Petrobras Trims 2011-2014 Investment Plan Target

Petrobras' Board of Directors (BOD) approved today the revision of the project portfolio for the 2011-2014 period, with total investments of up to R$250 billion (US $138.8 billion), instead of the R$265 billion approved during a previous meeting and announced in a statement on March 19, 2010.

The Board also approved a set of projects that total investments of about R$462 billion for the post-2014 period. These projects were appraised based on a preliminary view, and in line with Petrobras' Vision for 2020. It should be noted that part of the post-2014 investments represent the development of projects that are already included in the 2010-2014 portfolio but have maturity time longer than the 5-year Business Plan, most of them on exploration and production segment.

In the Exploration & Production (E&P) area, the investments aim to increase oil and natural gas production, taking advantage of the success that was achieved in the post- and pre-salt and also the exploratory activities. The E&P project portfolio includes the construction of production platforms and drilling rigs, support vessels, and investments in infrastructure for transportation.

For the Gas & Energy area, the goals are to diversify and flexibilize sources of supply of Natural Gas to use the associated gas produced in the pre-salt. In the fertilizer area, investments will be directed to supply the large Brazilian agricultural potential with increasing demands for fertilizers, aiming to increase the scale of production, company earnings with gas production, and to ensure additional demand for the input.