Petrobras’ Proved Reserves in 2011

11/01/2012

Rio de Janeiro, January 11, 2012 – Petróleo Brasileiro S.A. - Petrobras, announces its proved reserves of oil, condensate and natural gas in 2011 according to the Society of Petroleum Engineers – SPE and Security and Exchange Commission – SEC criteria.

Petrobras’ Proved Reserves in 2011

As per as ANP/SPE criteria:

On December 31st, 2011 Petrobras' Proved Reserves of oil, condensate and natural gas amounted to 16.41 billion barrels of oil equivalent (boe), an increase of 2.7% in relation to last year figures, distributed as shown:

Proved Reserves – SPE Volume (billion boe) %
Brazil 15.706 96
International 0.706 4
Total 16.412 100

During 2011, 1.315 billion boe were appropriated to the Proved Reserves, while 889 million boe were produced, resulting in an increase of 0.426 billion boe compared to the 2010 reserves (15.986 billion boe). The increase in Petrobras’ reserves is the outcome of the incorporation of the new areas discovered in the Pre-Salt in the Santos and Campos Basins, of the new discoveries made in other Basins and Gulf of Mexico, and of the projects deployed in the mature fields in Brazil and abroad.



Proved Reserves Breakdown – SPE Volume (billion boe)
A) Proved Reserves in December, 2010 15.986
B) 2011 Production (0.889)
C) Incorporation of Proved Reserves in 2011 1.315
D) Variation (B + C) 0.426
E) Proved Reserves in December, 2011 (A + D) 16.412

For each barrel of oil equivalent produced in 2011, 1.48 barrels of oil equivalent were appropriated, resulting in a Reserve Replacement Index of 148%. The Reserve/Production (R/P) ratio was 18.5 years.


According to SEC criteria:

On December 31st, 2011, Proved Reserves were 12.873 billion boe, representing an increase of 1% in relation to 2010, distributed as shown:

Proved Reserves – SEC Criteria Volume (billion boe) %
Brazil 12.256 95
International 0.617 5
Total 12.873 100

During 2011, 1.014 billion boe were incorporated into Proved Reserves and 889 million boe were produced, resulting in an increase of 0.125 billion boe in relation to 2010 reserves (12.748 billion boe).



Proved Reserves Breakdown – SEC Volume (billion boe)
A) Proved Reserves in December, 2010 12.748
B) 2011 Production (0.889)
C) Incorporation of Proved Reserves in 2011 1.014
D) Variation (B + C) 0.125
E) Proved Reserves in December, 2011 (A + D) 12.873

For each barrel of oil equivalent produced in 2011, 1.14 barrels of oil equivalent were appropriated, resulting in a Reserve Replacement Index of 114 %. The Reserve-Production Ratio was 14.5 years.

In addition to the volumes mentioned above, Petrobras has the right to produce, in pre-salt areas, 5 billion barrels of oil equivalent, acquired in 2010 with the Transfer of Rights Agreement.

Petrobras Proved Reserves in Brazil

According to ANP/SPE criteria:

On December 31st, 2011 the Proved Reserves of oil, condensate and natural gas in the fields under concession of Petrobras in Brazil amounted to 15.706 billion boe, representing an increase of 2.8% in relation to 2010.

Proved Reserves - SPE Volume %
Oil and Condensate (billion bbl) 13.218 84
Natural Gas (billion m3) 395.548 16
Oil Equivalent (billion boe) 15.706 100


During 2011, 1.242 billion boe were incorporated into Proved Reserves, with production over the same period amounting to 819 million boe, as shown in the following table:

Proved Reserves Breakdown – SPE Criteria Volume (billion boe)
A) Proved Reserves in December, 2010 15.283
B) 2011 Production (0.819)
C) Incorporated as Proved Reserves in 2011 1.242
D) Annual Change (B + C) 0.423
E) Proved Reserves in December, 2011 (A + D) 15.706

For each barrel of oil equivalent produced in 2011,1.52 boe were incorporated into Proved Reserves, resulting in a Reserve Replacement Index (RRI) of 152%. According to SPE criteria, Petrobras' Reserve/Production (R/P) ratio in Brazil was 19.2 years.

The highlights in 2011, in terms of Proved Reserves incorporation, were:

§ Sapinhoá discovery in the pre-salt, at the Santos Basin Operational Unit – UO-BS
§ Discoveries in the Tiziu e Patativa, at the Rio Grande do Norte and Ceará Operational Unit

§ Discoveries in the Albacora Field, at the Campos Basin Operational Unit – UO-BC;
§ Reservoir management in producing fields

From the Campos and Santos Basin Pre-Salt, 0.978 billion boe of proved reserves are being appropriated

According to SEC criteria:

On December 31 2011, the Proved oil, condensate, and natural gas Reserves in the fields under concession to Petrobras in Brazil rose to 12.256 billion barrels of oil equivalent (boe), 1 % more than 2010.

Proved Reserves – SEC Criteria Volume %
Oil and Condensate (billion bbl) 10.411 85
Natural Gas (billion m3) 293.323 15
Oil Equivalent (billion boe) 12.256 100


During 2011, 0.937 billion boe were appropriated to the Proved Reserves, compared to a cumulative production of 819 million boe, as shown below:





Proved Reserves Breakdown – SEC Criteria Volume (billion boe)
A) Proved Reserves in December, 2010 12.138
B) 2011 Production (0.819)
C) Incorporation of Proved Reserves in 2011 0.937
D) Variation (B + C) 0.118
E) Proved Reserves in December, 2011 (A + D) 12.256

For each barrel of oil equivalent produced in 2011, 1.14 barrels of oil equivalent were appropriated, resulting in a Reserve Replacement Index (RRI) of 114%. The Reserve-Production ratio was 15.0 years.

From the Campos and Santos Basin Pre-Salt, 0.518 billion boe of proved reserves are being appropriated

The main differences between the SEC and ANP/SPE estimates stem from differences in the criteria: oil valorization price and concession term.

International Proved Reserves

According to SPE criteria:

On December 31 2011, Petrobras’ Proved oil, condensate, and natural gas Reserves abroad, as per the SPE criterion, reached 0.706 billion barrels of oil equivalent (boe), 0.4% more than 2010.

Proved Reserves – SPE Volume %
Oil and Condensate (billion bbl) 0.471 67
Natural Gas (billion m3) 39.807 33
Oil Equivalent (billion boe) 0.706 100

During 2011, 0.073 billion boe were appropriated to the Proved Reserves, compared to a cumulative production of 70 million boe, as shown below:

Proved Reserves Breakdown – SPE Criteria Volume (billion boe)
A) Proved Reserves in December, 2010 0.703
B) 2011 Production (0.070)
C) Incorporation of Proved Reserves in 2011 0.073
D) Variation (B + C) 0.003
E) Proved Reserves in December, 2011 (A + D) 0.706

For each barrel of oil equivalent produced in 2011, 1.04 barrels of oil equivalent were appropriated, resulting in the reserve reposition index of 104%. The Reserve/Production (R/P) ratio was 10 years.

The main reserve incorporations were made in the projects Lucius and Hadrian, located in the Gulf of Mexico, and in the Agbami, Akpo and Egina, located in Nigeria, due to the change in the tax oil payment regime.

SEC criteria:

On December 31 2011, Petrobras’ Proved oil, condensate, and natural gas Reserves abroad, as per the SEC criterion, were 0.617 billion boe, 1 % more than a year earlier (0.610 billion boe).

Proved Reserves - SEC Volume %
Oil and Condensate (billion bbl) 0.393 64
Natural Gas (billion m3) 38.070 36
Oil Equivalent (billion boe) 0.617 100

During 2011, 0.077 billion boe were appropriated to the Proved Reserves, compared to a cumulative production of 70 million boe, as shown below:



Proved Reserves Breakdown – SEC Criteria Volume (billion boe)
A) Proved Reserves in December, 2010 0.610
B) 2011 Production (0.070)
C) Incorporation of Proved Reserves in 2011 0.077
D) Variation (B + C) 0.007
E) Proved Reserves in December, 2011 (A + D) 0.617

For each barrel of oil equivalent produced in 2011, 1.10 barrels of oil equivalent we appropriated. The Reserve Replacement Index – RRI was 110% and the Reserve/Production (R/P) ratio was 8.8 years.

The main reserve incorporations were made in the projects Lucius and Hadrian, located in the Gulf of Mexico, and in the Agbami, Akpo and Egina, located in Nigeria, due to the change in the tax oil payment regime.

Petrobras clarifies that the hydrocarbon reserve properties belong to their respective National States


Almir Guilherme Barbassa
CFO and Investor Relations Officer
Petróleo Brasileiro S.A. – Petrobras