billion
980 projects 833 projects 147 projects
27.7% 24.8% 17% (**)
(US$ 65.5 Billion) US$ 51.7 Billion (US$ 4.6 Billion)
28% 7%
(US$ 1.9 Billion)
0%
65.8% (US$ 0.1 Billion) 50%
60.0% 3.7%
(US$ 141.8 Billion) (US$ 137.2 Billion) (US$ 7.8 Billion) 5% (US$ 13.9 Billion)
5.8% (US$ 1.3 Billion)
1.8%
(US$ 13.8 Billion
(US$ 3.7 Billion)
2.1%
1.7%
(US$ 5.0 Billion)
(US$ 3.5 Billion) 21%
1.5%
(US$ 3.6 Billion) 0.9% (US$ 6.0 Billion)
1.6% (US$ 1.9 Billion)
1.4%
1.3% (US$ 3.8 Billion)
(US$ 3.0 Billion)
(US$ 3.0 Billion) ** E&P abroad
E&P RTM G&E Petrochemical Distribution Biofuel Corporate
* Includes budget already designated for projects under evaluation for RTM, G&E, Petrochemical, Distribution, Biofuels and Corporate

6. Programs supporting the 2012-2016 BP
2012-2016 BP
US$ 236.5 Billion
Increase of
Local
Cost Operational
Content
Optimization Efficiency
Management
Program Program in
Program
Campos Basin
Integrated Management of the Company’s Portfolio | Safety and
Environment

7. Production Curve in Brazil – Post-Salt, Pre-Salt and Transfer of Rights
Oil and LNG Production Franco 4
Thousands bpd Lula Ext. Sul Sul de Guará
Norte Pq. Espadarte III
Baleias (P-58) Lula Alto Iara Horst Júpiter Maromba
Florim
Roncador IV Lula Central NE Tupi Carcará Bonito
Piloto Sapinhoá
(P-62) Lula Sul Sul Pq. Baleias Entorno de Iara
(Cid. São Paulo) Carimbé
Sapinhoá Franco 1 Franco 5
Piloto Lula NE Aruanã
Baleia Azul Norte (Cid.
(Cid. Paraty) Carioca 1 Iara NW Espadarte I
(Cid. Anchieta) Ilhabela)
Papa-Terra Lula Norte Franco 3
Iracema Sul
Baúna e (P-61 e P-63) Iracema
(Cid. Franco 2
Piracaba Roncador III Norte
Mangaratiba)
(Cid. Itajaí) (P-55) 19 up to 2016
Production Units
38 up to 2020
2011 2016 2020
2,022 kbpd 2,500 kbpd 4,200 kbpd
Pre-Salt (Concession) Transfer of Rights New Discoveries (*)
5% Pre-Salt (Concession) 1% 12% Post- Salt
Transfer of Rights
30%
19% 42%
69%
95% Post-Salt 28%
Post-Salt
Pre-Salt (Concession)
(*) Includes new opportunities in blocks where discoveries have already been found

8. PETROBRAS: Reserve Replacement Ratio > 100% for the 20th consecutive year
34 billion bbl • In the last 5 years, more than 50% of the
New Discoveries 2005-2010
new discoveries worldwide were made in
19%
deep waters. Brazil accounts for 63% of
49% these discoveries.
32%
Brazil • Projections indicate that as Brazil develops
Brasil
these newly discovered reserves, it will
lead non-OPEC supply growth until 2030
Deep Waters
(PFC Energy).
Other Discoveries
Petrobras: Proven Reserves in Brazil (billion boe)
+3%
15.28 15.71
• Reserve/Production  19.2 years
13.23
• Reserves Incorporated in 2011
+164%
9.65 Total: 1.24 billion boe
7.53 Pre-Salt: 1 billion boe
5.96
1991
1995
2005
2010
2011
2000

9. E&P Investments
2012-2016 Period
Exploration Production Development
US$ 25.4 Billion US$ 89.9 Billion
24%
(6) 34%
Pre-Salt (30.2)
49%
8% 69% (43.7)
(2) Post-Salt
(17.5)
18%
Transfer of Rights (16.0)
Besides Exploration and Production Development, E&P investments in infrastructure total US$ 16.3 billion

10. BUSINESS PLAN - 2012-2016
More information about the Business Plan 2012-2016 at:
• http://www.investidorpetrobras.com.br/2012-2016-business-
plan.htm

11. PRE-SALT OVERVIEW

12. WHAT IS PRE-SALT?
Located in a remote area, up to 300 km
offshore
Water depths that
can Corcovado
exceed 2,000 meters Hill
Total depth from
5,000 to 7,000
meters
Post-Salt Layer
Focus up to Salt layer more than
2006 2,000 meters thick.
Large Oil Carbonatic
Pre-Salt Layer
Reservoirs
New Exploratory
Border

13. WHAT IS PRE-SALT?

14. WHAT IS PRE-SALT?
PRE-SALT - SOME TECHNOLOGICAL CHALLENGES
Drilling and Completion
 Construction of high angle
wells, deviated into the salt
zone
 Well integrity
 Penetration rate in the
microbial carbonate
reservoir
 New alloys to reduce costs
of well materials

15. WHAT IS PRE-SALT?
PRE-SALT - SOME TECHNOLOGICAL CHALLENGES
Reservoir
 Reservoir
characterization
 Rock fluid interaction
 EOR

16. WHAT IS PRE-SALT?
PRE-SALT - SOME TECHNOLOGICAL CHALLENGES
Subsea
 Flexible risers for water depth
of 2,200m (7,218 ft)
 Flow assurance
 Scaling control

17. WHAT IS PRE-SALT?
PRE-SALT - SOME TECHNOLOGICAL CHALLENGES
Floating Production Units
 Mooring in 2,200m water
depths
 Interaction with the riser’s
system
 CO2 processing

18. LOCAL CONTENT

19. LOCAL CONTENT
Petrobras Local Content Policy
PETROBRAS LOCAL CONTENT POLICY
The projects and contracts of Petrobras
must withstand the challenges of the
Strategic Plan and maximize Local Content
in competitive and sustainable basis,
contributing to market development where
Petrobras operates, guided by ethics and
continued innovation.

20. LOCAL CONTENT
Legal Requirements
E&P
E&P RTC
Abast G&P
G&E
Exploration and There is no requirement to There is no requirement to
Exploração e
Production: Não existe
Local Content. Local Content.
Não existe
Desenvolvimento: exigência de exigência de
Evidences to ANP for
comprovações para The operatingLocal.
Conteúdo company The operatingLocal.
Conteúdo company
ANP concessions
new para novos states its goal and proves
Operadora declara states its goal and proves
Operadora declara
contratos de
contracts, production the percentage achieved
meta e comprova the percentage achieved
meta e comprova
concessão, partilha índice realizado índice realizado
sharing and onerosaof
e cessão transfer
rights
Operating expenses are not subject to the requirements of the Local Content by ANP

21. Local Content Measurement and Monitoring Program
Motivation: Higher efficiency in maintenance and post-sales services, access to suppliers,
logistics cost optimization, reduction on transportation and delivery time.
Objective
Maximize the use of the Brazilian equipment and services industry capacity for
Bottlenecks
2012-2016 BP procurement demands, with schedules and costs aligned with best
identification and
market practices industry
mobilization
Action Plan
Minimum Local Content
Local Content Local Content
I Planning of 2012 – 2016 II III
Monitoring Measurement
BP projects
• Information on Industry Capacity • Implementation of Local Content Indicators • Preparation of Execution Reports of Local
• Identification of imported goods and • Monitoring of local content in projects Content per project (forecast x executed)
services • Actions for recovering occasional deviations in • Updating data base for future projects
• Identification of items for nationalization schedule and costs

22. REFINERIES AND G&E DECISION MATRIX
Item X National
demand is
Is it enough to Local Content –Downstream projects – Global Average
Source: ONIP
possible to justify adding 99%
buy in capacity? 100
Brazil? (incremental or 85%
YES NO new plant) 80
Item 68%
components,
60
individually, 52%
YES NO can improve 44%
local content? 40
YES NO 20
Develop 0
Use local industry Import Global Goods Equipment Materials Services
Component (Eq+Mat)
Supplier

23. HOW TO MESURE LOCAL CONTENT
Local Content Formula
% LC = 1- Imported Portion X100
System Total Price
without tax

24. PROMINP
HISTORY - 2003
PROMINP – Mobilization Program for the
National Oil and Natural Gas Industry.
Coordinated by the Ministry of Mines and
Energy, was established by the Federal
Government through the Decree nr. 4925,
dated Dec/19th, 2003.
Its main goal is to maximize the participation
of the national goods and services industry, on
a competitive and sustainable basis, in the
implementation of projects in the area of
petroleum and natural gas in Brazil and
abroad.

25. Construction of research centers in Brazil
Petrobras partnerships with more than 120 universities and research centers
have led Brazil to have a prominent worldwide applied R&D complex
At the UFRJ technological complex, 9 P&D
50 Thematic Networks centers of important equipment and services
suppliers are already in construction/operation:
• Schlumberger • FMC Technologies
• Baker Hughes • Usiminas
• Halliburton • TenarisConfab
• General Electric
• Vallourec & Mannesman
Other Companies with development plans for
technological centers in Brazil:
CENPES expansion (Mar/2012) • Cameron • Weatherford
• IBM • Wellstream
• Technip
Source: E&P-CORP, May 25/2012 and CENPES, May 28/2012.

26. BRAZILIAN
COMPANIES

27. BRAZILIAN COMPANIES
Definition
‘Brazilian companies’ means companies
that have manufacturing processes and
after-sales services in Brazil, thus creating
jobs and collecting taxes in the country.

28. RELEVANT
EQUIPMENT
DEMAND
FOR THE PERIOD
2012-2017

29. INDUSTRIAL SECTORS PERFORMANCE ANALYSIS
Sectors
1. Telecommunication
2. Substation and transformers
3. Generators and Motors
Competitiveness
4. Electrical Distribution Panels
5. Automation
6. Pipelines
7. Mills
Production Demand time Changes in 8. Steam Turbines
O&G offer Demand
capacity spreading production paths 9. Winches
changing fulfillment
expansion 10. Valves
11. Flanges and Connections
12. Boilers Works
1
7 2 13. Subsea - Equipment
14. Subsea - Umbilical and
13 8 5 3 Flexible Pipes
High
15. Pumps
14
15 6 4 16. Alternative Compressors
17. Engines
18. Cranes (Onshore)
19. Engineering Services
17 20. Construction and Assembly
19 10 21. Instrumentation and
9
Measurement
Medium
18 16 22. Gas Turbines
11
20 12 23. Centrifugal Compressors
24. Electrical Motors (large
size)
Legend
21 Degree of dependence of O&GI
Low
22
23
24
Low Medium High
Productive Capacity

30. Local Content
Companies building capacity in Brazil
Products Projects in Brazil
• NKT Flexibles
• New flexible pipe plant in Brazil in 2013.
• Technip
• Installation of new plant.
• Wellstream
Subsea Pipelines • Current plant expansion in 2013 (60% capacity increase).
• Prysmian
• Plant expansion to produce flexible pipes.
• Butting
• Construction of a new plant for the production of line pipes.
• Duco and Nexans
• Ongoing discussions to establish new plants in Brazil.
• Oceaneering (MSD)
Umbilicals
• Current manufacturing capacity will double by early 2013.
• MFX
• 80% expansion in manufacturing capacity by 2013.
• Aker
• Increase of manufacturing capacity.
• FMC
Subsea Equipment • Increase of manufacturing capacity and construction of a technology center.
• GE
• Expansion of the Jandira Plant and the construction of a new unit.
• Cameron
• Industrial Expansion.
3030

31. Local Content
Companies building capacity in Brazil
Products Projects in Brazil
•. Rolls-Royce
• Construction of new plant in Santa Cruz (Turbogenerators).
Turbomachines • Dresser-Rand
• Construction of new unit in Santa Bárbara do Oeste (Turbocompressors).
• MEP Pellegrini
Offshore cranes
• Working through partnerships, ongoing discussions to establish new plant in Brazil.
• V&M do Brasil
Drill pipes
• Adapting current units to manufacture pipes.
• V&M do Brasil
CRA Tubing
• Capacity to produce high corrosion-resistant alloys
• USIMINAS
High diameter pipes
• Current units under qualification.
Offshore steel • Metasa
structures • Industrial expansion.
• Emerson
Automation
• Industrial expansion to assemble equipments in Brazil.

32. EQUIPMENT AND MATERIALS REQUIRED FOR 2012-2017
Unit 2012 2013 2014 2015 2016 2017 Total
Pumps un 899 1.737 942 381 96 331 4.386
Compressors un 174 54 51 23 40 45 387
Cranes un 23 25 24 8 7 6 93
Structure Steel (Ships Hull) t 205.100 45.600 31.750 29.600 70.900 70.900 453.850
Structure Steel (Plataforms
Hull) t 140.000 364.000 224.000 112.000 140.000 112.000 1.092.000
Structure Steel (Rigs Hull) t 0 120.000 120.000 120.000 120.000 80.000 560.000
Flares un 11 12 8 6 4 5 46
Power Generators (13,8 kV) un 32 189 14 20 27 17 299
Power Generators (0,48 kV) un 158 0 0 0 0 0 158
Tanks un 253 180 68 55 39 89 684
Processing Towers un 101 119 53 0 5 17 295
Reactors un 114 71 0 0 4 0 189
Wet Christmas Trees un 136 158 191 217 203 229 1.135
Offshore Wellheads un 215 204 220 225 207 235 1.307
Dry Christmas Trees un 457 522 436 324 189 120 2.047
Onshore Wellheads un 458 522 436 324 189 120 2.049
Manifolds un 10 18 23 15 12 21 99
Umbilicals km 517 714 887 1.295 1.485 1.593 6.492
(**) This list does not exhaust all the equipment and materials required for 2012-2017 period.

33. EQUIPMENT AND MATERIALS REQUIRED FOR 2012-2017
Unit 2012 2013 2014 2015 2016 2017 Total
Tubing (Onshore) t 28.681 28.681 28.681 28.681 28.681 28.681 172.084
Tubing (Offshore) t 13.947 13.947 13.947 13.947 13.947 13.947 83.682
Flexible pipes km 743 616 713 957 1.471 1.478 5.977
Risers km 210 173 311 441 544 682 2.361
Turbines (Gas) un 41 38 18 12 16 26 151
Turbines (Steam) un 28 91 67 0 0 17 203
Special alloys for tubing and
casings t 2.470 3.293 5.927 6.256 11.525 11.854 41.325
Turbo generators un 32 37 12 8 12 37 138
Polyester mooring cables km 182 249 319 113 170 114 1.147
Fiberglass pipelines km 425 128 353 353 353 353 1.966
Electrical cables for CSP km 9.562 8.487 10.073 10.363 0 0 38.485
Steam generators un 0 0 0 0 0 0 0
HCC reactors un 0 5 0 0 4 0 9
Special alloy boilers, reactors,
un 64 79 67 0 4 5 219
towers, and pressure vessels
Heat exchangers un 7 61 63 65 0 0 196
Reformer Furnaces un 3 6 0 0 0 0 9
(**) This list does not exhaust all the equipment and materials required for 2012-2017 period.

34. SUPPLIERS
QUALIFICATION &
REGISTER
Petrobras Concepts &
Requirements Overview

35. SUPPLIERS QUALIFICATION & REGISTER
Corporate Register
The Corporate Register is a database of Brazilian and foreign
companies interested in participating in bidding for Petrobras.
Petrobras Procurement Manual (MPC)
These companies, Brazilians or4.1.6
Item foreigners, are eligible to
provide to Petrobras high complexity Board of Directors)
(Approved by the services or
equipment/goods, which are under permanent Petrobras
interest.
The evaluation approval, as part of the registration process,
ensures the incorporation of the company in the Petrobras
Corporate Register, obtaining the CRCC – Certificate of
Registration and Classification. Then, the company could be
invited to participate of new biddings.

36. SUPPLIERS QUALIFICATION & REGISTER
Corporate Guidelines
Requirements:
Legal
Economics
Technical Approval
Complementary Corporate Guidelines
Requirements:
Health, Safety & Environment - HSE
Management & Social Responsibility

37. SUPPLIERS QUALIFICATION & REGISTER
Petronect
It is an “e-Procurement” portal, which provides tools for acquiring
goods and services for Petrobras System companies. In its
business platform are carried out several transactions ranging
from requests for quotes and sending proposals to
management of orders and contracting.
http://www.petrobras.com.br/en/supplier-channel/ www.petronect.com.br

38. SUPPLIERS QUALIFICATION & REGISTER
Since April 2012 the “Suppliers Registration System” was
incorporated to Petronect as a integrated tool and access point for
companies registration and bidding

39. SUPPLIERS QUALIFICATION & REGISTER
Register Flow Chart
Company Access at
www.petronect.com.br
Identification: Identification
- Contact Information;
- Scope of Supply;
- Local Representative;
Registration
Criterias: Questionnaire Certificate
sent
Technical; to Company
- Legal;
- Economical;
- Managerial;
- Health, Safety &
Environment. Petrobras Company Registration
Approval in SAP Petrobras

40. SUPPLIERS QUALIFICATION & REGISTER
Legal Requirements
Foreign Companies
Proof of being duly established and registered in
the country of origin;
Legal Representative in Brazil – the company must
provide its legal representative in Brazil (Power of
Attorney);
Letter stating that the company is not bankrupt or in
debt;

41. SUPPLIERS QUALIFICATION & REGISTER
Legal Requirements
Foreign Companies
Commitment Letter – Through this document the
company shall formalize its intention of being included
in Petrobras’ Corporate Register;
Commercial Representative (indicated by and linked to
the supplier):
 Not mandatory, but advisable (may be the own
company)
 May be the same or other than the legal
representative

42. SUPPLIERS QUALIFICATION & REGISTER
Economic Requirements
Brazilian and Foreign companies:
 Annual Reports with Audited Financial Statements or
 Balance Sheet and Income Statement
 Financial statements of foreign companies must be prepared under
IFRS or USGAAP
 Economic calculation formulas and acceptance criteria are public,
available online in the instructions.

43. SUPPLIERS QUALIFICATION & REGISTER
Health, Safety and Environment
 Service Providers
ISO-14001 and OHSAS-18001:
 Certification is not mandatory
 Petrobras evaluates how the suppliers implement these
standards requirements (ranking from 0 to 10 points)
 Goods Suppliers
Not required

44. SUPPLIERS QUALIFICATION & REGISTER
Management
 Goods Suppliers
 ISO-9001 certification is mandatory
 Services Providers
 Compliance to the requirements of ISO-9001 is
ranked from 0 to 10 points - certification is valued

45. SUPPLIERS QUALIFICATION & REGISTER
RQT Category of products - definition
(RQT - requires specific technical qualification)
Those equipments or materials which performance in the
industrial process of Petrobras can threaten continuity,
compromise the safety of personnel, facilities and
environment, and those products that, included in the
industrial process as raw material, can jeopardize the quality
of the final product of the Company.

46. SUPPLIERS QUALIFICATION & REGISTER
Technical Requirements for Materials & Equipment
Depending on the material or equipment, the supplier must
comply with the following requirements:
 Tradition (Main Sales, Reference Letters)
 Facilities for Technical Assistance (in the case of
Automation Systems, Rotating Machinery, etc)
 Mandatory Product Certification (API, ASME, ...)
 Other Specific Requirements

47. SUPPLIERS QUALIFICATION & REGISTER
Technical Requirements for Services
Depending on services criticality, the supplier must comply
with the following requirements:
 Tradition (List of Services Provided – continuity
and Reference Letters)
 List of equipment relating to services provided;
 Main personnel curricula vitae
 Other specific requirements
NOTE: in accordance to the Law, to render services in Brazilian
territory the company must have a subsidiary or partner
company in Brazil.

48. CONCLUSIONS

49. CONCLUSIONS
Petrobras has a robust projects portfolio, which is
atypical of the current economic situation.
There are huge opportunities for already installed and
newcomers in the Brazilian market of suppliers, service
and engineering companies due to the scale provided by
the project portfolio.
In order to carry out such a portfolio, Petrobras is
looking forward to establish long term business with
companies willing to invest in Brazil.

50. Thank you !
ronaldomartins@petrobras.com.br
materiais.rel@petrobras.com.br
eliel.costa@petrobras.com.br
suppliers.registry@petrobras.com.br