Investor Presentaiton

GLOSSÁRIO Oil consumption: activity consisting of the use of cru- de oil for the manufacture of petroleum products. Oil fields: area producing oil or natural gas, from a continuous reservoir or from more than one reservoir, at variable depths, covering facilities and equipment intended for production. (Source: Law No. 9.478, of 8/6/1997). Oil refining: activity developed by an industrial unit that uses as raw material the oil coming from the ex- traction and production unit of a field and that, through processes that include heating, fractionation, pressu- re, vacuum and reheating in the presence of catalysts, generates petroleum derivatives from the lightest (re- finery gas, LPG, naphtha) to the heaviest (bunker, fuel oil), in addition to solid fractions, such as coke and as- phalt residue. Oil Production: set of coordinated operations to ex- tract oil or natural gas from a deposit and prepare its movement, as defined in item XVI of art. 6 of Law No. 9.478, of 1997, or also volume of oil or natural gas extracted during production, as can be seen from the text, in each case. Oil production chain: set of activities of the produc- tion chain from the extraction of crude oil to the last phase of value addition of the sector, segmented into four branches: exploration, refining, petrochemical in- dustry and processing industry. in the contract, being applicable, successively, to the exploration, development and production phases. The determination of this value is made by the ANP and takes into account the geological characteristics and the location of the sedimentary basin; (ii) monthly, by multiplying the equivalent of 1% of the field's total oil and natural gas production volume, during the calcula- tion month, by their respective reference prices. Permanent offer: continuous offer of fields returned (or in the process of being returned) and exploratory blocks offered in previous bids and not auctioned or returned to the agency (Article 4 of CNPE Resolution No. 17, of 06/08/2017). Permanently abandoned well: well where there is no interest in future re-entry and operations were conduc- ted for the establishment of solidary sets of perma- nent barriers. Petroleum derivatives: products resulting from the processing of petroleum. Pre-salt: subsurface region formed by a vertical prism of indeterminate depth, with a polygonal surface de- fined by the geographical coordinates of its vertices established in the Annex of Law No. 12.351/2010, as well as other regions that may be delimited in an act of the Executive Branch, according to the evolution of geological knowledge. Production phase: the one in which oil and/or natu- Oil well: drilling into the earth's surface used to produ- ral gas accumulations discovered and which have had ce oil and/or natural gas. Onerous assignment: model of assignment of an exploratory area to Petrobras bilateral negotiation, through the consideration of the payment of a certain amount, which was regulated by Law No. 12.276, of June 30, 2010, limiting exploration up to 5 billion boe. Onshore: terrestrial environment or area located on land. P Payment for area occupation or retention: amount paid by concessionaires to landowners where oil and natural gas exploration and production activities are carried out. This payment is made in two ways: (i) an- nual, by means of unit values in reais per square kilo- meter of the concession area fixed in the notice and their commercial viability proven give rise to a produ- cing field, being developed and put into production to supply the market. Production Sharing: model of exploration and pro- duction of oil, natural gas, which provides not only the payment of royalties, but also the physical division of the production of hydrocarbons discounting the cost incurred in exploration and production activities. It is currently regulated by Law No. 12.351, of 12/22/2010. Production Unit (Exploration and Production): set of facilities designed to promote the separation, treat- ment, storage and flow of fluids produced and moved in an oil and natural gas field. Proven reserves: amount of Oil or Natural Gas that the analysis of geoscience and engineering data indi- cates with reasonable certainty that it is an economi- cally viable well, whose investments are recoverable commercially. R Repeatable: these are goods under a special customs regime of export and import, which are intended for research and mining activities of oil and natural gas deposits, with suspension of customs taxes. S Sedimentary basin: depression of the earth's crust where sedimentary rocks accumulate that can be car- riers of oil or gas, associated or not. Shallow waters: ocean waters located at any distance from the coast with a depth of the seabed of 0-300 meters. Signature bonus: resource offered by the winning bi- dder in the proposal to obtain the concession for the exploration of oil or natural gas, and may not be lower than the minimum value established in the bid notice. Т Temporarily abandoned well without monitoring: well where there is interest in future re-entry and ope- rations were conducted for the establishment of soli- darity sets of unmonitored and/or verified barriers. U Ultra-deep waters: ocean waters located at any dis- tance from the coast with depth of the seabed greater than 1,500 meters. Upstream: segment of the oil industry that includes the activities of exploration, development, production and transportation of oil to refineries. W Well operating for disposal: well operating for dis- posal of fluids produced by other wells or disposal of various effluents generated in exploration and produc- tion activities, in areas that do not produce at that time. Well producing: well operating as a hydrocarbon producer. Part of this resource is allocated to the Union and part Well producing and injecting: well operating simulta- to the ANP; Special Participation: constitutes extraordinary finan- cial compensation due to the Federal Government, States and Municipalities, according to ANP Resolu- tion No. 12/2014, by oil or natural gas exploration and production concessionaires, in cases of large produc- tion volume or high profitability. Special well: well that aims at specific objectives that do not fit the purposes previously defined. Storage Well: well that aims to allow natural gas sto- rage operations, including injection, withdrawal and monitoring. Stratigraphic exploratory well: well that aims to know the stratigraphic column and obtain other surface ge- ological information in a basin or region little explored; neously producing hydrocarbons and injecting fluids (at distinct intervals). Well removing stored natural gas: well operating for the removal of natural gas from a storage reservoir. Well temporarily abandoned with monitoring: well where there is interest in future re-entry and opera- tions were conducted for the establishment of solidary sets of barriers, which must be periodically monitored and/or verified. Well under observation: well instrumented for monito- ring pressures in a hydrocarbon producing reservoir or natural gas storage. WTI (West Texas Intermediate): Oil extracted from the Permian Basin in western Texas and eastern New Mexico, traded on the New York Stock Exchange. Its quotation serves as an international reference for the price of oil.