Brazil, Energy and Power IV

Antonio Luiz Silva de Menezes

March, 26th 2002Houston - USA

Panel D - Gas

Mineral CoalWood

Hydro Power

Sugar-CaneDerivativesOthers

Crude Oil

Natural Gas

Source: MME-BEBNote: hydraulic power conversion coefficient = 0.29 toe/MWh

2005 Total: 287 million toe

Natural Gas share to triple to 2005

1999 Total: 253 million toe

Gas share of energy mix will rise from 3% to 10% in 2005 Gas accounts for over 58% of energy consumption growth

Brazilian Energy Consumption

ARJONA120 MW

TRÊS LAGOAS240 MW

CANOAS (REFAP)500 MW

CORUMBÁ90 MW

ARAUCÁRIA480 MW

PIRATININGA600 MW

FORTALEZA

NATAL

J.PESSOA

RECIFE

MACEIÓ

ARACAJU

SALVADOR

VITÓRIA

RIO DE JANEIRO

MANAUS

PORTO VELHO

CUIABÁ

C.GRANDE

CURITIBA

CAMPINAS

FLORIANÓPOLIS

SÃO PAULO

BELOHORIZONTE

BRASÍLIA

RIOGEN500 MW

TERMOBAHIA450 MW

FAFEN56 MW

TERMORIO1.036 MW

ELETROBOLT350 MW

MACAÉ MERCHANT870 MW

IBIRITÉ690 MW

JUIZ DE FORA103 MW

PORTO ALEGRE

TERMOPERNAMBUCO500 MW

FORTALEZA307 MW

TERMOCEARÁ270 MW

TERMOSERGIPE90 MW

TERMOAÇU325 MW

CAMAÇARI300 MW

BONGI150 MW

COTEMINAS90 MW

ARJONA (upgrade )80 MW

TERMOGAÚCHA500 MW

TERMO CATARINENSE NORTE350 MW

CCBS (CUBATÃO)440 MW

NORTE FLUMINENSE778 MW

SANTA CRUZ (upgrade)320 MW

SÃO GONÇALO (reactivation)193 MW

CAMPOS (upgrade )80 MW

NORTE CAPIXABA250 MW

VITÓRIA500 MW

GCE Instructions: nº 36, 37, 47

Thermo Electrical Priority Program - PPT

New Power Generation: A Driver for Gas Supply

Gas demand growth of 35% / yr; power generation to account for about 50%

By 2005 Petrobras will market 75,5 MM m3/d and supply 50 MM m3/d

0

10

20

30

40

50

60

70

80

1997 1998 1999 2000 2001 2002 2003 2004 2005

50 MM m3/d

Petrobras' E&P Gas by

2005

Thermo electrical

Not Thermo electrical

Natural Gas Demand in Brazil (MM m3/d)

BRAZIL7.6 tcf

(215.1 Bm3)

Reserves for Southern Cone Market

TOTAL SOUTHERN CONE

BOLIVIA38.8 tcf

(1,098.1 Bm3)

ARGENTINA26.4 tcf

(747.1 Bm3)

25 yrR/P

2.9 tcf/yr(82.1 Bm3/yr)

Demand (2005)

72.8 tcf(2,060.2 Bm3)

Reserves (2000)

Gas Supply for the Brazilian Market

BRAZIL7.6 tcf

(215.1 Bm3)

BOLIVIA38.8 tcf

(1,098.1 Bm3)

ARGENTINA26.4 tcf

(747.1 Bm3)

25 yrR/P

2.9 tcf/yr(82.1 Bm3/yr)

Demand (2005)

72.8 tcf(2,060.2 Bm3)

Reserves (2000)

PETROBRAS

10.1 tcf(285.83 Bm3)

in Brazil, Bolivia, and Argentina

TOTAL SOUTHERN CONE

PETROBRAS Proven Gas Reserves

Total Network.: 7.755 Km

Existing

Under construction

Under Study

URUCU

PORTO VELHO

JURUÁ

FORTALEZA

NATALJ. PESSOARECIFE

MACEIÓ

ARACAJÚSALVADOR

BELO HORIZONTE

CUIABÁ

SÃO MATEUS

BRASÍLIA

RIO DE JANEIRO

FLORIANÓPOLIS

PORTO ALEGRE

CURITIBA

CAMPO GRANDE

SANTOS

VITÓRIA

Brazilian Gas Pipeline Network

Integration Gas Pipeline

SÃO PAULOCAMPINAS

Natural Gas Demand by Sector

2001AVERAGE: 20.9 MM m3/dia

77%

4%

5%

2%9% 3%

FUEL RES/COM PETROCHEMICALSIDERURGICAL AUTOMOTIVE THERMAL

2005AVERAGE: 75.5 MM m3/dia

41%

2%

2%

1%

5%

49%

Potential Natural Gas SupplyPotential Natural Gas Supply

200120.9 MMm3/d

200575.5 MMm3/d

45%

38%

10%7%

NATIONAL GAS BOLIVIAN GASARGENTINEAN GAS LNG

51%

49%

NATIONAL GAS BOLIVIAN GAS

Increasing Logistic CapacityIncreasing Logistic Capacity

The additional demand will lead the expansion of the Natural Gas Pipelines:

Anticipation of the transportation capacity of 30 MM m3/d in 1st quarter/2003 and expansion in 2004

Anticipation of the transportation capacity of 5 MM m3/d

Southeast and Northeast Network

Integration Gas Pipeline

Brazil-Bolivia Gas Pipeline

Uruguaiana-Porto Alegre Pipeline

Increasing capacity for domestic transportation

Increasing capacity for gas importation and domestic network

Total Network.: 7.755 KmExistingUnder construction

Under Study

URUCU

PORTO VELHO

JURUÁ

FORTALEZA

NATALJ. PESSOARECIFE

MACEIÓARACAJÚ

SALVADOR

BELO HORIZONTE

CUIABÁ

SÃO MATEUS

BRASÍLIA

RIO DE JANEIRO

FLORIANÓPOLIS

PORTO ALEGRE

CURITIBA

CAMPO GRANDE

SANTOS

VITÓRIA

Integration Gas Pipeline

SÃO PAULOCAMPINAS

Expansion of Gas Pipeline Network

Southeast Network

Investment

US$ 700 MMCurrent Capacity: 30 MM m3/d

Future Capacity : 70 MM m3/d

Km Aditional: 1.500 Km

Current Capacity: 30 MM m3/d

Future Capacity : 70 MM m3/d

Km Aditional: 1.500 Km

Investment

US$ 300 MM

Northeast Network

Current Capacity: 12 MM m3/d

Future Capacity : 24 MM m3/d

Km Aditional: 415 Km

Current Capacity: 12 MM m3/d

Future Capacity : 24 MM m3/d

Km Aditional: 415 Km

Fortaleza

Ceará

Paru

Furado

Catu

Lubnor

Pilar

Rio Grande do Norte

Guamaré

Alagoas

Pernambuco

Paraíba

Bahia

Sergipe

Natal

João Pessoa

Recife

Maceió

Aracaju

Salvador

LNG

Existing CompressionAditional Compression

New Pipelines

Lease Compression

Aracati

Suape

Atalaia Carmópolis

14”x2

81 km

18”x

103 k

m -

Catu-Carmópolis

Pilar-Paru

Loop Nordestão

14”x35 km

Loop Paru-Robalo14”x75km

Northeast Network

Investment

US$ 300 MM

Current Capacity: 12 MM m3/d

Future Capacity : 24 MM m3/d

Km Aditional: 415 Km (diameters: 14 a 18”)

Current Capacity: 12 MM m3/d

Future Capacity : 24 MM m3/d

Km Aditional: 415 Km (diameters: 14 a 18”)

Expansion of Gas Pipeline Network

Regap

Reduc

Revap

Recap

RPBC

Refap

Replan

Bolívia Campos B.

Uruguaiana

Santos Basin

TSB

Guararema

TBG

GTB

Gasan

Gaspal

Gasbel

Gasbol

(8)

(3)

(2)

Campinas - Rio

Campinas - RPBC

Current Compression

Campo Grande

Campinas

Curitiba

Florianópolis

Porto Alegre

Japeri Cabiunas

(2)(1)

São Carlos - Betim

Aditional Compression

Southeast Network

Investment

US$ 700 MM

Current Capacity: 30 MM m3/d

Future Capacity : 70 MM m3/d

Km Aditional: 1.500 Km (diameters: 20 a 36”)

Current Capacity: 30 MM m3/d

Future Capacity : 70 MM m3/d

Km Aditional: 1.500 Km (diameters: 20 a 36”)

Expansion of Gas Pipeline Network

Paraíba 150 MW

TermoAlagoas 120 MW

Norte Fluminense 778 MW

Ibirité 720 MW

Araucária 480 MW

Piratininga 600 MW

TermoGaúcha 500 MW

Canoas 500 MW

Três Lagoas 350 MW

Corumbá 90 MWNorte Capixaba 250 MW

Thermo-Power Plants - PETROBRAS Stake

Termoaçu 325 MW

Sergipe 90 MWTermoBahia 450 MW

Fafen 60 MW

Termo Rio - Reduc 1020 MWCCBS - RPBC 440 MW

Thermo-Power Plants - PETROBRAS Stake

Capacity Investiments Operation(MW) (US$ MM) Initial

PARAIBA - PB Petrobras(25)-PBGAS(5)-STEAG(70) 150 100 NOV-2003TERMO ALAGOAS - AL Petrobras(20)-Algas(5) - CEAL(5)-- Rolls-Royce(70) 150 90 DEZ-2002

IBIRITÉ - MG Petrobras(50)-FiatEnergia(50) 720 450 FEV-2002NORTE FLUMINENSE - RJ Petrobras(10)-Light(90) 778 400 MAI-2003

PIRATININGA - SP Petrobras(80)-EMAE(20) 600 380 DEZ-2001

ARAUCÁRIA - PR Petrobras(20)-Copel(20)-El Paso(60) 480 337 OUT-2002

CANOAS - RS Participação em Negociação 500 300 MAR-2002TERMO GAÚCHA - RS Petrobras(25)-Ipiranga(26)-Repsol/YPF(26)-CEEE)-(23) 500 300 OUT-2003CORUMBÁ - MS Petrobras (45) - Duke (55) 90 60 MAR-2002TRÊS LAGOAS - MS Participação em Negociação 350 230 JUN-2002

NORTE CAPIXABA - ES Petrobras(50)-Shell/Intergen(50) 250 130 JUL-2003

THERMAL PLANT PARTNERS / SHARE

TERMO RIO Petrobras(43)-NRG(50)-PRS(7) 1020 640 AGO-2002

TERMO BAHIA - BA Petrobras(49)-ABB/EV(49)-A&A/EIC(2) 450 360 AGO-2002FAFEN - BA Petrobras(20)-EDP(80) 125 200 JAN-2003

CCBS-CUBATÃO - SP Petrobras(27)-Marubeni(73) 440 220 OUT-2003

TERMOAÇU - RN Petrobras(30)-Guaraniana(70) 325 320 NOV-2003

SERGIPE Petrobras(20)-Energisa(51)-Alliant(29) 90 90 AGO-2002

7,018Total 4,607

Capacity Investiments Operation Operation(MW) (US$ MM) Initial Final

TERMOAÇU - RN Petrobras(30)-Guaraniana(70) 325 MW 320 NOV-2003IBIRITÉ Petrobras(50)-Fiat Energia(50 240 MW 180 MAR-2002 JUL-2003TERMO BAHIA - BA Petrobras(49)-ABB/EV(49)-A&A/EIC(2) 190 MW 180 AGO-2002FAFEN - BA Petrobras(20)-EDP(80) 125 MW 200 JAN-2003TERMO RIO -RJ Petrobras(43)-NRG(50)-PRS(7) 1020 MW 640 AGO-2002 ABR-2004ARAUCÁRIA Petrobras(20)-Copel(20) – El Paso (60) 480 MW 368 SET-2002 OUT-2003TRÊS LAGOAS Petrobras(100) 240 MW 120 OUT-2002CANOAS Petrobras (51) - Copel (49) 160 MW 80 SET-2002

Total 3,958 MW 2,848

THERMAL PLANT PARTNERS / SHARE

Thermo-Power Plants - PETROBRAS Stake

Under Construction

PIRATININGA Petrobras (80) - EMAE (20) 400 MW 280 MAR-2002 AGO-2003NORTE FLUMINENSE Petrobras (10) - Light (90) 778 MW 480 MAI-2003

Petrobras will invest US$ 31 Billion (2001 – 2005)

$0

$5

$10

$15

$20

$25

$30

$35

Uses

Corporate (2%)

Gas & Power (9%)

Downstream (26%)

E&P (63%)

International (17%)

Domestic (83%)

Project Finance (10%)

Cash Flow andCorporate Debt

(90%)

Cap

ital E

xpen

ditu

res

(U.S

. $ b

illio

n)

SourcesRegionBusiness

PETROBRAS - Investing for Growth