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

OCS Advisory Offshore Workshop

César Palagi Walker Ridge Asset Manager Petrobras America Inc. January 20th, 2010 1of 20 1 Agenda

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

2of 20 2 Agenda

3of 20 3 Petrobras Summary

Proven Reserves (SPE): 15 bi boe Employees: 74,000 O&G Production: 2.6 million boe/day Refining Throughput: 2.1 million boe/day

United Kingdom

New York USA Portugal Japan Houston Turkey Iran China Libya Pakistan Mexico Senegal Nigeria India Colombia Venezuela Singapore Tanzania Ecuador BRAZIL Angola Peru Mozambique Bolivia Rio de Paraguay Janeiro Uruguay

Argentina

HEAD OFFICE TRADING GAS & POWER DOWNSTREAM E&P REPRESENTATIVE OFFICE 4of 20 SOURCE: PETROBRAS 4 PetrobrasPetrobras asas anan OperatorOperator ofof FloatingFloating ProductionProduction SystemsSystems

FPS Operators All Contracted Vessels (252 Vessels Total)

0 20 40 60 80 100 120

Petrobras 45 Shell 15 StatoilHydro 15 ExxonMobil 13 BP 12 Chevron 12 Anadarko 10 Total 9 CNOOC 8 ConocoPhillips 8 ENI/Agip 5 Others 100

6of 20 6 Petrobras E&P Portfolio in Gulf of Mexico

Tiber Tiber Cascade Chinook Stones St. Malo

7of 20 7 Cascade and Chinook Field History (1996 Lease Sale) YearYear CascadeCascade ChinookChinook 2002 1 Discovery Well 2003 1 Discovery Well 2004 2005 2 Appraisal Wells 2006 Petrobras took Operatorship 2007 2008 2009 2 Wells 8of 20 8 Cascade and Chinook Lease Holders

Lease Holders

• Petrobras – 50% The Cascade Field • Devon – 50%

(Blocks WR205, 206,249 &250)

Lease Holders

• Petrobras – 66.67% The Chinook Field • Total – 33.33%

(Blocks WR 425,426,469&470)

9of 20 9 Lower Tertiary in GoM Depositional Environment

( Badley Ashton )

Cascade & Chinook

10 of 20 10 Oil and Gas Pipelines in Gulf of Mexico

200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 2,400,000 2,600,000 2,800,000 3,000,000 3,200,000 3,400,000 11,200,000 11,200,000 FLORIDA ALABAMA MississipiMISSISSIPPI Alabama LOUISIANA

11,000,000 Louisiana 11,000,000

MISSISSIPPI SOUND TEXAS PENSACOLA E CHANDELEUR SOUND MOBIL ADDN. Texas 30°00'N

CHANDELEUR SOUND CHANDELEUR CHANDELEUR E. ADDN 10,800,000 10,800,000

BRETON SOUND DESTIN DOME SABINE PASS

SABINE PASS MAIN PASS MAIN PASS S.& E. ADDNS

WEST CAMERON SOUTH MARSH ISLAND N. ADDN A KNOLL 10,600,000 VIOSC 10,600,000

EAST CAMERON BAY MARCHAND HIGH VERMILION ISLAND SOUTH PASS WEST DELTA SOUTH PAS E. ADDN WEST CAMERON GRAND ISLE W. ADDN SOUTH PELTO ISLAND HIGH ISLAND EUGENE E. A DDN SOUTH MARSH SHIP SHOAL ISLAND SOUTH PASS WEST DELTA S. ADDN GALVESTON SOUTH TIMBALIER S. ADDN 10,400,000 10,400,000 DE SOTO CANYON

GRAND ISLE IPPI CANYON BRAZOS S. ADDN MISSISS

WEST CAMERON SOUTH MARSH SOUTH TIMBALIER EAST CAMERON VERMILION S. ADDN S. ADDN ISLAND LAND SHIP SHOAL HIGH S. ADDN S. ADDN S. ADDN EUGENE IS N ISLAND S. ADDN S. ADD S. ADDN HIGH ISLAND E. ADD M N ATAGORDA ISLAND GALVESTON S. EXT 10,200,000 10,200,000 S. ADDN EWING BANK 28°00'N BRAZOS S. ADDN

MUSTANG ISLAND E. ADDN MUSTANG ISLAND LLOYD RIDGE 10,000,000 10,000,000 ATWATER VALLEY GREEN CANYON GARDEN BANKS EAST BREAKS

CORPUS CHRISTI

NORTH PADRE NORTH PADRE ISLAND ISLAND 9,800,000 E. ADDN 9,800,000 Cascade & HENDERSON POR T ISABEL LUND ALAMINOS CANYON KEATHLEY CANYON WALKER RIDGE 9,600,000 SOUTH PADRE 9,600,000 SOUTH PADRE ISLAND ISLAND E. ADDN Chinook 26°00'N

FLORIDA PLAIN 9,400,000 LUND SOUTH 9,400,000 Mexico SIGSBEE ESCARPMENT AMERY TERRACE

200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 2,400,000 2,600,000 2,800,000 3,000,000 3,200,000 3,400,000 96°00'W 94°00'W 11 of 20 92°00'W 90°00'W 88°00'W 11 Currents, Furrows and Hurricanes in Gulf of Mexico

~1 Football Field

12 of 20 12 Regulatory Compliance

MMS USCG

Exploration Plan Certificate of Compliance (COC) Application for permit to Drill Foreign Flag Issues & Equivalencies Conservation Information Document Design Document & Plan Review Downhole Commingling Manning & Licensing D.W.O.P. Security / Safety Zone D.O.C.D. Lightering Procedure Pipeline Application / ROW & LT Oil Spill Management Riser Verification (CVA – Risers) Emergency Evacuation Plan / Vessel Structural verification (Structural CVA) Response Plan Production Safety System In-Service inspection plan Surface Commingling & Measurement USCG Inspections During Construction Well Control & Production Training & Installation In-Service Inspection Plans Pre-COI / COC Inspection Oil Spill Response NPDES Departure Requests MMS Inspections incl. Pre-Production Inspection

13 of 20 13 Agenda

14 of 20 14 Cascade and Chinook We 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.

15 of 20 15 16 of 20 16 Project Schedule

2006 2007 2008 2009 2010 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half

Design Facilities

Procure Facilities Petrobras Estimated Operator 1st Oil

Execute Facilites

Design Wells

Drill & Complete

Regulatory Compliance Drill & Complete

17 of 20 17 Reservoir Challenges

Seismic Vessels

18 of 20 18 Cascade and Chinook Rigs 1/2

2008 2008

Ocean Endeavor - 10,000 ft WD ( Under Contract to Devon Energy ) West Sirius - 10,000 ft WD Diamond Offshore Drilling ( Under Contract to Devon Energy ) Seadrill Limited

19 of 20 19 Cascade and Chinook Rigs 2/2

2009/2010 2010

Discover Deep Seas 10,000 ft WD (Under Contract to Chevron) Ocean Courage Transocean Ltd. 10,000 ft WD (New Built) Diamond Offshore Drilling

20 of 20 20 Shuttle Vessel Subsea Challenges FPSO

Gas Export FSHR Production Dual PIP Gas Export FSHR Flowlines Pipeline Power Umbilical

Boosting Tree Pump Dual Flowlines

4-Slot Manifold Boosting Pump Tree Control Umbilical

21 of 20 21 Subsea Risers and Equipment

Tree & Manifolds: Houston

Technip Deep Blue

er Can: Finland Ris 22 of 20 22 Pipe-in-pipe Installation

Heerema Balder

Pipe-in-pipe: Mexico and Alabama

23 of 20 23 Umbilical Construction and Installation

Umbilical: Alabama Subsea 7 Seven Seas

24 of 20 24 FPSO and Shuttle Challenges

25 of 20 25 FPSO Construction in Singapore

Module Lift onto FPSO

Aboard the FPSO at Keppel Shipyard,

26 of 20 Singapore 26 Shuttle Tanker Construction in Philadelphia

Shuttle: Philadelphia

Shuttle L aunching

27 of 20 27 FPSO & Shuttle vs. Non-storage FPU & Oil Pipeline

FPSO & Shuttle Advantages:

- No need for pipeline infrastructure. - Can be redeployed elsewhere. TLP/SS/SPAR & Oil Pipeline Advantages: - Last out and first in operations during storms. - Friendlier to subsea risers. - Allow DVA rigs and/or dry X-tree. - Well defined industry and regulation in GoM. 28 of 20 28 Gas Export Discovery Pipeline System

29 of 20 29 Cascade and Chinook Project Worldwide Construction Sites

Norway Finland Netherlands Finland Sweden Denmark Canada UK France Czech Republic Italy USA Portugal Spain China Mexico India Indonesia Singapore

Brazil Australia

Argentina

Equipment and Services 30 of 20 from over 20 Countries 30 Nationalities of the Walker Ridge Team 21 Countries

Holland Belgium UK USA Portugal Lebanon China Venezuela Mexico Iran Iraqi India Philippines Colombia Nigeria Libya Zaire Peru Singapore Brazil

Argentina

One Project… 31 of 20 … 21 Nations 31 Agenda

32 of 20 32 33 of 20 33 Final Message

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

34 of 20 34 OCS Advisory Offshore Workshop

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

César Palagi Walker Ridge Asset Manager Petrobras America Inc. January 20th, 2010 35 of 20 35