1. Nome da Apresentação NBome Claudia Rabello Licensing Rounds Promotion Superintendent - ANP Brazilian Bidding Rounds

2. Brazilian Federal Constitution, article 177: O&G Exploration and Production activities are monopoly of the Union; Union may allow granting of E&P activities. Law no. 9.478/97: CNPE and ANP were created. ANP’s duties: regulating, contracting and inspecting: Tender Protocols and Contracts; Bidding Rounds; and Execution of contracts. Legal framework

3. Timeline Previous bidding rounds 1997 Law no. 9478 Petroleum Law CNPE / ANP 1999 Round 1 2001 Round 3 2002 Round 4 2003 Round 5 2007 Round 9 Round 2 2000 1998 Round Zero 2008 Round 10 Offshore 1995 Constitutional Amendment no. 9 2010 Law no. 12276 Onerous Assignment Petrobras Law no. 12351 PSC and Social Fund Law no. 12304 PPSA 2009 Law no. 11909 Gas Act 2004 Round 6 2013 Round 11 Law no. 12734 Royalties Distribution 2012 2005 Round 7 2006 Round 8 Canceled

4. 11 th Bidding Round Concession Agreement

5. 11 th Bidding Round Scope 289 Blocks 23 Sectors 11 Sedimentary basins  155,800 km² Area on offer

6. 11 th Bidding Round Results Qualified companies 64 Brazilian 17 Foreign 47 Bidding companies 39 Brazilian 12 Foreign 27 Winning companies 30 Brazilian 12 Foreign 18 New operators 6 New operators 6

7. 11 th Bidding Round Results Offered blocks 289 Awarded blocks 142 Onshore 87 Offshore 55 Offered area 155,813 km² Awarded area 100,372 km² Onshore 64,998 km² Offshore 35,374 km²

8. 11 th Bidding Round Results Participation fee (R$) 33.4 millions Signature bonuses (R$) 2.8 billions MWP (WU) 398,934 MWP (R$) 6.9 billions Average LC (exploration) 62,25% Average LC (development) 75,97%

9. 11 th Bidding Round Record numbers

10. 11 th Bidding Round Objectives Expand Brazilian reserves and knowledge of sedimentary basins; Decentralize exploratory investment in Brazil; Increase the participation of small and medium-size companies; Retain domestic and foreign companies in Brazil, continuing demand for local goods and services, job creation and income distribution.

11. 12 th Bidding Round Concession Agreement

12. 12 th Bidding Round Schedule Jul 09 Public Hearing Oct 30 and 31 Bid days Aug 08 Tender Protocol Concession Agreement Model Jun 17 Preliminary Tender Protocol Concession Agreement Draft Jan 2014 Signing of Concession Agreements Sep 24 End of qualification period Pending CNPE’s approval

13. São Francisco Basin Parnaíba Basin Acre Basin Paraná Basin Recôncavo Basin Sergipe-Alagoas Basin 12 th Bidding Round Sedimentary basins Parecis Basin

14. 12 th Bidding Round Infrastructure Source: ANP Statistical Yearbook, 2012 Proposed State Limit Flows (operation) Flows (construction) Terminals UPGNs Construction Operation Capitals Legend

15. Source: ANP and Petrobras LNG Terminals Gas Pipelines Gas Pipelines under construction 1999 3,705 km of gas pipelines 2012 9,489 km of gas pipelines 12 th Bidding Round Gas pipelines Source: ANP and Petrobras Proposed

16. Source: http://sigel.aneel.gov.br/ 12 th Bidding Round Transmission lines

17. 1 st Pre-salt Bidding Round Production Sharing Agreement

18. The 1 st Pre-salt Bidding Round November 2013 1 st Pre-salt Bidding Round

19. “Libra” 2-ANP-2A-RJS 27 API oil VOIP  18 billion barrels Others Libra Prospect– Fast track – Salt base – mapping in time 2-ANP-2A-RJS 1 st Pre-salt Bidding Round Forcasted areas

20. Petrobras - mandatory operator with at least 30% participation; Bidding Rounds criteria of offers: the greater split oil; Signature Bonus, Minimum Work Program and Local Content are defined in Tender Protocol; Union does not assume the risks or incurs expenses; Union may contract Petrobras directly; Term of the contract: 35 years 1 st Pre-salt Bidding Round Law no. 12.351/10

21. ANP – Regulatory Agency: Promotes the Bidding Rounds; Follows the contracts execution; Inspect the activities. PPSA – State Company: Represents the Union in the consortium; Audits and approves the costs oil; Chairs the Operational Committee; 1 st Pre-salt Bidding Round Law no. 12.351/10

22. www.brasil-rounds.gov.br

23. Claudia Rabello Licensing Rounds Promotion Superintendence rodadas@anp.gov.br http://www.brasil-rounds.gov.br http://www.anp.gov.br