Libra PSCWarming up the engines

Anelise Lara E&P Executive Manager

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Disclaimer

Forward-looking statements:

Disclaimer

The presentation may contain forward-looking statements aboutfuture events within the meaning of Section 27A of the SecuritiesAct of 1933, as amended, and Section 21E of the SecuritiesExchange Act of 1934, as amended, that are not based onhistorical facts and are not assurances of future results. Suchforward-looking statements merely reflect the Company’s currentviews and estimates of future economic circumstances, industryconditions, company performance and financial results. Suchterms as "anticipate", "believe", "expect", "forecast", "intend","plan", "project", "seek", "should", along with similar oranalogous expressions, are used to identify such forward-looking statements. Readers are cautioned that thesestatements are only projections and may differ materially fromactual future results or events. Readers are referred to thedocuments filed by the Company with the SEC, specifically theCompany’s most recent Annual Report on Form 20-F, whichidentify important risk factors that could cause actual results todiffer from those contained in the forward-looking statements,including, among other things, risks relating to general economicand business conditions, including crude oil and othercommodity prices, refining margins and prevailing exchangerates, uncertainties inherent in making estimates of our oil andgas reserves including recently discovered oil and gas reserves,international and Brazilian political, economic and socialdevelopments, receipt of governmental approvals and licensesand our ability to obtain financing.

We undertake no obligation to publicly update or revise anyforward-looking statements, whether as a result of newinformation or future events or for any other reason. Figures for2014 on are estimates or targets.

All forward-looking statements are expressly qualified in theirentirety by this cautionary statement, and you should not placereliance on any forward-looking statement contained in thispresentation.

Non-sec compliant oil and gas reserves:

cautionary statement for us investors

We present certain data in this presentation, such as oil and gasresources, that we are not permitted to present in documentsfiled with the United States Securities and ExchangeCommission (SEC) under new Subpart 1200 to Regulation S-Kbecause such terms do not qualify as proved, probable orpossible reserves under Rule 4-10(a) of Regulation S-X.

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Agenda

Overview on Libra

Production sharing contract main characteristics

First view on field exploration and development

Main solutions and opportunities to achieve our tar gets

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Libra is located close to Buzios field, in the Pre-s alt area in Santos Basin

About Libra...

• Libra field discovered in 2011

• Bid for PSC went out in 2013– Consortium formed by

Petrobras (40% - operator), Shell (20%), Total (20%), CNOOC (10%) and CNPC(10%)

– R$15B (~$6.5B) signature bonus

– 41.65% government share in profit oil

• PPSA: manage the PSC, representing the interests of the Brazilian Government

PPSA

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Libra has an area of ~1500km 2, equivalent to that of Houston

Rio de Janeiro

Curitiba

Florianopolis

ES

MG

PR

SC

São Paulo

SP

RJ

100 km

Santos Basin Pre-Salt

15,000 km2

(3.7 million acres)

Campos Basin

7,000 km2

(1.7 million acres)

Campos Basin

7,000 km2

(1.7 million acres)

Equivalent to Houston's area

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Libra's reservoir has very unique characteristics

Very thick Pre-salt reservoirs

Low H 2S

Good reservoir quality (porosity / permeability)

High GOR (~400 m 3/m3)

Light Oil ~27 API

High CO 2 content (~40%)

Libr

a st

ruct

ural

map

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Libra's size has attracted a lot of attention

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The Libra partnership offers a vast array of opport unities

• Very strong oil companies

• Possibility to share Expertise, knowledge and funding

• Collaborative environment

• Integrated Project Team

• Openness to new ideas

• Multi-cultural partnership

• Resources alignment

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PPSA

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Agenda

Overview on Libra

Production sharing contract main characteristics

First view on field exploration and development

Main solutions and opportunities to achieve our tar gets

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Specific rules for cost recovery under Libra's PSC

Duration of the contract

• 35 years to explore the field (EXP + PD + P), regardless of declaration of commerciality and not extendable

• 4-year exploration phase can be extended

Cost oil recovery

• Begins after the declaration of commerciality• There is no monetary correction of costs, and

they are denominated in Brazilian Reais• Cost recovery limits: 50% for 1st and 2nd years,

and 30%1 from third year on

Royalties • Fixed rate of 15% of total production, regardless of cost oil recovery

Taxes • Signature bonus to be amortized through tax shields

Profit oil • Government share varies with the average well productivity and Brent

1. Limit can raise to 50% after third year if there are costs not recovered for more than 2 yearsSource: Libra PSC

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Agenda

Overview on Libra

Production sharing contract main characteristics

First view on field exploration and development

Main solutions and opportunities to achieve our tar gets

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Libra's first approach of full field development co nsiders pre-salt strategy of phased development and partner´s deepwa ter expertise

Phase 1

Operating production > 1MM bbl /d

2021/2030

• FPSO families adapted to Libra vs...

• ... systems tailored to different scenarios

Phase 0

Data acquisition

2014/2020

• Exploratory and appraisal wells

• EWTs

• Pilot system

1 pilot project First estimate: 11 Definitive Systems

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EWTs: Reduction of uncertainty by understanding dyn amic behavior is crucial to optimize final production sys tems

1 production and 1 injection well

Production unity with 50K bbl/d of oil capacity and 4MM m 3/d of

gas compression capacity

EWT with gas reinjection for one year to : • Test different zones in each well (production / injection perforation and completion strategies)• Evaluate a large drainage area• Be able to do more interference tests• Test high production and injection rates for longer periods

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Agenda

Overview on Libra

Production sharing contract main characteristics

First view on field exploration and development

Main solutions and opportunities to achieve our tar gets

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Some key solutions and opportunities

Technological Local Content

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Some key solutions and opportunities

Technological Local Content

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First Wet Completion ESP in the

world

Carapeba, 1994

First Full Polyester Mooring System

Marlim, 1997

ESP in a Wet Diverless Completion

First horizontalX-mas tree

Albacora Leste, 1998

CALM Buoy (Catenary

Anchor Leg Moorings)

(WD Record)

Marlim, 1992

VASPS(Vertical Annular Separation and

Pumping System)

Marimbá, 2001

Drill Pipe Riser Production

Jubarte, 2002

ESP above Wet X-mas Tree

First TorpedoPiles Installation

Albacora Leste, 2005 Santos Basin, 2001

Modeling and Geochemical

Characterization of Lacustrine,

Rift Source Rocks

Downhole High Power ESP and ROV Intervened Treecap

Wet X-mas Tree

Jubarte, 2007

Free Standing Hybrid Riser

Roncador, 2007

PendularManifold

Installation

Roncador, 2006

First Offshore Ultra Heavy Oil

Production

Badejo, 2008

Deepwater Subsea

Oil-Water Separation

Marlim, 2012

Deepwater Permanent 4D Seismic

Jubarte, 2012

Subsea Multiphase

Pump

Barracuda, 2012

Deepwater Subsea Raw

Water Injection

Albacora, 2011

Buoyancy Supported Risers

Sapinhoá, 2013

Steep technology development in Oil & Gas in Brazil fr om1990's until now

Carbonate Rocks

Charac-terization

Pre-Salt, 2006

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Still many more technological solutions are being d eveloped generating continuous innovation

• Better seismic imaging• Good reservoir characterization• Suitable geological and flow model• WAG injection modelling and operation

• Multiplex Intelligent completions• Use of new materials to reduce well costs• Increase ROP in the reservoir

• Large Diameter Risers • Adapted subsea technologies for Libra specs• Subsea processing

• Topside facilities suitable to handle high GOR and high CO 2 content

• New Gas processing and separation solutions

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CENPES (Petrobras' R&D Center)

• Investments of US$1B/year in R&D (15-20% dedicated to Pre-Salt)

• 1800 researchers• 300,000 m2

In addition...• 200 laboratoires in Brazil• 15 external researchers to each

internal researcher

CENPES (Petrobras' R&D Center)

• Investments of US$1B/year in R&D (15-20% dedicated to Pre-Salt)

• 1800 researchers• 300,000 m2

In addition...• 200 laboratoires in Brazil• 15 external researchers to each

internal researcher

Tech. centers installed

Other tech. centers to be installed in Brazil

Technology Park in Rio de Janeiro

Technology Park in Rio de Janeiro

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Some key soutions and opportunities

Technological Local Content

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Local content is required in different levels, incl uding items and sub-items

Local Content

Growth of national industry

Technology development

Training of local human

resource

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5

0

5

10

15

2002

(%)

200620042000 2008 2010

Participation of Oil & Gas industry on Brazil's GDP

Global

Items

Sub-items (equipments)

Examples

Rigs, hull, subsea tree, drilling equipment

Casing, bits

Exploration Phase Production Phase

LC requirement

• Rigs: 29%, 50-65%

• Subsea Tree: 70%

• Casing: 73%• Bit: 5%

• EXP: 37%• DP: 55-59%

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After ~40 production systems come into stream in Br azil until 2020, local supplier capacity will turn to Li bra

2,11,9

4,23,8

3,32,8

2,52,32,1

1,0

2,0

3,0

4,0

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Oil production (MM bpd)

19 2017161514

Expected production

Real production

Petrobras Oil and NGL production curve in Brazil

2014

• SapinhoáNorte

• Iracema Sul• Norte Pq

Baleias• Roncador IV• Papa-Terra

(P61)• Papa-Terra

(TAD)

2015

• Iracema Norte

2016

• Lula Alto• Lula Central• Lula Sul• Lula Norte• Búzios I• Lapa

2017

• Lula Ext. Sul e ToR Sul de Lula

• Lula Oeste• Iara Horst• Búzios III• Buzios IV• Tartarga

Verde and Mestiça

2018

• NE de Tupi• Iara NW• Carcará• Ent. Iara• Deep Water

ES• Marlim I

Revitalization• Deep Water I

SE• Sul Pq das

Baleias• Maromba I

2019

• Jupiter• Búzios V

2020

• Florim• Espadarte III• Deep Water II

SE• Marlim II

Revitalization• Libra

2013

• SapinhoáPilot

• Lula NE Pilot• Baúna• Papa-Terra

(P63)• Roncador

Transfer of Rights

Other AreasPre-salt Concession

New Discoveries

From 2020 to 2030...... the domestic

supplier capacity developed for the

Pre-salt concession and TR projects will heavily support Libra

The Libra decade

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Going forward, we aim to be a benchmark JV for the next generation of pre-salt development…

PPSA

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Thank you!

For more information contact:

Petróleo Brasileiro S.A – PETROBRASInvestor Relations Departmentwww.petrobras.com.br/ri

Roberto Gomes28 years oldPetrobras Engineer since 2008