Gas and Energy Business Segment 36 E&P CRITICAL

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Gas and Energy Business Segment
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GE INVESTMENTS
GE Investments US 10.6 billion 2009-2013
US million
Natural Gas US 8.2 billion
Energy US 2.4 billion
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MAIN PROJECTS GAS ENERGY
US million
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PHASE I SUPPLY DIVERSIFICATION NETWORK
INTEGRATION 2003-2010
2003 5,451 Km Dec / 2010 9,265 Km
Consolidation of Pipeline transportation
Infrastructure

• Existing Transportation Pipelines2003 5,451
  km
• 2006 5,495 km
• 2007 6,157 km
• 2008 6,933 km
• Pipelines Underway
• 2009 7,930 km
• 2010 9,265 km

Gasfor Açu/Serra do Mel Nordestão Pilar-Ipojuca
(set/10) GASALP Itaporanga-Pilar Atalaia-Itaporang
a GASEB Catu-Itaporanga Cacimbas-Catu
(mar/10) Cacimbas-Vitoria Lagoa Parda-Vitoria -
Gasvit Cabiúnas-Vitória Gasduc III
(set/09) Gasduc I e II Japeri-Reduc
(mar/09) Campinas-Rio (trecho Taubaté-Japeri)
Campinas-Rio (trecho Paulinia Taubaté) Gastau
(out/10) Paulínia Jacutinga (jul/09) GASPAL II
(abr/10) GASAN II (abr/10) GASPAL I GASAN
I Gasbol - Ampl. T. Sul (mai/10)
Manaus
Urucu - Manaus (Sep/09)
GLP duto (Jan/09)
Urucu
Gasbol
Underway Existing
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PHASE I SUPPLY DIVERSIFICATION NETWORK
INTEGRATION
2008 24 Plants 5,897 MW
2010 43 Plants 7,026 MW
Carangola 15 MW
Tambaqui 89 MW
Termoceará 222 MW BI-FUEL
Jaraqui 89 MW
Potiguar III 66 MW
Potiguar 53 MW
Termocabo 49 MW (leased)
Jesus S. Pereira 320 MW
Manauara 85 MW
Petrolina 128 MW (leased until 2008)
SUAPE II 350 MW
Areia 11.4 MW
Juiz de Fora 87 MW
Arembepe 148 MW
Bahia I 32 MW
Água Limpa 14 MW
Muricy 148 MW
Brentech 140 MW
Barbosa Lima Sobrinho 384 MW BI-FUEL
Celso Furtado 191 MW
Bonfante 19 MW
Irara 30 MW
Rômulo Almeida 138 MW
Luís Carlos Prestes 262 MW
Jataí 30 MW
São Pedro 30 MW
Retiro Velho 18 MW
Funil 22.5 MW
Fernando Gasparian Piratininga 793 MW
Fumaça 4,5 MW
Euzébio Rocha 208 MW
Aurel. Chaves 234 MW
São Simão 27 MW
Gover. Leonel Brizola 1,036 MW
Calheiros 19 MW
São Joaquim 21 MW
Monte Serrat 25 MW
Pira 19 MW
Mário Lago 922 MW
Santa Fé 30 MW
NG 5.442 MW
Sepé Tiaraju 161 MW BI-FUEL
OIL 1.249 MW
Araucária (leased) 484 MW
SHP 335 MW
SHP Small Hydropower
Source Petrobras
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Critical goods and services and equipment
quantities
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EP CRITICAL EQUIPMENT OPPORTUNITIES FOR FOREIGN
SUPPLIERS

• Production pipelines alloy coatings (13 Cr, Super
  13 Cr)
• Turbo compressors (6-10 Mw )
• Polyester Mooring cables
• Mooring systems
• Drilling pipelines
• Fiber glass pipelines
• Electrical cables for CSP
• Control Systems for well control, oil and gas
  metering systems, drilling activities
• Offshore drilling rigs
• Gravel packing
• Drilling bits
• Steam generators (25-50 x 106 BTU/d)
• Special submarine valves.

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CRITICAL SERVICES FOR EP ACTIVITIES
OPPORTUNITIES FOR FOREIGN SUPPLIERS

• Drilling
• Workover services
• Flexible lines and umbilicals laying services
• Support to diving
• Support to ROV
• Support to mooring activities
• Special vessels
• Submarine interconnection services.

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CRITICAL EQUIPMENT AND SERVICES FOR REFINING
ACTIVITIES OPPORTUNITIES FOR FOREIGN SUPPLIERS

• Equipment
• HCC Reactors (250-300 mm wall width, 200
  Kgf/cm2)
• Boiler works with special alloys (reactors,
  towers, pressure vessels)
• Boilers (steam generators)
• Heat exchangers working with H2S traces (ASTM A
  387 degree 11)
• API pumps
• Structural packing for refining process towers
• Services
• Basic Design
• Thermal Projects Design.

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CRITICAL EQUIPMENT FOR GE ACTIVITIES
OPPORTUNITIES FOR FOREIGN SUPPLIERS

• Pipelines in the range of 14-42 inches diameter
  with longitudinal welding. Petrobras standards do
  not accept helicoidal welding.

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NEW EQUIPMENTS TO BE CONTRACTED
Drilling ships and semi-submersible drilling
platforms
29 RIGS CONTRACTED PLUS 28 TO BE LEASED UP TO
2017, MAKING A TOTAL OF 57 DRILLING RIGS - 17
being delivered between 2009 and 2011 - 12 will
be chartered via international bidding, being
delivered in 2012 Meeting Petrobras short-term
needs, while the national industry prepares
itself for the remaining units - 28 will be
built in Brazil and operated by Brazilian
companies, being delivered between 2013 and 2017
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SUMMARY OF MAIN EQUIPMENTS QUANTITIES UP TO 2015
00
13
Petrobras supply strategies for goods and services
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SUPPLY STRATEGIES FOR GOODS AND SERVICES
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Up-dated Petrobras Vendor Register Requirements
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REGISTER OF GOODS AND SERVICES SUPPLIERS
Requirements, Concepts and Ranking
MANDATORY REQUIREMENTS and RANKING REQUIREMENTS 5
CRITERIA
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REGISTRATION FOR MATERIAL SUPPLIERS
TECHNICAL REQUIREMENTS FOR MATERIALS
Depending on the material or equipment, the
supplier must comply with the following
requirements

• Tradition (Main Sales, Reference Letters)
• Facilities for Technical Assistance (Automation
  Systems, Rotating Machinery, etc)
• Mandatory Product Certification (API, ASME, ...)
• Other Specific Requirements.

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REGISTRATION FOR SERVICES SUPPLIERS
TECHNICAL REQUIREMENTS FOR SERVICES
Depending on services criticality, the supplier
must comply with the following requirements

• Tradition (List of Services Provided continuity
  and Reference Letters)
• List of Equipment relating to services provided
• Main personnel curricula vitae
• Other specific requirements.

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SUPPLIERS REGISTRATION

• LEGAL REQUIREMENTS
• MATERIALS SERVICES
• Brazilian companies
• Proof of being legally constituted in Brazil
• Proof of being regular with Brazilian taxes
• See details on registration website.
• Foreign companies
• Proof of being legally constituted in its home
  country, issued by a Governmental
  Authority
• Legal Representative in Brazil (mandatory)
• Commercial Representative (is not registered, but
  only indicated by and linked to the supplier)
• Not mandatory (may be the own company)
• May be the same or other than the Legal
  representative.

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SUPPLIERS REGISTRATION

• ECONOMICAL REQUIREMENTS
• MATERIALS SERVICES
• Annual Reports with Audited Financial Statements
• Proof that the company is not bankrupt (bank
  statement or company declaration by its
  president).

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SUPPLIERS REGISTRATION

• MANAGEMENT and SOCIAL RESPONSIBILITY
• MATERIALS
• ISO-9001 - certification mandatory for suppliers
  of material equipment which require technical
  qualification.
• SERVICES
• Compliance with some requirements of ISO-9001
  for special services.
• MATERIALS SERVICES
• Petrobras stimulates suppliers to improve Social
  Responsibility actions.

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SUPPLIERS REGISTRATION

• HELTH, SAFETY and ENVIRONMENT
• SERVICES
• ISO-14001 and OSHAS-18001
• Certification is not mandatory
• Petrobras evaluates how does the suppliers
  implement these standards requirements (0 to 10).

MATERIALS PETROBRAS requires supplier formal
declaration of compliance with legal
requirements. Petrobras evaluates how the
suppliers implement some standards requirements
of ISO 14001 and OSHAS 18001 (not mandatory) (0
to 10).
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REGISTER OF SUPPLIERS OF GOODS AND SERVICES

• General information is obtained at Petrobras
  website www.petrobras.com.br
• Options (icons)
• English
• Business, Material Channel, Registration Guide.
• Corporate registration process must be carried
  out in Petrobras headquarters, in Rio de Janeiro.

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PROMINP Governmental Program and Local Content
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PROMINP BRAZILIAN OIL GAS NATIONAL INDUSTRY
MOBILIZATION PROGRAM

• MINISTRY OF MINES AND ENERGY (MME) Programs
  promoter and manager
• PETROBRAS Leading operator in Brazil
• BRAZILIAN PETROLEUM INSTITUTE (IBP) Coordinator
  for the participation of the other operators
• NATIONAL ORGANIZATION OF THE OIL INDUSTRY (ONIP)
  Coordinator for the participation of class
  associations (suppliers)

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PROMINP
VISION

• Transform the oil and natural gas production,
  maritime and pipeline transport, refining and
  derivatives distribution into opportunities for
  national industry of goods and services growth,
  creating jobs and generating wealth and
  prosperity for Brazil.

MISSION
Maximize national industry of goods and services
content, within competitive and sustainable
bases, in the implementation of oil and gas
projects in Brazil and abroad.
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COMPETITIVE NATIONAL SUPPLY OF GOODS AND SERVICES
Adequacy of The National Supply Industrial Complex
PATH
GOOD AND SERVICES SUPPLY
5. Incentive for international companies to
establish operations in Brazill
imports
4. Incentive for association between national and
international companies
Increase in National Supply Capacity of GS
3. Incentive for new national entrants
imports
2. Develop competition among medium competitive
sectors
1. Increase productivity capacity of highly
competitive sectors
National Industry
Current Demand
Future Demand
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Source Promimp, 2008
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GLOBAL LOCAL CONTENT 4TH QUARTER 2008

PROMINP
(USbi)
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CONCLUSIONS

• Huge Strategic Plan for the period 2009-2013
• Plenty of opportunities for foreign suppliers
  planning to establish in Brazil and address the
  Latin America Market
• Strong industrial basis in Brazil, for the Oil
  and Gas segment representing today 15 of GDP
• Opportunities shall be focused on critical goods
  and services not available in a competitive basis
  in local market
• Foreign suppliers must be aware of the specific
  laws framework and Local Content requirements
  incentives should be assigned by Government
  Offices once the intention to manufacture in
  Brazil is assured
• Partnership with a local supplier operating in
  the same business area should be considered. .

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• PETROLEO BRASILEIRO S.A. PETROBRAS
• The Challenge is our Energy
• Paulo Sergio Rodrigues Alonso D.Sc.
• Materials Engineering Manager
• alonso_at_petrobras.com.br

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