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The Development of Cascade and Chinook Fields in Ultra Deep Waters of the

Gulf of Mexico

César PalagiWalker Ridge Asset Manager

Petrobras America Inc.January 20th, 2010

OCS Advisory Offshore Workshop

2 of 20 2

1 - Introduction

2 - Cascade and Chinook Framework - Ownership and Well History

- GoM Environment and Regulation

3 - Cascade and Chinook – Phase 1 - Overview and Timeline

- Reservoir and Wells

- Subsea, FPSO and Export System

4 - Path Forward

Agenda

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1 - Introduction

2 - Cascade and Chinook Framework - Ownership and Well History

- GoM Environment and Regulation

3 - Cascade and Chinook – Phase 1 - Overview and Timeline

- Reservoir and Wells

- Subsea, FPSO and Export System

4 - Path Forward

Agenda

4 of 20 4E&PTRADINGHEAD OFFICE

DOWNSTREAMGAS & POWERREPRESENTATIVE OFFICE

Proven Reserves (SPE): 15 bi boeO&G Production: 2.6 million boe/day

Petrobras Summary

SOURCE: PETROBRAS

Houston

Colombia

Argentina

Angola

United Kingdom

USA

BRAZIL

BoliviaRio de Janeiro

NigeriaVenezuela

EcuadorPeru

Mexico

Tanzania

Iran ChinaJapan

New York

Uruguay

Libya

Turkey

Singapore

Paraguay

Mozambique

SenegalPakistan

Portugal

India

Employees: 74,000Refining Throughput: 2.1 million boe/day

5 of 20 5Copyright © 2008 ODS-Petrodata, Inc.

FPS OperatorsAll Contracted Vessels (252 Vessels Total)

8

45

5

8

1012

131515

100

9

12

0 20 40 60 80 100 120

PetrobrasShell

StatoilHydroExxonMobil

BPChevron

AnadarkoTotal

CNOOCConocoPhillips

ENI/AgipOthers

FPSO Semi Spar TLP Other

Petrobras as an OperatorPetrobras as an Operatorof Floating Production Systemsof Floating Production Systems

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1 - Introduction

2 - Cascade and Chinook Framework - Ownership and Well History

- GoM Environment and Regulation

3 - Cascade and Chinook – Phase 1 - Overview and Timeline

- Reservoir and Wells

- Subsea, FPSO and Export System

4 - Path Forward

Agenda

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CascadeCascade

ChinookChinookStonesStones

StSt. Malo. Malo

TiberTiber

Petrobras E&P Portfolio in Gulf of Mexico

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Cascade and Chinook Field History (1996 Lease Sale)

YearYear CascadeCascade ChinookChinook

2002 1 Discovery Well

2003 1 Discovery Well

20042005 2 Appraisal Wells

2006200720082009 2 Wells

Petrobras took Operatorship

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Lease Holders

• Petrobras – 50%• Devon – 50%

(Blocks WR205, 206,249 &250)

Lease Holders

• Petrobras – 66.67%• Total – 33.33%

(Blocks WR 425,426,469&470)

Cascade and Chinook Lease Holders

The Cascade Field

The Chinook Field

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Cascade &Chinook

Lower Tertiary in GoM Depositional Environment

( Badley Ashton )

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BRETON SOUND

MAIN PASS S.& E. ADDNSMAIN PASS

E. ADDNSOUTH PASS

E. ADDNCHANDELEUR

CHANDELEURCHANDELEUR SOUND

SOUTH PADRE ISLAND

MISSISSIPPI SOUND

SABINE PASS

ADDN.CHANDELEUR SOUND

BRAZOS

MATAGORDA ISLAND

MUSTANG ISLAND

NORTH PADRE ISLAND

HIGH ISLAND

S. ADDNGALVESTON

GALVESTON

S. ADDNBRAZOS

S. EXTE. ADDN

HIGH ISLAND

E. ADDNHIGH ISLAND

S. ADDNHIGH ISLAND

ISLANDSOUTH PADRE

E. ADDNISLAND

NORTH PADRE

E. ADDNMUSTANG ISLAND

PORT ISABEL

CORPUS CHRISTI

SABINE PASS

E. ADDN

KEATHLEY CANYON

GARDEN BANKS

ALAMINOS CANYON

EAST BREAKS

WALKER RIDGE

GREEN CANYON

EWING BANK

SIGSBEE ESCARPMENT

MISSISSIPPI CANYON

VIOSCA KNOLL

MOBILE

AMERY TERRACE

S. ADDNWEST CAMERON

W. ADDNWEST CAMERON

WEST CAMERON

PENSACOLA

LUND SOUTH

LUND

ATWATER VALLEY

S. ADDNVERMILION

VERMILION

S. ADDNEAST CAMERON

EAST CAMERON

HENDERSON

LLOYD RIDGE

DE SOTO CANYON

DESTIN DOME

S. ADDNISLAND

SOUTH MARSH

ISLANDSOUTH MARSH

N. ADDNISLAND

SOUTH MARSH

FLORIDA PLAIN

SHIP SHOAL

S. ADDNEUGENE ISLAND

EUGENE ISLAND

SOUTH TIMBALIER

BAY MARCHAND

SOUTH PELTO

S. ADDNSHIP SHOAL

WEST DELTA

S. ADDNGRAND ISLE

GRAND ISLE

S. ADDNSOUTH TIMBALIER

S. ADDNSOUTH PASS

SOUTH PASS

S. ADDNWEST DELTA

TEXAS

MISSISSIPPILOUISIANA

FLORIDAALABAMA

2,400,0002,200,0002,000,0001,800,0001,600,0001,400,0001,200,0001,000,000 3,400,0003,200,0003,000,0002,800,0002,600,000

1,400,0001,200,0001,000,000800,000600,000400,000200,000 3,000,0002,800,0002,600,0002,400,0002,200,0002,000,0001,800,0001,600,000 3,400,0003,200,000

800,000600,000400,000200,000

9,80

0,00

09,

600,

000

9,40

0,00

011

,200

,000

11,0

00,0

0010

,800

,000

10,6

00,0

0010

,400

,000

10,2

00,0

0010

,000

,000

10,4

00,0

0010

,200

,000

10,0

00,0

009,

800,

000

9,60

0,00

09,

400,

000

11,2

00,0

0011

,000

,000

10,8

00,0

0010

,600

,000

30°0

0'N

28°0

0'N

26°0

0'N

88°00'W90°00'W92°00'W94°00'W96°00'W

Texas

Alabama

Cascade &Chinook

Oil and Gas Pipelines in Gulf of Mexico

LouisianaMississipi

Mexico

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Currents, Furrows and Hurricanes in Gulf of Mexico

~1 Football Field

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Regulatory Compliance

MMS

Exploration PlanApplication for permit to DrillConservation Information DocumentDownhole ComminglingD.W.O.P.D.O.C.D.Pipeline Application / ROW & LTRiser Verification (CVA – Risers)Structural verification (Structural CVA)Production Safety SystemSurface Commingling & MeasurementWell Control & Production TrainingIn-Service Inspection PlansOil Spill ResponseNPDESDeparture Requests MMS Inspections incl. Pre-Production

Inspection

USCG

Certificate of Compliance (COC)Foreign Flag Issues & EquivalenciesDesign Document & Plan ReviewManning & LicensingSecurity / Safety ZoneLightering ProcedureOil Spill ManagementEmergency Evacuation Plan / Vessel

Response PlanIn-Service inspection planUSCG Inspections During Construction

& InstallationPre-COI / COC Inspection

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1 - Introduction

2 - Cascade and Chinook Framework - Ownership and Well History

- GoM Environment and Regulation

3 - Cascade and Chinook – Phase 1 - Overview and Timeline

- Reservoir and Wells

- Subsea, FPSO and Export System

4 - Path Forward

Agenda

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Cascade and ChinookWe Were Here in Aug/2006

• Limited geological and well data;• Lack of field analogs;• Harsh environmental conditions;• Ultra-deep waters;• Lack of pipeline infrastructure;• FPSO regulation under development;• Tight SOP deadlines;• Willingness to produce ASAP.

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Drill & Complete

Project Schedule

2006

Regulatory Compliance

Execute Facilites

1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half2007 2008 2009 2010

Procure Facilities

DesignFacilities

Estimated1st Oil

Petrobras Operator

Design Wells

Drill & Complete

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Reservoir Challenges

Seismic Vessels

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Cascade and Chinook Rigs 1/2

Ocean Endeavor - 10,000 ft WD( Under Contract to

Devon Energy )Diamond Offshore Drilling

20082008

West Sirius - 10,000 ft WD( Under Contract to

Devon Energy )Seadrill Limited

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Cascade and Chinook Rigs 2/2

Discover Deep Seas10,000 ft WD

(Under Contract to Chevron)Transocean Ltd.

2009/2010

Ocean Courage10,000 ft WD(New Built)

Diamond Offshore Drilling

2010

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Tree

Tree

4-SlotManifold

BoostingPump

BoostingPump

Dual Flowlines

Dual PIPFlowlines

ProductionFSHRGas Export

Pipeline

FPSOShuttle Vessel

PowerUmbilical

Gas ExportFSHR

ControlUmbilical

Tree

Tree

4-SlotManifold

BoostingPump

BoostingPump

Dual Flowlines

Dual PIPFlowlines

ProductionFSHRGas Export

Pipeline

FPSOShuttle Vessel

PowerUmbilical

Gas ExportFSHR

ControlUmbilical

Subsea Challenges

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Subsea Risers and Equipment

Technip Deep Blue

Riser Can: Finland

Tree & Manifolds: Houston

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Pipe-in-pipe Installation

Heerema Balder

Pipe-in-pipe: Mexico and Alabama

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Subsea 7 Seven Seas

Umbilical Construction and Installation

Umbilical: Alabama

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FPSO and Shuttle Challenges

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FPSO Construction in Singapore

Module Lift onto FPSO

Aboard the FPSO at Keppel Shipyard,

Singapore

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Shuttle Tanker Construction in Philadelphia

Shuttle: Philadelphia

Shuttle Launching

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FPSO & Shuttle vs. Non-storage FPU & Oil Pipeline

FPSO & Shuttle Advantages:

- No need for pipeline infrastructure.- Can be redeployed elsewhere.- Last out and first in operations

during storms.

TLP/SS/SPAR & Oil Pipeline Advantages:

- Friendlier to subsea risers.- Allow DVA rigs and/or dry X-tree.- Well defined industry and regulation in GoM.

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Gas Export Discovery Pipeline System

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Cascade and Chinook ProjectWorldwide Construction Sites

Brazil

Argentina

USA Portugal

Finland

IndiaMexico

China

UK

Indonesia

Sweden

Australia

Spain

FranceItaly

Norway

Czech Republic

Denmark

Singapore

Equipment and Services from over 20 Countries

Canada

NetherlandsFinland

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Nationalities of the Walker Ridge Team21 Countries

Brazil

Argentina

USA

Colombia

Portugal

Venezuela

Holland

Peru

IndiaMexico

Zaire

China

UK

Singapore

Iran

Nigeria

Belgium

Lebanon

PhilippinesIraqi

One Project…… 21 Nations

Libya

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1 - Introduction

2 - Cascade and Chinook Framework - Ownership and Well History

- GoM Environment and Regulation

3 - Cascade and Chinook – Phase 1 - Overview and Timeline

- Reservoir and Wells

- Subsea, FPSO and Export System

4 - Path Forward

Agenda

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Final Message

• The Cascade and Chinook project will pave the way for future ultra-deep water Lower Tertiary fields in the US GoM.

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The Development of Cascade and Chinook Fields in Ultra Deep Waters of the

Gulf of Mexico

César PalagiWalker Ridge Asset Manager

Petrobras America Inc.January 20th, 2010

OCS Advisory Offshore Workshop