FORWARD-LOOKING STATEMENTS: DISCLAIMER

Transcription

1 Investor Day

2 Disclaimer FORWARD-LOOKING STATEMENTS: DISCLAIMER The presentation may contain forward-looking statements about future events within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are not based on historical facts and are not assurances of future results. Such forwardlooking statements merely reflect the Company s current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by the Company with the SEC, specifically the Company s most recent Annual Report on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties inherent in making estimates of our oil and gas reserves including recently discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason. Figures for 2017 on are estimates or targets. All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this presentation. In addition, this presentation also contains certain financial measures that are not recognized under Brazilian GAAP or IFRS. These measures do not have standardized meanings and may not be comparable to similarly-titled measures provided by other companies. We are providing these measures because we use them as a measure of company performance; they should not be considered in isolation or as a substitute for other financial measures that have been disclosed in accordance with Brazilian GAAP or IFRS. NON-SEC COMPLIANT OIL AND GAS RESERVES: CAUTIONARY STATEMENT FOR US INVESTORS We present certain data in this presentation, such as oil and gas resources, that we are not permitted to present in documents filed with the United States Securities and Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K because such terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X. 2

3 External context Brent (Annual average Nominal) Balance between Oil Demand and Supply US$/barrel Million bpd ,5 2 1,3 1,8 1,2 0,1 0,5 89-0,2-0, * 87 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Excess of Supply Oil Supply Oil Demand Source: Bloomberg * Average until 18/5/2017 Source: International Energy Agency April/2017 Oil Market Report 3

4 Regulatory Framework Old Model New Model Petrobras Sole Operator in the Pre-Salt Preferential Right in the Pre-Salt High Level of Local Content Flexible Local Content Policy No defined schedule for Bid Rounds Predictability in the Bid Rounds Program Gás Para Crescer Program Combustível Brasil 4

5 Higher predictability in ANP Bid Rounds ª Rodada Ac. Marginais 14 th Round Concession 2 nd Round PSA (Unitization) 3 rd Round PSA Unitization Areas TARTARUGA VERDE 15 th Round Concession 16 th Round Concession Potiguar Parnaíba Potiguar SAPINHOÁ CARCARÁ Recôncavo Espírito Santo Paraná Recôncavo Sergipe & Alagoas Espírito Santo Campos GATO DO MATO 4 th Round PSA 5 th Round PSA Santos Exploratory Areas Pelotas Alto de Cabo Frio Central 9 áreas em 3 bacias terrestres 5 offshore basins 6 onshore basins Alto de Cabo Frio Oeste Pau-Brasil Peroba 5ª Round Marginal Accumulations 6ª Round Marginal Accumulations 5

6 Preferential rights in PSA s bid rounds Preferential Rights indication of interest (30 Days after CNPE Resolution publication) NO YES Participation in the Bid Round in equal conditions with third parties Acquired by Petrobras with 100% or in consortium Acquired by a third party with profit oil equal to the minimum Acquired by a third party with profit oil greater than the minimum Petrobras is part of the winning consortium Petrobras must obligatorily be part of the winning consortium NO YES Winning proposal is made effective as presented Petrobras is part of the winning consortium as operator with % approved by CNPE 6

7 Preferential Right indication of interest Rounds 2 and 3 (PSA) Round 2 Round 3 Entorno de Sapinhoá Peroba Alto de Cabo Frio Central SANTOS BASIN São Paulo SANTOS BASIN São Paulo/Rio de Janeiro SANTOS BASIN Rio de Janeiro DISTANCE FROM COAST: 330 km WATER DEPTH: >2,000 meters DISTANCE FROM COAST : 370 km fromthe coastand50 km southoflula WATER DEPTH : >2,200 meters DISTANCE FROM COAST : 150 Km from the coast,130 km NW Libra WATER DEPTH : 1,600 a 2,900 meters 7

8 OUR VISION An integrated energy company focused on oil and gas that evolves with society, creating high value, with a unique technical capability 8

9 Consistent reduction in the Total Recordable Injury Frequency Rate 2,0 1,6 1,7 1,9 1,9 1,6 1,9 Reduction of 36% in the Total Recordable Injury Frequency Rate (TRIFR*) 1,4 1,4 1,3 1,2 1,4 1,1 1,2 1,4 0,9 FROM 2.2 in 2015 TO 1.4 in 2018 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr in 1Q17 We are already belowthe2017 acceptable limit * TRIFR = Total Recordable Injury Frequency Rate 9

10 We are converging to the leverage reduction metric 4,9 4,6 5,4 5,1 4,8 Reduction in LEVERAGE Net Debt/EBITDA Competitive Prices 4,3 3,9 3,5 3,2 FROM 5.1 in 2015 TO 2.5 by 2018 CAPEX Efficiency OPEX Efficiency 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q in 1Q17 We are moving towards the goal Partnerships and Divestments * TAR = Taxa de Acidentados Registráveis por milhão de homens-hora ** Dados atualizados para

11 MAIN PROJECTS E&P Clique para editar o título mestre Clique para editar o texto mestre

12 Schedule of new E&P Projects TARTARUGA VERDE E MESTIÇA REVIT. DE MARLIM MÓD. 1 REVIT. DE MARLIM MÓD. 2 LEGEND LULA NORTE LULA SUL BERBIGÃO LULA EXT. SUL BÚZIOS 1 SÉPIA BÚZIOS 4 BÚZIOS 5 INTEGRADO PARQUE DAS BALEIAS ITAPU CONCESSION TRANSFER OF RIGHTS TLD DE LIBRA BÚZIOS 2 BÚZIOS 3 ATAPU 1 PILOTO LIBRA LIBRA 2 NW PSA Obs: In yellow, Campos Basin Projects. In white, Santos Basin Projects. Contracted Under bidding process To be Contracted 12

13 Main E&P projects in 2017 P-66 Lula Sul Production start-up on 17/05/2017 LIBRA PIONEER P-67 CIDADE DE CAMPOS DOS GOYTACAZES TLD de Libra On location Lula Norte COOEC Shipyard Tart. Verde e Mestiça Brasfels Shipyard Current production of 27 thousand bpd 13

14 P-67 (Lula Norte Project) 1 st Oil 4Q17 % Completion Nº Wells 97% 6 COOEC Shipyard, China 14

15 P-68 (Berbigão/Sururu Project) 1 st Oil 2018 % Completion Nº Wells 83% 3 15 Jurong Aracruz Shipyard, ES

16 P-69 (Lula Extremo Sul Project) 1st Oil 2018 % Completion Nº Wells 89% 6 Hull arrival at BrasFels, RJ 16

17 P-74 (Búzios 1 Project ) 1 st Oil 2018 % Completion Nº Wells 93% 2 EBR Shipyard, São José do Norte, RS 17

18 P-75 (Búzios 2 Project ) 1 st Oil 2018 % Completion Nº Wells 87% 1 COSCO Shipyard, China 18

19 P-76 (Búzios 3 Project ) 1 st Oil 2018 % Completion Nº Wells 90% 1 Offshore Unit Shipyard Techint, PR 19

20 P-70 (Atapu 1 Project) 1 st Oil 2019 % Completion Nº Wells 78% 1 COSCO Shipyard, China 20

21 P-77 (Búzios 4 Project) 1 st Oil 2019 % Completion Nº Wells 85% 1 COSCO Shipyard, China 21

22 Oil and gas production Oil, NGL and Gas production (million boed) 3.41 Oil + gas international Natural Gas Brazil Oil + NGL Brazil

23 Typical Pre-Salt Project % Distribution of Investments Production Unit 35% Subsea 30% Our competitive advantages Since 2010, we have started up, on average, one new production unit in Pre-Salt every seven months. Subsea systems costs 8% lower than the industry benchmark*. Great volumes, long-term contracts and standardizartion of wet christmas trees and lines offer the most competitive costs pof the sector. Wells 35% We are pioneers in Pre-salt well construction and, after 7 years of technological development, we can already drill wells 3 times faster. * Source: IPA (Independent Project Analysis) 23

24 Investments optimization and higher productivity Capex 2017 (US$ bi) Contracts renegotiation Revision in well schedule, considering projects optimization Higher production in Parque das Baleias(P-58) Other Segments E&P Production Target confirmed 2.62 MMboed Planned Revised 24

25 Collaboration between partners resulted in reduction of break-even price Reduction of 20% in evaluation phase term Simplified project of intelligent completion Increase of recovery factor Suppliers involvement Reduction in the break-even of the area of US$ 13/bbl 25

26 Reduction of manageable operating costs Technical standardization Contracts renegotiation : reduction in fleet and daily rates Increase in efficiency of the fleet and pipelines/terminals Rationalization of well interventions Reduction in employees (Separation plan) and third parties Rationalization of administrative costs Process reorganization Organizational Restructuring (cut of managerial functions) Manageable Operating Costs Number of Employees in Petrobras System R$ Billion ,470 68,829 65, Q Q16 31Q Q17 1T17 26

27 Partnership and Divestments Program We reached US$ 13.6 billion in and we are compromised with the target Petrochemicals 21.0 Biofuels 13.6 Gas Pipelines Distribution Assets Abroad Strategic Partnerships Strategic Partnerships: 27

28 Downstream partnerships in Brazil Petrobras is also interested in finding partners to its downstream operations, keeping the strategy of integrated supply chain Privileged position for spreads Annual consumption of fuels* in Brazil 5,0 4,5 Million bpd 4,0 3,5 3,0 0,5 Crude Oil Oil Products 0, Brazil is the sixth oil consumer market in the world Source: EIA International Energy Outlook 2016 * Includes oil products, natural gas and biofuels Selling position of crude oil and buyer position of oil products, far from main markets 28

29 Divestment Process and Disclosure to the Market DIVESTMENT PROCEDURES PHASE 1 STRUCTURING PHASE 2 PROJECT DEVELOPMENT PHASE 3 CLOSING PORTFOLIO DEFINITION PREPARATION AND STRUCTURING CRITERIA FOR SELECTION AND PHASE TRANSITION TEASER AND NDA NON-BINDING PROPOSALS DUE DILIGENCE AND BINDING PROPOSALS NEGOCIATION AND INTERNAL APPROVALS EXTERNAL APPROVALS AND CLOSING DISCLOSURE TO THE MARKET TEASER BEGINNING NON-BINDING PHASE BEGINNING BINDING PHASE SIGNING CLOSING The revised Divestment Methodology was approved by the Federal Accounting Court (TCU) Each project will have its milestones disclosed to the market 29

30 Consistent improvement in our results Adjusted EBITDA R$ Billion Q17 Adjusted EBITDA Margin % Q17 Free Cash Flow R$ Billion Q17 Brent US$/barrels

31 Petrobras vs. Peers in 2016 EBITDA (US$ bi) Margem EBITDA (%) Petrobras ExxonMobil Shell Total Chevron BP Petrobras ExxonMobil Chevron Total Shell BP Fluxo de Caixa Livre (US$ Bi) Dívida Líquida/EBITDA Petrobras ExxonMobil Shell Total BP Chevron Petrobras Shell Chevron BP Total ExxonMobil Source: Evaluate Energy ,5 1 1,5 2 2,5 3 3,5 4 4,5 Amount reported in the Financial Statements in R$ 31

32 Active Liability Management resulted in extension of maturities Debt Amortization Schedule US$ Billion Position in 12/31/2015 Position in 06/02/ Issuance of US$ 18 billion and tender of US$ 17 billion helped to reduce the cost of debt and to extend maturity May 2016 July 2016 January 2017 May BookbuildingIssuance Tender BookbuildingIssuance Tender *Liquidation of make-wholeexpected for June 22 nd BookbuildingIssuance Tender Bookbuilding Issuance Make-Whole* 32

33 Main Risks Risks Operational Risks Financial Risks Clique Accidents para editar Inability to pay o debtítulo Suppliers Pension Plan mestre performance Obligations Strikes Clique para editar o texto mestre $ Clients credit risk Litigations and arbitrations (class action, DoJ, SEC, tax and labor) Compliance Risks Behavior incompatible with ethics and compliance Business Risk Volatility of oil prices and FX rates Reserve replacement Delays in licensing Strategic Risks Political and regulatory instability Divestments execution Changes in society faster than expected Integrated and proactive risk management is key to safe and sustainable results

34 RELATIONSHIP WITH STAKEHOLDERS Clique para editar o título mestre Clique para editar o texto mestre Sustainability Report 2016

35 Bussiness Model OUR RESOURCES... Clique para editar o título mestre APPLIED TO OUR PROCESSES... RESULT IN PRODUCTS... Clique para editar o texto mestre AND POTENTIAL IMPACTS......AND BY IDENTIFYING, MONITORING AND MITIGATING BUSSINESS RISKS, CREATE VALUE TO:

36 Environment and Climate Change INITIATIVES FOR MITIGATION OF GREENHOUSE GAS EMISSIONS (GHG) (MM tco2e) E&P offshore platforms: Optimization, gas reuse and reduction in gas flare in E&P operations Thermoelectric plants: Cogeneration, energetic integration and cicles closing GHG E&P, Thermoelectrics e Refineries Projected Emissions* Accrued Emissions Refineries: Increase in energetic efficiency in refining operations *Projected Emissions: expected emissions from operations if the 2009 GHG emissions intensity remained 36

37 Environmental metrics Greenhouse Gas Emissions GHG (MM t CO2 e) Oil Spill VAZO (M3)* -18% -15% -25% -28% Q Q17 * VAZO = oil and oil product spills 37

38 Environment and Climate Change MANAGEMENT OF CO 2 IN PRE-SALT 4.5 million tons of CO 2 reinjected since milion tons of CO 2 reinjected in 2016 Lula and Sapinhoá Fields KEY TECHNOLOGIES (OTC 2015) CO 2 separation by selective permeation membranes Pioneer reinjection in deepwater and in industrial scale (2,200m) First use of WAG (Water Alternating Gas) in deepwater 38

39 Corporate Governance Strengthening in Petrobras Board of Directors Composition Executive Selection 10 members 100% independent 7: controlling shareholder 2: minority shareholder 1: employees 25% is the minimum required in the Petrobras By-Laws Policy BCI Requirements and restrictions for nomination to the Board of Directors, Executive Board, Fiscal Council and top management executives. Integrity evaluation of the nominees for all members of top management. Petrobras By-Laws CEO Chairman 2 year-term 3 maximum reelections BCI for all the executives Eligibility Committee verifies compliance of the nomination Performance evaluation by independent consultant Executive Board Succession Plan 39

40 Corporate Governance Strengthening in Petrobras Decision-making Process Ethics and Transparency 6 new advisory committees for the Board of Directors, composed by Board members. Minority Committee to evaluate the relevant transactions between Petrobras and its related parties. Creation of Statutory Committees to strengthen commitment and accountability of executive managers in the decision-making. Implementation of the shared authorization process for material decisions. Implementation of independent Whistleblowing Channel with guaranteed anonymity: contatoseguro.com.br/petrobras. Integrity due diligence process in the enrollment and selection of suppliers and counterparts. Adherence to the Code of Ethics and permanent training of the workforce. Rebuilding of the transparency portal: transparencia.petrobras.com.br 40

41 Thank You! Information: Investor Relations