Petrobras Refining Flexibility Program - Global Technology Forum

Latin American Refining Technology Conference
Miami, EUA, February 28th 2012
Petrobras Refining Flexibility Program
Rodrigo Abramof
Corporate Refining Process Optimization Manager

DISCLAIMER
This presentation may contain forward-looking
statements. Such statements reflect only the
expectations of the Company's management
regarding the future conditions of the economy,
the industry, the performance and financial
results of the Company, among other factors.
Such terms as "anticipate", "believe", "expect",
"forecast", "intend", "plan", "project", "seek",
"should", along with similar expressions, are
used to identify such statements. These
predictions evidently involve risks and
uncertainties, whether foreseen or not by the
Company. Consequently, these statements do
not represent assurance of future results of the
Company. Therefore, the Company's future
results of operations may differ from current
expectations, and readers must not base their
expectations solely on the information presented
herein. The Company is not obliged to update
the presentation and forward-looking statements
in light of new information or future
developments. Amounts informed for the year
2011 and upcoming years are either estimates
or targets.
Cautionary statement for U.S. investors:
The United States Securities and Exchange
Commission permits oil and gas companies,
in their filings with the SEC, to disclose
proved reserves that a company has
demonstrated by actual production or
conclusive formation tests to be economically
and legally viable under existing economic
and operating conditions. We use certain
terms in this presentation, such as
discoveries, that the SEC’s guidelines strictly
prohibit us from including in filings with the
SEC.

Brazilian oil products balances
and market

MIDDLE DISTILLATE DEMAND EVOLUTION
Strong diesel and jet fuel consumption growth in Brazil have been observed
following the economic growth…
Diesel Sales (2006 to 2011)
+5%
+9%
+9%
2006
2007
2008
2009
2010
2011
Jet Sales (2006 to 2011)
+10%
+17%
+11%
2006
2007
2008
2009
2010
2011
4

PRODUCTION, DOWNSTREAM AND DEMAND IN BRAZIL
Construction of new refineries to meet local market demand
1,971
1,792
1,933
2,004
1,798
2,147
2,100
1,811
2,208
3,070
2,205
4,910
3,217
,000 bpd
5,000
4,000
3,000
2,000
COMPERJ
(1st phase)
165,000 bpd
(2014)
Abreu e Lima
Refinery (RNE)
230,000 bpd
(2013)
2,643
2,536
PREMIUM I
(2nd phase)
300,000 bpd
(2019)
COMPERJ
(2nd phase)
165,000 bpd
(2018)
PREMIUM II
300,000 bpd
(2017)
PREMIUM I
(1st phase)
300,000 bpd
(2016)
3,327
3,095
1,000
0
2009 2010 2011 2015 2020
Oil and NGL Production – Brazil Total crude oil processed – Brazil Oil Products Market (2 scenarios)
5

Petrobras’ Refining Infrastructure
REMAN
LUBNOR
RPCC
Refineries
Capacity (Mbpd)
Original Upgraded %
RLAM
Paulínia - Replan (SP) 252 396 57%
Landulpho Alves - Rlam (BA) 218 281 29%
Henrique Lage - Revap (SP) 189 252 33%
REGAP
Duque de Caxias -Reduc (RJ) 191 239 25%
Pres. Getúlio Vargas - Repar (PR) 126 195 55%
Alberto Pasqualini - Refap (RS) 142 189 33%
REPLAN
REDUC
Pres. Bernardes - RPBC (SP) 139 172 24%
Gabriel Passos - Regap (MG) 110 151 37%
Capuava - Recap (SP) 20 49 145%
REVAP
Manaus - Reman (AM) 37 46 24%
Clara Camarão - RPCC (RN) 25 35 40%
REPAR
REFAP
RPBC
RECAP
Fortaleza - Lubnor (CE) 3 8 167%
Total Brazil 1,452 2013 38%
United States 100
Argentina 81
As Petrobras continues to grow its upstream
business, the need for a compatible refining
infrastructure becomes more critical
Okinawa 100
Total Petrobras 2,289
With limited investment over the last 20 years,
Petrobras will increase capacity to meet the
needs of a growing domestic market.
6

Petrobras Refining Flexibility Program
ProFlex

ProFlex Objectives
Provide refining flexibility
in order to balance
gasoline, jet fuel and
diesel oil production
according to market
demands.
8

ProFlex Main Propositions
Investments:
Low or no Capex
Where:
In refineries or logistics
among them
Horizon:
2015

Opportunities
• Opportunities searching
• Technical and Economic analysis
• ProFlex Committee approval
• Budget approval (if necessary)
• Program Governance follow up

Opportunities
Distillation 36
Delayed Coking 10
Catalytic Cracking 15
Hydrotreating 09
Catalytic Reforming 01
Alkylation 01
Solvents 03
Storage 03
Total implemented 78
70 New
Opportunities

ProFlex Success Factors
• Senior management sponsorship
• Personnel commitment
•Technical Staff knowledge
• Strong program governance

ProFlex - Example 1
Challenge
50 ppm sulfur diesel production in a medium pressure
HDT, with minimum losses
Flexibility
Change refinery production to achieve market needs
Result
Production of 50 ppm sulfur diesel without decreasing
refinery production – only operational adjustments
Success
Factor
Personnel Commitment

ProFlex - Example 2
Challenge
No imported jet fuel to attend São Paulo’s market
Flexibility
Improve jet production in a Caustic Treatment Unit
and intermediate products exchange between
refineries
Result
Additional production of 230 km3 in 2011, equivalent
to one month consumption
Success
Factor
Strong sponsorship

ProFlex - Example 3
Challenge
Cost-Effective ULSD Revamp Possible Even With
Difficult Feedstocks
Flexibility
Higher ULSD production and diesel pool quality
improvement
Result
See tomorrow Petrobras presentation,
Success
Factor
Team work knowledge

Strong Governance has been a key success factor
during the Program management
• Monitoring projects
results and key risk
factors in monthly
meetings
• Strong involvement of
different areas (refining,
logistics, trading,
planning, R&D...)
• Senior Management
commitment

ProFlex Earnings
(thousands m3/month)
Estimated
800
128
Accomplished
(monthly average)
235
198
311
476
2008 2009 2010 2011
2012
2015

www.petrobras.com.br