Established in 1953, Petrobras is a publicly traded company
with operations in 28 countries on all continents. The oil
industry leader in Brazil, the Company closed 2011 as
the world’s fifth largest energy company in market value,
according to PFC Energy’s ranking. In the oil, gas and energy
industry, it operates in an integrated, specialized manner in
exploration and production, refining, marketing, oil and natural
gas transportation, petrochemicals, oil product distribution,
electricity, biofuels and other renewable energy sources.
Operate in a safe, profitable manner, with social and environmental responsibility, in Brazil
and abroad, providing products and services that meet customer needs and contribute to the
development of Brazil and of the countries in which it operates.
VISION FOR 2020
We will be one of the top five integrated energy companies in the world, and the preferred
choice among our stakeholders.
ATTRIBUTES OF THE VISION FOR 2020
Our operations will stand out for:
Their strong international presence
Being a global reference in biofuels
Excellence in operations, management, energy efficiency, human resources,
and in technology
Being a benchmark in social and environmental responsibility
Commitment to sustainable development
Readiness for change
Entrepreneurship and innovation
Ethics & transparency
Respect for life
Human & cultural diversity
Proud to be Petrobras
OPERATIONAL SUMMARY 2009 2010 2011 PERFORMANCE SCHEDULE
Proved reserves - SPE Criterion -
14.9 16.0 16.4
(billion barrels of oil equivalent - boe)I-II Indicator 2007 2008 2009 2010 2011
Oil and condensate (billions of barrels) 12.6 13.4 13.7 Environment
Natural gas (billion boe) 2.3 2.6 2.7
Oil & oil product spills (m3) 386 436 254 668 234
Average daily production (thousand boe)I 2,526 2,575 2,614
Energy consumption (terajoule - TJ) 574,145 604,333 604,070 716,673 682,827
Greenhouse gas emissions (million tons of CO2 equivalent) 49.88 57.6 57.8 61.1 56.2
Oil & LNG (thousand bpd) 1,971 2,004 2,022
Natural gas (thousand boe) 317 334 355 Carbon dioxide emissions - CO2 (million tons) 45 54 52 57 52
Other countries Methane emissions - CH4 (thousand tons) 206 188 235 196 161
Oil & LNG (thousand bpd) 1
141 144 140 Nitrous oxide emissions - N2O (tons) 919.5 1,215 1,241 1,360 1,753
Natural gas (thousand boe) 97 93 97 Atmospheric emissions - NOx (thousand tons) 222.65 244.50 222.04 227.75 222.21
Flow wells (oil and natural gas)
14,905 15,087 15,116 Atmospheric emissions - SOx (thousand tons) 150.9 141.79 135.39 133.73 120.64
on December 31I
Drilling rigs 100 98 102 Other atmospheric emissions - includes particulate matter
15.22 16.71 19.30 17.51 17.48
Platforms in production 133 132 125
Pipelines (km) 25,966 29,398 30,067 Fresh water withdrawal (million m3) 216.5 195.2 176.0 187.3 190.9
Vessel fleet 172 291 241 Water effluent disposal (million m )
173 181 197 173 188
Amount - own operation 52 52 55 Occupational Health and Safety
Amount - operated by third-party 120 239 186 Lost Time Injury Frequency Rate - LTIFR (includes employees
0.76 0.59 0.48 0.52 0.68
Terminals - on December 31III and contractors)
Amount 47 48 48 Fatalities (including employees and contractors) 15 18 7 10 16
Refineries - on December 31I-V Fatal Accident Rate (fatalities per 100 million man-hours of exposure to
2.28 2.4 0.81 1.08 1.66
Nominal installed capacity risk - including employees and contractors)
2,223 2,288 2,244
(thousand barrels per day - bpd)
Average daily oil products production Percentage of Lost Time (includes employees only) 2.19 2.31 2.36 2.38 2.33
2,034 2,052 2,044
(thousand barrels per day - bpd) Contributions to society
Brazil 1,823 1,832 1,849
Investments in social projects (in R$ million) 249 225 174 199 207
Abroad 211 220 195
Investments in cultural projects (in R$ million) 206 207 155 170 182
Imports (thousand barrels per day – bpd) 549 615 749
Investments in environmental projects (in R$ million) 52 54 94 258 172
Oil 397 316 362
Oil Products 152 299 387 Investments in sports projects (in R$ million) 80 69 42 81 80
Exports (thousand barrels per day – bpd) 705 697 652
Oil 478 497 435
Oil Products 227 200 217
Oil products trade (thousand barrels per day – bpd) CONSOLIDATED FINANCIAL INFORMATION 2009 2010 2011
Brazil 1,754 1,958 2,131
Net operating revenue (R$ million) 182,834 211,842 244,176
International sales (thousand barrels per day – bpd)
Operating profit (R$ million) 45,997 46,394 45,403
Oil, gas, and oil products 537 581 540
Profit / share (R$) 3.43 3.57 2.55
Source of the natural gas (millions of m3 per day)IV 45 62 62
Net profit (R$ million) 30,051 35,189 33,313
Domestic gas 23 28 34
EBITDA (R$ million) 59,502 59,391 62,246
Bolivian gas 22 27 27
Net debt (R$ million) 73,416 61,007 103,022
LNG 1 7 2
Investments (R$ million) 70,757 76,411 72,546
Destination of the natural gas (millions of m3 per day)IV 45 62 62
Gross margin 41% 36% 32%
Non-thermal 32 37 40
Operating margin 25% 22% 19%
Thermoeletric plants 5 16 11 Net margin 16% 17% 14%
Refineries 6 7 9
Fertilizers 2 2 3
Number of thermoeletric plantsV-VI 18 16 16
Installed capacity (MW)V-VI 6,136 5,944 5,806
Fertilizers - on December 31I 2 2 2
Includes information from abroad for Petrobras’ part in associated companies
Proved reserves measured according to the SPE criterion (Society of Petroleum Engineers)
Includes only Transpetro terminals
Excludes flaring, own consumption by E&P, liquefaction and reinjection
Only includes assets in which there is an interest of 50% or more
Only includes the natural gas-fired thermoeletric plants
2 Messages from the CEO
4 About the report
Corporate Performance Labor Practices and
8 Profile Human Rights
12 Corporate governance 68 People management
18 Transparency and account rendering 72 Health and safety at work
20 Strategy 75 Diversity and gender equality
24 Risk management 77 Human rights in the business chain
26 Intangible assets
29 Our stakeholders Environment
80 Strategy and governance
Operating Performance 83 Energy efficiency
34 Exploration and Production 84 Emissions management
41 Refining and trade 86 Biodiversity
44 Petrochemicals and fertilizers 90 Water resources
46 Transportation 92 Environmental liabilities
48 Gas & Power 94 Annexes
50 Biofuels 146 Social Balance
51 International operations 148 GRI Table of Contents
154 Policies and guidelines
Results and Contributions 156 Glossary
to Society 160 Management
54 Economic and financial results 162 Independent auditors’ limited assurance report
58 Contribution to economic development 163 Editorial Staff
59 Local development 164 Acknowledgments, Awards
62 Social investment
Messages from the CEO
Petrobras proved it was ready to face the in- the challenge of ensuring the flow and mon- Petrobras’ history is marked by challenges, produce 1.2 million tonnes of urea and 81,000
ternational economic crisis and closed 2011 etization of the natural gas coming from the and overcoming them has been the company’s tonnes of ammonia annually; and works are
with a legacy of strength and growth. It dem- pre-salt area. To achieve this, it has invested calling. For this reason, I reiterate our strategy slated for completion at UFN V, in Minas
onstrated its operational stability and financial in a new liquefied natural gas terminal and in to adequately meet the demands for products Gerais, which will be able to produce 519,000
credibility, supported by technological capa- fertilizer plants that will use gas as feedstock to and services and to contribute to the develop- tonnes of ammonia per year. I also highlight
bility and by the strength of both its business produce ammonia and urea. ment of society. the ammonium sulfate plant at the Sergipe
plan and its main market, Brazil, and main- Biofuels have consolidated themselves as We are dedicated to the challenge of pro- Fertilizer Factory, which is scheduled to be in-
tained high cash flow. The company increased a source of renewable energy. Hurdles faced ducing oil in the Pre-Salt layer off the Bra- augurated in 2013 with a production capacity
its production and advanced its projects, espe- in supply underpinned the strategic guidance zilian coast and to the commitment of using of 875 tonnes per day.
cially in the pre-salt area. to grow in the ethanol business by signing on minimum local content in our activities. That As the company’s CEO, I must point out that
Petrobras’ domestic oil output grew driven partnerships and building new plants. is why our investment schedule through 2015 Petrobras’ growing business continues accom-
by the entry into operation of platform P-56, Petrobras continued developing initia- earmarks 95% of our expenditures for Brazil, panied by technological progress and by on-
in Marlim Sul, by the connection of new wells tives to strengthen the oil and gas chain in a fact that has had a positive impact on the going efforts in increasing operating efficiency,
and platforms installed in previous years. Brazil. Mindful of the need for skilled labor, expansion of the Brazilian good and service always aligned with the management processes
Petrobras deployed the Lula Pilot project, it has supported the training of about 80,000 industry for the oil sector. Drilling rigs, for ex- that contribute to sustainable development.
which produced as many as 36,000 barrels of workers for the industry and rolled out the ample, will be built in the country, and are re- We have targets to boost energy efficiency and
oil and gas per day, it kicked-off the extended “Progredir” (Progress) Program, to reduce its quired to have local content ranging between reduce the intensity of greenhouse gas emis-
well tests at Lula Nordeste and Carioca, and supplier’s funding costs. 55% and 65%. sions, and have implemented actions to con-
put the Lula-Mexilhão gas pipeline into op- The company’s projects were carried out To meet the growing market demand for serve and restore ecosystems. We also strive to
eration. Another milestone was the declara- with liquidity and solvency, committed with oil products and improve fuel quality, we are promote the safety of both people and processes
tion of commerciality of the second area in maintaining the investment grade and with investing in starting-up four new refineries by and to preserve the health of the workforce.
the Santos Pre-Salt cluster, Guará, giving rise the relationship with the market. Proof of this 2020 and in enhancing and revamping of our Since 2003, Petrobras has complied with
to the Sapinhoá field. was the US$ 18.4 billion in funds raised on the refining capacity. We have already deployed the principles set forth by the United Nation’s
Driven by the growth of the Brazilian domestic and international markets and the new hydrotreatment units and, therefore, have Global Compact concerning human rights,
economy, domestic oil product sales surged 9%. improved credit rating of its debt. committed to produce low-sulfur diesel. In labor standards, environment and fighting
Increased demand, coupled with the rising price Investments in technology, operating safety, 2012, S50 diesel is being supplied nationwide corruption. I reassert our commitment to con-
of ethanol, required Petrobras’ 12 refineries in in the environment and in human resources and its use in new engines affords a minimum tinue participating in the Compact and to dis-
Brazil to run at 92% of their rated capacities. are crucial because they are the assurance that reduction of 80% in particulate matter emis- seminate its values in the corporate universe
Nonetheless, it was necessary to increase oil Petrobras will be able to continue on its path sions to the atmosphere. because I believe sustainable development
product imports to keep the Brazilian market with confidence to overcome challenges and I also highlight our stakes in the Brazilian demands the contribution of the various seg-
supplied, as Brazil is one of the fastest growing achieve its goals. natural gas market, which include building ments of society. Our compliance with the
nations in the world and both a stability and the Bahia Regasification Terminal to boost the principles of the initiative is described in this
development pillar for the company. volume of gas in the national pipeline network. report, which contains information about our
In the natural gas industry, Petrobras con- With start-up scheduled for September 2013, the strategy for conducting business and activities
solidated the transport and thermal power José Sergio Gabrielli de Azevedo regasification terminal will have capacity to re- with social and environmental responsibility.
generation structure and is getting ready for CEO (05/22/2005 - 02/13/2012) gasify 14 million m³/day of liquefied natural gas.
In 2014, operations are expected to go
on stream at the Nitrogen Fertilizer Unit III Maria das Graças Silva Foster
(UFN-III), in Mato Grosso do Sul, which will CEO
2 2011 SUSTAINABILITY REPORT MESSAGES FROM THE CEO 3
About the report Consultations are carried out annually among Petrobras’ audiences to get to know their opinions
about the relevance of certain sustainability-related issues and to help define what should be
covered in the Sustainability Report. For this edition, 190 representatives of several stakeholders
(customers, consumers, the scientific and academic community, communities, suppliers, the
media, investors, civil society organizations, partners, public authorities and the workforce) were
heard, as were company executives.
Comparing the combined perceptions of these audiences and those of Petrobras allowed for the
The Sustainability Report is published annually the full content, including all indicators cov-
compiling, from a total of 33 topics, of a list of the ten most relevant issues for this publication,
to provide all of Petrobras’ stakeholders ered by the publication. As was the case last
the so-called “material topics.” They are:
with information about its operations and year, KPMG Auditores Independentes con-
strategy aimed at sustainable development. ducted the external verification of the data
Additionally, it also contributes to corporate disclosed herein. Prevention of accidents and spills, emergency
management by appraising the company’s There were no significant changes in scope plans and mitigation of impacts
performance and identifying opportunities or coverage compared with the previous Re-
Climate change and greenhouse gas emissions
for improvement. This publication brings port. For time series whose figures may differ
together data for the year beginning January 1 from those published in the former edition, Risk management
and ending December 31, 2011, and succeeds the information is reported with the appro-
the 2010 Sustainability Report. priate explanations on the reason why the Technological research and development
data were updated or on the methodological
Dialogue and engagement with communities
PARAMETERS change that was made. When necessary, the
To prepare the 2011 Sustainability Report, we calculation approaches used to reply to some Worker health and safety
used the 3.1 release of the Global Reporting of the indicators are also presented.
Initiative (GRI) guidelines, the leading global Pre-Salt management, policy and feasibility
initiative on setting parameters for the pro- SCOPE
Transparency in communications with
duction of reports of this nature. Petrobras The information reported herein refers to the stakeholders
declares its 2011 Sustainability Report at A+ Petrobras’ operations in Brazil and other coun-
application level. The Report also meets legal tries, either directly or through its subsidiaries
requirements, commitments and treaties the and affiliates. Exceptions are made and the Energy source diversification
company is a signatory of, such as the ISO limitation in scope used herein defined.
26000 guidelines for social responsibility. As a We have prioritized reporting on projects and Company
signatory to the United Nations (UN) Global initiatives carried out by the controlling com-
Compact, Petrobras should periodically report pany, Petrobras Distribuidora, Petrobras Trans-
on the progress it has made against the ten porte S.A. (Transpetro), Petrobras Química S.A. REPORT CAPTIONS
principles the Compact has laid down, which (Petroquisa), Petrobras Biocombustível, Liquigás,
Learn more is done by means of this publication. + the Alberto Pasqualini Refinery (Refap) or sub- Remarks or additional information + : Shown next to the highlighted text, with references to
in “Corporate Due to limitations, the printed version sidiaries that operate units outside of Brazil, on more data on the subject.
Governance” of the Report prioritizes the most relevant account of the significant size of these compa-
Additional information about the topic @ : Available on Petrobras’ website (www.petrobras.com.br)
information, while the digital one features nies or of their activities.
or in the annexes of the Sustainability Report.
UN Global Compact Icons: These point to the chapters that address the progress that has been
made in each of the ten principles of the initiative.
GRI Index: Shown on page 148, this index lists the pages that report the profile aspects and aspects
E-mail comments, questions and suggestions of Petrobras’ Sustainability Report to related to the economic, environmental and social dimensions. In the digital version, the index
details every aspect of the indicators associated with the description of the topic, the degree of
firstname.lastname@example.org. Your feedback will help us improve the content and adjust it to reader
adherence to the guidelines, and where it can be found in the Report, including information on the
demands and needs.
form of management.
4 2011 SUSTAINABILITY REPORT ABOUT THE REPORT 5
Profile MARKETS SERVED
Besides Brazil, we have operations in 24 countries and representative offices in China, Japan, USA,
Singapore and England. We also have cooperation agreements with several partners to develop
technology and business.
We explore and produce oil in 19 countries, have refining and petrochemical activities in four, gas
and power in three, and work with distribution and trade in eight.
Founded in Brazil in 1953 and headquartered
in Rio de Janeiro, Petróleo Brasileiro S.A.
(Petrobras) is a publicly traded joint stock cor-
poration operating, in an integrated manner,
whether directly or through its subsidiaries
and affiliates (referred to jointly as “Petrobras
System” or “Company”), in the oil, natural gas
and power industry. An industry leader in
Brazil, it expanded its operations to all conti-
nents and has a presence in 28 countries. @
The company’s corporate purpose is
researching, mining, refining, processing,
trading and transporting oil coming from ENGLAND THE NETHERLANDS
wells, shale and other rocks, its products,
natural gas and other fluid hydrocarbons, in
addition to activities related to energy. It can
also research, develop, produce, transport, TURKEY JAPAN
distribute and trade all forms of energy, as well
as any other related or similar activities.
PRODUCTS AND SERVICES
The Petrobras System develops various prod- MEXICO
ucts to meet the needs of the end consumers CURACAO
and of the road, agricultural, industrial, air,
waterway, rail and thermoelectric markets. NIGERIA
The company also holds stakes in enterprises SINGAPORE
that manufacture (from naphtha, a feedstock GABON
used in the petrochemical industry and de- TANZANIA
rived from oil) base petrochemical products BRAZIL ANGOLA
(ethylene, propylene, benzene, etc.) and raw @ BOLIVIA
materials for second generation industries that See more at
make other products (plastics, rubber, etc.) http://petrobr.as/ PARAGUAY AUSTRALIA
used by leading industries that produce goods our-history
for public consumption (packaging, tires, etc.).
AND PRODUCTION AND TRADE
REFINING/PETROCHEMICALS MAIN OFFICE GAS & POWER
8 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 9
Petrobras has 347,721 shareholders in cus- the total number of company investors to
tody with the São Paulo Stock, Commodities about 1 million.
and Futures Exchange (BM&FBovespa) and The company’s joint stock adds up
Banco do Brasil (the primary custodian of the to R$ 205,379,728,979.46, represented by
company’s shares), which, added to 297,216 13,044,496,930 shares without par value, of
quotaholders of funds that invest in Petrobras’ which 7,442,454,142 ordinary shares (57.1%)
stock, to the 80,383 Retirement Fund (FGTS) and 5,602,042,788 preferred shares (42.9%).
investors, and to the nearly 325,000 holders of The Federal Government holds the majority of
American Depositary Receipts (ADRs) bring Petrobras’ ordinary shares: 50.2%.
BUSINESS AREAS Joint stock %
In late 2011, Petrobras’ organization model The Business Areas may be organized Ordinary shares 7,442,454,142 100
comprised the Corporate, Financial and based on operating units (OUs), while the
Federal Government 3,738,835,217 50.2
Services Areas and four Business Areas: International Business Area may incorporate
BNDESPar 173,400,392 2.3
Exploration & Production, Downstream, Gas companies with operations outside of Brazil,
& Power, International. The Corporate Area aligned to the company’s organization and BNDES 442,001,218 5.9
is linked to the CEO, while the others to the management model in order to develop and Social Participation Fund (FPS) 6,000,000 0.1
respective directors. operate related undertakings. Sovereign Fund (FFIE) 344,055,327 4.6
ADR Level 3 1,596,548,816 21.5
FMP – FGTS Petrobras 173,760,453 2.3
This area encompasses oil, natural gas liquids (NGL), and natural gas exploration,
Exploration and production development, and production in Brazil. Its primary aim is to supply the Foreigners (CMN Resolution No. 2689) 420,432,235 5.6
Production Brazilian refineries and trade, on the domestic and foreign markets, both surplus Other individuals and legal entities 1
oil and the products produced at its natural gas processing plants.
Preferred stock 5,602,042,788 100
This area includes oil and oil product refining, logistics, transport and trade
activities, ethanol exports, and schist extraction and processing. Additionally, Federal Government – 0
Downstream it holds stakes in businesses operating in the petrochemical industry in Brazil.
It aims to produce high-quality oil products, ensuring the supply of products BNDESPar 1,341,348,766 23.9
essential for the entire population’s daily life.
Social Participation Fund (FPS) 2,433,460 0
This area’s undertakings include transporting and trading natural gas produced
Sovereign Fund (FFIE) 161,596,958 2.9
in Brazil or imported; liquefied natural gas (LNG) transportation and trade; elec-
Gas & Power tric energy production and sales; and equity interests in natural gas transporters ADR, Level 3 and Rule 144-A 1,596,850,138 28.5
and distributors and in thermal power plants in Brazil. It is also in charge of the
fertilizer business. Foreigners (CMN Resolution No. 2689) 802,385,635 14.3
This area works with oil and gas exploration and production, downstream, and Other individuals and legal entities 1
International gas, power and distribution operations carried out outside of Brazil, in several
countries of the Americas, Africa, Europe, Asia, and Oceania. Joint stock 13,044,496,930 100
Federal Government 3,738,835,217 28.7
BNDESPar 1,514,749,158 11.6
BNDES 442,001,218 3.4
PETROBRAS SYSTEM COMPANIES
Social Participation Fund (FPS) 8,433,460 0.1
The Petrobras System includes Petróleo Petrobras Química S.A. (Petroquisa);
Sovereign Fund (FFIE) 505,652,285 3.9
Brasileiro S.A. (Petrobras), its subsidiaries, Petrobras Biocombustível S.A.;
joint subsidiaries, affiliates and associated ADR (ON Shares) 1,596,548,816 12.2
Liquigás Distribuidora S.A.;
companies and joint ventures. A major portion ADR (PN Shares) 1,596,850,138 12.2
of our services focus on the operations of the Refinaria Alberto Pasqualini S.A. (Refap);
FMP – FGTS Petrobras 173,760,453 1.3
main subsidiaries: Petrobras Gás S.A. (Gaspetro); Foreigners (CMN Resolution No. 2689) 1,222,817,870 9.4
Petróleo Brasileiro S.A. (Petrobras); Petrobras Energia S.A. (Pesa); Other individuals and legal entities 1
Petrobras Distribuidora S.A.; Petrobras Colômbia LTD (PEC);
On December 31, 2011.
Petrobras Transporte S.A. (Transpetro); Petrobras America Inc. (PAI). 1
Involves BOVESPA custody and other entities.
10 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 11
Corporate governance OVERALL COMPANY ORGANIZATION
Corporate Management &
of the CEO
Financial Gas & Power Downstream International Services
Corporate Corporate Corporate Corporate Corporate Environment &
Investment Production Investment Business
Planning and Risk Materials
Programs Engineering Programs Technical Support
As a publicly-traded company, Petrobras is also meet the standards required by Sarbanes- Finances Equity Stakes Development Logistics
subject to the rules set forth by the Securi- Oxley (SOx) and use business drivers, such Projects (Cenpes)
ties and Exchange Commission (CVM) and as the Petrobras System Code of Ethics, the Operations and Offshore Well
Accounting Refining Latin America Engineering
by BM&FBovespa. Outside of Brazil, it meets Code of Best Practices, the Code of Conduct Stakes in Energy Construction
the rules laid down by the Securities and Ex- of the Senior Federal Government, the Code Information
change Commission (SEC) and the New York of Competitive Conduct, and the Corporate Taxation Chemical Gas Services Petrochemicals
Stock Exchange (NYSE), in the United States; Governance Guidelines.
Investor Marketing Marketing Shared
the rules set forth by Madrid Stock Exchange’s Relations & Sales
& Trade Services
Latibex, in Spain; and those of both the Buenos CORPORATE STRUCTURE
Aires Stock Exchange and the Comisión Na- Petrobras’ corporate governance structure Pre-Salt
cional de Valores (CNV), in Argentina. comprises the Board of Directors and Man-
We apply management procedures com- agement Committees, the Executive Board, North-Northeast
patible with the standards of the markets where the Audit Committee, Internal Audit, Busi-
we operate to make sure we are aligned with ness Committee and Integration Commit- South-Southeast
international standards of transparency. In tees. The company is managed by a Board of
addition to the Corporations Law (Act 6,404, Directors, with deliberative functions, and by
of 1976), by which Petrobras is governed, we an Executive Board. On December 31, 2011.
12 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 13
CORPORATE GOVERNANCE MODEL committees serve as forums to analyze and
Petrobras’ corporate governance model examine themes under their specific scope
comprises the Board of Directors and its and can assist in structuring information to
committees; the Executive Board, the Audit be presented to the Business Committee and
Committee, Internal Audit, the Ombudsman’s to the Executive Board. They are divided into:
Office, the Business Committee, and the Segment Committees (E&P, Downstream and
Integration Committees. Gas & Power) and Corporate Committees
Board of Directors: responsible for the (Corporate, Financial, Technology, and Engi-
company’s senior guidance and direction and neering & Services Functions). Commissions
consisting of ten elected members – nine by linked to each committee act as additional
shareholders and one representative of the em- forums for discussion.
ployees -, four of whom independent. Our Code of Best Practices includes poli-
cies on matters related to the use of privileged
Board of Directors Committees: three
information – such as the ban on trading se-
committees (Audit, Environment and Re-
curities in certain periods – and the conduct
muneration & Succession) comprising three
of Petrobras’ Senior Management officers and
members and intended to assist the Board by
employees, noting that they should avoid situ-
providing analyses and recommendations on
ations that may characterize conflict of interest
CHANGES IN COMPANY STRUCTURE and affect the company’s business. The Code
Executive Board: composed of the CEO
of Ethics also addresses the issue, but more ge-
and six officers elected by the Board of Directors.
nerally because it is aimed not only at the top
In 2011, the main changes made to Petrobras’ organizational structure were:
Audit Committee: permanent, compri- management, but also at other stakeholders,
sing five members who are also elected by the such as employees and suppliers.
a) Exploration & Production Business Area: The general management for Resource and Product General Meeting, this committee supervises In 2011, corporate governance training
Scheduling was created and the Good & Service Procurement management reduced to a general the management’s actions and examines the fi- programs were developed for directors, mana-
management on account of the creation of the new E&P Maritime Well Construction and E&P nancial statements, among other assignments. gers and tax advisers and officers of companies
Production Development Project executive managements in 2010. Internal Audit: plans, implements and that are part of the Petrobras System. Topics
assesses the internal audit activities and meets such as state-owned enterprises, manager lia-
b) Service Area: The general R&D Geoengineering and Well Engineering management and eight
the requests made by the Senior Management bilities and corporate risk management have
more managements were created at the Leopoldo Américo Miguez de Mello Research & Develop-
and external control agencies. Petrobras also been addressed in lectures to raise awareness
ment Center (Cenpes); additionally, the attributions and designations of other units were changed.
hires an external auditing firm, chosen by the and disseminate world-class best practices.
These adjustments were made due to heightened investments in gas and power, gas chemistry
Board of Directors and forbidden from pro-
and biofuels operations, to the complexity of the technological challenges involved in water and
viding consulting services during the term of
wastewater treatment and reuse at the operating facilities, and to the technological challenges in BUSINESS DRIVERS
exploring and producing in reservoirs located in the Pre-Salt cluster. The Petrobras System has policies, codes, pro-
At the Information Technology and Telecommunications (IT) executive management, organizational General Ombudsman’s Office: linked cedures and statutes that allow it to protect its
adjustments were made at both the main office and at the regional units seeking economies of directly to the Board of Directors, this office shareholders’ interests and reflect its commit-
scale and improved governance for the implemented processes. A few units were also reduced and receives and handles claims coming from the ment to issues such as sustainable develop-
modified to the IT, Exploration & Production general management and the IT Downstream general company’s stakeholders; additionally, it coor- ment, business ethics and the appreciation of
management due to the challenges posed by the Pre-Salt and the new Downstream units. dinates actions aimed at transparency and at its employees.
combating corruption. + In this context, the limelight is on the +
c) Financial Area: Two general managements were created in the Tax executive management: Learn more about the
Business Committee: composed of the Bylaws, the Code of Ethics, the Corporate
External Relations and Strategic Tax Assessment; and Tax Advice. role of the General
members of the Executive Board and other Governance Guidelines, the Code of Best
company executives, this committee analyzes Ombudsman’s Office
d) Business Areas (E&P, Downstream, Gas & Power and International): Adjustments were made Practices and the Code of Competitive Conduct,
in “Transparency and
to the health, safety, environment and energy efficiency role at the Business Areas by breaking corporate issues involving more than one area, in addition to the policies on Health, Safety,
down the Energy Efficiency and HSE processes, from Petrobras’ value chain, with the alignment of as well as those whose importance and rele- and Environment (HSE), Human Resources,
the organizational structures to these processes. To streamline its corporate structure and slash vance demand broader debate and issues an Social Responsibility, Corporate Practices, New
costs, Petrobras merged these subsidiaries to its assets: Comperj Petroquímicos Básicos S.A., opinion to the Board. Business Development, Capital Discipline,
Comperj PET S.A., Companhia Mexilhão do Brasil (CMB), Termorio S.A., Usina Termelétrica de Integration Committees: composed Communications and Tax Management and
Juiz de Fora S.A., and Fafen Energia S.A. of the company’s executive managers, these the Principles of Corporate Security.
14 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 15
CODES AND STATUTES management of the company’s business and customers’ credit. Once analyzed, the credit is process involves three steps: assessment of
Based on the Corporations Law, Act No. 6,404, activities and of its relationships with all of approved by credit committees or, at a higher the controls at the entity level to diagnose the
of December 15, 1976, our Bylaws determine its stakeholders, driving human rights and level, jointly by the chief financial officer and corporate governance environment; self-as-
the nature of the corporation and define the citizenship, respecting human and cultural by the officer who is in contact with the cus- sessment of the business process and internal
company’s goals, its economic activities, diversity, not allowing discrimination, de- tomers. The volume of loans has been growing control designs by the managers; and, finally,
capital stock, shares and shareholders. The grading work, child and slave labor, con- each year, keeping pace with the company’s control testing by Internal Auditing.
document also discusses, among other topics, tributing to sustainable development and to expansion and allowing for an increase in sales At Bovespa, Petrobras’ shares are part of
our relationship with our subsidiaries and reduce social inequality. with the least possible risk, especially overseas. the Bovespa (Ibovespa), Brazil (IBrX), and
affiliated companies, employees, boards of Health, Environment and Safety Policy: The credit use control and granting pro- Brazil 50 (IBrX50) indices. At the New York
directors and audit committees and how the This policy guides the activities carried out cess, both within Brazil and abroad, is central- Stock Exchange, the company’s ADRs are part
meetings take place. in health, environment, safety, and energy ef- ized and constantly enhanced to support the of the NYSE International 100 Index and of
The Code of Ethics defines the ethical ficiency. It includes topics such as workforce trade activity. This draws the company closer the NYSE World Leaders Index. Petrobras, via
principles and conduct commitments that education, training and commitment, iden- to its customers and expands the use of credit Petrobras Energía Participaciones S.A., is also
guide Petrobras System’s actions. It was pre- tifying, controlling and monitoring risks, as a trade instrument. The annual certification listed on the NYSE Energy Index.
pared with input from the workforce and from impacts of and benefits afforded by projects,
the many company areas. Investors, commu- ventures and products throughout their life
nities, suppliers, customers and competitors cycle in the economic, environmental and so-
also took part in the process. cial dimensions, in addition to operation and UN GLOBAL COMPACT
The Code of Best Practices encompasses product eco-efficiency. The policy is broken
internal policies that have significant impact down into 15 guidelines that contain different
on governance and on the company’s eco- requirements in their details. These include We conduct our business in accordance with the principles of the United Nations Global Compact.
nomic performance: Internal Policy for the Learn more about
risk assessment and management, commu- Through this initiative, companies voluntarily commit to meet and report their performance in the
Disclosure of Information on Material Acts or the commitments
nity relations, accident and incident analyses, principles related to human rights, labor relations, environment and fighting corruption. A Global signed by Petrobras
Facts; the Internal Policy for Trading in Secu- product contingency and management. Compact signatory since 2003, Petrobras has been on its international board since 2006, and in 2011 and the company’s
rities, Internal Policy for the Conduct of Of- Human Resources Policy: This policy brings assumed the chairmanship of the initiative’s Brazilian Local Committee. participation
ficers and Members of Senior Management of together guidelines to Human Resources in forums and
Petrobras; Internal Policy for Appointment for areas for the development of their activities. It Petrobras’ subsidiaries in other countries take part in the Local Networks of the Global Compact, as associations
Management Positions at Subsidiaries, Hold- covers topics such as attraction and retention, is the case in Argentina, Bolivia, Chile, Paraguay, the United States, Japan, Peru, Portugal, Nigeria,
ings and Affiliates; and Investor Relations. development, culture and ambience, recogni- Turkey, Colombia, Uruguay and Mexico.
In order to give guidance to managers, tion of results attained by teams and individ-
employees and service providers, the Code uals, promotion of management practices and THE TEN PRINCIPLES OF THE GLOBAL COMPACT ARE:
of Competitive Conduct seeks to maintain a processes that lead to satisfaction and commit-
relationship with competitors based on the ment at work and ongoing negotiation process
principles of honesty and respect and adopts with trade unions representing the employees. RESPECT MAKE SURE UPHOLD ELIMINATE EFFECTIVELY
explicit, stated rules on these procedures. The The policy consists of seven items that are
and support the company is the freedom of all forms of eradicate all
internationally not complicit with association and forced or forms of child
document represents the company’s commit- broken down into detailed guidelines. proclaimed human human rights recognize the compulsory labor from its
ment to comply with the Brazilian laws related rights in its area abuses right to collective labor productive chain
to the defense of competition or antitrust and RULES AND STANDARDS of influence; bargaining
with the jurisdictions of the countries where Petrobras’ business with its subsidiaries, affili-
we conduct business. ates, special purpose corporations and associ-
ENCOURAGE SUPORT UNDERTAKE ENCOURAGE WORK AGAINST
ated companies are carried out in accordance practices that a precautionary, initiatives and the development corruption in
COMPANY POLICIES with market prices and conditions. In addi- eliminate responsible, and practices to and dissemination all its forms,
Petrobras System’s policies provide strategic tion to the rules of the Brazilian Securities discrimination in proactive approach promote and of environmentally including
guidance and are based on the company’s values. Commission (CVM) and Stock Exchange
employment and to environmental disseminate social friendly extortion and
occupation; challenges and environmental technologies bribery
Social Responsibility Policy: This policy (BM&FBovespa), Petrobras also follows the responsibility
defines social responsibility as a mechanism guidelines set forth by the Sarbanes-Oxley
for the integrated, ethical, and transparent Act (SOx) for granting and reviewing its
16 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 17
Transparency and and by Customer Service (CCS) or those for-
warded by external control agencies – Court
The Petrobras System refuses any practice
accountability of Auditors and the Comptroller General of
the Union – and by the Federal Prosecutors
that involves corruption and bribery, and uses
management instruments such as the Compe-
Office. Employee involvement in misconduct tition Behavior and Good Practice codes, in
is investigated by the Corporate Security Man- addition to following the Code of Conduct of
agement or by internal commissions formed the High Federal Administration, the applica-
especially for this purpose, thus combating tion of which is inspected by the Presidency of
acts of corruption. the Republic’s Ethics Commission. Corporate
Transparency is an ethical principle that and complaints from stakeholders. The office Five cases of alleged discrimination were Security areas manage and coordinate the ap-
guides Petrobras System’s actions. In addition can be reached by phone - including a toll-free received, two of which labor complaints and plication of a risk assessment methodology to
to the Global Compact, through its tenth prin- hotline -, fax, by letter, e-mail, a form posted three cases investigated by the Federal Pros- evaluate security risks at the various business
ciple, we participate in the Partnership Against on the website, personally or through boxes ecutors Office on account of supposed moral units. This practice helps identify vulnerabili-
Corruption Initiative (Paci) and the Extractive located at some of the company’s units. All harassment. The first grievance was filed since ties that may allow acts of corruption to take
Industries Transparency Initiative (Eiti). claims received are analyzed and forwarded to the complainant did not attend the hearing; place, although no specific assessments are
For the sixth consecutive year, we have be handled by the relevant areas. Cases rated the second one awaits an initial hearing. made concerning this topic.
been listed on the Dow Jones Sustainability as denunciations, which require expert assess- Petrobras is monitoring the three other cases. Employees are trained based on the anti-
Index (DJSI), the most important global index ments, are sent to the Internal Audit or Cor- In 2011, Petrobras General Ombuds- corruption policies and procedures, and com-
on the issue. The DJSI evaluates the com- porate Security areas, which report the results man’s Office recorded 31 cases relating to pany operating units are subject to actions
pany’s performance on economic, social and they reach to the Ombudsman. human rights. Thirteen cases were inves- designed to assess the risks related to the topic.
environmental dimensions, and its renewal Every six months, the Ombudsman’s Office tigated and wrapped up. The others were In addition, the company conducts internal
consolidates Petrobras among those with the forwards the report on the complaints received dropped on account of insufficient evidence campaigns to disseminate the principles set
best management practices in the industry. to the Executive Board and to the Board of to start the due handling. forth under its Code of Ethics, fighting nepo-
According to the Index’s assessment criteria, Directors, and reports its activities to the Board Cross-cutting issues related to human tism and not accepting favoritism or the re-
the company made improvements in the eco- of Directors’ Audit Committee. rights are addressed in training courses ceipt of undue advantages.
nomic and social dimensions and maintained Petrobras University offers to the employees. Security Personnel and Reception contrac-
its performance in the environmental one. It In 2011, lectures were held for managers, su- tors are trained, since they start working at
STATUS OF THE CLAIMS
should be noted that it got the top score in the pervisors and new hires in order to reinforce Petrobras’ operating units, in HSE procedures
Concluded 8,062 and concerning the Code of Ethics. Addition-
Transparency criterion for the fifth time. the topics and curb practices that hinder the
Pending 949 company. Human rights have been addressed ally, they also get other specific training, for
The company was also awarded the 2011
Transparency Trophy in the “Publicly Traded Total 9,011 as a crosscutting topic in Social Responsibility example, on the units’ emergency procedures.
Companies” category, with income in excess of courses - 1,623 participations and 25,774 man- In all training sessions and in other opportu-
MEANS OF CONTACT hours of training (MHT) – and in the courses nities, aspects related to assuring individual
R$ 8 billion. Granted by the National Associa-
tion of Executives in Finance, Administration Form on the Ombudsman’s
3,585 on Diversity and Inclusion of African Descents human rights, to civil and criminal liability,
and Accounting (Anefac), Financial Research (19 participations and 34 MHTs). and other practices relating to civility and
Institute Foundation (Fipecafi), and Serasa Ex- Employees holding managerial positions good relationships with people are presented
Toll-free hotline (0800) 862
perian, the award encourages corporate trans- attended courses on Ethics and were trained and discussed.
@ Phone 682
Learn more about parency on the Brazilian market through the in anticorruption policies and procedures, in According to its Code of Ethics’ guide-
In person 590
disclosures and strict assessment of the disclosure practices of a total of 168 MHTs, while those not holding lines, the Petrobras System makes no contri-
Denunciation Channel 186 butions to political parties or to candidates
general meetings accounting information, of the quality of the management positions added up to 1,074
Boxes 54 to elective offices. The company’s business
management report and of the consistency of MHTs. Security personnel, meanwhile, took
Letter/fax 40 requires transparency in actions and posi-
the data presented. @ part in the basic Social Responsibility and
Total 9,011 Diversity courses. Over the year there were 91 tions, particularly regarding the information
RECEIVING CLAIMS participations and 1,316 MHTs. published to society.
Petrobras General Ombudsman’s Office serves Petrobras investigates complaints or irregu-
as a channel for receiving opinions, suggestions, larities received by the Ombudsman’s Office
18 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 19
emphasis on Pre-Salt development, where refining capacity to ensure the supply of the
production is expected to reach 543,000 boe in Brazilian oil product market. The expectation
2015. The price, market and macroeconomic is that oil throughput in Brazil will reach 2.2
Strategy assumptions used to prepare this plan were
based on two corporate scenarios for 2030.
million bpd by 2015, with emphasis on the
entry into operation of the Abreu e Lima
Refinery and of the first phase of the Rio de
PLANNED INVESTMENTS Janeiro Petrochemical Complex (Comperj).
The 2011-2015 Business Plan foresees invest- Investments in Gás & Power will be impor-
ments of US$ 224.7 billion, US$ 700 million more tant to complete the expansion underway for
than had been foreseen under the previous plan. the natural gas transportation network and for
Aiming to be, by 2020, one of the five lar- Due to the new challenges the company Of the total amount to be invested by 2015, thermal power generation. The funds will also
gest integrated energy companies in the faces to meet domestic demand for oil products the segments that will get the largest amounts help drain the gas coming from the Pre-Salt
world and the preferred choice among all of and because of removal of the “to develop the are: Exploration and Production (E&P), region, converting the product into urea, am-
its stakeholders, Petrobras bases its strategy market in order to export oil products from which will get US$ 127.5 billion (57% of the monia and methanol, and drive the company’s
on three sustainability pillars: integrated Brazil” from its business strategy, an adjustment total); Refining, Transportation, Trade (RTT), operations in the LNG chain.
growth, profitability and social and environ- was made to the mainstay of the Downstream at US$ 70.6 billion (31%); and Gas, Power and The Biofuels segment will get investments
mental responsibility. (RTT) and Distribution businesses during the Gas Chemistry, at US$ 13.2 billion (6%). worth US$ 4.1 billion; Petrochemicals will get
review of Petrobras’ Corporate Strategy. Of the total earmarked for E&P, the share of US$ 3.8 billion, Distribution, US$ 3.1 billion,
investments directed to exploratory activities and the Corporate area, US$ 2.4 billion.
Commitment to sustainable development
amounts to US$ 22.8 billion. Investments in Additionally, for the first time the company
Sustainability Social and environmental
Integrated growth Profitability
pre-salt projects, meanwhile, total US$ 53.4 included a divestment program worth US$ 13.6
billion, with oil production slated to reach billion in its Business Plan for the 201-2015
Summary of the Enhance operations in the target oil, oil product, petrochemicals, gas and energy, biofuels, and distribution 543,000 barrels per day (bpd) in 2015. period. The goal is to improve Petrobras
Corporate Strategy markets, being a global benchmark as an integrated energy company
Insofar as RTT is concerned, the forecast System’s asset management efficiency and to
Downstream (RTT) and Gas and
Distribution Gas Chemistry
Petrochemicals Biofuels production growth requires an increase in ensure its profitability.
Grow oil and gas Expand Brazilian Consolidate the Operate in Operate
production and refining, ensuring leadership in the petrochemicals sustainably in the
Pillars of the Business
reserves sustainably, domestic supply Brazilian natural in an integrated biofuels segment NEW PROJECTS
Segments and be acknowledged and leadership in gas market, with manner with in Brazil and
for excellence in E&P, distribution, developing international other Petrobras abroad, in an
ranking the company export markets for performance, and System integrated
among the world’s five surplus oil produced expand the electricity businesses. manner in The 2011-2015 Business Plan foresees US$ 32.1 billion in investments in new project development.
biggest oil producers. in Brazil. and gas chemistry the Petrobras Of this amount, the company will earmark 87% to E&P-related expenditures, especially the transfer
businesses, with System.
emphasis on fertilizers.
of rights projects, new Pre-Salt (Lula) units, infrastructure and operating projects and research
and development. Meanwhile, in the Downstream area, which includes petrochemicals, major new
Skill and Resource base Excellence in operations, management, energetic efficiency, human resources, and in technology. projects are connected to new Comperj units (lubricants) and to oil logistics. The gas, power and
gas chemistry area contributes with the Barra da Rocha I and Bahia II thermal power plants.
In view of the challenges to meet the Brazilian The 2011-2015 Business Plan incorpo-
demand for oil products and of the positive out- rated the investment projects foreseen for the
look for Pre-Salt layer exploration, Petrobras transfer of rights, which add up to US$ 12.4
has included new positions, such as increasing billion, and prioritized production in Brazil. CHALLENGES AND OPPORTUNITIES
the company’s long-term growth targets. Total oil and natural gas production will reach To implement its strategies, Petrobras identi- building new facilities, infrastructure and lo-
3,993,000 barrels of oil equivalent (boed) in fies key challenges and opportunities from the gistics in various Brazilian regions in order to
2011-2015 BUSINESS PLAN 2015, 3,688,000 boed of which in Brazil. perspectives presented in its Business Plan. meet the demand brought about by the bur-
The company has an investment program The transfer of rights is a contract whereby The challenges include: geoning Brazilian oil product market;
worth US$ 224.7 billion to achieve the growth the Federal Government transferred to Critical resources (goods and services, Local content: Petrobras’ leadership in the
targets set forth under its 2011-2015 Busi- Petrobras the right to produce 5 billion barrels human resources): Petrobras’ long-term growth implementation of innovative initiatives, along
ness Plan. Of the total to be invested, about in the Pre-Salt area and receive in exchange the is strongly related to strengthening the chain with other professional associations and fed-
95% (US$ 213.5 billion) will be earmarked for same bonds it used to buy shares in the com- of Brazilian good and service suppliers and eral and state governments, will be key to
projects to be carried out in Brazil. The other pany’s capitalization process. to attracting, retaining and training human strengthen the Brazilian oil and gas good and
5%, about US$ 11.2 billion, will be directed to The Exploration and Production (E&P) resources; service industry’s competitiveness;
activities in other countries, focusing on the segment concentrates most of the invest- Infrastructure and Logistics: developing Pressure of costs: E&P and Downstream
United States, Latin America and West Africa. ments foreseen under the 2011-2015 BP, with Pre-Salt areas and the new refineries requires investment costs are on an upward trend in
20 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 21
the international arena. In Brazil, mainly due which are complementary to the supply of the oil flow issues. Experts study the behavior of and natural gas exploration, development and
to the expansions made in infrastructure to thermal power plants. oil inside the rock, analyzing the geometry of production in Brazil. The enactment of Law
support economic growth, the competition these minerals to better position the wells and 12,351, dated December 22, 2010, introduced
between our projects and those underway in PRE-SALT reduce drilling time and production costs. the production sharing system, under which
other sectors has heightened cost pressure in The Pre-Salt reservoirs are located about 300 In the oil lifting process, the company aims the Government will hire the production both
almost all areas and components, including kilometers off the coast, in a zone ranging to develop a new generation of submarines in the Pre-Salt areas and in other areas consid-
skilled labor. Therefore, capital discipline and from the state of Espírito Santo to the state of and marine systems for remote environments ered as strategic. Hitherto, all operations had
cost control initiatives, tools and procedures São Paulo, in ultradeep waters, of more than 2 to prevent incidents. been carried out under concessions, as is yet the
will be required at all levels of the company. kilometers, 3 to 5 kilometers under the seabed, Among the projects developed in tech- case for most of Petrobras’ contracts abroad.
Besides the challenges, a few external fac- and further nestled under a 2-kilometer thick nology programs, issues that stand out are With the new regulatory framework, Brazil
tors in the business environment, seen as posi- layer of salt. The current oil and gas discov- the characterization and foreseeability of un- now has three oil and natural gas exploration
tive and conducive to the development of the eries made in the Pre-Salt province concession conventional and heterogeneous carbonate and production regulation systems: transfer of
2011-2015 Business Plan, stand out. Opportu- areas, which account for 30% of this total area, reservoirs, ensuring oil flow in ultradeep wa- rights, concession, and production sharing.
nities include: may nearly double the Brazilian reserves, cur- ters, cost reductions in well drilling campaigns Under the transfer of rights, Petrobras is
Economic growth: Brazil’s economy has rently estimated at 16 billion boe according to through new technologies and procedure im- entitled to pursue exploration and production
shown consistent fundamentals that sup- the criterion laid down by the Society of Petro- provements, the supply of special materials activities in certain Pre-Salt areas, limited to
port the continued economic boom started leum Engineers (SPE). and the operation of complex gas plants at the the production of 5 billion barrels of oil over a
in 2005/2006 and have potential for strong Deepwater exploration technologies are re- production units. 40-year span. The transfer of rights agreement,
growth in the demand for energy, oil products searched and developed aiming to explore the Petrobras has developed a series of pro- worth R$ 74.8 billion and signed in 2010 with
and natural gas in the medium and long term; Pre-Salt accumulations. To make it feasible to cedures that are harmless to the environment the Federal Government, is part of the com-
work at the site, over the years Petrobras has and enable greater control over the opera- pany’s intangible assets. If volumes and prices
Market growth: Brazil is the world’s seventh
made frequent adjustments to its technical and tions in all possible scenarios, implementing are reviewed based on independent technical
largest oil consumer and is expected to rank
logistical processes. technologies in the management of water and reports, as provided for under the contract,
among the top five in 2020. Petrobras’ leader-
The goal is to achieve, by 2017, a daily wastewater, CO2 and other emissions, and in any differences may lead to adjustments to the
ship in the different oil industry segments in
production in excess of a million barrels of oil energy efficiency. acquisition price.
the Country enhances growth opportunities
in the Pre-Salt areas we operate. The transfer of rights agreement also fore-
for its activities;
FEASIBILITY AND REGULATORY FRAMEWORK sees minimum commitments for good and
Attractiveness of investments: The compa-
TECHNOLOGICAL CHALLENGES The discovery of the Pre-Salt cluster led the service acquisition from Brazilian suppliers at
ny’s project portfolio in the ultradeep water oil
Enabling ambitious projects in record time re- Federal Government to revise its rules for oil the exploration and production stages.
and gas development area in Brazil, including
the Pre-Salt, is known to be attractive to com- quires coordinated efforts by several company
panies in the industry. This is due to the low areas and by partners. Challenges include, for
cost of the discoveries or to the company’s example, speeding up technology development
performance and leadership in applying new by increasing capacity for innovation in Brazil,
technologies, in developing, and in operating based on the work done in network with sup-
production activities in ultradeep waters; pliers and science and technology institutions.
One challenge is creating materials that
Oil potential: In the last five years, half of the
are highly resistant to corrosion, since the salt
discoveries made in the world were nestled in
can create tension and close the wells; another
deep waters, and of these, 62% were in Brazil;
is using equipment built with special alloys
Biofuels: Brazil has strong competitive ad-
that are more resistant to corrosion caused by
vantages in the production of biofuels. Also
the CO2 coming into contact with water. One
relevant is the increased share of products such
more factor to consider is the temperature at
as ethanol and biodiesel in the fuel market;
which the oil comes out of the rock. Because
Agricultural potential: A major agricultural of its very high temperatures, the oil may form
commodity exporter, Brazil has the potential precipitation while entering the flexible lines
to continue increasing its production in the that are in contact with the ice-cold sea water.
primary sector, which has demanded growing Hence the need to develop materials that pre-
nitrogen fertilizer imports. Here, Petrobras vent or reduce the impact of this phenomenon.
sees the opportunity to create a new gas con- Chemicals that inhibit and dissolve precip-
sumption alternative building fertilizer plants, itation are being researched in order to avoid
22 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 23
response drills involving the Brazilian Navy, legislation and the determinations of regulatory
Civil Defense, the Fire Department, Military bodies. Emergency plan response capacity is
Police, environmental agencies, municipal sized taking worst-case incident scenarios into
Risk management governments and local communities. These ac-
tions are featured in the corporate HSE guide-
account and to cover all areas where Petrobras
operates, including the Pre-Salt cluster.
lines and foreseen in the Emergency, Individual To ensure both maximum protection for
Emergency and Oil Spill Emergency plans. our operation units and speedy responses,
In 2011, Petrobras brought together various the strategically located Environmental De-
partners, such as the Brazilian Air Force and fense Centers (EDCs) keep collector boats,
Navy, to define strategies for rescue operations ferries, chemical dispersants, bioremediation
WE HAVE TRAINED Factors that may impact corporate results are technological content, Petrobras is subject to
that require swift, synergistic action to agents, and up to 20 thousand linear meters of
mapped in our integrated risk management strict operating procedures and meets both the
be successful. In a contingency situation, containment and oil absorption barriers con-
PERSONNEL AND strategy, which is under the responsibility of Brazilian and international safety standards.
everyone is aware of their roles. stantly available. The teams working on the
the Financial Integration Committee. Several We analyze the risks for our offshore and
MATERIAL types of risks are considered in order to ensure onshore drilling projects, and the equipment
The emergency plans and brigades to combat platforms are certified by the International As-
spills, for incidents occurring in the operating sociation of Drilling Contractors (IADC) and
RESOURCES IN the systematic monitoring of the growth and used in them meet the industry’s most
area and in transport, meet both the current take part in accident simulation drills weekly.
profitability goals, the variables of which range advanced safety practices, incorporating the
ORDER TO from the role of the business on the financial well-drilling experience we have accumulated
market (market risk) to those associated with over the years. ENVIRONMENTAL RISKS
productivity (operational risk). All offshore drilling units operating for the
EMERGENCY PLANS It is worthy of note that we also manage company are equipped with detection systems 30 large vessels to collect oil;
the risks related to obligations taken on with that trigger immediate and automatic well 130 support vessels;
third parties (credit risks), to the negative closure in the event of an emergency, such as
exposure of the Petrobras brand (reputation prevention in case of a loss of control. There
150,000 meters of containment barriers;
risk), to the environmental impacts caused by are also gas detectors installed in several places
our operations (environmental risks), to the on the platforms, alarms that signal pressure 120,000 meters of absorption barriers;
impacts of natural physical phenomena on or volume increases inside the well, in addition 400 oil collectors;
production or to the business (physical risks), to systems to prepare and inject fluids into the 200,000 liters of chemical dispersants;
and those related to actions involving regula- well, which also serve as safety barriers.
Ten Centers for Environmental Defense and 13 outposts;
tions in the countries and markets where we Another mechanism is the implementa-
Emergency Response Centers spread in over 20 cities in Brazil.
operate (regulatory risks). tion of corporate HSE guidelines, the pur-
Insofar as the risks above are concerned, we pose of which is to prevent accidents and to
have prioritized structural actions created based respond quickly if they do occur. Aligned with
on the appropriate management of capital and this model, in December Petrobras signed an ENVIRONMENTAL RISKS
debt. To protect the outcome of transactions international cooperation agreement with Oil The procedures done to certify the company’s guidance is valid for the launch of new prod-
involving physical loads on the international Spill Response (OSR) for mutual support to units are aligned with the corporate HSE guide- ucts whose components can pose risks to
market, we only perform operations with de- respond to major accidents involving spills. lines and monitored by the Board of Directors’ human health or to the environment. These
@ rivatives (futures, swaps and options). Nonethe- In effect from 2012, this agreement will enable Environment Committee, which, among its components are replaced by others with
Learn more about
less, we are subject to exchange and interest rate the exchange of experiences at the planning, responsibilities, assesses the environmental known and manageable risks.
insurance contract, variations, such as those in the oil and deriva- logistics, training and spill response stages and risk management and monitors mitigation We also apply the Precautionary Principle
internal controls and tives markets, which may have adverse effects consolidate current concepts with regard to and control actions. All Petrobras System op- in the mandatory submission of the certificate
credit on the value of our assets and liabilities or on the new technologies and response strategies erating units run the Environmental Risk Pre- of conformity of equipment and piping in-
our profits and cash flows. @ and to optimizing resource use and sharing. vention Program (PPRA) and develop specific stalled at service stations, of furniture and of
action plans for biodiversity management. all items that can be sold during oil changes.
ACCIDENT PREVENTION EMERGENCY PLANS We also follow the Precautionary Prin- In the operational processes, one of the es-
As it is the world’s leading deepwater We have trained personnel and material re- ciple, as it is an important strategy to work sential cares to ensure people’s health and
operator and because it is acknowledged for sources spread in upwards of 20 cities in order seamlessly in risk assessments and environ- environmental preservation is the instruction
the excellence of its operations in this area, to operationalize emergency plans. mental impact for new projects or to make that the employee must stop the procedure if
characterized by sophisticated technical and In 2011, we performed 18 regional emergency major changes to existing facilities. The same he or she has any question about it.
24 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 25
RESEARCH & DEVELOPMENT research consistent with the company’s stra-
The company invested R$ 2.4 billion in research tegic interests, which adds to the opportuni-
and development (R&D), 41% more than in ties for industrial growth in Brazil. Long-term
Intangible assets 2010. Noteworthy is the reinforcement of the
partnership with suppliers and the Brazilian
technology partnerships are also established,
with the creation of world-class laboratories,
academic community, mostly in projects focused by training researchers/human resources, and
on activities in the Pre-Salt area. with the development of gas, biofuels and en-
Approximately R$ 500 million were in- vironmental preservation projects. Funds are
vested in universities and science and tech- allocated to 50 thematic networks bringing to-
nology institutions in Brazil for R&D projects, gether researchers and laboratories, reaching 80
to train technicians and researchers and expand institutions, universities and research centers
laboratory infrastructure, with the opening nationwide, with the participation of suppliers.
of 35 laboratories in 17 institutions in 11
Brazilian states. Encouraged by Petrobras, 15 NEW TECHNOLOGIES AND PATENTS
major oil and gas industry suppliers built or Over 2011, in partnership with the thematic
started building research centers in Brazil. We networks, Petrobras developed new technolo-
also had 44 cooperation agreements in place or gies that enable ongoing improvements in the
memoranda of understanding with Brazilian exploration, production, refining and trans-
and international companies. portation processes and also help lessen en-
vironmental impact. These partnerships are
RESEARCH CENTER responsible for research into bioproducts,
The Leopoldo Américo Miguez de Mello Re- such as the development of second generation
search Center (Cenpes), the largest applied biofuels, keeping the company at the forefront
research complex in the Southern Hemisphere of global production in this area. One line of
and of exclusive use of Petrobras, is in charge research is the use of sugarcane bagasse to
of managing the funds earmarked for R&D. produce cellulosic ethanol, which allows an
The Cenpes expansion project, which was increase of up to 40% in fuel production per
based on eco-efficiency and sustainability, was cultivated area.
granted the Green Building Brazil award in the Technologies have been developed that
“Sustainable Public Works” category. In total, allow for testing with new fuel combus-
1,814 employees work at Cenpes, of whom tion and performance parameters, reducing
1,342 solely with research and development gas and particulate emissions; additionally,
and 314 with base engineering for the indus- testing is also underway with CO2-seques-
trial plants’ projects. Insofar as qualifications tering algae that, during growth, produce oil
are concerned, 24% of the researchers hold that can be used in various byproducts. This
doctorates and 43% master’s degrees. technology is associated with projects con-
The company’s intangible assets comprise its brought recognition to the company both ceived to capture, transport and store carbon
employees’ knowledge, its organizational cap- in the 2011 Brazil Intangibles Award, with TECHNOLOGICAL COLLABORATION NETWORKS (Carbon Capture Storage - CCS), mainly in
ital, its relationships, technological and en- the spotlight on the award in the “Corporate Petrobras adopts the thematic network model the Santos Basin, where the largest area of the
vironmental knowledge, over and beyond its Knowledge” category, and in the Make Brazil to encourage the development of technological pre-salt cluster is located.
brand and reputation management. The man- Award, which acknowledges the best initiatives
@ agement of these intangible assets is treated in knowledge management. According to Rep-
Learn more about in the Petrobras System Management Guide, utation Index 2011, the main corporate repu-
reputation and which covers issues such as reputation, brand tation ranking in Brazil, which takes intangible
Petrobras’ brand and organizational knowledge. @ assets into account, Petrobras is the second
The importance given to asset management most reputable company in the Country.
26 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 27
MAIN RESULTS IN R&D
Development of a methodology that allowed the different types of oil in the Santos Basin
pre-salt area to be characterized, which, in turn, will afford more efficient production planning; Our stakeholders
Drilling of first well in the world with the Liner Conveyed Gravel Pack technology, which reduces the
time required to drill horizontal wells in mature fields;
Demonstration of the compact GTL (gas to liquids) technology to produce synthetic oil from gas,
eliminating gas burning in extended well tests (EWTs);
Installation of the prototype underwater oil-water separation station in deep waters in the Marlim
Petrobras has determined that its stakeholders COMMUNICATIONS AND RELATIONSHIPS
field. The interconnections with this field’s production system will be completed in 2012. This
technology enables increased production in mature offshore fields with the improved use of existing are groups of individuals or organizations with To the Petrobras System, it is essential to de-
production systems; common economic, political, social, cultural velop and maintain communication and re-
and environmental needs and issues that have lationship practices with its stakeholders
Drilling of a well with a final 53° tilt in the salt layer. This technological solution, currently being or may come to have relationships with the based on continuity, reciprocity, integrity and
developed for drilling horizontal and extended wells in the pre-salt, will increase production and company and are able to influence or be influ- dialogue. We use research tools that enable
reduce the number of wells needed; us to identify and analyze image and reputa-
enced by Petrobras’ businesses, activities and
Qualification of the subsea sea water injection system to boost production in mature fields. Three of reputation. They are defined and rated in the tion characteristics, needs and issues with the
these systems are at their final installation stages the in Albacora field; Integrated Communication Plan. various stakeholders and the public opinion,
In addition to bringing the audience con- assessing impacts, risks and opportunities for
Proof of the rigid riser technology for Pre-Salt platforms, allowing for increased competitiveness in cept and ratings, the plan also contains the stra- the company and its network of relationships.
this market and, thus, cost reductions; tegic communication objectives determined
based on surveys and is applicable to various COMMUNICATION CHANNELS
Start of production of Diesel Podium with 50 ppm of sulfur (S-50) at the Henrique Lage Refinery
(Revap), anticipating the supply of the product on the Brazilian market by six months; countries where we operate, considering the Petrobras System’s main communication
environment and nature of the operation. channels include the Customer Service Center
Completion of the castor bean and sunflower seed production system optimization model (CSC) and the Ombudsman’s Office, who
in the semiarid region, which will enable significant gains in productivity through choices in PETROBRAS’ STAKEHOLDERS direct to the appropriate company area the
planting densities and varieties, pest and disease control, fertilization and association with Petrobras’ stakeholder concept was defined requests or claims they receive. The CSC con-
after a study carried out with systematized centrates all communications received from
Production of 12 tonnes of differentiated high-density polyethylene at a Braskem demonstration queries made among 20 Petrobras System the stakeholders by any means (Petrobras’
plant to produce high-strength, buoyancy and lower implementation cost oil platform mooring cables; companies and areas. In total, there are 13 phone, fax, e-mail or website). As the main
stakeholder categories: customers, the scien- entry point for requests, the service does not
Completion of the testing for a prototype system designed to reduce particles emitted by fluidized-bed tific and academic community; communities; only receive claims and requests from cus-
catalytic cracking units (FCC) by up to 50%; competitors; customers; suppliers; investors; tomers, but also from other audiences, such
Completion of the oxy-combustion testing at FCC units capable of capturing a tonne of CO2 per day the press; civil society organizations; part- as requests for information on contests and on
and of reducing CO2 emissions at refineries by up to 32% for half of the cost; ners; public authorities; the internal audi- the sponsorship program.
ence; and resellers. Another corporate channel is the Facts
Completion of the scientific environmental characterization of the Campos Basin, compiling the Pursuant to the definition of these stake- and Data blog, which aims to foster dialogue
most complete set of environmental information on the region, aligned with the public policy laid holders, we were able to assess our relation- and bring transparency to the latest infor-
down by the Ministry of the Environment; mation on the company, making public our
ships and direct our efforts toward each one’s
Deployment of a biological treatment unit for saline industrial effluents to reduce environmental specific needs. The communications intended position on issues related to our operations.
impacts at the São Sebastião Terminal, in São Paulo; for each stakeholder, with their specific con- Interactivity, through the remarks, is medi-
tents, were broken down based on the mapping ated by the blog’s own staff, which makes sure
Installation of a membrane separation effluent treatment and reuse plant at Revap and of a of the categories, through research, secondary there are no offensive posts, abuses or crime
reverse electrodialysis wastewater treatment and reuse plant to remove salts at Regap, both data, scenarios, and through the analysis of the against anyone involved.
designed to reduce the discharge of wastewater.
communications environment, which allowed
the company to get to know its major segments
and guide the activities intended for each.
28 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 29
EXAMPLES OF RELATIONSHIP PROGRAMS customer perceptions on the implementa- INVESTOR RELATIONS GENERAL MEETINGS
One of the noteworthy relationship programs tion of these activities and disseminates the Being a public company, Petrobras is com- There were five extraordinary meetings and
designed for the scientific and academic com- improvement actions taken for the demands mitted to provide correct and accurate in- one ordinary one over the year, which were
munity, the Brazil-Portugal Joint Advanced that have been brought up. There are events formation to its investors, whether corporate attended by shareholders representing more
Training Program in Geoengineering involves to attract customers to the social, cultural and or individual – including shareholders and than 80% of the ordinary stock comprising the
five universities in both countries. The purpose sports program. debenture holders –, posting its results with company’s capital stock.
of the program, a partnership between Petro- Aiming to raise awareness among the clarity and credibility to society. The company Among the decisions made by Petrobras’
bras and Portugal’s Galp Energia, is to provide stakeholders neighboring its pipeline ranges follows a series of procedures that ensure that extraordinary shareholders meetings, em-
advanced training in carbonate reservoirs, on issues concerning health, safety and en- its management is compatible with the current phasis is on: merger of subsidiaries (Comperj
which are characteristic of the Pre-Salt area. vironment, Transpetro developed the Pi- standards of the markets it serves, directly and Petroquímicos Básicos S.A., Comperj PET
This will allow for greater integration among peline Range Stakeholder Awareness and indirectly, being an example in the adoption of S.A., Companhia Mexilhão do Brasil – CMB,
the international geoscience communities. Relationship Program, which disseminates international standards of transparency. Termorio S.A., Usina Termelétrica de Juiz de
The Eye to Eye Program emerged from information about pipeline transport and en- Fora S.A., and Fafen Energia S.A.) into its as-
the customers’ relations expertise through courages responsible coexistence between the RELATIONSHIP CHANNELS sets, without any increase in capital, aiming
customized gatherings to draw Petrobras communities and the subsidiary’s activities. Petrobras’ Investor Relations area has a com- to simplify the corporate structure and mini-
closer to this audience. The program identifies munication plan, with an annual calendar mize the company’s costs; review of Petrobras’
of events scheduled to promote meetings Bylaws; increase in the capital stock by in-
between the company’s administrators and corporating part of the tax incentive reserves
MAIN REQUESTS AND MEASURES ADOPTED managers and investors and analysts through constituted in 2010, in the amount of R$ 23
formal meetings, seminars or conferences. The million; and election of two members of the
relationship channels also include new tech- Board of Directors.
The main requests the Petrobras System receives in Brazil are related to meeting needs concerning
@ nologies, such as webcasts (streaming audio The following issues were addressed in
social issues and employability. Also worthy of note are claims received concerning environmental
Learn more about and video over the Internet) and chats (real- the ordinary general meeting: Management
and safety matters, such as noise, odor, environmental impacts and risks of the facility. The main
support for public time conversation applications). Report and Financial Statements, together with
measures adopted in response were providing clarification on the social responsibility policy,
policies and customer In addition, the company promotes visits the opinion issued by the Audit Committee
and consumer the disclosure of the hiring standards in accordance with the laws and regulatory and corporate by investors to operating units (refineries, with regard to 2010; capital budget for 2011;
satisfaction guidelines, conducting visits to unit facilities and meeting the HSE requirements. @ Cenpes, shipyards, etc.) to develop a critical distribution of the 2010 results; election of
view in order to assist investors in making in- the members and of the Chairman of the
Outside of Brazil, the company also received questions on employability, service quality and vestment decisions. This also helps broaden Board of Directors; election of the members
operating safety. In Japan, because of the strong earthquake that devastated parts of the country the market analysts’ perception of Petrobras. of the Audit Committee and their alternates,
in March, we were asked mainly about stability in energy supply and concerning safety against The Internet portal dedicated to the rela- and determination of remuneration of the
accidents. In response, in coordination with thermal power generation companies, we increased
tionship with investors gathers data of interest directors and members of the Fiscal Council. Go to
production to supply fuel oil and undertook constant emergency drills in partnership with the on this stakeholder. In the event of any ques- To increase the shareholders’ participation www.petrobras.
local government. tions, one can request information by phone in the meetings, Petrobras started providing com.br/ir
by calling shareholders support (0800 282 a platform for voting over the Internet to
The major themes identified at Petrobras Distribuidora were: actions to reduce water and energy 1540) or using an exclusive e-mail address registered shareholders.
consumption; use of renewable energy; waste disposal; wastewater treatment; community relations; (email@example.com). Quarterly, after
engaging in social and environmental campaigns, and training employees. Among the responses, the financial results are announced, the com- TREATMENT OF MINORITY
we highlight the action plan that defines investments to reduce water and power consumption by pany holds a chat with investors and announces AND PREFERRED SHAREHOLDERS
35% at a third of the service stations we own and at all school service stations within four years. resolutions by letter and fax. @ Shareholders are guaranteed dividends and/or
In 2011, there were approximately 30 road- interest on equity of at least 25% of the adjusted
This plan was also disseminated to service stations belonging to third parties, taking the policy to @
the reseller chain. shows and about 70 conferences with corpo- net income, shared for stock that divides the
rate investors in Latin America, United States, company’s capital.
Europe, Asia and Australia. Together with the Minority shareholders are entitled to elect Read the “Responsibility
Transpetro received several requests over the “Green Phone,” a relationship channel used to
for products” chapter
monitor pipeline range activities with the community. The main calls were related to excavations, Brazilian individual investors, we attended one member of the Board. Holders of pre-
invasions, prohibited traffic and garbage on the ranges. The requesting party is informed about the
conferences, trade shows and seminars in over ferred shares (or preferred shareholders) are
as fuel quality and
30 events nationwide. also allowed to elect a director provided they
monitoring status through its completion. competition
represent, jointly, at least 10% of the capital
stock, excluding the controlling shareholder.
30 2011 SUSTAINABILITY REPORT CORPORATE PERFORMANCE 31
TOTAL OIL, NATURAL GAS LIQUIDS (NGLS) AND NATURAL GAS PRODUCTION
BRAZIL AND ABROAD THOUSAND BOED
Exploration and Production 2008 2,176 224 2,400
2009 2,288 238 2,526
2010 2,338 245 2,583
2011 2,377.1 244.9 2,622
OIL, NGL, AND CONDENSATE DEVELOPMENT IN OIL, NGL AND CONDENSATE
PRODUCTION IN BRAZIL AND NATURAL GAS PRODUCTION IN BRAZIL THOUSAND BOED
(ONSHORE AND BY WATER DEPTH)
2007 1,792 273 2,065
2008 1,855 321 2,176
2009 1,971 317 2,288
2010 2,004 334 2,338
2011 2,022 355 2,377
2015 Projected 3,070 618 3,688
Above 1.500 62.1% 2020 Projected 4,910 1,120 6.030
Onshore 10.6% Oil, NGL and condensate Natural gas
PRODUCTION VOLUMES LIFTING COSTS
Petrobras set records once again. Oil and nat- Not including government take (fees paid to
ural gas output reached a record daily average the government, such as royalties and spe-
The year 2011 was an important milestone for Over the year, five new production systems of 2.62 million barrels of oil equivalent (boe) cial take), the average lifting cost in 2011 was
the company, with the discovery of accumu- went into operation and 11 offshore drilling in 2011, up 2% over the previous year’s daily US$ 12.59/boe, 26% more than in the pre-
lations, the deployment of new projects, and rigs arrived at the company’s platforms - three average of 2.58 million boe. vious year, due to the increased number of
operations getting underway at the first well to more were undergoing acceptance testing. All After operations came on stream in the interventions in wells. Including government
produce commercially in Santos Basin pre-salt of these factors contributed to consolidate the fields operated in the Pre-Salt, production take, lifting cost topped at US$ 32.52/boe, 32%
region, the 9-RJS-660, in the Lula field. success attained by the exploration activities grew over the 12-month period from a daily higher than in 2010. This figure was influenced
About 119 thousand barrels of oil per day and to expand Brazil’s oil boundaries, further average of 103,000 boe in January to 201,000 mainly by the surge in reference oil prices on
(bpd) were lifted from the Pre-Salt in Brazil by confirming the continued economic feasibility boe in December 2011. the domestic market.
Petrobras and its partners in 2011. The com- of the Pre- and Post-Salt sections of the Bra- Despite the positive figures, there was a Converting the amounts to Reals, the av-
pany’s share was 100.3 bpd, representing 5% of zilian sedimentary basins, particularly in the loss of about 67,000 bpd in production due erage lifting cost was R$ 21.19/boe, a 21%
its domestic production in the year. In 2020, South and Southeast (Espírito Santo, Campos to scheduled and unscheduled shutdowns; surge compared with 2010. Including govern-
the pre-salt is slated to produce 2,000,000 bpd and Santos). 33,000 bpd of this amount were losses caused ment take, the average value per barrel reaches
(not including the partners’ shares) per day. by unforeseen maintenance. R$ 55.04, 27% above the previous year. Again,
34 2011 SUSTAINABILITY REPORT OPERATIONAL PERFORMANCE 35
installed at the Tiro site. The Tiro and Sídon rock, the fluids and the productive potential of
OIL AND NATURAL GAS OUTPUT (THOUSAND BOED)
deposits are located in shallow waters in the oil reserves in the block.
2011 2010 Post-Salt area of the southern portion of the With regard to the pilot projects in the
Santos Basin. The EWT for the Lula Nordeste Sapinhoá Norte and Cernambi areas, both in
Brazilian output 2,377 2,338
area, in the Santos Basin, was started in April. Campos Basin Pre-Salt cluster, worthy of note
Oil and LNG 2,022 2,004
The site is located in the former BM-S-11 is the chartering of two FPSO-type platforms.
Natural gas 355 334
Pre-Salt exploratory block, located about 300 The strategic decision of the consortia aims to
Total international output 245 245 kilometers off the coast of Rio de Janeiro. anticipate production in these areas, where ini-
Consolidated international output 237 237 The test was performed by FPSO BW tial flow tests attained excellent results. Thus,
Oil and LNG 140 144 Cidade de São Vicente, which is anchored each of the FPSOs will be able to produce up to
Natural gas 97 93 at a depth of 2,120 meters. Petrobras is the 150,000 bpd and 6 to 8 million m³/day of gas,
Non-consolidated international output 8 8 operator of this area, with 65% equity stakes respectively. The platforms are slated to come
Total output 2,622 2,583 in the consortium, which is also formed by the into operation in 2014.
BG Group (25%) and Galp Energia (10%). The In September, operations started at the
data compiled in this region will subsidize the Lula-Mexilhão gas pipeline, which enables the
studies for the development of the second pilot flow of natural gas from the platforms to be
the result was influenced by the 33% increase installed in the Franco area and is expected to production system, which will be installed in used to develop the first phase of the Santos
in the average reference price of Brazilian oil. be capable of processing 150,000 bpd. the Lula Nordeste area. Basin Pre-Salt work and allows for more flex-
The EWT of Aruanã, in the southern por- ibility in gas supply to the Brazilian market.
The company also kicked off another EWT THE CONSTRUCTION
PLATFORMS in the Carioca Northeast area using FPSO Dy- tion of the Campos Basin Post-Salt region, was This gas pipeline transports the gas pro-
Over 2011, one of the most important mat- namic Producer, the same unit that carried out started in June. The work is being done via well duced in the Lula pilot, connecting the Ci- OF THE P-56’S
ters for the company was production going on the Guará EWT, also in located in BM-S-9. 1-RJS-661, which is connected to FPSO Cidade dade de Angra dos Reis platform to Mexilhão
de Rio das Ostras. The CM-401 exploratory and is capable of draining up to 10 million TOPSIDE ATTAINED
stream, in August, at the P-56 semi-submers- The system, located in a water depth of 2,151
ible platform operating in the Marlim Sul field. meters, 275 kilometers off the coast of São block is located between the fields of Pampo m³/day. It will also be used to drain natural A HIGH LEVEL OF
It was designed to process 100,000 bpd and is Paulo, is expected to operate there for about and Espadarte, at water depths ranging from gas produced in Sapinhoá and Tupi Nordeste
installed in a water depth of 1,670 meters. six months. Petrobras holds 45% equity stakes 350 meters to 1,500 meters. The information pilot, which will come into operation in 2012 LOCAL CONTENT
The construction of the P-56’s topside in the area. The other consortium partners are collected in this area will support studies and and 2013, respectively.
research to better characterize the reservoir
attained a high level of local content (73%). the BG Group (30%) and Repsol (25%).
With this, Petrobras made sure that the
Brazilian industry is able to supply some of its PRODUCTION HIGHLIGHTS
PROJECTS FOR 2012
demands, since, for example, the hull of the The first well to produce commercially in the
P-56 was built entirely in the Country. Santos Basin Pre-Salt region, the 9-RJS-660,
Operations got underway for the Cidade de located in the Lula field, achieved Petrobras’ Petrobras is maintaining its investment schedule for 2012, prioritizing activities to develop, in
Arraial do Cabo platform in January. It is fitted greatest production volume in May, averaging record time and within the goals set by the 2011-2015 Business Plan, the areas related to the pre-
with cutting-edge technology, with a dynamic 28,436 bpd. It produces high quality material salt layer, but never neglecting the activities underway in other regions.
positioning system that allows it to move si- with high commercial value and is the first of
Among the major projects coming into production are the Sapinhoá pilot (formerly Guará) – located
multaneously with the unit it is moored to, six production wells to be connected to FPSO
in the pre-salt Santos Basin – and FPSO Cidade de São Paulo, which will be capable of processing
and, thus it can connect to any type of plat- Cidade de Angra dos Reis, a vessel platform
120,000 bpd of oil and 5 million m³/day of natural gas per day.
form, whether fixed or floating. The service which started operating in 2010.
unit, which will start operating at the Cherne The “Varredura” (Scanning) project, Baleia Azul will come into operation in Espírito Santo. Located 85 kilometers off the Southern coast,
1 platform, can be compared to a mobile ship- meanwhile, implemented in the Campos the area north of the Campos Basin Pre-Salt area, it will have capacity to produce 100,000 bpd of oil
yard, since it has mechanical and electrical Basin in 2009 aiming to identify exploration and 3.5 million m³/day of gas.
workshops, painting areas and a boiler shop, opportunities in areas close to existing fields
The construction of the South/North Capixaba gas pipeline, linking Southern and Northern Espírito
over and beyond accommodations to lodge up and infrastructure, accounted for the average Santo, will drain the gas from the Pre-Salt Parque das Baleias to Camarupim to be processed in the
to 350 crew members on board, which opti- production of 125,000 bpd in 2011. This pro- Cacimbas gas treatment unit. Finally, located in shallow Santos Basin waters, Tiro and Sídon have
mizes operations. duction came from discoveries made in 2010 a capacity of 80,000 bpd of oil and 2 million m³/day of gas. FPSO Cidade de Itajaí will be installed in
In late 2011, the vessel Petrobras acquired in the Brava, Carimbé and Tracajá prospects, water depths of 270 meters.
to be converted into the hull of platform all in the Pre-Salt, respectively in the Marlim,
To develop these projects, the company followed the procedures needed in order to meet the
FPSO P-74 (Floating, Production, Storage and Caratinga and Marlim Leste concessions; and
requirements set forth by regulatory bodies, such as the Brazilian Navy, the National Petroleum
Offloading unit) arrived in Rio de Janeiro. in Jabuti and Aruanã, in the Post-Salt.
Agency (ANP), the Brazilian Institute of the Environment and Natural Resources (Ibama), the
It will be the first one intended to operate The Extended Well Test (EWT) for Sídon
Brazilian Institute of Oil, Gas and Biofuels (IBP) and classifying entities.
in the transfer of rights fields, located in the got underway in February. The test will be
Santos Basin Pre-Salt region. The FPSO will be carried out by the SS-11 platform, which is
36 2011 SUSTAINABILITY REPORT OPERATIONAL PERFORMANCE 37
PROVED RESERVES the company’s proved reserves. With this ad- EXPLORATORY SUCCESS INDEX
The prospects generated from the Pre-Salt dition, the Reserve Replacement Index (RRI)
layer exploration helped Petrobras close 2011 was 152%, which means that for each barrel of
with proved reserves of 15.706 billion boe oil equivalent produced during 2011, we added In total, 123 wells were drilled in 2011, 76 of which onshore and 47 offshore - of these, 17 were aimed
(according to the NPA/Society of Petroleum 1.52 barrel of oil equivalent to the reserves. at the Pre-Salt area. These figures increased the exploratory success rate to 59%, up from 57% in
Engineers - SPE criterion), 2.8% more than the These figures show that Petrobras’ Reserve/ 2010 and well above the 2009 number, when the company reported a 40% success rate.
+ previous year. Production (R/P) indicator rose to 19.2 years,
@ In addition, Petrobras made progress in activities related to the discovery assessment plans, espe-
Learn more about During the period, 1.242 billion boe in re- resulting in the 19th consecutive year of posi-
cially in the Espírito Santo, Campos and Santos basins, confirming the initial assessments of the
concessions serves were appropriated and 819 million boe tive reserve replacement rates. @
previous discoveries, especially those of 2010.
produced, incorporating 423 million boe to
PROVED OIL, NGLS, CONDENSATE AND GAS RESERVES NPA/SPE BILLION BOED
2007 12.4 2.6 15
2008 12.5 2.6 15.1
2009 12.6 2.3 14.9
2010 13.4 2.6 16 DRILLING RIGS Altogether, up to 28 rigs are expected to be
Petrobras has always been a step ahead of the commissioned and built in Brazil to operate in
2011 13.2 2.5 15.7
demands that would be imposed on it, and water depths of 3,000 meters.
has always adopted the strategy of looking A floating unit to be used in shallow waters
Oil, NGL and condensate Natural gas prospectively, encouraging the construction, closed the contract in 2011, and 11 offshore
for example, of new equipment, hiring long- drilling rigs started operating. In all, including
term services and supporting the development owned and contracted, Petrobras had 71 drilling
of new technologies. rigs (among floating and jack-up) operating at
NEW DISCOVERIES Jubarte field. Drilling in the Gávea prospect, The company approved the commissioning depths ranging from 500 to 3,000 meters. In
Among the main appropriations in 2011 are located 110 kilometers from the Maromba and and chartering of the first batch of seven new 2012, the company will receive 16 drilling rigs,
the discoveries of Sapinhoá, in the Santos Papa Terra fields, in the Southern portion of offshore drilling rigs designed to meet the 14 of which floating, to operate in water depths
Basin Pre-Salt region; of Tiziu and Patativa, the basin, in 2,700-meter deep waters, resulted needs of the long-term drilling program. of up to 2,000 meters, and two self-rising.
in Rio Grande do Norte and Ceará; Tapiranga in another discovery in the Pre-Salt layer.
Norte, in Bahia; and in the Albacora field, in Drilling in the Brigadeiro, Pé de Moleque
the Campos Basin, in addition to reservoir and Quindim prospects, in a water depth of
management actions. 1,900 meters, afforded the discoveries of three
The drilling of the second extension well in accumulations in the Post-Salt layer. Made be-
the Guará discovery assessment plan (DAP), tween May and August, they are located about 45
in December, confirmed the continuity of the kilometers east of the Golfinho field – together
accumulation in the Pre-Salt. Moreover, the with the Cocada area – and consolidate the fron-
completion of the EWTs at the discovery well tier called Parque dos Doces, in which Petrobras
allowed the area to be declared commercial, holds 65% of the concession’s equity stakes.
giving rise to the field now called Sapinhoá. Abroad, for example, Petrobras announced
Of the new fields that were discovered, be- recent discoveries in the United States, in the
sides those mentioned, the highlights are two Hadrian and Logan projects, both in the Gulf
exploratory wells in the Forno and Guanabara of Mexico. The company also continues devel-
accumulations, the former in the Pre-Salt oping the production assets in St. Malo, Tiber,
Albacora field region, while the latter in the Stones and Cascade & Chinook, and explora-
Post-Sal area, 70 kilometers southwest of the tion projects.
38 2011 SUSTAINABILITY REPORT OPERATIONAL PERFORMANCE 39
More information PERFORMANCE ABROAD
is available in the Outside of Brazil, the company reached an output of 147,500 bpd of oil and
16.5 million m³/day of natural gas, for a total of 244.9 thousand boe. +
Refining and trade
INTERNATIONAL PRODUCTION OF OIL, NGLS, CONDENSATE AND NATURAL GAS
Over the year, there were scheduled mainte- Meanwhile, annual jet fuel production
2007 127 109 236
nance shutdowns at the Presidente Bernardes reached 5.395 million m³, up 15.7% over 2010.
2008 124 100 224 (RPBC), Landulpho Alves (RLAM), Clara Ca- Diesel production, in turn, increased 1.1%
2009 141 97 238 marão (RPCC), Gabriel Passos (Regap), Lub- compared with the previous year, to 43.249
rificantes e Derivados do Nordeste (Lubnor) million m³. There was an 18% drop in fuel
2010 151 94 245
and Paulínia (Replan) refineries. oil sales due to the replacement effect on the
2011 148 97 245 market, which started using natural gas.
OIL PRODUCT PRODUCTION In the breakdown by product, the volume
Petrobras’ 12 refineries in Brazil had a of diesel, the main fuel used by the Brazilian
2015 Projected 180 125 305
throughput of 1.862 million bpd of feedstock, automotive fleet, rose 9% due to the higher
2020 Projected 246 142 388 used an average of 92% of their rated capacity, GDP, the good performance of retail, to
and produced 1.896 million bpd of oil products, Petrobras’ increased market share and to the
3.49% more than in 2010. Of the total volume of record grain crop throughout 2011.
Oil, NGL and condensate Natural gas processed oil, 82% came from Brazilian fields.
NATURAL GAS PRODUCTION
OIL PRODUCT PRODUCTION (THOUSAND BARRELS PER DAY)
In 2011, natural gas output added up to 56.4 Continuing the projects foreseen under
million m³/day, 6.2% more than in 2010, the Natural Gas Production Anticipation Plan 2011 2010
thanks to the good performance attained (Plangás) for the Santos Basin, gas started Oil product production 2,009.5 2,052
in the Canapu, Cachalote, Baleia Franca being drained from the Uruguá and Lula fields, Brazil 1,862 1,832
and Peroá fields and to gas drainage getting confirming the availability of the product in Other countries 147.5 220
underway at P-57, in the Parque das Baleias, Brazil to adequately meet market demand.
Rated capacity utilization
in Espírito Santo. The completion of the Gas Processing Unit
Brazil 92% 93%
The main natural gas production fields adjustment process at the Presidente Ber-
Other countries 67% 70%
in Brazil are Mexilhão, Uruguá and Lula. In nardes Refinery (RPBC) allowed an output
Brazilian domestic crude share 82% 82%
April, we started production at the Mexilhão increase at the Lagosta field, in the Santos
fixed platform (PMXL-1), in the Santos Basin, Basin. Noteworthy was the significant rise in
in 172-meter deep waters. Located 137 km off the volume of gas delivered to the market in
the coast, PMXL-1 is the company’s tallest fixed Northern Brazil, with the continuous conver- REFINERY PARK Henrique Lage Refinery (Revap); seven aux-
platform, at 227 meters, with a jacket measuring sion of the diesel-fired thermal power plants to Under the 2011-2015 Business Plan, all projects iliary units (four of diethanolamine – Recap,
182 meters in length. Its production capacity is run on natural gas. and investments intended for the construction RPBC, Regap and Repar – one acrid water
15 million m³/day of natural gas. and expansion of Petrobras System’s refinery treatment unit, one sulfur recovery unit, and
park aim to add a volume equal to half the one residual gas treatment unit – Recap); and a
company’s current refining capacity. thermal power generation unit (Recap).
Over 2011, 16 new units that had been
foreseen in the refining park revamp projects OIL PRODUCT TRADE
went on stream: a diesel hydrotreatment unit The 9% surge in the oil sales volume in
(Recap); two naphtha coke hydrotreatment 2011 compared with the previous year was
units (RPBC and Regap); four cracked naphtha a direct result of economic growth in Brazil.
hydrosulfurization units (Recap, Regap, RPBC, In total, the company traded 2.131 million
and Reduc); one catalytic reform unit at the bpd of oil products.
40 2011 SUSTAINABILITY REPORT OPERATIONAL PERFORMANCE 41
The refinery park enhancement was impor- Petrobras traded 217,000 bpd of oil prod- TRADE VOLUME - BRAZILIAN DOMESTIC MARKET (THOUSAND BARRELS PER DAY)
tant to boost the domestic production of diesel ucts on foreign markets, up 9% due to growth
and gasoline and achieve the results above. The in fuel oil exports, which offset the domestic 2011 2010
more attractive prices compared to ethanol and losses. On the other hand, oil product imports Oil Products
the expanding fleet also helped, increasing the spiraled 29%, to 387,000 bpd. Diesel 880 809
volume of gasoline produced by 24%. Although significant, the increase was Gasoline 489 394
Among the oil products, gasoline sales mainly for gasoline and diesel in order to meet
Fuel oil 82 100
grew the most 24% compared with 2010. In demand in areas where growth was higher
this case, sales were driven by a larger flex-fuel than expected due to the burgeoning Bra- Naphtha 167 167
vehicle fleet, associated with less expensive zilian economy and to the slump in sugarcane LPG 224 218
gasoline compared to ethanol. production, which sent the ethanol price for Jet Fuel 101 92
There was a 3% increase in LPG sales over the end consumer soaring. Because of these
Others 188 180
2010, while naphtha remained steady in the figures, gasoline imports skyrocketed 378%
Total oil products 2,131 1,960
period. In turn, jet fuel sales were up 12% due (43,000 bpd), and the imported diesel fuel
Alcohols, nitrogenated products,
not only to a surge in the number of flights of- volume rose 15% (164,000 bpd), both com- renewables and others
fered by midsize and regional airlines, but also pared with 2010.
Natural gas 304 319
because of the heated economy and a higher The company’s 2011 trade balance, calcu-
Total domestic market 2,521 2,378
exchange rate in a few months of 2011. lated based on oil and oil product exports and
Competition from replacement products, imports (not including natural gas, liquefied
especially natural gas for thermal and indus- natural gas (LNG), and nitrogenated prod-
trial use, pushed fuel oil sales down 18% over ucts), closed with a deficit of $4.969 billion.
2011 compared with the previous year. OIL AND OIL PRODUCT EXPORTS AND IMPORTS (THOUSAND BARRELS PER DAY)
Oil and oil product imports 749 615
Oil imports 362 316
Oil product imports 387 299
Total oil and oil product exports 1
Oil exports 2
Oil product exports 217 200
Net oil and byproduct exports (97) 82
Include exports in progress.
Cover oil export volumes coming from the Downstream and Exploration & Production Business Areas.
FINANCIAL BALANCE OF THE TRADE BALANCE1 ($ MILLION)
Oil and oil product imports 30,510 18,077
Oil 3,874 9,118
Oil Products 15,808 8,959
Total oil and oil product exports 25,542 19,610
Oil 17,130 13,990
Oil Products 8,411 5,620
Net oil and oil product exports (4,969) 1,534
Does not include natural gas, liquefied natural gas (LNG), and nitrogenated product data.
42 2011 SUSTAINABILITY REPORT OPERATIONAL PERFORMANCE 43
As the Brazilian population’s income level When completed, in 2014, the Minas Gerais
rises, food and meat consumption also grows. unit will have capacity to produce of 519,000
Thus, it is assumed more food will be made tonnes/year of ammonia, making Brazil self-
and Fertilizers available. The need to improve fertilizers is
inherent in the process, since the amount of
sufficient in this product.
In Sergipe, the company is working on
arable land is finite. revamping an ammonium sulfate plant at its
To meet this demand, Petrobras is deploying fertilizer factory (Fafen), which is expected to
three new units and undertaking two revamp go on stream in 2013 and supply the market
projects at existing plants. About R$ 9.41 billion with 303,000 tonnes/year of ammonia made
are expected to be invested in this area in the from the excess acid sulfuric acid produced by
PETROBRAS Petrobras’ strategy includes strong per- socioeconomic profile of its area of influence. period ranging from 2011 to 2015. the Abreu e Lima Refinery.
formance in the petrochemical industry, Scheduled to start operating in 2014, the Com- In its execution phase, the Nitrogen Fer- The first construction phase of the Arla
POSTED RECORD integrating it with its other businesses. In plex is expected to create more than 200,000 tilizer Unit III (UFN III), in the state of Mato 32 project was completed in October with the
addition to expanding the production of direct, indirect and income effect jobs. Grosso do Sul, will supply 1,223 million tonnes/ production of 63,000 m³/year of the product.
RESULTS IN THE petrochemicals and biopolymers, this seg- Added to this is the deployment of the year of urea and 70,000 tonnes/year of ammonia This is a urea solution diluted in demineralized
FERTILIZER AREA ment will have a diverse portfolio of prod- PetroquímicaSuape Industrial Complex, com- from 2014. Also planned are the deployments water to be used in heavy-duty vehicles running
ucts that help add value to oil and natural prising the operations of Companhia Petro- of UFN IV, in the state of Espírito Santo, which on diesel fuel to reduce air pollutant emissions.
IN 2011, WITH gas and their products. química de Pernambuco (PetroquímicaSuape) will start operating in 2015, and of UFN V, in The second phase will be completed in October
Petrobras posted record results in the fertil- and of Companhia Integrada Têxtil de Per-
R$ 1 BILLION IN the state of Minas Gerais, announced in March. 2012 and grow capacity to 200,000 m³/year.
izer area in 2011, with R$ 1 billion in revenues, nambuco (Citepe). Both will produce purified
REVENUES, 37% 37% more than the previous year. In total, we terephthalic acid (PTA), PET resin (polyeth-
traded 831,000 tonnes of urea and 241,000 ylene terephthalate) and polyester polymers
MORE THAN THE tonnes of ammonia. The result was influenced and filaments.
by the improved performance of our produc- In late 2011, the PTA unit was nearing com-
tion facilities – made up of two factories, in pletion and had already signed on feedstock
Bahia and Sergipe –, which produced 836,000 and input supply contracts. This Complex will
tonnes of urea, a record in the last 12 years. be the largest integrated polyester hub in South
America and will resume the Brazilian produc-
PETROCHEMICAL INDUSTRY HIGHLIGHTS tion of PTA and double the supply of PET in
In this segment, the company operates pri- Brazil. In addition, it will increase the domestic
marily through equity investments in Brazil supply of good-quality, competitively-priced
and in other countries. According to the 2011- filaments for the textile industry.
2015 Business Plan, about $3.8 billion will be
invested in boosting production and building FERTILIZERS
new plants, such as the PetroquímicaSuape In- Investing in the fertilizer industry allows
dustrial Complex. Petrobras to play an important role in key seg-
ments of the Brazilian economy. Data released
PROJECTS by the International Fertilizer Industry Asso-
One of the main petrochemical projects is ciation (IFA) show that the Brazilian economic
Comperj, which will leverage the Brazilian growth has caused demand for inputs and
production of various products and change the products of this nature to soar.
PRODUCTION OF AMMONIA, NITRIC ACID AND UREA (thousand tonnes)
2007 2008 2009 2010 2011
Urea 715.9 752.7 625.2 758.4 835.6
Ammonium 678.8 693.4 544.7 668.9 733.1
Nitric acid 57.6 56.6 46.3 64.2 44.1
Total 1,452.3 1,502.7 1,216.2 1,491.5 1,612.8
44 2011 SUSTAINABILITY REPORT OPERATIONAL PERFORMANCE 45
Petrobras Distribuidora operates in oil while R$ 157.4 million (13.6%) to develop
product trade and distribution nationwide. and modernize the service station network.
In 1974, three years after it was incorporated, Meanwhile, Liquigás, a Petrobras Distribui-
it had already reached the leadership posi- dora subsidiary for liquefied petroleum gas
tion in the segment. In addition to oil and oil distribution, got R$ 145.2 million (12.5%) of
product distribution, trade and processing, it the amount for LPG distribution infrastruc-
also undertakes import and export operations. ture maintenance.
Among its customers are industries, thermal Also noteworthy are not only the modern-
power plants, airlines and light and heavy- ization and expansion works at the lubricants
duty vehicle fleets. plant in Rio de Janeiro, at 18 terminals, 30 es-
tablishments in pool, and at 28 distribution
FUEL MARKET SHARE bases, but also construction work getting un-
The company closed 2011 at 49.1 million m³ of derway for two bases in Acre and Tocantins.
Petrobras Transporte S.A. (Transpetro), a This naval force will be inserted based on fuel traded, 6.1% more than in 2010, and with Furthermore, equipment was acquired for
subsidiary operating in the oil, oil product, three strategic assumptions essential to the average sales in excess of 4 million m³. This re- airports and pools, enabling major projects to
biofuel and natural gas transport and storage goals set forth under the 2011-2015 Busi- sult set a record of 4.4 million m³/month and it increase these modes’ operating capacity.
segment, takes these products to the most ness Plan: Building the ships in Brazil, as this maintained its leading position in the domestic The company expanded the Espírito
remote parts of Brazil. Considered Brazil’s benefits the domestic industry; reaching the fuels market, with an annual share of 39.2%. Santo piped gas network. Investments were
foremost natural gas processor, it can process minimum level of nationalization of 65% in Worthy of note are the direct investments also made in three energy efficiency projects
24.2 million m³/day (19.7 million cubic the first phase and of 70% in the second, in of R$ 1.158 billion made in 2011, in line with (HVAC) and 25 cutting-edge power genera-
meters of natural gas and 4.5 million cubic addition to making the shipyards internation- our strategy to maintain our leadership of tion centrals with the increase in the customer Learn more
meters of natural gas condensate). It operates ally competitive. the Brazilian oil product and biofuel distri- base. The purpose of these centrals is to deploy about Petrobras
7,179 kilometers of pipelines, 7,327 kilometers The bidding for eight product-type ves- bution market. Of this amount, about R$ 626 biodiesel- or natural gas-fired generation units Distribuidora’s service
of gas pipelines, 48 terminals and 54 vessels. sels to transport oil products was completed million (54.1%) were earmarked for logistics to be used at peak hours and during emergen- station network
in 2011. These are part of the second phase infrastructure maintenance and expansion, cies, to reduce costs. @
VOLUMES TRANSPORTED of Promef.
Transpetro transported 44.2 million tonnes of The first of these ships, Celso Furtado,
oil and oil products by ship over 2011, 9.5% is already operating in maritime shipping,
less than in 2010. In the same period, it trans- and with it came a contracted dynamic EVOLUTION IN PETROBRAS DISTRIBUIDORA’S SALES VOLUME
ported 747 million m³ of liquids in pipelines positioning-type fleet with a total capacity of MILLION M³
and terminals, up 6% from 2010. Further- 272,000 dwt. Four other ships were converted
more, it also carried, on average, 51.3 million to double hull vessels to supply the company’s
m³/day of natural gas, down 10% compared support vessels in the Campos and Santos
with the previous year. basins. If added to those converted in 2010, 2008 37.8
seven more ships are available to address the
VESSEL FLEET oil production logistics needs.
+ The company expects six vessels will be 2010
@ The Fleet Modernization and Expansion Pro- 48.7
Learn more gram (Promef ) foresees the commissioning added in 2012. Transpetro contracted 20
about terminals, of 49 vessels, which will add 4 million dead- river convoys, of which three are slated to
pipelines, waterways weight tons (dwt) to the system’s current ca- be delivered this year to meet the growing
and natural gas pacity. Moreover, this new fleet will feature demand for ethanol transportation in the
transportation technological devices that will improve its Tietê-Paraná watershed. @
performance and production flow.
46 2011 SUSTAINABILITY REPORT OPERATIONAL PERFORMANCE 47
NATURAL GAS TRADE
Gas & Power Petrobras held three rounds of electronic bidding for short-term natural gas sales. According to the
public notices for the transactions, the rules were improved compared to those established in 2010.
Under this type of contract, gas distributors sign 4-month contracts at three moments: March,
July and November. The volume traded was 8 million m³/day, 8.1 million m³/day and 8.8 million
In April, aiming to reallocate volumes of natural gas not consumed by the thermal power market,
the company started a new type of sales: the secondary market. Due to favorable hydrology and to
natural gas opportunity costs, this mode is offered to customers in the industrial sector that do not
use natural gas as their main fuel.
In late 2011, nine supply contracts were signed with CEG, BR-ES, Gasmig and Bahiagás, for a total
of 1.5 million m³/day.
NATURAL GAS DISTRIBUTION
Petrobras now holds stakes in 21 of 27 state distributors throughout Brazil which handle natural
gas and maintained the same standard in the ownership profile, with percentages ranging from
24% to 100%. Thus, the average volume of products sold in 2011 stood at 47.5 million m³/day, down
3% compared with the previous year.
In July, the company completed the acquisition of Gás Brasiliano Distribuidora (GBD), a natural gas
utility in northeastern São Paulo.
The non-thermal consumption of the distributors the company has stakes in rose from 17.3 million
m³/day to 20.3 million m³/day (17%), while thermal consumption slumped from 7.4 million m³/day
to 4.2 million m³/day (43%), a 0.8% total decrease (from 24.7 million m³/day to 24.5 million m³/day).
@ Over 2011, the Gas & Power area got invest- the installed capacity reached 6,533 MW. The
Learn more about ments of R$ 3.8 billion, ending the cycle of Bolivia-Brazil gas pipeline accounted for the
power generation investments in the natural gas transportation supply of 26.8 million m³/day to the Brazilian
network, allowing it to boost the supply of the market, reflecting greater demand from in-
product in Brazil, which reached 62 million dustry and the reheating of the economy. @
m³/day. Supply to the Brazilian consumer was
PETROBRAS THERMAL GENERATION AVERAGE MW
33.5 million m³/day, not including liquefied NATURAL GAS MARKET
gas, the gas used in the production process, the In ten years, natural gas consumption in Brazil
amount injected in wells and losses. quadrupled due to the economic expansion
Petrobras, meanwhile, generated 653 av- taking place in the country. In absolute figures, 2008 2,058
erage MW for the National Interconnected nearly 1.5 million consumers use the product.
System (SIN) by means of 16 owned and leased Although the industry accounts for most of
thermal power plants that comprise its ther- the consumption, the automotive sector also 2010 1,835
moelectric generating plants, which have an contributes with a significant portion of this 2011 653
installed capacity of 5,806 MW. Including the use, especially in Southeastern Brazil, which
projects in which the company holds stakes, uses half the gas provided.
48 2011 SUSTAINABILITY REPORT OPERATIONAL PERFORMANCE 49
Biofuels International operations
Petrobras Biocombustível, a subsidiary that farmers, covering 133,762 hectares of planted Petrobras invested R$ 4.4 billion in its opera- reserve replacement rate of 104%. This volume
produces ethanol and biodiesel, has as its mis- area (78.8% with castor seed, 17.4% with tions outside of Brazil, focusing its business on corresponds to 4.3% of the company’s total re-
sion to produce biofuels in Brazil and abroad soybean and 3.9% with sunflower). It also the West Coast of Africa and on the Gulf of serves, according to the Society of Petroleum
safely, profitably and sustainably, using bio- provided 449 tons of seed for the 2010/2011 Mexico, which got 89% of this amount. Out- Engineers (SPE) criterion.
mass and agricultural products as feedstock. harvest (92% castor seed and 8% sunflower) side of Brazil, it produced 147,500 bpd of oil Of the amount invested in the segment,
and purchased 62,400 tons of grain from the and 16.5 million m³/day of natural gas, for a 90% were earmarked for exploration and
BIODIESEL family farmers at a cost of R$ 52.9 million. total of 244.9 thousand boe. production, of which 41% to developing
Petrobras Biocombustível operates in both The company acquired half of the capital In addition, it had a throughput of 174,000 production in new projects and 10% for the
production and marketing in the biodiesel stock of Bioóleo Industrial e Comercial S.A., bpd of oil at its refineries, whose production refining, petrochemical, distribution, and
business. The company also trades products in the state of Bahia. Bioóleo owns a tank farm capacity in late 2011 added up to 230,500 bpd, gas and power operations. According to its
derived from the fuel, such as glycerin, fatty with capacity to store 10 million liters of oil reaching a utilization factor of 67% per year. 2011-2015 Business Plan, Petrobras will invest
acids, starch, castor bean oil and cake, sun- and 30,000 tonnes of grain, in addition to a The international proved reserves rose to R$ 11 billion in the international market by
flower meal and oil and soybean meal. throughput of up to 65,000 tonnes/year of oil- 706 million boe, 0.4% more than in 2010, a the end of 2015.
seed. Operating improvements are underway
PRODUCTION to expand the company’s oilseed throughput to HIGHLIGHTS
The subsidiary currently operates three bio- 130,000 tonnes/year, in addition to the partial
diesel plants in Bahia, Ceará and Minas refining of 60,000 tonnes/year of oil.
Gerais. Since 2010, when the production of the All of Petrobras Biocombustível’s plants On the American continent, the company has operations in 11 countries, where it has 872 service
Candeias Plant, in the state of Bahia, was dou- hold the Social Fuel Seal, in compliance stations and exploration and production assets in eight of these countries, whose output was 89,700
bled to 216,000 m³/year, the three units’ total with the guidelines set forth by the National bpd of oil and 16.5 million m³/day of natural gas, for a total of 187.1 thousand boe.
output is 434,000 m³/year. A new plant, which Program for Biodiesel Production and Use.
In Argentina, the market repositioning strategy demanded the divestment of the San Lorenzo
is expected to start operating in 2013 and to
refinery, reducing Petrobras’ throughput in the country by 50,000 bpd, to 30,500 bpd of oil at the
increase the biodiesel production capacity by ETHANOL
Ricardo D. Eliçabe refinery alone. In Bolivia, the main source for natural gas not produced in Brazil,
120 thousand m³/year, is still under construc- Acknowledged the world over for pioneering
the company acquired a 30% equity stake in the Itaú gas field.
tion in the state of Pará. the introduction of ethanol in its energy ma-
In July 2011, the company entered the trix, biofuel produced from sugarcane, Brazil In the United States, Petrobras announced recent discoveries in the Hadrian and Logan projects,
joint stock of BSBIOS Indústria e Comércio de has proven to be efficient not only in ensuring in the Gulf of Mexico, and continues developing production assets in St. Malo, Tiber, Stones and
Biodiesel Sul Brasil, in the state of Rio Grande supply in a market that is experiencing a high Cascade & Chinook, in addition to exploration projects.
do Sul. As a result, this transaction, which rate of growth, but also in meeting the need
involved an investment worth R$ 75.6 million, to develop technologies to produce fuels that The West Coast of Africa is strategic for the company’s business. In Nigeria, it produces in the fields
it now owns half of its stock. are not only renewable but also efficient. The of Akpo and Agbami, while in Angola, in block 2, for a total output of 57,800 bpd of oil. The company
The two companies already operated the company invests developing second genera- is also active in exploration in Tanzania, where it is in the process of drilling wells; in Namibia, where
Marialva plant, in the state of Paraná, in part- tion ethanol made from sugarcane bagasse. it holds the assets’ operating rights and is gearing up to drill the first well; in Benin, where it has
nership. After the agreements, the industrial Together, Petrobras Biocombustível’s affili- conducted 3D seismics; and in Gabon, where it will begin the acquisition of 3D seismics.
complex reached a full production capacity of ates crushed 20.1 million tonnes of sugarcane in In Asia, Petrobras has a refinery on the island of Okinawa, Japan, with a throughput of 100,000 boe;
287,000 m³/year of biodiesel. the 2011/2012 harvest, producing 769,000 m³ of and in Oceania it is undertaking exploration projects in New Zealand, with 2D seismics acquisitions.
ethanol and 1.4 million tonnes of sugar and ex- In Australia, it chose not to proceed with the project in the North Carnarvon Basin, since the drilling
AGRICULTURAL SUPPLY porting of 490 GWh of surplus electricity. came up with a dry well.
Petrobras Biocombustível has grain pro-
curement contracts with about 60,000 family On the European market, especially in Portugal, the company has developed exploration projects in
the Peniche and Alentejo basins; it also has biofuel production, technology development and trade
projects, in partnership with local companies.
50 2011 SUSTAINABILITY REPORT OPERATIONAL PERFORMANCE 51
price of the barrel. One of these conditions stocks, a rare measure adopted only twice
was the decline in oil supplies due to the civil since the organization was founded in 1974. It
war in Libya – which slumped by 1.6 million was only in the last quarter, after the Libyan
financial results bpd of light, low-sulfur oil available for pur-
chase – which sent oil prices soaring in the
production came back on stream, that pressure
let up on product prices.
first half of the year. Due to these factors, the Brent oil price
To try to offset the loss of the Libyan oil, fluctuated more than in 2010, from a low of
the Gulf states unilaterally decided to increase US$ 92.98 to a high of US$ 126.74. The annual
production and deliver this surplus to the average was US$ 111.27 per barrel, up 40%
market, since the Organization of the Petro- over the average 2010 price and the highest
In 2011, Petrobras System’s net income was (EBITDA, earnings before interest, taxes, de- leum Exporting Countries (OPEC) did not nominal average recorded in the series.
R$ 33.3 billion - equivalent to R$ 2.55 per preciation and amortization) rose 5%, to a re- reach consensus on the need for a new ceiling. This increase affected the average lifting cost.
share - 5% less than in 2010 (R$ 35.2 billion). cord of R$ 62.2 billion. This indicator shows Since 2009, the organization had already been Without government take, the cost was R$ 21.19
While growth in domestic sales was 6% the strength of the Petrobras’ internal cash producing above the established ceiling of 24.8 per barrel of oil equivalent, up 21% compared
above 2010 - with emphasis on oil product flow generation capability. million bpd of oil. to 2010. Including government take, it reached
sales - operating expenses rose due to higher The company’s stock kept pace with the con- Also in an attempt to reduce the pressure R$ 55.04, 27% more than in the previous year,
oil acquisition costs and oil product imports, tinued ups and downs and with the uncertainty on oil prices, the International Energy Agency again influenced by the growth of 33% in the av-
which contributed to reduce the result. in the global economic scenario and closed the (IEA) offered 60 million barrels of its strategic erage reference price for Brazilian oil.
In turn, the net financial income of R$ 122 year in a slump. In Brazil, the common shares
million was lower than that calculated in 2010, (PETR3) slipped 24.71%, while the preferred
reflecting the 12.6% exchange rate deprecia- ones (PETR4) 21.25%. At the New York Stock
tion on the debt, which generated a foreign Exchange (NYSE), which trades the common
exchange expenditure of R$ 3.99 billion and (PBR) and preferred (PBR/A) receipts, devalua- TRADE BALANCE THOUSAND BARRELS/DAY FINANCIAL VOLUME US$ MILLION
increased revenue with higher financial invest- tion was 34.31% and 31.23% respectively. With
ments in Brazil. the slump in its stock quotes, Petrobras’ market EXPORTS
In the same period, operating cash flow value was US$ 158 billion in late 2011. 2011 435 2010 18,077
652 + US$ 1,534
2011 217 2010 19,611
CONSOLIDATED NET REVENUE CONSOLIDATED INCOME IMPORTS
R$ MILLION (R$/SHARE) 2011 362 2011 30,510
749 + US$ 4,969
2007 2011 387 2011 25,540
2007 21,512 2.45
2008 32,988 2008 3.76
Oil Oil Products Imports Exports
2009 30,051 2009 3.43
2010 35,189 2010 3.57
2011 33,300 2011 2.55
INDEBTEDNESS1 (R$ MILLION)
Net Revenue Revenue/Share
Short-term indebtedness 18,966 15,090
Long-term indebtedness 136,588 100,858
BUSINESS SCENARIO Throughout 2011, oil prices were strongly
Long-term indebtedness 2
Possible risks arising from the range of influenced by the so-called “Arab Spring,” a
Available funds 35,747 29,416
oil and oil product prices, in addition to the series of demonstrations and civil protests in
Public bonds3 16,785 25,525
amounts related to fees and financial liabilities, North African and Middle Eastern countries
expose Petrobras to a number of factors that that had international impact and resulted not Adjusted cash 52,532 54,941
can have a negative effect on the value of its only in policy changes, but also in overturns. Net indebtedness 4
assets and financial liabilities or of its profits Moreover, the slowdown in the U.S. economy Total net liabilities 5
and cash flows. However, the company adopts and the debt crisis in several European nations 1
Loans and funding in Brazil and abroad.
a policy of not passing on the short term ex- also influenced oil and oil product prices. 2
Includes financial leases.
With maturity in excess of 90 days.
ternal price fluctuations to its products on the As a result, fluctuations caused by these 4
Total indebtedness minus the adjusted cash availabilities.
Brazilian market. macroeconomic conditions have raised the 5
Total net cash liabilities/financial investments.
54 2011 SUSTAINABILITY REPORT RESULTS AND CONTRIBUTIONS TO SOCIETY 55
INVESTMENTS INVESTMENTS ADDED VALUE STATEMENT (R$ THOUSAND)
In 2011, investments totaled R$ 72.5 billion, R$ MILLION
most of which earmarked for E&P (47%) and 2011 2010 2009
Downstream (37%). Revenues 379,716,344 337,696,770 291,424,513
In this period, the company invested in
Good, product and service sales 306,233,970 266,060,427 230,720,594
building refineries to meet the growing de-
Other income 6,606,989 4,252,085 4,218,266
mand on the Brazilian market and in the dis-
tribution chain. Construction of own assets 66,853,226 67,591,435 56,555,744
Investments in E&P aim, primarily, to Allowance/reversal of bad debts 22,159 (207,177) (70,091)
develop Pre-Salt production, to maintain Input purchased from third parties (188,745,316) (172,019,564) (142,391,371)
production in older fields, and to expand the Cost of products, goods and services sold (52,263,869) (38,963,147) (59,998,873)
logistics and technology infrastructure. Note- Third-party materials, energy, services and others (113,365,385) (111,197,701) (64,288,715)
worthy were operations going on stream, in Asset value loss/recovery (1,823,817) (690,087) (1,144,312)
August, at semi-submersible platform P-56, E&P 34,251 Others (21,292,245) (21,168,629) (16,959,471)
@ in the Marlin Sul field, in the Campos Basin. Downstream 27,117 Gross value added 190,971,028 165,677,206 149,033,142
Learn more about In the first half of 2012, it is expected to reach
International 4,440 Deductions (17,739,496) (14,611,977) (14,456,514)
funding its maximum throughput of 100,000 bpd of oil
Gas & Power 3,848 Depreciation, amortization, and exhaust (17,739,496) (14,611,977) (14,456,514)
and 6 million m³/day of gas. @
Corporate 1,230 Net value added generated 173,231,532 151,065,229 134,576,628
Distribution 1,157 Value added received in transfers 7,849,485 5,987,333 4,657,609
Biofuels 503 Equity accounting results 385,868 584,818 (64,806)
Total invested 72,546 Financial income 6,542,637 4,424,175 3,508,966
Others 920,980 978,340 1,213,449
Total value added to distribute 181,081,017 157,052,562 139,234,237
Value added distribution 181,081,017 157,052,562 139,234,237
DISTRIBUTION OF VALUE ADDED
Employees 20,463,936 18,249,338 15,666,553
In 2011, Petrobras’ distribution of value added (interest on capital and dividends), 13% to
(DVA) topped out at R$ 181 billion, a 15% in- third parties (interest and rent), 11% to the Direct compensation 15,073,142 13,472,459 11,711,452
crease over the previous year (R$ 157 billion). workforce (including direct compensation, Benefits 4,529,903 4,031,904 3,282,161
Of this amount, 57% went to the government benefits and the Severance Fund – FGTS), and Severance Fund (FGTS) 860,891 744,975 672,940
(taxes and contributions), 7% to shareholders 12% of the total were retained. Taxes, fees & contributions 103,982,451 88,755,362 79,728,426
Federal 67,437,944 60,426,593 54,355,598
State 36,358,438 28,148,302 25,216,933
TAX INCENTIVES FOR THE CORPORATE INCOME TAX (IRPJ) AND SOCIAL CONTRIBUTIONS ON NET INCOME1
Municipal 186,069 180,467 155,895
Description R$ thousands
Third party capital compensation 23,525,018 14,166,530 10,495,186
Cultural Incentive (Rouanet and Audiovisual Acts) 36,131.0
Interest 13,781,330 6,579,678 4,481,464
Workers’ Nutrition Incentive 28,402.7
Leases 9,743,688 7,586,852 6,013,722
Incentive for national sports 8,111.1
Equity capital compensation 33,109,612 35,881,332 33,344,072
Exploration profit 95,379.7
Interest on equity 10,435,598 10,162,324 7,194,743
Dividends 1,565,340 1,565,340 1,140,630
Funds for Childhood and Adolescence (FIA) 7,884.7
Retained profit/loss in the fiscal year 21,312,159 23,461,702 21,715,817
Extension of the maternity leave 4,878.6
Non-controlling interest in retained earnings (203,485) 691,966 3,292,882
Technological innovation 2
Partial accelerated depreciation (217.1)
Full accelerated depreciation2 9,299.8
Refer to Petróleo Brasileiro S.A. (Petrobras).
These tax incentives are used both for Income Tax (IRPJ) and for Social Contribution on Net Profit (social contribution) purposes.
The other incentives are only used for Corporate Income Tax (IRPJ) deductions.
56 2011 SUSTAINABILITY REPORT RESULTS AND CONTRIBUTIONS TO SOCIETY 57
economic development Local development
Petrobras’ economic contribution, measured industry was driven by the company’s orders
based on the current generation of taxes and on account of the development of the Pre-Salt
social contributions, added up to R$ 76.78 bil- area. In the beginning of the last decade, the
lion. Government take (royalties, special take Brazilian shipbuilding industry hired fewer
and area retention) in Brazil rose 34% com- than 2000 workers, today it employs nearly
pared to 2010 due to a 33% increase in the av- 60,000 people.
erage reference price for the barrel of oil, which By December 2011, Prominp had trained
reached R$ 168.07 against the previous year’s about 80,500 people in 185 professional
R$ 125.93. This increase reflects the changes in categories, serving 17 Brazilian states with
the international oil prices in the period. investments of R$ 228 million from Petrobras.
In order to facilitate the recruitment of skilled
BY DECEMBER BRAZILIAN INDUSTRY labor trained by the courses and to promote
In 2003, the Federal Government created the closer relations between professionals and oil
2011, PROMINP National Oil and Natural Gas Industry Mobili- and gas industry suppliers, an online database
zation Program (Prominp) aiming to create oil of resumes was created and is available for
HAD TRAINED and gas industry-related jobs through capacity queries on the program’s website. The database
ABOUT 80,500 building projects. This increases the Brazilian currently comprises about 1,500 registered
industry’s participation in providing goods companies with access to these data.
PEOPLE IN 185 and services competitively and contributes to
improving the population’s income. QUALIFICATION OF PROFESSIONALS
Coordinated by the Ministry of Mines and To meet the demand for qualified personnel
CATEGORIES, Energy, its main goal is to support the creation to work in the oil and gas industry, the Na-
of opportunities in the oil industry in Brazilian tional Vocational Qualification Plan (PNQP)
SERVING 17 regions where demand is expected to grow. was organized in 2006 to train, together with One of Petrobras’ commitments with society consonance with respect for human rights and
These actions helped identify gaps in training Prominp, thousands of professionals in Brazil is to maintain an ethical, transparent relation- the applicable laws.
and in industrial infrastructure (supply of by means of free courses. About 80 schools ship, which is essential to promote the devel- The community’s needs are surveyed in
STATES WITH materials, equipment and components). are involved, and investments have added up opment in the regions where it has operations. community forums and public hearings. In the
The activities are aligned to Petrobras Sys- to about R$ 220 million. Monthly grants are We assess the operational impacts on the com- areas surrounding pipeline works, for example,
INVESTMENTS OF tem’s policies of developing local content for also offered, depending on the course, to un- munities when activities begin, creating miti- community relations are based on home visits,
its projects, driving the Brazilian industry and employed students who may be at the entry, gation and compensation actions. Our goal is meetings and forums, the availability of sev-
R$ 228 MILLION
fostering the development of regional enter- secondary or technical levels or in higher edu- to create social, environmental and economic eral contact channels, such as the Engineering
FROM PETROBRAS. prises in the oil and gas chain. This will allow cation in 175 professional categories. benefits, contributing to sustainable develop- Department’s Contact Us, Transpetro’s Green
the company to take advantage of this skilled In 2011, giving continuity to Petrobras’ ment and strengthening the relationships with Phone (0800), Petrobras’ CSC, and the Om-
labor in its activities. Human Resource Training Program, we en- local suppliers by including them in the indus- budsman’s Office Channel.
A 2010 survey conducted by the Ministry tered into partnerships with over 12 schools try’s productive chain. We are also attentive to possible impacts
of Labor and Employment’s General Register to award grants for Brazilian students and re- on traditional communities, such indigenous
of the Employed and Unemployed (CAGED) searchers to get training in the oil, gas and bio- RELATIONSHIP WITH THE COMMUNITIES people and fishermen communities, since our
showed that 81% of the professionals trained fuels industries. With investments in excess of Petrobras acknowledges that its activities can presence can affect these communities’ cul-
by Prominp are currently employed in the R$ 200 million and a total of 34 participating have a significant impact on the life of the tural and social livelihood. Therefore, before
formal labor market. institutions, the program has already provided communities that surround its ventures and we begin our activities, in Brazil we seek formal
In addition, the Brazilian shipbuilding nearly 11,000 grants. facilities. For this reason, it seeks to establish instructions from licensing agencies and from
a respectful, transparent relationship with the National Indigenous Foundation (Funai).
them, minimizing impacts and identifying op- In different regions, we support projects that
portunities for local development, always in contribute to ensuring the rights of indigenous
58 2011 SUSTAINABILITY REPORT RESULTS AND CONTRIBUTIONS TO SOCIETY 59
peoples and, in 2011, we did not find a single Renewable Natural Resources (Ibama) aiming involved in promoting qualitative changes to properties where wells or production facilities
case in which these rights had been breached. to foster a direct communication channel be- social, environmental, economic and political are located, and this may cause inconveniences
In the Campos Basin, for example, more tween Petrobras and the communities. aspects. Agenda 21 is a participatory action to landowners. Operating, maintaining and
than 700 fishermen were engaged and got tech- All refining units in Brazil undertake sys- plan that undertakes a diagnosis of a nation, building new production facilities, as well as
nical guidance on the seismic surveys, emer- tematic and periodical engagement actions state, municipality or regional level with tar- drilling wells and building access routes to them
gency plans for the event of oil spills, oil and with the local community, in addition to im- gets for sustainable development. cause waste and the risk of spills.
natural gas production drainage systems and pact assessments and development programs. Therefore, before beginning activities near
about the company’s individual emergency The relationship with society and with the IMPACTS ASSESSMENT the communities, the company is subject to a
plans for its ventures. The action is part of a surrounding communities takes place, par- Social impacts associated with the operations strict environmental licensing process, which
project that is in progress to meet the condi- ticularly, through the provision of channels are an inherent risk related to the oil and gas is overseen by Brazilian government agencies
tions for environmental licensing required by to communicate the social and environmental industry’s activities throughout the world. and includes undertaking studies on the pos-
the Brazilian Institute for the Environment and impacts and other relevant information. New ventures, seismic surveys or drilling, oil sible environmental and socioeconomic in-
installation and production, piped natural gas fluences the action may have. By identifying
distribution network constructions and op- these vulnerabilities and the potential of each
eration and maintenance procedures may have region, structured studies are carried out and
negative impacts. reported in public hearings and meetings. An
Possible negative impacts at operating example of this is the Environmental Impact
In operations near indigenous communities in Argentina, the company carried out exploratory units or during transport on tanker trucks, Report (Rima), which presents a prognosis of
drilling activities nearby the Los Blancos settlement, in the province of Salta, which got engagement tanker train cars or tanker barges caused by the impacts deploying the operation will have
meetings and support related to health and education. The community got training, in partnerships accidents, volatile product emissions during on the communities.
with government agencies and with the Argentine Institute of Oil and Gas. Inter-institutional Health, safety and environment issues
product handling at the units, noise, impacts
agreements were also signed in Peru, at indigenous communities existing in the area of influence
on local traffic and particulate matter emis- are assessed and taken into account in all ap-
of the exploration activities carried out in lot 58.
sions on account of fuel burning. proval stages related to new ventures, from
In New Zealand, Petrobras undertook 2D seismics in maritime territory, 12 miles off the eastern Our operations may cause or be associated project conception to demobilization. The
coast of the North Island, in the Raukumara Basin, and made a field visit for geological studies. with negative impacts on fishermen communi- management of the social and environmental
Before the first phase of the work began, meetings were held with local leaderships and Maori ties, for example. Offshore seismic surveys lead impacts covers existing and future facilities,
community. The first phase of the 2D seismics was completed in May. During the surveys, a non- to temporary fishing exclusion or restriction notably in the design, construction and as- @
governmental organization held protests against the venture. The survey vessel had to halt its areas around the platforms and may damage sembly stages, which involve selecting the Know examples of
research activities to ensure the safety of a few of the demonstrators who had come very close to the fishermen’s tools due to the interaction best process technologies, the choice of the impact assessment
the area. Both the survey and the field visit were completed without incidents. and of community
with pipelines or other subsea facilities. On appropriate areas and environmental studies
land, there is the circulation of the workforce integrated to the licensing process that takes demands
The fact Petrobras started activities in an area where there was no exploratory tradition gave rise to a
more generalized discussion in the media regarding that country’s strategic decisions in the energy providing services to Petrobras on private place among public agencies. @
area, leading to a debate on topics that transcend the company’s operations and its commitment
with health, safety and environment issues. We comply with all required safety procedures and
maintain transparent dialogue with the governments and local communities.
PETROBRAS AGENDA 21 PROGRAM aimed at the 14 municipalities in the area sur-
The Petrobras Agenda 21 Program was cre- rounding the Rio de Janeiro Petrochemical
ated to improve the company’s relationship Complex (Comperj). In 2011, the 14 Agenda
with the communities located in the areas 21s were delivered containing the respective
of influence of the operating units, ensuring participatory diagnoses and local development
standing and multisectorial dialogue and plans. The work involved input from public
driving sustainable development through authorities, civil society organizations, busi-
community and local sustainable develop- nesses and the community, which maintain
ment plans. The plans are prepared by the the Local Agenda 21 Forums.
communities themselves, with the participa- The Agenda 21 methodology came up
tion of other social players and the mediation during the United Nations Conference On
of institutions hired as facilitators. the Environment and Development (Rio 92)
Parallelly, Petrobras has developed the as a proposal to foment a culture of sustain-
Comperj Agenda 21 Program, which is able development, bringing together all those
60 2011 SUSTAINABILITY REPORT RESULTS AND CONTRIBUTIONS TO SOCIETY 61
Conservation (ICMBIO), and the institutions Therefore, Petrobras directed a third of its
carrying out the Humpback Whale, Spinner environmental project portfolio to carbon
Dolphin and Tamar projects. The network fixation and avoided emissions projects,
Social investments aims to help preserve the Brazilian marine
biodiversity by protecting and researching not
working in six biomes encompassing an area
of 255,000 hectares. The activities carried out
only the species the projects are working with, under the projects included degraded area
but also their habitats, raising the society’s recovery, forest and natural area conservation
awareness and engagement around the topic. and the productive reconversion of areas,
The United Nations (UN) General Meeting such as those used for agroforests and
declared 2011 the International Forest Year. permaculture.
Hoping social investments will attain effective SOCIAL PROJECTS
results, the sponsorship projects Petrobras Social investments have positive impacts on
and its subsidiaries carry out are aligned with our activities, allowing for ongoing, dynamic INVESTMENTS IN ENVIRONMENTAL PROJECTS
the guidelines and procedures set forth by and good interactions between the company
Line of action Amount (R$ thousand)
the corporate programs. In 2011, we invested and society. Thus, in addition to transferring
Management of surface and underground water bodies 16,349
R$ 640.9 million in some 1,900 social, envi- financial resources, we also encourage the
Recovery or conservation of coastal, marine and freshwater species
ronmental, sports, and cultural projects. communities to organize themselves to de- and environments
Standing out among the programs’ stra- velop initiatives that foster social change. Over Carbon fixation and avoided emissions 22,585
tegic actions are the public selections, which 2011, the company invested R$ 206.9 million
Strengthening of environmental organizations and their networks 836
give the winning projects greater width and in 927 initiatives.
Dissemination of information for sustainable development 10,766
ensure equal access to resources. The stages We also trained our employees and the staff
involved in the analysis, approval, monitoring of the sponsored social institutions to improve
and assessment of sponsorship projects or project management. In 2011, 562 company
agreements are described in specific social in- staff and 188 social institutions were trained.
vestment approaches and procedures. Aiming to operate in an integrated manner
nationwide, the Petrobras Development & Citi-
zenship Program brings a set of performance
indicators and targets, allowing the monitoring
of the results attained by the supported projects.
INVESTMENTS IN SOCIAL PROJECTS
Line of action Amount (R$ thousand)
Income and Job Opportunity Generation 47,947
Education for Professional Qualification 56,521
Guarantee of the Rights of Children and Adolescents 69,987
Strengthening of Social Networks and Organizations 10,249
Dissemination of Information for Citizenship 20,719
ENVIRONMENTAL PROJECTS 2011, the program’s project portfolio included
To invest in natural resource conservation nearly a hundred initiatives, with the direct
and preservation, we developed the Petrobras involvement more than 420,000 people.
Environmental Program, which also works on The Biomar Network was created to
raising awareness concerning environment- develop the Integrated Strategic Planning
related topics. In the 2008-2012 period, the for Marine Biodiversity and comprises
addressed topics are “Water” and “Climate,” Petrobras, the Ministry of the Environment,
and R$ 500 million have been invested. In the Chico Mendes Institute for Biodiversity
62 2011 SUSTAINABILITY REPORT RESULTS AND CONTRIBUTIONS TO SOCIETY 63
SUPPORT FOR SPORTS weightlifting. For Educational Sports, mean- SUPPORT FOR CULTURE A highlight is the Petrobras Distribuidora
Launched in 2010, Petrobras’ Sports & Citi- while, the Petrobras Sports Reference Cen- The Petrobras Cultural Program is a tool used Culture Program, the largest public selection
zenship Program is the broadest sport support ters are expected to be deployed in 2012. For to add value to the Brazilian identity and specific for the circulation of theater plays in
initiative in Brazil and takes place through Participation Sports, the program encourages cultural diversity and works in three lines: Brazil. Its purpose is to bring theater plays
direct investments and incentives. It com- sporting initiatives nationwide, such as races, Production and Dissemination, Preservation to different cities, creating opportunities for
prises four segments – Performance Sports; regattas, cycling challenges and festivals. And, and Memory; and Training/Education for the people to cultural productions access nation-
Participation Sports; Memory of the Brazilian the last segment, Memory of the Brazilian Arts. Support is provided to the performing wide. The amount earmarked for the 2011-
Olympic Sports; Educational Sports – and Olympic Sports, aims to rescue the memory of arts, cinema, visual arts, festivals, literature, 2012 biennium was R$ 12 million.
it had a public selection process which was Brazil’s major sports achievements. collection restoration and digitalization, and In 2011, the Petrobras System sponsored
started in 2011 and aligned with the Federal The company undertakes other sporting immaterial heritage projects. 699 cultural projects, a total investment worth
Sports Encouragement Act. The result was an- incentive actions, such as the Petrobras Motor R$ 182 million.
nounced in 2012. Sports Program, considering the possibility
The Sports & Citizenship Program contrib- of turning motor sports into a research and
utes for social inclusion through the practice of development field for its products. It also CULTURAL PROJECTS
sports. In High-performance Sports, the target sponsors surf and soccer, high-performance
Line of Action Amount (R$ thousand)
is Brazil’s participation in the Rio 2016 Olym- sports and sports connected with its stake-
Production and Dissemination 138,145
pics, seeking to form athletes in five sports: holders through the Petrobras Performance
Preservation and Memory 30,662
boxing, fencing, rowing, tae kwon do, and Sports Program.
Training/Education for the Arts 13,530
INVESTMENTS IN SPORTS PROJECTS
Line of Action Amount (R$ thousand)
High-performance Sports 49,370
CARAVANS multiple possibilities for engagement, develop-
Motor Sports 14,774
During the entry period for the public selec- ment and ongoing training for volunteers. The
Petrobras Sports & Citizenship Program 11,479
tions for our cultural, social, environmental program disseminates the best practices while
and sports programs, we carry out caravans to searching for opportunities for participation
answer questions and instruct the social orga- and the practice of solidarity.
nizations on how to prepare their projects. Our The program counts on a network that
teams visit all Brazilian states and the Federal aims to engage volunteers, facilitating commu-
District, holding free and open workshops to nications and offering several forms of partici-
promote transparency and ensure equal access. pation. There are 3,900 volunteers registered in
We also have the Virtual Caravan, a feature de- the network, taking part in 53 company com-
signed to answer proponents’ questions online. mittees and responsible for disseminating the
In 2011, the Petrobras Sports & Citizenship program and the volunteerism actions. @
Program’s Caravan visited 29 cities in Brazil One of the highlights is respect for the
and reached some 4,000 people with its work- volunteers’ autonomy, since they participate Read the “Supplier
shops. The Ministry of Sports and athletes in different ways, whether in spot actions or management” chapter
took part in the process to help disseminate others that require more dedication and skills. regarding subjects
the Sports Encouragement Act. The voluntary work can be done individually, as support and
in collective activities, supporting shaping so- development, selection,
VOLUNTEER PROGRAM cial projects in a volunteerism project contest assessment and
Petrobras’ Volunteer Program is currently and by participating in training courses for dialogue with suppliers
in its second phase and is seeking to build volunteers at Petrobras University.
64 2011 SUSTAINABILITY REPORT RESULTS AND CONTRIBUTIONS TO SOCIETY 65
AND HUMAN RIGHTS
Petrobras’ Business Plan, which foresees sys- no discrimination on account of one’s place
tematic hiring at the company through 2015. of origin, race, gender, skin color, age or any
In a survey conducted by the Aon Hewitt other individual differentiation factor.
People management consultancy firm, for the fourth time in a row
Petrobras leads the ranking of the “most de-
Units operating outside of Brazil select
their employees through interviews and
sired” companies to work for. It also ranked resume analyses and pursuant to the current
second in Cia. de Talentos’ “Company of the laws of each country. These companies’ human
Dreams of Young People” survey, having been resource departments prioritize hiring local
featured among the top ten choices for the labor, including for management positions.
eighth consecutive year. A few countries, such as Angola and Bolivia,
require this by law. In others, such as Uruguay
WORKFORCE and Tanzania, preferring natives is an internal
The Petrobras System closed 2011 with a total of decision made by the area.
81,918 employees, of whom 81,052 under open- There are also countries where hiring is
ended contracts, 810 under determined time done based on supply and demand, such as
contracts, 56 under special contracts, in addi- Japan and the United States, and does not take
tion to 1,825 interns. The number of employees nationality into account. @
of companies providing services to Petrobras in
Brazil and abroad, meanwhile, is 328,133.
Our staff is spread among the 56 occupa-
tions included in the Petrobras Job and Posi-
Learn more about
tion Plan, including high school and college development and
graduates. According to Article 37 of the Bra- 2009 76,919
zilian Constitution, employees must be hired 2010 80,492 assessment,
through a public selection process, and 5% of compensation and
the positions do not require full aptitude and benefits
are set aside for people with disabilities, with
NUMBER OF PETROBRAS SYSTEM EMPLOYEES
Company Total staff
Petrobras Distribuidora 4,508
In its relationships with its employees, Petro- civil society and government agencies. It also Transpetro 5,230
bras complies with the Brazilian legislation and includes the commitment of engaging its con- Refap 923
the conventions set forth by the International tractors to meet these matters.
Labor Organization (ILO). The company has Over the year, the company held two se-
Petrobras Biocombustível 131
a corporate policy for Human Resources and lection processes to fill 940 positions, nation-
Companies abroad 7,515
one for Social Responsibility, which encom- wide, and to form a reserve reference file.
pass topics such as “principles of work” and Petrobras Distribuidora, meanwhile, opened a TBG 1
“workforce commitment.” public contest to fill 90 positions, and Trans- Thermals 2
In 2011, Petrobras signed a memorandum petro held a selection to immediately hire 386 Other companies 3
of understanding on the best labor relations non-commissioned workers and crew and 342 Total Petrobras System 81,918
practices with the International Federation of Merchant Marine officers for the vessels com-
Total staff Brazil 74,403
Chemical, Energy, Mine and General Workers’ prising its fleet, over and beyond a selection
TBG (Transportadora Brasileira Gasoduto Bolívia-Brasil S.A.).
Unions (Icem). The document approaches process to supply 206 middle management 2
Termoaçu S.A., Sociedade Fluminense de Energia Ltda., Termomacaé Ltda., Termorio S.A., Termoceará Ltda.
labor relations, issues related to health, safety and senior positions for its onshore staff. The 3
Companhia Petroquímica de Pernambuco, Companhia Integrada Têxtil de Pernambuco (Citepe), Ipiranga Asfaltos S.A., Inno-
and the environment, and relations with the new employee hiring process is aligned with va, Breitener Energia, Breitener Jaraqui and Breitener Tambaqui.
68 2011 SUSTAINABILITY REPORT EMPLOYMENT PRACTICES AND HUMAN RIGHTS 69
EVOLUTION OF THE STAFF - PETROBRAS SYSTEM SATISFACTION AND COMMITMENT Three indicators result from the survey.
Organizational ambiance management in the The Employee Satisfaction Index (ISE) –
Companies outside Subsidiaries and
Petrobras Total Petrobras System includes monitoring, di- which shows the levels of satisfaction with
of Brazil Affiliates - Brazil
agnosis and intervention in matters that im- the work relationships and conditions
2007 50,207 6,783 11,941 68,931
pact the conditions and labor relations in the at the Petrobras System – stood at 68%.
2008 55,199 6,775 12,266 74,240
company. The process takes into account, in Meanwhile, the Level of Commitment to the
2009 55,802 7,967 13,150 76,919
addition to the monitoring of the company’s Company (NCE), which measures not only
2010 57,498 7,893 15,101 80,492
the degree to which employees are aligned
organizational climate, the features that are
2011 58,950 7,515 15,453 81,918 characteristic of the organizational culture. with the company’s strategic objectives but
Through the Organizational Ambience also how committed they feel to contribute
Survey, employees have the opportunity to the its success, reached 71%. The Level
DISTRIBUTION OF EMPLOYEES BY REGION - BRAZIL to evaluate the company, guide significant of Commitment to Social Responsibility
changes in management and opine on aspects (NCRS), another index the survey measures,
Region Southeast South North Midwest Northeast Total
such as benefits, leadership, compensation, was 76%. This indicator measures to what
Petrobras System 49,970 4,633 2,019 831 16,950 74,403
safety, environment, health, training and extent employees are committed to the
development. The survey is confidential, it is company’s social responsibility initiatives.
applied online, and the data processing system
DISTRIBUTION OF EMPLOYEES OUTSIDE OF BRAZIL ensures the respondents’ anonymity.
Country Total staff
Argentina 2,963 ORGANIZATIONAL CLIMATE SURVEY - PETROBRAS SYSTEM
Bolivia 580 Indicator 2009 2010 2011
ISE (%) 66 66 68
NCE (%) 72 70 71
NCRS (%) 77 75 76
In 2011, the survey participation rate was 73%.
FREE ASSOCIATION (CIPA) and in the Management Committee
The company’s policy is one of continuous on Quality, Health, Safety and Environment at
negotiation with the unions, a fact reflected Work (QHSE), as well as freedom of commu-
mainly in the work of the negotiation commis- nication with employees assured to them. Any
sions established in the collective bargaining operational change, such as the deployment of
agreement, addressing various issues. Over the new technologies to increase work efficiency
year, we signed the 2011 Collective Bargaining and quality, competitiveness and employee
Agreement (ACT) with the Federation of Oil safety and health, is preceded by negotiations
Workers (FUP) and other trade unions repre- with trade unions and the local Cipas, as pro-
senting oil industry workers. The agreement vided for in the ACT. When necessary, the
consolidates the policy of ongoing negotia- changes are made gradually in order to prepare
DISTRIBUTION OF EMPLOYEES BY LABOR SYSTEM tions with the unions. the employee for the new scenario. In Brazil,
Shift1 19,394 The unions have the right to make demon- no minimum period of notice for this type of
Administrative 54,355 strations without any interference from Petro- communication is set and, at the units abroad,
On call 4,983 bras. The right to free professional or union these deadlines meet local requirements.
Maritime 2,723 association is guaranteed by law and also ac- In Brazil, all employees are covered by
Special Field 418 knowledged in our Code of Ethics. collective bargaining agreements. At the
Special for Air Support 45 The unions representing Petrobras System’s companies outside the Country, 27% of the
Total 81,918 employees have their participation in the In- employees are covered, in accordance with the
Note: A shift is a 6-, 8- and 12-hour workday.
1 ternal Commission for Accident Prevention cultural specificities of each region.
70 2011 SUSTAINABILITY REPORT EMPLOYMENT PRACTICES AND HUMAN RIGHTS 71
HEALTH AND SAFETY PROGRAMS medications at discount prices to be purchased
To ensure more appropriate health, safety, or subsidized by the company in full or in part.
ergonomics and hygiene conditions at work,
Health and safety at work Petrobras has the Medical Control for Occu-
pational Health, the Environmental Risk Pre-
ACCIDENT AND DISEASE INCIDENTS
The company’s performance indicators in the
vention, and the Health Promotion Programs. security area are aligned with international
As part of the improvements implemented oil and gas industry benchmarks. The Lost
based on them, periodic medical examina- Time Injury Frequency Rate (LTIFR) was 0.68,
tions gained a broader scope than that fore- mainly due to incidents in shipbuilding, rig
Besides those met by the applicable law, the In addition to courses at Petrobras Uni-
seen under the legislation and now also focus operation and in administrative areas. Fatal
quality of the work, competitiveness and the versity, regular activities such as the Internal
on the adoption of healthier lifestyles, com- accidents involving the workforce rose from
employees’ health and safety are emphasized Occupational Accident Prevention Weeks
bating a sedentary lifestyle, and encouraging a 10 to 16, including a helicopter crash in the
in the collective bargaining agreement. There (Sipats), emergency drills (local, regional or
balanced diet. Campos Basin, which caused four fatalities.
is a chapter devoted solely to the health issue national) and information campaigns are car-
Pharmacy Benefit is another program that, Meanwhile, the Fatal Accident Rate (FAR) –
and broken down in topics such as periodic ried out. Issues relating to health and safety
besides being an assistance and financial benefit, equivalent to the number of fatalities per 100
examinations, the employees’ Health, Safety are also featured in formal agreements signed
is aimed at preventing disease or promoting million man-hours of exposure to risk – rose
and Environment (HSE) commissions, the with trade unions, involving issues such as
health. The initiative offers diverse options of from 1.08 to 1.66 over the same period.
Cipa, food and periodic nutritional assess- the how the Cipa will work, emergency drills,
ment, disease prevention, and occupational the deployment of fire brigades and work-
health programs, a contingency program, pre- force protection from exposure to possible
ventive labor safety, firefighting, biological en- risk factors. LOST TIME INJURY FREQUENCY RATE (LTIFR)
vironmental monitoring and the health policy, Petrobras has programs in health and Number of fatalities (employees + employees of service providers) per 1 million hours worked
the psychological health and quality of life safety, such as AIDS Prevention and Control, 2009 0.48
program, among others. Support for Pregnant Women and Breast- 2010 0.52
Through corporate policies and a set of feeding, and the Special Assistance Program 2011 0.68
guidelines, standards, programs and initiatives, (PAE) for specialized care for dependents with OGP Average 1
we incorporate, in all of our activities, corporate a disabilities or disorders, among others. There 1
International Association of Oil & Gas Producers
values such as respect for life in all its forms, are also social and quality of life actions, such
expressions and situations, and the pursuit of as the Program for Preparation for Retire-
excellence in HSE-related issues. In addition, ment, the Program for Updates for Life and
we invest in improving the quality of life, health Work, the Program for Quality of Life and
FATAL ACCIDENT RATE
and safety of the workforce. Annually, Petrobras Work, the Blood Donation Program, and the
University holds corporate education programs Healthy Eating Program. There are also the
designed to educate, qualify, and have its em- health campaigns (anti-smoking, vaccination, 2.28
ployees commit to risk prevention and control carnival, cancer and AIDS) and lecture cycles 661
actions associated with accidents, incidents, de- (diabetes, sedentary lifestyle, stress, healthy
viations, and occupational diseases. diet and postural changes). 2008
Fatal Accident Rate1 Man-hours of exposure to risk
Number of fatalities (employees + employees of service providers) per 100 million hours worked.
72 2011 SUSTAINABILITY REPORT EMPLOYMENT PRACTICES AND HUMAN RIGHTS 73
NUMBER OF FATALITIES
6 1 7 gender equality
2010 7 3 10
2011 3 13 16
Includes fatalities in traffic accidents in the distribution area.
Over the past five years, there was an in- To prevent major accidents, Petrobras has Expressed in Petrobras’ Strategic Planning, the DIVERSITY OF THE WORKFORCE
crease of about 71% in the total man hours invested in Process Safety. The implementa- value attributed to human and cultural diversity The company provides equal employment
of risk exposure, which creates major chal- tion of structuring actions incorporated into marks the company’s relations with people and opportunities to all employees in its policies,
lenges in maintaining or making improve- the “Excellence in HSE” Strategic Project was institutions, ensuring respect for differences, practices and procedures, respecting the di-
ments to performance in safety issues and approved in June and comprises: non-discrimination and equal opportunities. versity of cultures, knowledge and skills. We
points to the need to strengthen accident Corporate process safety diagnosis; The Diversity Subcommittee, comprising guarantee the right to difference, ensuring
prevention actions. representatives from the Petrobras System each worker, regardless of their characteris-
Development of corporate indicators on pro-
In 2011, the Senior Administration and areas and subsidiaries and linked to the Social tics, full conditions to develop their talent and
cess safety building on the industry’s global
the trade unions created a joint forum to iden- Responsibility Commission, discusses issues potential.
tify opportunities for improvements in HSEE such as respect for diversity and combating
Recording and breadth analysis of process
management. A working group comprising discrimination and proposes actions to
senior managers and union representatives improve the management of these issues.
was created and will meet monthly to propose Development of expertise in process safety.
actions to reduce fatalities and other accidents. The Petrobras System also monitors the
These initiatives will strengthen the company’s results of indicators such as the Percentage of RACIAL DIVERSITY
commitment to identifying and managing Lost Time (PLT) relating to employee absences
Race/Skin Color Number of employees
risks, make improvements in service provision due to illness or accidents. In 2011, there was
contract monitoring, and reinforce the work- a PLT of 2.33%, lower than the 2.41% MAL set
Pardos (brown) 15,038
force’s training in HSE. for the year.
PERCENTAGE OF LOST TIME
Not informed 15,513
Absenteeism due to illness or accidents
Information self-declared by each Petrobras, Petrobras Distribuidora, Transpetro, Liquigás and Refap employee.
2.41 DISTRIBUTION OF EMPLOYEES BY AGE AND GENDER
Maximum Admissible Limit. Men Women Total
Up to 30 years of age 12,558 3,865 16,423
31 to 50 36,001 7,238 43,239
Occupational Disease Incidence Rate (ODIC)1
Aged more than 51 years 19,499 2,757 22,256
2009 0.18 10 new cases
Total 68,058 13,860 81,918
2010 0.36 20 new cases
2011 0.03 2 new cases
Rate per thousand employees. Only includes Petróleo Brasileiro S.A. (Petrobras). RATIO OF BASIC SALARY OR COMPENSATION AMONG MEN AND WOMEN BY EMPLOYEE CATEGORY
Functional Category Proportion of employees - Proportion of employees -
(type of employee) middle level upper level
In 2011, there were two new cases of occupa-
Employees not holding positions
tional diseases. Of the 20 cases of the previous 1.03 0.94
year, 17 cases of hearing loss that were under as- Empregado com função gratificada 0.78 0.83
sessment were notified, which led to an increase Overall Total 0.88 0.87
in the number of cases compared to 2009. 1
Fixed and minimum amount paid to the employee for performing his or her tasks, not including additional pay.
74 2011 SUSTAINABILITY REPORT EMPLOYMENT PRACTICES AND HUMAN RIGHTS 75
PACTS AND INITIATIVES
Equal opportunities for men and women in
will cover 800 cities in Brazil, bringing knowl-
edge to more than 100,000 workers over the Human rights
in the business chain
the Petrobras System, including the holding next three years. Approximately R$ 100 mil-
of higher positions in the hierarchy, were re- lion will be invested in the project, which now
inforced in 2006, when the company joined includes a module with content on the preven-
the Pro-Gender and Race Equality Program, tion of racial discrimination.
sponsored by the Special Secretariat for Wom- We once again sponsored the LGBT (Les-
en’s Policies and supported by the UN Entity bian, Gay, Bisexual and Transgender) Pride Pa-
for Gender Equality and the Empowerment rade, the largest cultural event designed for the Petrobras’ Social Responsibility Policy explicitly In the Materials area and in the other pro-
of Women (UN Women) and the Interna- affirmation of diversity in the city of São Paulo. defines the rejection of child, forced and de- curement and contracting areas, all contracts
tional Labor Organization (ILO) in Brazil. In The company has pioneered initiatives con- grading labor in its supply chain. No cases related for goods and services include clauses cited in
2011, the company developed an Action Plan ceived for the respect for diversity and, since to these topics were identified over the year. In its the Materials Provision Conditions and in the
for the fourth edition of the program and has 2007, has acknowledged same-sex partners’ relations with suppliers, the company requires, Standard Contract Draft, which include banning
committed to reviewing the content of gender, rights to social security benefits, including through the Code of Ethics and contractual forced and child labor as well as the obligation to
race and ethnicity in the continuing education coverage under the Multidisciplinary Health clauses, management that respects internationally comply with labor rights. Companies are subject
curricula designed for managers and staff, to program. There are currently 111 employees acknowledged human rights and rejects forced to evaluations and required to submit proof of
or compulsory labor practices. All significant compliance with labor obligations. In the event IN ITS RELATIONS
developing educational initiatives to combat (63 men and 48 women) enjoying the right to
contracts include clauses concerning this issue. of noncompliance, companies may face sanc-
gender and ethnic/racial discrimination, have their partners covered by the company’s WITH SUPPLIERS,
and to strengthening initiatives that promote health insurance. These actions are monitored The company’s operations do not pose a tions and even be prevented from transacting
women’s rights and combating domestic and by Petrobras’ Subcommittee on Diversity. significant risk for incidents of child, forced or with Petrobras for a specified period. THE COMPANY
family violence. At the company, maternity leaves entitle the compulsory labor. However, there are poten- We invest in programs and enter into part-
tial risks in the production of oilseed by family nerships with a focus on ensuring the rights REQUIRES,
In partnership with the Secretariat for beneficiaries to a total 180 days. The term for
Women’s Policies and with the state and city of mothers who adopt or secure legal custody for farmers to supply the biodiesel plants, mainly of children and adolescents. In addition to THROUGH
Rio de Janeiro, we celebrated the five years of adoption purposes may range from 30 to 120 in northern Brazil. adopting specific measures in good and service
the Maria da Penha Act producing of a million days, as per the specific legislation on this issue. In the Engineering area, for example, the procurement procedures, we support institu- CONTRACTUAL
brochures on the legislation, which were dis- During this period, the employee is entitled to degree of compliance with the social responsi- tions such as the United Nations Children’s Fund
bility guidelines and procedures is checked at (UNICEF) and the National Council for the
tributed on Liquigás gas bottles and at Distri- his or her salary, may not engage in other paid
buidora’s service stations. Approved in August activities, and the child cannot be left for care at the units, contractors and subcontractors. The Rights of Children and Adolescents (Conanda). MANAGEMENT
2006, the act increased the severity of the pun- daycare centers or similar institutions. Engineering Social Responsibility Index (SRI) Concerning its contribution to eradicate this
ishments for assaults against women when oc- Paternity leave, meanwhile, is five consecu- is measured based on such assessment, and, in practice, the Petrobras System makes annual THAT RESPECTS
curring in the domestic or family environment. tive days for biological or adoptive fathers, be- 2011, reached an 89.63% rate of compliance, transfers to the Fund for Childhood and Ado-
HUMAN RIGHTS AND
In addition, we signed a protocol of inten- ginning from the baby’s date of birth or from above the 85% target. lescence (FIA), promoting the protection of the
tions with the Federal Government’s Secre- legal custody for adoption purposes for mi- In the Downstream area, regardless of the rights foreseen under the Statute of Children REJECTS FORCED
tariat for the Promotion of Racial Equality to nors aged fewer than eight years. In 2011, 328 size or strategic importance of the investment, and Adolescents. In 2011, R$ 19.1 million were
train Petrobras Distribuidora service station women went on maternity leave, while 810 men the contracts include the Term of Commit- earmarked for this, equivalent to the maximum OR COMPULSORY
ment in Social Responsibility that includes provided for by the legislation as deductible
network attendants and professionals on the on paternity leave at the Petrobras System. LABOR PRACTICES.
subject through the traveling Maximum Ca- The company also has breastfeeding sup- items relating to human rights. Suppliers are transfers, i.e., 1% of the Income Tax due. The
pacity program. Expected to increase its fleet of port rooms available, designed with the infra- assessed annually through the Responsible company intends to contribute to strengthening
mobile training units (MTUs, buses converted structure required to collect and store breast Partnership Program, which guides the im- the Conanda, enabling the implementation of
into classrooms) from 8 to 17, the program milk during the workday. proved management of our business partners. projects and strategic actions for the full pro-
The companies undertake to promote internal tection of children and adolescents living with
actions in the pursuit of excellence. their families and communities.
At Petrobras Distribuidora there are ten To ensure and protect human rights in vir-
global equipment procurement contracts that tual environments, we support the Safernet
are considered as significant, and all include project, which works with the National Whis-
provisions that restrict practices that may be tleblower Center for Cyber Crimes in Brazil.
in violation of human rights. Significant con- The action extends the processing, monitoring,
tracts are those that entail the procurement generation and routing capability for police
of large-scale equipment which demand a investigation requests related to child pornog-
high degree of technical qualification of the raphy and pedophilia on the Internet that are
supplier, such as fuel pump and tank (under- received through the National Whistleblower
ground and aerial) procurement for service Center for Cyber Crimes, which is operated in
stations and major consumers, compressed partnership with Federal Prosecutors.
natural gas supply kits and aircraft.
76 2011 SUSTAINABILITY REPORT EMPLOYMENT PRACTICES AND HUMAN RIGHTS 77
TOTAL EXPENDITURES WITH ENVIRONMENTAL PROTECTION (R$ MILLION)
Nature of the expense 2011 2010 2009
Strategy and governance
Environmental expenditures related to production/operations 1,976.9 1,750.6 1,575.5
Pollution control equipment and systems 199.0 172.3 197.5
Degraded area recovery projects 373.7 242.3 99.4
Investments in external programs and/or projects (including
171.6 257.7 93.9
Total 2,721.2 2,423.0 1,966.3
Includes operating units in Brazil and abroad.
Our governance model foresees the operation product GHG emissions growth curve, con-
of committees and commissions that help to tributing for the expansion that has been fore-
integrate the company’s actions and initiatives seen for the company’s business to take place
in the environmental area. This is the case, for on more sustainable bases.
example, of the HSE, Energy Efficiency, Emis- We participate in initiatives and national
sions and Climate Change and Environmental and international forums on climate change,
Licensing and Settlement Management Com- such as the work group of the Global Oil and
mittees, comprising representatives from the Gas Industry Association for Environmental
management level of the business areas, ser- and Social Issues (IPIECA) dedicated to this
vices and subsidiaries, who meet regularly. topic; the Carbon Sequestration Leadership
The Petrobras System also requires its sup- Forum (CSLF), the World Business Council
pliers to act in an environmentally responsible for Sustainable Development (WBCSD), the
manner. This demand is reflected, for example, Asociación Regional de Empresas del Sector
in the requirements for companies to be in- Petróleo, Gas and Biocombustibeles en Latino-
cluded and remain in the corporate register américa y el Caribe (Arpel), the International
of suppliers, in contract clauses relating to the Emissions Trading Association (IETA), and
subject, in the structured system to address the Brazil GHG Protocol program, of which
non-compliances and, ultimately, in sanc- we are founding members. We regularly mon-
tions that may prevent the supply of goods itor the Conference of the Parties on Climate
and services. In 2011, the company suffered no Change (COP), including COP-17, which in
penalties for being in breach of performance 2011 was held in Durban.
requirements in the environmental area.
VOLUNTARY REDUCTION TARGETS
Petrobras has set the following voluntary
Petrobras is committed to continuously are managed pursuant to a corporate policy, Brazil’s social and economic growth is expected
targets for 2015, compared to 2009, to reduce
improving its performance in order to reduce which unfolds in 15 guidelines covering all to lead to a rise in energy consumption and,
its greenhouse gas emissions intensity and
the impacts its operations and products have aspects of Petrobras’ activities, such as regula- thus, of fossil fuels. In this scenario, there will
improve energy use in its processes:
on the environment and on society. To achieve tory compliance, good and service procure- be an increase in greenhouse gas (GHG) emis-
this, it prioritizes investments in new technolo- ment, product management and community sions associated with the energy and transport 10% reduction in energy intensity in the
gies, in increasing process efficiency, reducing relations, among others. These topics, in turn, sector, a factor several studies have pointed to refining operations and 5% in the operation of
emissions and natural resource consumption, are detailed in corporate standards. The com- as one of the causes of global warming. The thermal power plants;
in conservation and ecosystem restoration and pliance of the units’ management systems with Petrobras System recognizes the scientific evi- 65% reduction in natural gas flaring intensity
in sources of renewable energy. the corporate guidelines is assessed using the dence related to climate and endeavors to un- in exploration and production operations;
This commitment is encouraged and sup- HSE Management Assessment Process. derstand the impacts climate change will have 15%, 8% and 5% reductions, respectively, in
ported in its corporate strategy, which, for ex- The Health, Safety, Environment and and to seek initiatives to mitigate it. the intensity of GHG emissions from explo-
ample, defines contributing to the sustainable Energy Efficiency Executive Management is The company bases its mitigation strategy ration and production, refining and thermal
development of the areas where it operates as the corporate body responsible for guiding, on these lines of action: energy efficiency; power plant operations.
one of the company’s values. Other documents, monitoring and evaluating Petrobras’ man- operating improvements; new technology re- The 2011-2015 Business Plan envisages
such as Petrobras System’s Code of Ethics, un- agement and performance in the HSEE. This search and development (R&D); feasibility investments in the order of US$ 1.2 billion to
derscore respect for all forms of life, for health, responsibility is shared with all company and application of renewable energy sources, facilitate voluntary commitments conceived to
for the environment and for safety. managers, who ultimately account for the particularly biofuels, and promoting the effi- increase energy efficiency and reduce green-
Aspects related to health, safety and en- performance in health, safety and environ- cient use of its products. The actions that are house gas emissions intensity in the period,
vironment (HSE) at the company’s business ment in their areas or units. implemented will attenuate the operation and contributing to attain the goals that were set.
80 2011 SUSTAINABILITY REPORT ENVIRONMENT 81
+ KEY MITIGATING ACTIONS AND RESULTS transporting and to the geological storage of
Learn more about Campos Basin Gas Utilization Optimization CO2 in the Pre-Salt production scenario, and
the Petrobras also other technologies aimed at mitigating
Plan, which undertook 93 actions on 24 plat-
Environmental climate change. Between 2006 and 2011, the
forms, with investments of US$ 200 million. A
Program in the company invested about US$ 64 million in
total of US$ 322 million are expected to be in-
“Social Investment” R&D, maintaining agreements and contracts
vested in the program between 2010 and 2015.
The main actions in course are the increase in with international technical and scientific in-
natural gas utilization at new platforms and stitutions to develop new knowledge and tech-
adjustment of the operating variables at the ex- nologies in this field. Additional investments
isting ones to minimize flaring. In 2011, these of US$ 170 million are expected for the 2012-
Since 2007, Petrobras has invested more than The energy conservation initiative for ad-
actions afforded a 50% reduction in the natural 2015 period.
R$ 480 million in energy efficiency projects, ministrative facilities brings together energy
gas flaring intensity compared with 2009; Climate change is the subject of two tech-
which have afforded savings of approximately efficiency and automation projects, such as a
nology programs developed by the Leopoldo
Internal Energy Efficiency Program, with 4,200 barrels of oil equivalent per day (boe). building monitoring system that allows the
Américo Miguez de Mello Research and
investments worth over R$ 480 million since In the period ranging from 2011 to 2015, in- monitoring of the power consumption at the
Development Center (Cenpes). One is the
2007 in projects that afforded savings of vestments of about US$ 1.2 billion have been main buildings the company occupies. These
Technological Program for Climate Change
approximately 4,200 barrels of oil equivalent planned for the R&D project portfolio aiming projects, and the power purchase contract op-
Mitigation (Proclima), which was created in
per day (boe); to maximize energy efficiency and reduce the timization process, with an option to purchase
2007 and studies technological solutions to re-
Voluntary Commitment with CO2 reinjec- intensity of greenhouse gas emissions. energy coming from renewable sources, af-
duce greenhouse gas emissions from company
tion and increased utilization of associated gas The Internal Energy Efficiency Program in- forded savings of over R$ 10 million in 2011.
processes and products. Another one is the
in the Pre-Salt areas. In the field of Lula, the cludes initiatives related to energy management,
Technology Program for CO2 Management
first definitive project deployed in the Santos optimization and energy integration, cogenera- ENERGY CONSUMED
in the Development of the Pre-Salt (ProCO2),
Basin Pre-Salt region, CO2 produced in as- tion, installation of turboexpanders, advanced Total energy consumption at the Petrobras
created in 2009 to develop and implement
sociation with the oil and natural gas is being process control, facility modernization, equip- System in 2011 was 682,827 terajoules, 4.72%
technologies that enable the capturing, trans-
reinjected into the producer reservoir. The oil, ment modernization, steam, condensate and less than in 2010. The 9,080 TJ reduction
port, storage and utilization of the CO2 that
natural gas and CO2 are separated and pro- water loss reductions, and system design and was the outcome of efforts focused on more @
will be produced in association with natural
cessed. After the CO2 separation process, the operating standardization. It also includes proj- efficient energy use and also of the small Learn more about
gas in the pre-salt fields.
natural gas is transported and compressed, ects aimed at converting thermal power plants amount of requests made by the National conscientious
Petrobras is also investing in the Thematic
and the CO2 is compressed and reinjected into to run in a combined cycle and the use of the System Operator for power dispatch by consumption
Networks, an initiative conceived to provide
the reservoir to keep it from being released natural gas associated with oil production. thermal power plants. @
technical cooperation and financial support
into the atmosphere. This operation also al-
to science and technology organizations in
lows for an increase in oil recovery efficiency;
Brazil. The Thematic Network on the Capture ENERGY CONSUMED BY THE PETROBRAS SYSTEM (TJ)
Investments in R&D projects aimed at miti- and Storage of Carbon and Climate Change
gating climate change through two technology 2011 2010 2009
was created in 2006. It comprises 14 scientific
programs and a network involving 14 Bra- and technological institutions and seeks to Direct energy
zilian institutions and universities; enable and create infrastructure in Brazil for Diesel fuel 38,041 37,919 34,205
Fuel oil 64,733 65,844 81,670
Investments of US$ 4.1 billion in biofuels the development of technologies designed for
Natural gas 359,112 423,183 298,603
between 2011 and 2015; capturing, transporting and for the geological
Refinery gas 140,548 74,599 88,006
Encourage rational fuel use through actions storage of CO2.
Residual gas 5,864 5,920 0
carried out under the Ministry of Mines and In the field of research and development
Liquefied petroleum gas (LPG) 28 937 1,773
Energy’s National Program for the Rational in CO2 capturing and storage, the highlight is Coke 67,567 67,962 70,841
Use of Oil and Natural Gas Products (Conpet); the testing of the prototype system of the oxy- Others 29 431 1,906
Sponsorship of environmental projects combustion technology for catalytic cracking Total direct energy 675,921 676,795 577,004
designed for water conservation, carbon fixa- units used in refineries. The initiative is part of Indirect energy
tion and emission mitigation. + the global Carbon Capture Project (CCP) con- Imported steam 412 13,953 9,198
sortium, which, among other objectives, seeks Imported electric energy 6,493 25,925 17,868
RESEARCH & DEVELOPMENT to reduce CO2 emissions at refineries at lower Total indirect energy 6,905 39,878 27,066
Petrobras earmarks significant amounts for in- costs than those involved with the use of the Total (direct + indirect energy) 682,827 716,673 604,070
vestments to develop technological solutions currently available technologies. a) Power and steam transferred among the System’s units are not included in the 2011 calculation. For this reason,
to meet the challenges related to capturing, we recorded a significant reduction in indirect energy consumption between 2011 and 2010.
b) The electricity and steam imported from third parties were converted based on their energy content.
82 2011 SUSTAINABILITY REPORT ENVIRONMENT 83
CARBON DIOXIDE EMISSIONS – CO2 (MILLION TONNES)
Petrobras discloses its greenhouse gas emis- VOLUME OF EMISSIONS METHANE EMISSIONS – CH4 (THOUSAND TONNES)
sions inventory voluntarily, both in its own In 2011, the company’s operations released
publications and by taking part in initiatives 56.2 million tons of CO2 equivalent into the 2009 235
such as the Brazil GHG Protocol Program, atmosphere. The 8% reduction in direct emis-
of which the company is a founding member, sions, compared to the previous year, was due
and the Carbon Disclosure Project (CDP). mainly to decreased gas flaring, to the im- 2011 161
Since 2002, it has had a management system provements in energy efficiency and to the
Total emissions: direct + indirect.
for Air Emissions (Sigea), which inventories low level of requests by the National System
more than 30,000 sources of emissions, both Operator for power dispatch by thermal
of GHEs and of regulated pollutants. Its results power plants.
are regularly submitted to verification by a NITROUS OXIDE EMISSIONS – N2O (TONNES)
third party, according to ISO 14064.
GREENHOUSE GAS EMISSIONS - 2009 TO 2011
(IN MILLION METRIC TONS OF CO2 EQUIVALENT) 2011 1,753
2011 2010 2009
Direct emissions 54.9 60.0 56.9 Total emissions: direct + indirect.
Indirect emissions 1.3 1.1 0.8
Total emissions 56.2 61.1 57.8
OTHER SIGNIFICANT ATMOSPHERIC EMISSIONS (TONNES)
a) Results of the E&P, refining, fertilizer, petrochemical, power generation, ground (pipeline and road) and maritime transpor-
tation operations, as well as distribution activities in Brazil, Argentina, Bolivia, Colombia, Ecuador (until 2010), Mexico, Peru, Emissions 2011 2010 2009
Paraguay, Uruguay, and the United States.
Nitrogen oxides (NOx) 222,212 227,752 222,036
b) Indirect emissions refer to the purchase of electricity and steam provided by third parties.
c) The air emissions inventory is prepared according to the guidelines of the GHG Protocol - a Corporate Standard (WRI/WBCSD). Sulfur oxides (SOx) 120,636 133,733 135,390
The approach used to prepare the inventory is based on the bottom-up methodology, i.e., the total inventory is the sum of the Particulate matter 17,483 17,505 19,299
sources of emissions. The algorithms used to calculate greenhouse gas emissions are based on publicly accessible international
Carbon monoxide (CO) 157,394 140,559 97,654
benchmarks, such as the API Compendium and the “AP-42” (US EPA).
d) In terms of greenhouse gas emissions, the inventory includes emissions of CO2 (carbon dioxide), CH4 (methane) and N2O (ni- Volatile organic compounds (VOC) 253,320 258,046 386,585
trous oxide). The results are shown in millions of metric tons of CO2 equivalent, calculated according to the Second Assessment
Report of the Intergovernmental Panel on Climate Change (IPCC).
e) Petrobras submits its inventories, periodically, to a verification process carried out by the third party pursuant to the ISO 14064 Petrobras, in accordance with the commit- The first inventory of dioxins and fu-
standard. The 2008 to 2011 inventories will be submitted to external verification during 2012.
ments Brazil took on under the Montreal Pro- rans made in Brazil - still in its draft version
f) The 2011 figure is 1.6% above the figure reported in the 2011 Management Report, as additional data were consolidated after
that report was posted. tocol and the Brazilian legislation on the use of – shows that the estimated amount of persis-
g) The 2010 and 2009 figures differ from those reported in the 2010 Sustainability Report due to reassessments made over 2011. ozone-depleting substances (ODS), does not tent organic pollutants released into the atmo-
h) Other indirect greenhouse gas emissions had not been consolidated yet when this report was closed.
use these substances in its systems, equipment, sphere by the generation of heat and energy in
facilities and new products, whether domestic the Country, including thermal power plants,
or imported. ODS emissions coming from the boilers and industrial furnaces, is 23 g of toxic
company’s operations do not represent a sig- equivalent per year, equal to less than 1% of
nificant volume. such pollutants emitted in Brazil. Shale pro-
duction and flaring emissions also contribute
very little - less than 0.1%.
84 2011 SUSTAINABILITY REPORT ENVIRONMENT 85
system, which went into operation in 2011. has proposed. These assessments may high-
This is a geographic information system that light improvement opportunities for the bio-
Biodiversity enables the integration of and access to envi-
ronmental data available in several company
diversity conservation projects the company
undertakes or supports.
databases and is currently at its content struc-
turing stage, such as official maps of protected MANAGEMENT OF RISKS AND IMPACTS
areas, data on endangered species, boundaries The management of risks and impacts on bio-
of the operations’ areas of influence and on diversity derived from Petrobras’ operations
data reforestation, among others. GeoPortal foresees the implementation of detailed action
HSEE also centralizes access to external plans to map protected, sensitive and vulner-
sources, such as in the case of the Proteus Proj- able areas located in the area of influence of
ect’s global databases, which Petrobras joined such operations, taking into account measures
in 2011. The project is developed by the World to prevent and minimize risks, recover af-
Conservation Monitoring Center (WCMC), fected areas and, ultimately, provide compen-
which is linked to the United Nations Environ- sation for damages. Besides considering legal
ment Programme (UNEP). requirements and those related to securing en-
Aiming to share with its stakeholders in- vironmental permits for our projects, the plans
formation about Brazilian species of flora and also include the interests of the surrounding
fauna living in the environments where it has communities and of society in general, as well
operations, Petrobras maintains the Biomaps as the possibility of developing actions that
project. The initiative currently provides, contribute to government strategies for the
over the Internet, mappings the company or conservation of biodiversity.
partner institutions have been made of the sea In this line, there is the São Francisco do
coast and of the Amazon forest. @ Sul Waterway Terminal Green Belt project, @
To identify the best practices and regulatory which increased facility safety and promoted For more details,
trends, we take part in various Brazilian and the recovery of the remaining area of the At- go to www.petrobras.
international forums, especially the National lantic Forest, the creation of the Zoo Botanical com.br/biomapas/en
Environment Council (CONAMA) technical Museum - an educational space for the com-
councils and working groups; the focus area munity -, and the production of seedlings for
on ecosystems of the World Business Council use in the project, which will also made avail-
for Sustainable Development (WBCSD); the able to the community.
Technical Chamber on Biodiversity and Bio- Vegetation removal is a common inter-
technology of the Brazilian Business Council vention when existing units are expanded or
for Sustainable Development (CEBDS); the new ventures established. Indirect impacts re-
Petrobras’ commitments to biodiversity are Technical working groups with the par- Ipieca Biodiversity Working Group; the Biodi- sulting from this type of interference include
featured in its key corporate documents and ticipation of internal experts were created to versity Network of the National Confederation habitat loss, fewer locations available to the
are detailed in more specific materials, such as address specific topics. Among the results at- of Industry (CNI); the Roundtable of Sustain- fauna and flora for food, shelter or breeding,
the HSE policy, guidelines and standards. The tained by the work of these groups in 2011, the able Biofuels (RSB); the Conference of the Par- possible interference with the animals’ migra-
Excellence in Health, Safety and Environment limelight is on the setting of parameters and ties (COPs) of the Convention on Biological tory and movement routes, in addition to de-
Strategic Project, created to ensure the achieve- criteria for collecting data on protected, sensi- Diversity (CBD); and in the Brazilian delega- mographic and genetic changes among animal
ment of international standards of excellence in tive and vulnerable areas; the revision of the tion’s preparatory meetings for the COPs. or plant populations. Removals of this type are
the management of HSE issues associated with new venture management standard, with the In 2011, we joined the Life Institute Tech- always done with the approval of the environ-
the company’s business, emphasizes biodiver- inclusion of criteria related to biodiversity in nical Committee and entered into an agree- mental agency with jurisdiction over each op-
sity-related initiatives: mapping of protected, each phase of planning for these projects; and ment with the entity, which has the support eration and accompanied by plant restoration,
sensitive and vulnerable areas; implementation the definition of criteria for the classification of the Ministries of the Environment and For- preferably in the same micro watershed.
of a system to assess impacts on biodiversity; of accidents with impact on the environment eign Affairs, in Brazil, and of the United Na- When the Premium I Refinery is deployed
and the diagnosis and recovery plan for areas caused by chemical spills. tions (UN). Assessments will be carried out at in the state of Maranhão, there will be a habitat
degraded by Petrobras’ operations. Information systematization, a major 20 Petrobras units to improve and verify the conversion process due to removal of vegeta-
Each initiative has associated actions and challenge for biodiversity management, led applicability of the biodiversity management tion from the entire project area. At the con-
targets to be developed and achieved by 2015. the company to develop the GeoPortal HSEE certification methodology the Life Institute struction stage, biodiversity may be impacted,
86 2011 SUSTAINABILITY REPORT ENVIRONMENT 87
for example, by dust emissions and noise caused BIODIVERSITY PROTECTION AREAS Park. A forest nursery with a production ca- of environmental information relating to these
by earth movement and the operation of heavy- Petrobras invests systematically in initiatives pacity of up to 300,000 seedlings was deployed regions, supporting decisions to be made by
duty equipment. There may also be pressure aimed at the conservation of endangered to achieve this goal. both Petrobras and government agencies.
on the biota due to the increased population species, among which the limelight is on the Researchers from Brazilian universities At Petrobras’ units in other countries,
and flow of people and vehicles in the region. Tamar, Humpback Whale and Spinner Dol- and research centers take part in the biodiver- strategic measures have been implemented to
In order to minimize the damage caused by phin projects, in Brazil, and the project un- sity characterization and monitoring studies ensure compliance with the local regulatory
vegetation removal, the company works on the derway in Santa Marta, Colombia, aimed at conducted in the company’s areas of influence. requirements and improve the management of
conservation of the riparian forests, reducing the conservation of the Eretmochelys imbricata Noteworthy are the regional environmental biodiversity. In the United States, for example,
Learn more about the chances water bodies may silt up during the sea turtles, which are critically endangered ac- characterization projects carried out for the the company supports the Serpent project,
sensitive and rainy season. In addition, a forest inventory is cording to International Union for Conserva- Potiguar, Sergipe-Alagoas, Espírito Santo, a global partnership between the oil and gas
protected areas carried out to identify the vegetation, the spe- tion of Nature (IUCN) Red List of endangered Campos and Santos sedimentary basins, and sector industries and academia to conduct
cies and the ecosystem conditions at the site, as species. After being cared for in captivity for the Deepwater Coral Characterization Project research on marine biodiversity based on the
well as to monitor the terrestrial, aquatic and a year, the hawksbill sea turtles, as they are done in the Campos, Santos and Espírito observation of behavior and measurement of
bird wildlife in the areas under direct and indi- known, are reintroduced into their habitat. Santo basins. The Potiguar and Campos basin the wildlife surrounding the platforms and
rect influence of the project. In partnership with the Chico Mendes studies generated the most comprehensive set facilities located or operated offshore.
The potential impacts on biodiversity Institute for Biodiversity Conservation
during the construction of Platform P-55, (ICMBio), the company develops the Moni-
at the Naval Hub of Rio Grande (RS), are re- toring of Sirenia in the Potiguar Basin Project,
lated to the dredging of the channel and to the focused on the monitoring of manatees (Tri-
movement of vessels, which may cause both chechus manatus manatus) along the coast
terrestrial and aquatic fauna to flee, changes between the cities of the Touros (state of Rio
in landscape patterns, and resuspension of Grande do Norte) and Beberibe (state of
bottom sediments. Among the mitigation and Ceará). This is the most endangered aquatic
compensation actions, the limelight is on the mammal species in Brazil, rated as “critically
plant curtaining project and on the afforesta- endangered” on the official list of Brazilian
tion program, actions carried out together fauna species threatened with extinction.
with the Center for Wildlife Rehabilitation; the The initial stages of the Comperj Agenda
agreement with the Center for Rehabilitation 21 Project, held in 14 municipalities near the
INVESTS of Marine Animals for the management and project, engaged various sectors of society in
recovery of the affected fauna; the Federal Uni- biodiversity management. Diagnoses were
SYSTEMATICALLY versity of Pelotas’ Wildlife Screening Center; made on the local situation – a chapter in each
and the management of the waste, wastewater of the published Agenda 21 –, generating de-
and air emissions generated by the project. tailed action plans that define, for example,
AIMED AT THE Concerning the risks of species extinctions, partners and funding sources for biodiversity
information on areas of influence of Petrobras management and conservation. Groups cre-
CONSERVATION System’s operations are registered in different ated during the program continue active in the
OF ENDANGERED databases - the material is being integrated for management of the topic in each municipality.
access and analysis in GeoPortal HSEE. Much In the region of the Rio de Janeiro Petro-
SPECIES. of the information on endangered species is chemical Complex (Comperj), a revegeta-
obtained by means of diagnostic studies and tion program is underway seeking to recover
environmental characterization. An example is the native flora, connecting the mangroves
the diagnosis of the biodiversity in the internal to the Atlantic Forest. To this end, Petrobras,
area and surrounding the refinery, which the State Department for the Environment
started with the Muruatá Pilot Project, under- and the State Environmental Institute signed
taken at the Isaac Sabbá Refinery (Reman) in a term of environmental commitment to de-
Manaus, due to the high incidence of biodi- ploy the forest restoration projects foreseen
versity and the presence of the Pied Tamarian under the licensing conditions for the project.
(Saguinus bicolor), a species that is endemic to With a ten-year term, the term of commitment
the region and threatened with extinction, in provides for the revegetation of 4584 hectares,
that unit’s area of influence. @ an area larger than the National Tijuca Forest
88 2011 SUSTAINABILITY REPORT ENVIRONMENT 89
sources, 39.3 million by groundwater sources, at developing initiatives for the reuse of the
and 29.1 million by municipal utilities or third resource. The total volume of water reuse in
parties. 2011 was 21.5 million m3, up 20% compared
Water resources The company used water from 264 sources
of supply – 201 located in Brazil and 63 in
to 2010. Reused water supplied about 10% of
the volume required for the company’s opera-
other countries where it operates. Of the total tions, preventing uptake from water sources.
sources of supply Petrobras used, 64% are sur- The volume of water reused in 2011 would suf-
face water bodies, 21%, groundwater bodies, fice to supply a city of 500,000 inhabitants for
and 16% supply utilities or subcontractors. a year.
During the year, there were no water sources With operations going on stream, by 2013,
significantly affected, whether qualitatively or at the new plants being built at Cenpes and
quantitatively, on account of direct water up- at the Vale do Paraíba (Revap), Presidente
take by the company. Getúlio Vargas (Repar), and Nordeste (Rnest)
Petrobras’ investments in water use ra- refineries, the company’s uptake will be about
tionalization at its units have aimed mostly 34 million m3 of freshwater per year.
ORIGIN OF THE WATER COLLECTED BY THE PETROBRAS SYSTEM
Source Uptake volume (million m³) Uptake volume (%)
2011 2010 2009 2011 2010 2009
Surface water 122.5 128.8 119.7 64.1 68.8 68
Groundwater 39.3 36.5 35.2 20.3 19.5 20
Municipal or third party
29.1 22 21.1 15.6 11.7 12
Totals 190.9 187.3 176 100 100 100
TOTAL VOLUME OF WATER REUSED
2011 2010 2009
Water reused (million m³) 21.5 17.6 17.3
Volume in relation to the total amount of water used (%) 11.2 9.4 9.9
To ensure the supply of water needed for its data on the water use in the company’s opera-
The volumes of condensate recovered in thermal cycles, of recirculated cooling water, and of production water reinjected into
activities, Petrobras invests in rationalizing tions. The system can also monitor information
reservoirs for secondary and tertiary oil production purposes are not included in the total volume of water reused.
the use of this input. Water resource and of this nature in facilities run by customers or
wastewater management is guided by cor- partners. In 2011, Petrobras launched a tech-
porate standards, which foresee the use of nical guide that provides guidelines for the
technologies that promote more efficient use, assessment of water availability in watersheds WASTEWATER DISPOSAL refineries’ wastewater, amounted, respectively,
reuse projects and identification of alternative where its facilities are located aiming to sup- In 2011, the Petrobras System discarded 188 to 5,269 tonnes and 254.4 tonnes.
sources of water supply, considering the local port studies on water uptake and wastewater million m³ of wastewater coming from its As a means for the assimilation of its waste-
water resource availability, environmental and assimilation capacity. operations, including sanitary and industrial water, the Petrobras System made use of 111
social issues, and the assessment of the tech- wastewater launched into the environment. surface water bodies, 20 groundwater bodies
nical and economic feasibility of these actions. WATER USE The volume of production water disposed of and 48 supply utilities or subcontractors.
The Corporate Computerized System of In 2011, Petrobras collected 190.9 million m3 was counted as wastewater. The load of oil and During the year, there were no water sources @
Data on Water Resources and Wastewater of freshwater for use in its operational and grease in our facilities’ wastewater added up significantly affected, whether qualitatively Learn more about
(Data Hidro) consolidates the entries and sim- administrative activities. Of this amount, to 1,380 tons in the year. The chemical oxygen or quantitatively, in terms of the company’s improved water
plifies the query of quantitative and qualitative 122.5 million were supplied by surface and ammonia demand loads contained in the wastewater discharges. @ resource management
90 2011 SUSTAINABILITY REPORT ENVIRONMENT 91
as the removal of vegetation, increased vulner- Safety Data Sheets, among others. In addition,
ability to erosion and impacts on biodiversity. carriers are audited regularly.
As regards road transport, the companies Focused on reducing air emissions in the
Environmental liabilities providing these services are subject to require-
ments involving periodic vehicle inspections,
transport activity, the company has imple-
mented measures to control smoke emissions
environmental permit maintenance, the exis- from vehicles and makes demands regarding
tence of emergency plans and the use of ve- the age of the fleet aiming to save fuel, lower
hicle routing systems. Vehicle routing systems emissions and noise levels, and increase op-
are travel plans containing information on erating safety. Liquigás is renewing its fleet
To ensure its preparedness to handle emergen- various factors such as road and signage con- in order to work with LPG delivery vehicles
cies rapidly and effectively, minimizing their In 2011, there were 66 oil and oil product spills
ditions, weather conditions and distances to that have been in use for no more than five @
impacts, Petrobras has plans to update risk be covered in each section, thus allowing for to seven years. Petrobras Distribuidora also
of over a barrel, totaling 234 m³, 61% less than
and emergency response management plans route optimization. undertakes awareness campaigns concerning
the volume MAL of 601 m³ set for the year and Read the “Materials and
and the readiness of centers specializing in en- Vehicles carrying hazardous products are proper vehicle maintenance and on issues
65% below the total volume of spills in 2010. waste” and “Products
vironmental defense contingency actions. inspected as to the drivers’ formal qualifica- related to environmental preservation, such and services” chapters
The Petrobras System maintains spill levels
Carrying out frequent drills serves as an tions for this type of activity, the availability as discarding garbage on the roads and eco-
below 1 m³ per million barrels of oil produced,
HSE guide for Petrobras and allows it to train of safety signs, emergency kits and Material nomical driving.
@ a figure compatible with the best results of the
Learn more about the staff working in emergency management, international oil and gas industry. Of the 66
Petrobras’ fines to review procedures, and to prepare the work- reported spills, none can be considered major.
in 2011 force and the communities surrounding the fa- In November, there was an oil spill in the
cilities to handle several types of situations. @ Frade field, in the Campos Basin, of which
Petrobras holds 30% equity stakes. Although
not the operator of the platform, the company
offered support to solve the problem and to
combat its effects.
TOTAL NUMBER AND VOLUME OF SIGNIFICANT SPILLS
Year Number of events Total volume (m³)
2009 56 254
2010 57 668
2011 66 234
MAL1 2011 601
MAL1 2015 600
Maximum Admissible Limit.
PRODUCT TRANSPORTATION operating safety, fewer accidents and spills,
The most significant potential environmental and lower rates of atmospheric emissions, thus
impacts associated with the transport of our providing significant environmental gains.
products, materials, waste and workers are Petrobras invests systematically in im-
related to energy consumption, atmospheric proving and expanding its pipeline network
emissions and to the risk of spills. Oil, its prod- and maintaining this system’s reliability,
ucts and biofuels are transported mainly over through initiatives such as the Program for
pipelines, on vessels and on trucks. the Structural Integrity of Pipelines. Similarly,
Compared with road transport, the pipe- it manages the potential risks this means of
line network affords greater flexibility, more transport may cause to the environment, such
92 2011 SUSTAINABILITY REPORT ENVIRONMENT 93
THIS CONTENT IS EXCLUSIVE OF THE DIGITAL VERSION
OF PETROBRAS’ 2011 SUSTAINABILITY REPORT.
Corporate Performance Corporate Performance
Profile Corporate governance
PRODUCTS AND SERVICES CORPORATE GOVERNANCE MODEL personal integrity, absence of conflicts of in-
BOARD OF DIRECTORS terest, time availability, motivation, alignment
Product line Main products
One of the Board of Directors’ responsibilities with company values and knowledge of the best
Podium Gasoline, “Supra” Premium Gasoline, Regular Gasoline, Ethanol, Podium Diesel, Extra Premium Diesel, S-50
is to decide on the basic organization plan and corporate governance practices.
Automotive Diesel, Regular Diesel, Compressed Natural Gas (CNG), “Lubrax,” “Evolua,” Biodiesel, Lubricants, the “Evolua” Line,
Petrobras Flua and the Automotive Liquid Reducing Agent (Arla 32) on the election and dismissal of members of the In addition, the Board must aim to achieve
Add Cleaner (Fuel Oil), Diesel Fuel, Green Petroleum Coke, Grease, Industrial Natural Gas, Asphalt Products, Solvents, Executive Board. It is also in charge of providing diversity in its membership, seeking, among
Industrial and Thermal
Power Paraffins, Lubrax Industrial, Sulfur, Kerosene, Liquefied Petroleum Gas (LPG), Fuel Oils, Glycerin and Castor Oil general guidance to the company’s business - de- its members, the following experience and
Domestic Residential Natural Gas and LPG fining its mission, strategic objectives and guide- knowledge: experience as chief executives,
lines - in addition to approving the strategic plan, knowledge in finances and accounting, exper-
Highway Automotive Gasoline, Diesel Fuel, Biodiesel, Podium Gasoline, Podium Diesel
with its respective multi-year plans and annual tise in the energy industry, general knowledge
Aeronautical Lubrax Aviation, BR Jet Plus, BR Aviation Care, Aviation Gasoline and Kerosene
expenditure and investment programs. of the domestic and international markets, and
Railroad Transportation Diesel Fuel, Rail Lubricants and Lubrax Rail
It consists of ten members, elected at the strategic vision.
Nautical Maritime Diesel Fuel and Verana Diesel
Annual General Meeting for a term of one Act 12,353, of December 28, 2010, deter-
Water Transportation Bunker and Marbrax mines the active participation of employees
year, with reelection allowed. Of these, seven
Agriculture and Livestock Urea, Reinforce N, Ammonia, Soybean Meal and Castor Bean Cake are representatives of the controlling share- on the boards of state-owned and quasi-
Services Major services holder, one of the minority shareholders public companies and their subsidiaries. In
holding common shares, one of the holders 2011, Petrobras set up a 12-member electoral
“An Eye on Fuel,” Lubrax+, Lubrax Center, “Go Well,” Service Station Locator, “Lavamania,” Total Fleet Control (TFC)
Automotive commission, comprising six representatives
and Support Program for Highway Transport Workers of preferred shares, and one of the employees,
Asphaltic Asphalt Primer Emulsion, In Situ Cold Recycling, Cold Asphalt Micro-Surfacing who shall be elected for the first time in 2012. appointed by the company and six by the
Since 1999, it has been chaired by a member trade unions, to organize and conduct the en-
Aviation BR Aviation Card, BR Aviation Center, Supply, Tank Draining and Quality Assurance
who holds no executive functions and has no tire electoral process, acting as the regulatory
Air Conditioning, Energy Diagnosis, Identification of the Potential for Power Consumption Reductions, Identification
Energy of the Best Solution to Generate Cold Water, Retrofit for Air Conditioning Facilities, Power Generation at Peak Con- other ties with the company. Among its mem- and decision-making body and ensuring the
sumption Times and Automation Systems bers, only one has an executive role at Petro- legitimacy of the process. Voting is scheduled
Industry and bras, the CEO of the company. for 2012.
Lubrax System, Lubrax Matic, Combustion and Fuel Analysis and Fluid and Environmental Services
Thermal Power The Board assesses its own performance
Fleets Advanced Inspection and Service Center (Pier) and Total Fleet Control (TFC) annually based on criteria it defines itself. EXECUTIVE BOARD
Vessels Lubrax System, Fueling and Tank, Pump and Filter Installation and Maintenance Petrobras’ CEO and officers also have their per- The Executive Board manages Petrobras’ busi-
Locomotives Fueling and Lubrication formances appraised to make sure the interests ness pursuant to the mission, goals, strate-
Convenience BR Mania
of members of the Executive Board are aligned gies and guidelines laid down by the Board
Relationship Petrobras Card
with the shareholders’ long-term interests. of Directors. It comprises a chairman and six
directors elected by the Board of Directors,
PROFILE OF THE MEMBERS OF THE BOARD with three-year terms, reelection being per-
MARKETS SERVED Petrobras’ directors are elected by the Gen- mitted, and who may be dismissed at any time.
Additionally, it trades convenience products
eral Meeting without any influence from the Among the members of the Executive Board,
BRAZILIAN MARKET and provides added services. The subsidiary
Executive Board. The Corporate Governance only the CEO is a member of the Board of Di-
Petrobras Distribuidora has more than 10,000 owns the largest service station network in the
Guidelines set the qualifications and experience rectors. In 2011, the Executive Board began
major customers, among industries, thermo- Country (adding up to over 7,400 units), and
expected of directors in general. Prospective di- monitoring the quality of its internal controls
electric plants, aviation companies and light- has partnerships for the deployment of natural
rectors must meet the following requirements: and risk assessments.
and heavy-duty vehicle fleets. In the service gas-fired thermal units to supply power and
station market, it has operations spread all programs to optimize product use in respect
over Brazil, reselling oil-based fuels, lubri- for the environment.
cants, compressed natural gas and biofuels.
96 2011 SUSTAINABILITY REPORT ANNEXES 97
AUDIT COMMITTEE COMMITMENTS MADE Development (CEBDS), initiatives that aim to Member of the National Forum for the Man-
The Audit Committee consists of up to five Additionally to codes and policies, the com- foster the integration of the sustainability prin- agement of Ethics in Public Enterprises;
members and their alternates. The members pany takes action in response to commitments ciples in business; Member of the National Union of Liquefied
hold one-year terms and reelection is allowed. assumed such as the following: Member of the Global Oil and Gas Industry Petroleum Gas Distributors (Sindigás), of the
On it, there is a representative of the minority National Pact for the Eradication of Slave Association for Environmental and Social Is- World LP Gas Association (WLPG), and of the
shareholders, one of the holders of preferred Labor; sues (IPIECA), a nonprofit organization that Iberian-American LPG Association (AILGP);
shares, and three representatives of the Federal brings together oil companies and business
Women’s Empowerment Principles; Member of the Sponsorship Committee of
Government, one of whom appointed by the associations from around the world and aims
Partnering Against Corruption Initiative the Federal Government’s Communications
Treasury Minister as the representative for the to promote consensus and best practices,
(Paci); Department (Secom), of the Gender Com-
Department of Treasury. focusing on issues such as climate change, mittee of the Ministry of Mines and Energy,
Extractive Industries Transparency Initiative
biodiversity, response to oil spills, health and the National Forum for Ethical Management,
EXECUTIVE COMPENSATION (Eiti);
social responsibility; the Ministry of Justice and Planning Ministry’s
Petrobras’ Position and Wage and Benefits and Business Pact for Integrity and against
Member of the Group of Institutes, Founda- Amnesty Commission, and of the National
Advantages Plan and the specific legislation Corruption;
tions and Enterprises (Gife), a network that Immigration Council;
set the criteria for all of the compensation the Declaration and Call for Action to Prevent brings together organizations that invest in Member of the Committees on Intellectual
company grants its employees and officers. and Stop Sexual Exploration of Children and public purpose projects aimed to drive sus- Property, International Trademark Association
Total remuneration in short-term benefits Adolescents; tainable development in Brazil through private (Inta) and of the Best Branding Practice of the
for Petrobras’ management in 2011 was Abrinq Foundation - Child-Friendly Company; social investments; Brazilian Association of Advertisers (ABA);
R$ 12.5 million for seven officers and nine
Statement of the G-8 Climate Change Member of the Globally Responsible Lead- Holds a seat on the National Union of Fuel
directors. The consolidated Executive Board
Roundtable; ership Initiative (GRLI), a community of and Lubricant Distributors (Sindicom);
and Board of Directors fees in 2011 added up
Pro-Gender and Race Equality Program, of businesses and educational institutions and
to R$ 45 million. Member of the National Aquaculture and
the Special Secretariat for Women’s Policies. an initiative of the European Foundation for Fisheries Council (Conape);
Management Development (EFMD), which
BUSINESS DRIVERS Stakeholder Organization for the Global Re-
PARTICIPATION IN FORUMS AND aims to foster and support the development of
ISO 26000 porting Initiative (GRI), participates on the or-
ORGANIZATIONS globally responsible leaders;
Over the year, Petrobras established part- ganization’ Stakeholder Board, between 2009
Among the forums, boards and associations Participates in the National Industry Con-
nerships with the Brazilian Association of and 2011, composed the working group to for-
the company relates with, the following are federation (CNI), in the Brazilian Association
Technical Standards (ABNT) and with the mulate the indicators for the oil & gas sector
worthy of note: of Technical Standards (ABNT), in the Re-
Oil Workers Federation (FUP) to carry out supplement. The company is also a member of
Chair of the Brazilian Local Committee of gional Board of Engineering, Architecture and
cycles of seminars on ISO 26000 in nine Bra- the Advisory Board of GRI Focal Point Brazil;
the United Nations Global Compact; Agronomy (CREA) and in the Brazilian Asso-
zilian state capitals. The debates drove the Member of the Brazilian platform of the
Chair of the Regional Association of Oil, ciation of Business Communications (Aberje),
dissemination of the standard’s content in Reputation Institute, a global benchmark in
Gas and Biofuels Sector Companies in Latin among others;
the domestic industry and in the trade union studying and measuring corporate reputation,
America and the Caribbean (Arpel) and of the Participates in the Roundtable on Sustainable
movement. How ISO 26000 was conceived, which brings together more than 80 businesses
entity’s Communications Committee; Biofuels (RSB) and in the Roundtable on Sus-
the concept of social responsibility, the prin- around the world;
Chair of the Board of the Brazilian Institute tainable Palm Oil (RSPO);
ciples and the themes of the standard were Member to the Brazilian Society of Knowl-
presented during the events. of Oil, Gas and Biofuels (IBP), the National In- Member of the Business Board for Social edge Management (SBGC).
In 2011, a clause was included in the Col- vestor Relations Institute (INI), and the Rio de Policy and Labor of the Federation of Indus-
lective Bargaining Agreement concerning the Janeiro Regional Board of the Brazilian Institute tries of the State of Rio de Janeiro (Firjan);
adoption of ISO 26000 in Petrobras. The com- of Investor Relations (Ibri), besides being on the Member of the State Environmental Chamber
pany endeavors to adopt and practice the prin- Best Practices Commission of the Brazilian In- for Oil Product Trade and of the National En-
ciples set forth under the standard, to make it stitute of Corporate Governance (IBGC); vironment Council (CONAMA);
available to all employees and to conduct an Member of the World Business Council for
annual conference aimed at updating the ac- Sustainable Development (WBCSD) and of
tions taken in alignment with ISO 26000. the Brazilian Business Council for Sustainable
98 2011 SUSTAINABILITY REPORT ANNEXES 99
Corporate Performance Corporate Performance
and accountability Strategy
DISCLOSURES and formalize concerns and opinions about 2011-2015 BUSINESS PLAN INVESTMENTS IN E&P
On our website, we provide the annual ac- the company’s activities. The Corporate Gov- SCENARIOS FOR 2011-2015 The E&P segment will get investments in the
counts processes, our investment budget, ernance Guidelines foresee that the Board Scenario development is the first step of the order of US$ 127.5 billion, US$ 117.7 billion
service and material contracts, as well as spon- should take an active role in defending the in- strategic corporate planning process and the of which for operations in Brazil. Of this total,
sorships and agreements we have signed on, terests of all shareholders and that Petrobras’ exercise aims not only at defining the financial 65% will be used for production development
including the bidding procedures used for Senior Management permanently take into assumptions and indicators to quantify the projects, 18% for exploration and 17% for in-
each. More than meeting the legal require- account the minority shareholders’ opinions, Business Plans for the various segments of the frastructure projects. The goal is to increase oil
ments laid down under Presidency of the Re- suggestions or recommendations concerning company, but also at identifying external op- and gas production and reserves sustainably
public Decrees 5481 and 5482, of June 30 2005, a few matters. The document also states that portunities and threats. and to be recognized for excellence in E&P
disclosing this information is in line with our the Executive Management for Investor Rela- The scenarios allow for long-term plan- operations, ranking among the world’s five
principles of corporate governance. tions is the company’s main channel for com- ning in an uncertain environment, helping leading oil producers.
In the general meetings, whether ordinary munications with the market. promote organizational learning and to think Investments in the Pre-Salt add up to 45.4%
or extraordinary, shareholders may present prospectively, giving the company conditions of the total earmarked for E&P in Brazil and to
to act quickly and effectively in the face of ex- about half of the total set aside for production
ternal changes. development. Compared with the 2010-2014
The first scenario, called “A,” is marked by Business Plan, the amount allocated to the
a resumption of growth from 2010, without pre-salt was increased by US$ 20.4 billion, to
major changes in the way of the world economy US$ 53.4 billion in the 2011-2015 BP.
is restructured. There is no overall coordi- As part of the efforts to implement the
nation in the economic and environmental plan, 28 drilling rigs are expected to be com-
spheres, i.e., this is a stop and go scenario (suc- missioned in 2012, which will be built in Brazil
cessive periods of growth acceleration and to operate in water depths of 3,000 meters. The
deceleration). There are isolated actions in a first group is hoped to include seven new off-
few nations and regions aiming to increase the shore drilling rigs, which will serve the long-
adoption of stricter standards focused on sus- term drilling program.
tainability, without, however, more consistent By 2013, 39 rigs will be made available to op-
efforts in this direction being broadly noted. erate in water depths greater than 2,000 meters.
Scenario “B,” meanwhile, is characterized Four extended well tests (EWTs) are also fore-
by a slowing economy on the short term, which seen for the Santos Basin pre-salt cluster, using
leads to new coordination among institutions FPSOs Cidade de São Vicente and Dynamic
concerning the economic and social policies, Producer: Lula (Iracema area), Sapinhoá (Norte
enabling a more sustainable resumption of area), Lula (Tupi Alto area) and Franco. In the
growth, but still facing issues to move forward Campos Basin post-salt region, meanwhile,
in matters relating to environmental demands. there will be two EWTs (Oliva and Espadarte),
The barrel of Brent crude in 2015 is pre- with the FPSO Cidade de Rio das Ostras.
dicted to be quoted at US$ 80 in scenario “A,” Thirty EWTs are slated to be carried out
while at US$ 95 in scenario “B.” The bases for from 2011 to 2015: 13 in the Pre-Salt, 7 in the
the average realization price per barrel are transfer of rights area, and ten in the post-
R$ 158 and R$ 177, respectively. salt region. With this campaign, the company
100 2011 SUSTAINABILITY REPORT ANNEXES 101
hopes to add about 2.3 million bpd to its ca- INVESTMENTS IN PETROCHEMICALS resources will help boost the flow of gas lifted automotive market will grow to 33.7% from
pacity by drilling more than a thousand offshore For the petrochemicals segment, investments from the Pre-Salt area and to convert natural the current 31.3%. In the global market, its
wells, 40% exploratory and 60% to develop in the order of US$ 3.8 billion are expected gas into urea, ammonia and methanol, in addi- share is planned to reach 40.6% in 2015,
production. Thus, in 2020, production coming from 2011 to 2015, equivalent to 2% of the total tion to operations in the LNG chain. compared with 38.5% in 2011.
only from the pre-salt area is expected to add amount Petrobras plans to invest in the period. Based on these investments, under scenario
up to 40.5% of the Brazilian oil production. These investments aim to increase the pro- “A,” the company aims to increase the domestic INVESTMENTS IN BIOFUELS
duction of petrochemicals and polymers. Here, natural gas output to 102 million cubic meters Of the US$ 4.1 billion to be invested in the
INVESTMENTS IN REFINING, the highlights are the Companhia Petroquímica per day in 2020, up from 2011’s 55 million cubic biofuels segment, US$ 1.9 billion (47%) will
TRANSPORTATION AND TRADE de Pernambuco (PetroquímicaSuape) and meters per day mark. In total, adding the Bo- be allocated to the ethanol business, US$ 1.3
Investments adding up to US$ 70.6 billion Companhia Integrada Têxtil de Pernambuco livian supply and the LNG regasification ter- billion (32%) to distribution logistics, US$ 0.6
are planned for the Refining, Transportation (Citepe) projects, which comprise the Petro- minal route, in 2020, Brazil’s natural gas supply billion (14%) to biodiesel, and US$ 0.3 billion
and Trade segment. The strategy is to boost químicaSuape Industrial Complex. Together, would surge to 173 million cubic meters per (7%) to research and development.
refining capacity to meet the entire expected they are slated to produce 700,000 tonnes/year day, up from the current 106 million. The plan foresees ethanol production in-
increase in the domestic demand for oil prod- of purified terephthalic acid (PTA), 450,000 With respect to the installed fertilizer pro- crease sharply from 1.5 million cubic meters
ucts. Domestic demand for oil products is tonnes/year of PET (polyethylene terephthalate) duction capacity, Petrobras’ planned invest- per year in 2011 to 5.6 million cubic meters
likely to expand due to the foreseen growth of and 240,000 tonnes/year of textile polymers and ments will allow Brazil to slash by 53% the per year in 2015, up 273% in the period. Bio-
the Brazilian economy. polyester filament yarns. amount of ammonia it imports and become diesel supply is also expected to grow 16%, to
To address this, investments of US$ 34.5 The second stage of deployment of the self-sufficient in this product by 2015. In the 855,000 cubic meters per year in 2015, up from
billion are planned to expand refining ca- Rio de Janeiro Petrochemical Complex, one case of urea, dependence will drop from the 735,000 cubic meters per year in 2011.
pacity with new plants, and four refineries are of the largest undertakings in the history of current 53% to 22% in 2020.
should go on stream by 2020: Abreu e Lima Petrobras, under construction in a 45-square- INVESTMENTS IN THE INTERNATIONAL
Refinery (RNEST), Comperj (1st and 2nd kilometer (km2) area in Itaboraí (state of Rio INVESTMENTS IN DISTRIBUTION BUSINESS AREA
trains), Premium I (1st and 2nd trains) and de Janeiro), consists of the deployment of the The Distribution segment will get US$ 3.1 bil- Investments in the International Business Area
Premium II. Investments are also planned for petrochemical plants to produce ethylene, lion in funds by 2015, largely for logistics proj- are budgeted at US$ 11 billion for the period
operating improvement projects, to expand propylene, polyethylene, polypropylene and ects, to keep pace with the growth forecast for ranging from 2011 to 2015. With a presence
the fleet and for logistics. other petrochemicals generally used to manu- the domestic market and meet legal and regu- in 27 countries, the company has operations
The Plan also foresees US$ 16.9 million in facture plastics. latory demands. in E&P; Refining, Transport, Trade and Petro-
investments from 2011-2015 to complete oil Of the amount available, 42% will be chemicals; Distribution and Gas & Energy.
product quality improvement projects, with INVESTMENTS IN GAS, POWER AND earmarked for operations and logistics ac- Of the total to be invested, about 87% will
lower levels of sulfur in both gasoline and diesel. GAS CHEMISTRY tivities, 21% for consumer market-related ac- be earmarked for E&P, primarily in the Gulf
These initiatives will allow for a 395,000- The US$ 13.2 billion in investments planned tivities, 18% for the automotive market, 13% of Mexico - where the main operations are in
bpd increase in the target refining throughput for Gas, Power and Gas Chemistry are in- for Liquigás, and 6% for operations on the in- Cascade/Chinook, Saint-Malo and Tiber -, the
in the 2011-2015 period, reaching an output tended mainly to complete the expansion of ternational market. West Coast of Africa (Nigeria and Angola),
of 2,205,000 bpd in 2015. The plan sets a target the natural gas transportation network and Under the 2011-2015 Business Plan, and in Latin America, especially Bolivia, Peru
of 3,217,000 bpd for 2020. for thermal power generation. Moreover, these Petrobras Distribuidora’s stakes in the and Argentina.
102 2011 SUSTAINABILITY REPORT ANNEXES 103
Corporate Performance Corporate Performance
Risk management Intangible assets
INSURANCE CONTRACTS (CVM) and by the Sarbanes-Oxley Act (SOx, REPUTATION value reached US$ 13.4 billion in 2011, up 39%
By hiring insurance, Petrobras transfers to applicable to organizations regulated by the Singled out among the most admired compa- over the previous, ranking Petrobras in 61st
the insurance market not only the risks that U.S. Securities and Exchange Commission – nies and as the one with the best reputation in among the world’s most valuable.
may cause significant damage, but also those SEC). The company’s main processes are rel- society and among its stakeholders in recent
that must be insured by law or contract. The evant under CVM and SOx criteria and are years, Petrobras is the only energy company MAJOR BRANDS
company bears a significant portion of the overseen by the Finance Board’s corporate featured in Reputation Institute’s ranking, In 2011, Petrobras launched a new product
risks by hiring deductibles that may be as high committees and by the Board of Directors’ which evaluates one hundred global corpora- brand on the Brazilian market, Flua, an urea
as US$ 60 million, such as those related to Audit Committee. tions with the best reputations. Since 2006, RI solution used in the new heavy-duty diesel
engineering risks. In these cases, the contract Petrobras, its subsidiary Petrobras In- has been conducting global surveys to mea- fired vehicles to reduce emissions, part of the
is signed preferably by Petrobras or by the ternational Finance Company (PifCo) and sure the reputation of hundreds of the world’s products to be rolled-out in alignment with
contractors. The final premium of our major its affiliated company Petrobras Argentina largest companies based on a model that as-
the Program for the Automotive Vehicle Air-
policies (operating and oil risks) in 2011 added completed, in 2011, the internal control cer- sesses people’s perceptions about the company
Pollution Control (Proconve). It is part of the
up to US$ 51 million for an insured asset value tifications for the 2010 financial year, in com- in terms of products and services, innovation,
kit of products that have their own brands,
of US$ 101 billion. pliance with Section 404 of SOx and CVM workplace, governance, citizenship, leadership
such as Podium, Supra, Lubrax, Verana and
With the investments planned under the Instruction 480/09. The consolidated finan- and financial performance.
2011-2015 Business Plan, we expect a signifi- cial reports were certified, without qualifica- Reforce N. Among our service brands, such as
cant increase in the volume of premiums paid tion, by independent auditors, thus repeating PETROBRAS’ BRAND Spacio 1, An Eye on Fuel, Go Well, BR Avia-
to cover risks associated with the new ven- the success achieved in previous years. The The Petrobras brand is considered the most tion, we highlight the partnership between
tures. When hiring this insurance, assets are reports for 2011 are expected to be certified valuable and the third strongest in Brazil, BR Mania and Lubrax+ for more interactive
valued based on their replacement cost and during 2012. according to the Millward Brown and the customer services guided towards consumer
compensation is limited to US$ 1.2 billion – Interbrand research institute, respectively. products and services best suited for each con-
the maximum of the operating risk policy. For CREDIT According to Millward Brown, the brand’s sumer’s profile.
oil risks, the limit is US$ 2.3 billion, the highest The credit policy we use to grant and review
replacement value of Petrobras’ platforms. customer credit is aligned with the SOx guide-
Refineries, platforms and other facilities lines. Once analyzed, the loans are approved by
are covered by the operating and oil risk poli- the credit commissions or, at a higher level, by
cies. Cargo handling is protected by transport the Financial Board and the customer relations
policies, while the vessels are protected by hull areas. Each year, the volume of loans granted
and engine insurance. There are specific poli- has increased, keeping pace with Petrobras’ ex-
cies for liability and environmental pollution. pansion and allowing sales increases with the
Most of the pipeline network in Brazil and lost least possible risk, especially outside of Brazil.
profit-related risks - due to some incident and The company centralizes credit use moni-
to well control - are not insured. toring and improves the lending control and
granting processes continuously to support
INTERNAL CONTROLS the increasingly stable performance of the
Attentive to the financial market’s needs for trade activity. As a result, we draw nearer to
share trading on stock exchanges, Petrobras our customers and enhance credit use as a
plans and operationalizes the certifications re- trade instrument.
quired by the Brazilian Securities Commission
104 2011 SUSTAINABILITY REPORT ANNEXES 105
Corporate Performance performance; products and services; leader-
ship; citizenship; workplace, and innovation.
strategies, by measuring the audience’s levels
of knowledge, understanding and commit-
Insofar as the corporate performance in ment with such strategies.
Our stakeholders social responsibility is concerned, we apply
Market Analysis’ Corporate Social Responsi-
Also in terms of research tools, we conduct
studies with a focus on situations, themes and
bility Monitor (CSR). The analysis allows us specific stakeholders to assist in decision making.
to observe the public opinion’s understanding, In 2011, the highlight is on the Business Plan
attitude and expectations concerning corpo- Survey, which assessed the public opinion and
rate social responsibility, bringing a ranking the investors’ perception about our new strate-
of the companies that are recalled the most for gies, and on the HSE Topic Relevance Survey,
PETROBRAS’ STAKEHOLDERS in the countries and regions where Petrobras their social responsibility or for their inappro- conducted to analyze the relevance of these is-
PETROBRAS’ STAKEHOLDER CATEGORIES operates, as well the entities working in the priate actions. We also apply Reputation Insti- sues and establish hierarchy among them. We
Customers: Legal entities that purchase or sphere of global governance. tute’s Strategic Alignment Monitor (Employee also conducted image, brand and market seg-
might purchase Petrobras’ goods and/or ser- Internal audience: Employees and retirees, Communication Quotient – EcQT) to mea- mentation assessment surveys, as well as cus-
vices for distribution or for their own use. family members and pensioners, councilors, sure the employees’ alignment with corporate tomer satisfaction ones, among others.
Scientific and academic community: Entities apprentices and interns of Petrobras and its
and institutions dedicated to fostering and/or subsidiaries, as well as employees of service MAIN CONCERNS RAISED AND MEASURES ADOPTED
developing scientific research and to educa- providers who work in Petrobras facilities.
tion in the knowledge areas that are relevant Resellers: Legal entities who resell goods and/ MAIN CONCERNS RAISED AND MEASURES ADOPTED
to Petrobras, as well as the faculty and student or services bearing Petrobras brands.
Stakeholder Topics and concerns raised Actions taken
body involved in such activities.
Employee satisfaction and commitment,
Communities: Groups of individuals who COMMUNICATIONS AND RELATIONSHIPS organizational culture, ethical principles
To address these demands, we have created the HSE Dialogs on these
topics in some areas. There is also the dissemination of the Code of Ethics
inhabit or frequent geographical areas where RESEARCH TOOLS and commitments, trade union demands,
among new employees, as well as its constant dissemination to the entire
Petrobras operates. In the pursuit of knowledge in the best man- transparency about the activities, products
and projects, health and safety issues.
Competition: Companies that compete or may agement of the communications and rela-
Constant upgrading of hiring standards in accordance with the laws and
compete with Petrobras in its business segments tionships with both established and yet to be Issues concerning hiring standards and
regulatory and corporate guidelines, and implementation of quality man-
and in the goods, services or capitals markets. established stakeholders, we periodically carry procedures for internal and external audits.
agement systems, ensuring the reliability of the entire process.
Consumers: Individuals who purchase or out communication surveys and an annual re- Dividend payments, stock performance, Announcement of the data through direct communication channels. We
might purchase Petrobras’ goods and/or ser- view of the ICP. Among the research tools, em- Investors Business Plans, quarterly results and also participated in conferences with investors throughout the year and
vices with Petrobras’ brands for their own use. phasis is on the Corporate Image Monitoring corporate governance. held roadshows in several countries.
Suppliers: Individuals or legal entities that System (Sismico), RepTrak (Responsibility
Analysis of each customer’s request and possible redefinition of the
supply goods and/or services to Petrobras. Tracking), and the Corporate Social Respon- terms and conditions.
Press: Media who deal with issues of interest sibility Monitor (CSR). Continuous improvement processes at the areas responsible for product
quality to ensure commitment to the respective specifications. Definition
to Petrobras and perform as channels with the Sismico measures and monitors the evo- Product quality
of new equipment to include in the Quality Assurance Program for new
several stakeholders. lution of Petrobras’ brand image by offering products (S-50, Biodiesel, Flua).
Investors: Individuals or legal entities that a historical series of indicators that allows Several measures are being created to improve the delivery process,
hold or may come to buy Petrobras stock and/ the quantitative surveys carried out among especially at the centers representing the greatest logistical constraints.
or act as brokers in such acquisition. the public opinion and the stakeholders to be These measures involve the creation of work groups to study and resolve
issues ranging from process improvement to logistics infrastructure.
Civil society organizations: Organizations in- compared. Because of the value of our brand, Customers
Adjustment of measuring equipment to ensure proper calibration for more
corporated as non-profit entities, the purpose we also apply Reputation Institute’s RepTrak. Measurement reliability
accurate information and billing.
of which is to defend or foster causes that are This internationally adopted methodology
Care for needs in general Contact channels were created to ensure services.
relevant to Petrobras and/or its stakeholders. measures organizations’ corporate reputa-
There are several options to change orders (quota rearrangements, addi-
Partners: Organizations or individuals who tion. Global Pulse RepTrak and RepTrak Deep Changes to orders tional quotas foreseen in contracts), giving the customer flexibility to adapt
have formal cooperation, investment or mutual Dive are used. They provide an overview of the to their market.
support relationships with Petrobras in projects reputation of the world’s largest companies in Procedures were created with guidance for all staff involved in the
product billing process to be able to ensure the provision of appropriate
and/or business and/or institutional programs. their countries of origin and an assessment of Documentation documentation to accompany the product, as well as compliance with
Public authorities: Institutions and agencies Petrobras’ reputation in comparison with those the law in the issuance of tax documents, product analysis certificates,
material data safety sheets for chemicals, billing documents and others.
that have legislative, executive, or judicial roles companies considering six aspects: Financial
106 2011 SUSTAINABILITY REPORT ANNEXES 107
Stakeholder Topics and concerns raised Actions taken Other forms of communication and relationship
The implementation of improvements in the credit recognition, payment “Petrobras em Ações” (Petrobras in Shares) is a quarterly publication brining results and information about Petrobras’
and identification, and credit availability process for term purchases will business and activities. In addition to the printed version, editions are also available on the IR website.
be periodically reviewed and restructured to ensure delivery and cus-
tomer satisfaction. Form 20F is an annual publication that provides information to investors.
Measures are being taken to improve the flow of information between the Petrobras’ Investor Relations area holds gatherings between company representatives and investors and analysts
Customers company and customers aiming to give notice to the market regarding Investors through formal meetings, seminars and conferences, webcasts and chats. It also promotes visits by investors to company
Logistical investments planned investments and improvements in the logistics sector. Programs operating units in order to assist them in making investment decisions.
are being developed aiming to improve the exchange of information that
can provide better guidance to the investment chain. To disclose the 2011-15 Business Plan, in 2011 there were two webcasts in Portuguese and English, two external presen-
tations, a presentation to the press, and the Investor Day, in New York and London. We also held some 30 roadshows and
Complete investments in logistics and infrastructure, increasing the 70 conferences with corporate investors in Latin America, United States, Europe, Asia and Australia.
Supply of natural gas
supply of natural gas.
The Petrobras System provides several toll-free phone numbers to receive requests from the community, such as the
To ensure compliance with legal requirements and to safeguard the infor-
CSC, the Gas Line and Transpetro’s Green Phone.
mation that is important to the company, in all contracts the contractors
undertake to comply with the Statement of Commitment with Social Re- The operating units produce and distribute to the community publications or bulletins that provide information about
sponsibility, with labor legislation and with collective agreements signed, Petrobras’ relationship with the community.
with HSE and Confidentiality clauses, the latter aimed at safeguarding
and handling company information, whether public, corporate, reserved The Petrobras Visit Program conducts scheduled visits to the units. During such visits, information is presented on each
or confidential. Additionally, supplier payment is conditional on the ap- unit’s processes and on their social and environmental responsibility actions.
Fulfillment of contractual, labor and social
proval of the services provided and on proof that the suppliers are current
security obligations; Meeting minimum The Community Boards are another way to keep in tune with the communities’ demands. Disseminating social
with their social security and labor obligations. To assist in these issues, Community
HSE and social responsibility requirements; responsibility actions is one of the goals, as these committees discuss, jointly, how to meet both parties’ interests.
both internally and externally, there is the Administrative Supervision
Ensure information confidentiality
of Contracts (FAC), which is formed by groups of experts who advise on The Petrobras Agenda 21 and Comperj Agenda 21 programs encourage sustainable community development.
contract management concerning issues related to social and economic
charges. The FAC virtual community was created on the Intranet in order The Comperj Social Dialog works in contact with the communities located in the area of influence, receiving their main
to integrate and disseminate knowledge and identify best practices. The concerns. It also carries out actions aimed to keep the population informed on issues relevant to the enterprise.
Support Service for Environment, Safety, and Health Inspections (SAF- The Mosaic Project is an initiative of the Campos Basin (UO-BC) and Rio de Janeiro (UO-Rio) operation units designed to
SMS) comprises groups of experts who advise on contract management support participatory management and the shared use of the marine space with fishermen. Their activities include voca-
in HSE-related issues. tional training for fishermen and partnerships for the professional regularization of both fishermen and boats.
The transport and meal conditions, as well as adjustments made to
The Customer Channel is a restricted-access website (www.canalcliente.com.br) available to direct Petrobras customers.
workplace comfort and health conditions are checked during on-site
It facilitates the e-commerce that integrates all of the operating units’ business, operating and financial processes.
assessments carried out to score the Outsourcing Quality Indicator (IQT) in
Worker transport, accommodation, meals,
internal audits and through the communication channels provided, which The Customer’s Manager is a representative of the customers’ interests, reminding regarding practices and
job training, increased education and Customers
identify improvement opportunities and lead to better quality. Because of commitments and seeking to keep the company proactive with regard to actions targeted at this audience.
the gains made in the contracted workforce literacy process, Petrobras
expanded the program it has in partnership with Sesi to increase education The Focus Groups are a means to define the values and attributes customers value the most, generating inputs for the
levels through local incentive programs. preparation of the questionnaires that will be applied in the Customer Satisfaction Survey.
The Petrobras News Agency website is a corporate tool used to communicate with the Brazilian and foreign media. It
provides stories, high resolution photos, audio, video, presentations and other journalistic materials. The main content
COMMUNICATION CHANNELS AND RELATIONSHIP PROGRAMS is available in Portuguese, English and Spanish, and the most important events are broadcast in real time.
Other forms of communication and relationship As part of the celebrations of the 25 years of production at the Geólogo Pedro de Moura Operation Base, in Urucu (state
The New Petronet, which brings together all internal websites in a single environment, is entering its second phase. Initially of Amazonas), a visit was made to the base’s facilities.
scheduled for 2011, the incorporation of the subsidiaries and, then, of Petrobras System companies operating abroad was
The agreement between Petrobras and the Brazilian Service of Support to Micro and Small Enterprises (Sebrae) aims
postponed to 2012. The new organization adopts a single technology platform and only one publishing tool for all areas and
to ensure these enterprises’ competitiveness in the oil, gas and energy production chain in areas where Petrobras
units, thus avoiding information duplication, facilitating access to content, and allowing for cost optimizations.
has operations. The projects include training and developing micro and small local businesses, with emphasis on the
The Petrobras and Petrobras Distribuidora magazines publish news on technology, business, innovation, health and safety.
management of quality, safety, environment and occupational health and of social responsibility, in addition to the
The “Cadernos Petrobras” (Petrobras Books) are targeted thematic publications conceived to disseminate subjects construction and consolidation of cooperation networks.
aligned to the company’s strategic positioning.
Web TV has diverse programing divided into channels, such as Knowledge, Petrobras University, Live University, Suppliers The purpose of the “Semear” (Sew) Project is to raise the educational level of the employees of contractors providing
Petrobras Panorama and Events in Focus. services to Petrobras.
Workforce The Petrobras Newsletter and the Letter from the CEO have editions published for the entire workforce. The Responsible Partnership Program aims to share management practices focused on quality, HSE and social
The Suggestion Box Project, with a pilot taking place at Petrobras’ main office building, and the Faladoria (“Speakers”) responsibility through annual cycles providing guidance to participating companies and an assessment of their business
Program aim to discuss and align concepts and train the Ombudsman’s Office managers on issues related to their managements aligned with the management models based on the criteria set forth under the National Qualification
assignments. Topics such as moral harassment, aspects of the Sarbanes-Oxley Act (SOx), and conflict management by Plan (PNQ), on ISO 9001, ISO 14001, on OHSAS 18001, and on other Petrobras business requirements.
ombudsmen’s offices were addressed under the program.
The Traveling Ombudsman Program consists of visits to company units to enhance the stakeholders’ access to this service.
Downstream units have the Daily HSE Dialogs (DDSMS) for managers and the workforce and there are the Weekly HSE
Dialogs (DSSMS) at the main office attended by general managers, refinery managers and the workforce. These events aim
to increase knowledge regarding HSE concepts and to present the best practices and lessons learned in related topics.
The Volunteer Program serves as a form of engagement of and to train volunteers.
108 2011 SUSTAINABILITY REPORT ANNEXES 109
SUPPORT FOR PUBLIC POLICIES and bribery, and that it has formal control and based on data from several surveys carried out INVESTOR RELATIONS
Because of its size and due to the nature and consequence procedures in place to handle over the year, such as the Customer Satisfaction STOCK MARKET
impacts of its activities, the Petrobras System any breaches occurring within the company. Survey and the Company’s various relationship Petrobras is subject to the rules of the com-
monitors and participates in discussions on channels. The information obtained is used as missions and stock exchanges its shares are
public policies and bills related to various FINES AND NON-COMPLIANCES input into action plan reviews aimed to increase traded on. In the case of Brazil, it is subject to
topics, such as the environment, climate Insofar as noncompliance with laws and regu- customer satisfaction. the Securities Commission (CVM) and to the
change, sustainable development, health and lations is concerned, Petrobras found 16 sanc- At Petrobras Distribuidora, satisfaction Stock, Commodities and Futures Exchange
safety, environmental licensing and compen- tioned notices of infraction, which totaled surveys reach differentiated stakeholders, (Bovespa). Abroad, it meets the Securities and
sation, waste, water resource and wastewater about R$ 815.3 million in significant fines such as major consumers, franchisees and Exchange Commission (SEC) and the New
management, among others. arising from notices of infraction issued by the customers. The Major Customer Satisfaction York Stock Exchange (NYSE) rules, in the
In line with its corporate social responsi- National Petroleum Agency (ANP). There are Survey assesses satisfaction in the “Trans- United States; the rules set forth by the Lat-
bility policy and its Code of Ethics, and focusing still two non-monetary sanctions due to delays porter, Reseller, Retailer” (TRR); industry; ibex, of the Madrid Stock Exchange, in Spain;
on the transparency of its actions, the com- in contract submissions. No arbitration pro- thermal power plants; transport; product, and as well as those of the Buenos Aires Stock Ex-
pany’s participation in forums on these issues ceedings were found. service segments. Among the franchisees with change and of the Comisión Nacional de Va-
aims to contribute with the Government in the With respect to tax fines, there were six less than a year of relationship with the subsid- lores (CNV), in Argentina.
development of coherent and appropriate regu- significant notices, which totaled about iary, the satisfaction rate reached 70.3%. Despite the economic instability in the
latory frameworks and in the development and R$ 22 million, relating to notices of infraction, Since its acquisition by Petrobras, Liquigás United States, the Dow Jones index closed
implementation of public policies, programs spontaneous denunciations and spontaneous undertakes surveys among its partners, cus- up by 5.53%. In Europe, meanwhile, the
and projects committed to sustainable develop- payments. The reasons were a duplicity in in- tomers and consumers to measure and en- main exchanges had a significant drop in the
ment in countries where it operates. formation in the payment of the State Value- hance customer satisfaction and generate year. Ibovespa kept pace with the European
In 2011, Petrobras monitored 380 bills that Added Tax On Services and Circulation of customer loyalty to its products and brands. market and closed the year down 18.11%, at
represent its interests among the Legislative’s Goods and on Interstate and Intermunicipal One of the main channels used is the sales 56,754 points.
federal public institutions. Of these, 81 were Transportation and Communications Service force itself, through direct and standing rela- The company’s stock followed the ebb and
voted on in Commissions and Plenary Meet- Provision (ICMS) in the states of Bahia and tionships, surveying the needs not only of the tide and the financial uncertainty on the global
ings. Another 195 were monitored without Rio de Janeiro, as well as a customs fine and a customers, but also of the public at large. markets and ended the year down. In Brazil,
actual actions, but with information deemed duplicity of the calculation base for the Gov- Petrobras, in compliance with Sarbanes- common shares (PETR3) slipped 24.71%,
important and forwarded to some of the com- ernment’s special take for the Marlim field. Oxley Act (SOx), continuously reviews its while the preferred ones (PETR4) fell 21.25%.
pany’s areas. internal controls to ensure the integrity of its At the New York Stock Exchange (NYSE),
To ensure transparency in its relations with CUSTOMER AND CONSUMER SATISFACTION customers’ data. In 2011, there were no cases which trades the common (PBR) and pre-
the Government, Petrobras System’s Code of To understand and evaluate its customers’ per- involving the breach of customer privacy, such ferred (PBR/A) receipts, the devaluation was
Ethics determines the company will not make ception on the quality of its products and ser- as spills, theft or loss of data. The procedures 34.31% and 31.23% respectively. Because of
contributions to political parties or to cam- vices, Petrobras undertakes frequent satisfaction used to handle complaints include data con- these figures, Petrobras’ market value closed
paigns of candidates to elected offices. It also surveys. The results are measured pursuant to fidentiality throughout the Petrobras System. 2011 worth US$ 158 billion.
emphasizes that it refuses any act of corruption the Customer-Perceived Quality Index (IQPC),
110 2011 SUSTAINABILITY REPORT ANNEXES 111
Corporate Performance Insofar as lead is concerned, Petrobras
stopped adding it to automotive gasoline in
The Petrobras System meets international
1989. In the case of aviation gasoline, used product classification and labeling require-
Responsibility for products solely for piston engine aircraft, tetraethyl lead
is required to increase the octane number on
ments and uses the material safety data sheets
(MSDS) for each product delivery or move-
account of its anti-knock power. The most ment, such as those coming from refineries,
commonly used aircraft fuel is aviation kero- biodiesel and glycerin, among others. Petro-
sene in jet engines, which contains no lead. bras Biocombustível set a 2013 deadline for
Additionally, the four refineries currently the survey of the sheets regarding the fatty
being implemented (Comperj, Abreu e Lima, acids and refining sludge the company pro-
Premium I and Premium II) will already go on duces and for feedstock for the soap and deter-
The Petrobras System examines aspects related standards. Should any new regulatory require- stream producing low sulfur fuels. gent industries. The labeling of the meals and
to the performance of its products to ensure ment come into force, or if an existing one is Petrobras has appointed a working group vegetable oils the subsidiary trades complies
they remain within the current safety oil and gas amended, the technical areas are informed to study and analyze the emissions associated with the guidelines and certification issued by
industry standards. The company analyzes the concerning this so they can meet them within with its fuels, particularly gasoline and diesel. the Ministry of Agriculture.
entire life cycle of its products and services in the appropriate timeframe. Still in progress, the research will contribute to The lubricants the company produces meet
constant pursuit of quality improvements and The products Petrobras provides to the the emergence of a generation of more eco-ef- the labeling procedures required by the Na-
of the well-being of both customers and con- market are submitted to risk assessment pro- ficient fuels, with improved performance and tional Petroleum Agency (ANP) and by deter-
sumers. The corporate HSE policy has among cesses at all production stages, including those less impact on health and the environment. minations issued by the National Council on
its guidelines the company’s commitment with related to protecting the workforce, neigh- the Environment (CONAMA).
the products it provides to its consumers, the boring communities and the end consumer, in PROGRAMS DEVELOPED All products bring information for the
assessment of the risks, and the provision of accordance with the ISO 9002 quality require- The Eye on the Fuel program regularly inspects consumer on their labels, including the origin,
the appropriate information and updates on its ments and with ISO 14001 and OHSAS 18001, accredited service stations to ensure product use and post-use instructions, the field of ap-
portfolio to customers and suppliers. certifications covering all production process quality along the supply chain. Certification plication, purpose and benefits, warnings and
Corporate standards, such as the one that stages. To maintain these certifications, the requirements include, among others, compli- precautions, expiration dates, and informa-
guides the customer relations model, direct the operating units that manufacture oil and gas ance with ANP standards, the condition and tion on care with health and the environment.
company’s management as to brand, product products are checked and audited by certifica- operation of the filters, and the proof of origin Containers used to distribute liquefied petro-
and service awareness, including concerning tion companies in their production processes. of the fuel sold. After the assessment by a team leum gas (LPG), meanwhile, must be certified
the risks involved, actions for customers and The product research and development of experts from Petrobras Distribuidora, the with Inmetro’s National Conformity Label,
markets, in line with the corporate guidelines phase is performed by Cenpes and involves certified service stations are identified by the have tamper-proof seals on their flow valves,
and communication and trade policies. physical and chemical analyses and perfor- program seal. At these establishments, the and provide consumers with information on
Additionally, Petrobras has relationship mance testing by means of vehicle and engine consumer may request the quality certificate the product’s origin, content and safety.
channels with customers and others, such as testing. Partnerships with laboratory networks with the report issued by the technician re-
engine manufacturers, for example. This al- and exchange forums allow us to note trends sponsible analyzing the fuels. COMPETITION
lows us to anticipate the meeting of regulations that require changes to these products’ quality. At Liquigás, actions taken to ensure There is no record of any lawsuits filed in 2011
arising from the introduction of new vehicle product and package safety include periodic that ended the year as outstanding or closed
technologies or more stringent environmental FUEL QUALITY maintenance, dealer training and revamping for anticompetitive behavior, anti-trust prac-
demands and to adapt the company’s produc- Projects to produce low sulfur content fuels are equipment in accordance with the regulations. tices and monopoly at Petrobras in Brazil.
tion process accordingly. being deployed at Petrobras refineries and are The Eye on the Cylinder program is used at all In Colombia, there are six suits related to
expected to be completed between 2012 and of the company’s operating units to systematize free competition, five of which filed against
PRODUCTION PROCESS PERFORMANCE 2014. The company currently imports diesel the container quality assessment process with Petrobras or sub-distributors and one filed
All Petrobras System companies meet the laws with 50 parts per million (ppm) of sulfur to regard to aspects such as painting, denting, ox- by Petrobras against lubricant manufacturer
regarding information that may compromise sell in some Brazilian cities and metropolitan idation, the state of the cylinders’ handles, seal Glanton Ltda., all of which relating to the
the environment or cause social damage by regions. Changing fuel composition reduces gaskets, the weight of the LPG and retraining. dispute for the Petrobras Lubrax brand in
allowing access to data on the origin of the the sulfur oxides released into the atmosphere For bulk market, the Eye on the Bulk Facilities the country. Petrobras Argentina has one in-
components or other processes used to manu- and makes it feasible to use engines fitted with program undertakes visual inspections at the vestigation in progress and at its initial stage,
facture its products. new technologies designed to decrease vehicle bulk facilities together with their customers to related to the natural gas market, which is
Technical specifications Petrobras follows particulate matter emissions. check the status of LPG centers and, when nec- moving through the National Commission for
include those released by the NPA and the All new gasoline plants are designed to en- essary, take action to eliminate any nonconfor- the Protection of Competition.
National Institute of Metrology, Quality and sure the fuel does not exceed the concentra- mity that may be detected.
Technology (Inmetro), in addition to ABNT tion of 1% benzene by volume, as required by
the Brazilian government.
112 2011 SUSTAINABILITY REPORT ANNEXES 113
Liquigás is arguing, through a lawsuit, the
nullity of the sentence imposed by the Admin-
Council for Advertising Self-Regulation
(Conar), which sets and enforces standards
istrative Council for Economic Defense (Cade) for Brazilian advertising in order to avoid the
for alleged cartel formation, which can result
in a fine equivalent to 1% of the company’s an-
airing or publishing of ads and campaigns with
content that is misleading, offensive, abusive
Exploration and Production
nual turnover. The conviction is the result of or that is disrespectful, among others, of the
the administrative proceedings established by competition law.
the Secretariat of Economic Law (SDE) as a re-
sult of a suit filed by an LPG reseller claiming TAX DEBTS
there is a cartel in the 13-kg cylinder distribu- ICMS payments to the producing states totaled
tion market in Minas Gerais municipalities. A R$ 36.76 billion, up 30% compared with 2010. CONCESSIONS (km²) spread over 194 exploration blocks, of
final decision by a superior court is pending. Additionally, R$ 14.69 billion were allocated Although the NPA held no bidding rounds which 31,068 km² represent 51 discovery as-
in contributions to the Social Integration in 2011, Petrobras increased its stakes in con- sessment plans.
COMPLIANCE WITH LAWS AND REGULATIONS Program and to the Contribution for the tracts by means of farm-in transactions in A farm-in is the partial or total acquisition of
In 2011, there were no cases of non-compli- Financing of Social Security (PIS/Cofins), 1% blocks under concession and returned blocks concession rights held by another company. In a
ance with voluntary codes or regulations per- more than in the previous year. foreseen to be given back. As a result, the com- same negotiation, a company acquiring conces-
taining to product and service information pany went on to have 132 concession contracts sion rights is in a farm-in process, while the one
and labeling or marketing communications PRICE COMPOSITION for a total area of 119,132 square kilometers selling such rights is in the farm-out process.
that resulted in warnings, fines or penalties for Petrobras does not determine the prices
Petrobras in Brazil. charged for oil products alone. Many of them
At Petrobras Distribuidora, however, there depend on market dynamics and include
were three cases of non-compliance, two con- trade margins and taxes that make up the final
cerning expired batches of a specific type of amount charged from the consumer. More-
agricultural oil and another one related to over, the supply and demand law can lead to
leaks in a few packages of the same product. season- and region-related price changes.
The subsidiary was warned to collect and dis- In general, the amounts can be repre-
pose of products properly. sented by the sum of certain portions: the
Petrobras does not trade banned products value of the Petrobras product, the share of
on the markets where it operates. Diesel sulfur taxes (levied by the states, such as the ICMS,
content, a recurring theme in public debate, or by the Federal Government, such as Cide,
is one of the focal points of the company’s PIS/Pasep and Cofins), and the distributor
standing fuel improvement programs. In Jan- and retail outlet margins.
uary 2011, all of the S-500 diesel used by the Besides a number of other factors, in most
bus fleets running in the metropolitan areas of states ICMS is calculated based on an av-
the states of São Paulo (Santos, Campinas and erage weighted price for the final consumer
São Jose dos Campos) and Rio de Janeiro was (AWPFC), which is updated fortnightly by the
substituted for the S-50 variety, with a max- respective governments. In certain periods,
imum sulfur content of 50 ppm. the prices at the fuel stations may change
As a member of the Brazilian Association without changes having been made to the part
of Advertisers (ABA), we are on the Execu- Petrobras is responsible for.
tive Board of Standard Rules, which seeks to To avoid frequent price markups on the
establish ethical principles in the commercial domestic market, since 2003 Petrobras’ policy
relationship among advertisers, agencies and has been to not pass to diesel and gasoline
the media through self-regulation. In addi- prices the fluctuations occurring on account
tion, we meet the regulations of the National of the instability on the international market.
114 2011 SUSTAINABILITY REPORT ANNEXES 115
Operational Performance Operational Performance
Refining and trade and fertilizers
REFINERY PARK process up to 600,000 bpd of oil. The project PETROCHEMICAL INDUSTRY HIGHLIGHTS XXI Project’s Industrial Complex, which
NEW PROJECTS will also include a port terminal to receive, BRASKEM aims to produce 1.05 million tonnes/year of
Due to the increasing demand for oil products store and ship bulk liquids and solids. The Fitch raging agency raised Braskem’s polyethylene mainly to supply the Mexican
in Brazil, with emphasis on the heightened Meanwhile, Premium II, with a throughput rating to investment grade in November. A domestic market. The industrial complex will
use in the Northern, Northeastern and Mid- of 300,000 bpd of oil, will be built in Ceará and Petrobras affiliate, Braskem is the Americas’ cost US$ 3 billion and is the company’s main
western regions, Petrobras intends to bring is expected to start operating in 2017. It will be largest thermoplastic resin producer. Moreover, greenfield project, in which it holds a 65%
forward operations at a few new projects to interconnected to a port terminal by an 11-km a month before that, the National Development equity stake in the joint venture with Mexican
early 2013. Among them, the Abreu e Lima long pipeline range. Bank (BNDES) approved a R$ 2.46 billion group Idesa.
Refinery in Pernambuco. Besides operating in the petrochemical credit limit to be used to support the investment
This refinery will have the capacity to pro- industry, the Rio de Janeiro Petrochemical plan in Alagoas, Bahia, Rio de Janeiro and Rio INNOVA
cess 230,000 bpd of heavy oil and to produce Complex (Comperj) will also contribute to Grande do Sul. Situated at the Triunfo Petrochemical Com-
up to 162,000 bpd of low-sulfur content diesel the Brazilian refining industry. The first stage Braskem ratified its presence abroad plex, in Rio Grande do Sul, Innova is the largest
(10 parts per million), in accordance with the of deployment is geared towards refining through acquisitions and by growing produc- Brazilian producer of styrenics – products for
international specifications. It will also pro- units; start-up is scheduled for 2014, with a tion. In the United States, it consolidated its po- home and office, for electrical and commu-
duce liquefied petroleum gas (LPG), naphtha, throughput of 165,000 bpd of oil. sition as the largest producer of polypropylene nication devices, and packaging – and one of
bunker, and petroleum coke. Operating activi- In addition to feedstock to supply the pet- by taking over two Dow Chemical plants. It also the leading second generation petrochemical
ties are slated to begin in June 2013. rochemical plants, diesel fuel, LPG and jet fuel acquired two other ones in Germany. Currently, units in Brazil. In March, Petrobras acquired
Also in the Northeast, Petrobras will build to supply the Brazilian demand also stand out its assets in the United States have the capacity 100% ownership of Innova S.A., formerly con-
two refineries to produce the so-called pre- among its products. The second phase of the to produce 505,000 tonnes/year, a 50% increase trolled by Petrobras Energia Internacional S.A.
mium oil products (high-quality and low- refinery is expected to go on stream in 2018, in Braskem’s U.S. production, which totals 1.4 Its acquisition shows the company’s inten-
sulfur). The first, in Maranhão, will be divided with a throughput of 330,000 bpd of oil, sup- million tonnes/year. In Germany, its produc- tion to invest in the domestic styrenics market,
into two stages - with operations starting in plying both the domestic demand and pro- tion capacity is 545,000 tonnes/year. since this product is used in packaging and
2016 and 2019 - and it will have capacity to viding feedstock for the petrochemical plants. In September, Braskem started earthwork external covers, one of the thermometers to
in Mexico, where it will build the Ethylene determine how heated a nation’s economy is.
116 2011 SUSTAINABILITY REPORT ANNEXES 117
Operational Performance Operational Performance
TERMINALS AND PIPELINES 10.8% more than its previous record. That SERVICE STATION NETWORK
Of the 48 terminals Transpetro operates, 28 same month, the Guarulhos Terminal had an Petrobras Distribuidora has a network of 7,485
are waterway and 20 inland. The waterways increase in its delivery of gasoline, reaching service stations spread all over Brazil. Over the
crisscross 8,698 kilometers of the Brazilian At- the mark of 102,437 m³, surpassing the pre- year, adjustments were made at more than 800
lantic coast and are operated by means of jet- vious record by 15%. service stations to drive new product sales.
ties, single point or multiple mooring buoys, In December 2011, the subsidiary opened
and 4,500 kilometers of navigable rivers and WATERWAYS the Service Station of the Future, with emphasis
lakes. As the waterway terminals, the 20 in- In Brazil, with 8,000 kilometers of coastline on interactive and tailor-made customer service
land terminals serve as warehouses for the dif- and 42,000 km of navigable rivers, having systems. The station also provides quick solar
ferent modes of transport, ensuring, with their one’s own fleet of ships to take oil products and energy-based recharging for electric vehicles.
total storage capacity of more than 10 million other products to the entire Brazilian territory
m³ (3.5 million m³ in inland terminals and 6.8 is part of the strategy to ensure adequate sup-
million m³ in waterway ones), a reliable supply plies for all regions of the Country.
of oil and oil products, gas and biofuels.
Pipelines, meanwhile, are the preferred NATURAL GAS TRANSPORTATION
means of transport to meet the demand of the Through the distributors, natural gas trans-
refineries and of the main oil product con- portation supplies homes, businesses, indus-
sumer centers. Several actions were taken to tries, compressed natural gas (CNG) service
broaden Transpetro’s capacity in 2011, among stations and thermal power plants. Petrobras
which increased oil handling over the São System’s gas pipeline transportation network
Sebastião-Guararema Pipeline (Osvat), which reached 9,251 kilometers in late 2011.
supplies Revap and Replan. With this initia- Natural gas consumption has grown sig-
tive, the pipeline will increase flow from the nificantly in recent years due to the economic,
current 4,500 m³/h to an average of 5,100 m³/h environmental and safety benefits it affords.
with two more intermediate stations in the The average annual increase between 2010 and
first half of 2012. 2015 is expected to be around 12.4%. Product
Another important initiative took place in supply is slated to reach 149 million m³/day,
the São Paulo-Brasilia pipeline (Osbra), which of which 134 million m³/day transported
handled 243,957 m³ of gasoline in March 2011, through Transpetro pipelines and terminals.
118 2011 SUSTAINABILITY REPORT ANNEXES 119
Operational Performance The company started implementing the
Bahia LNG Regasification Terminal (TRBA),
The 16 owned and leased thermal plants com-
which will be built in the Bahia de Todos os prising Petrobras’ thermal power generator
Gas & Power Santos and have capacity to re-gasify up to
14 million m³/day of natural gas. The TRBA,
park, with an installed capacity of 5,806 MW,
generate 653 average MW for the SIN to meet
the third terminal installed in the Country, is the power sales at auction inflexibility com-
slated to come into operation in 2013. mitments, to supply steam to customers and
At that time, regasifier vessel Golar Winter to meet power ratio orders and electric energy
will move from the Guanabara Bay Regasifica- exports to Argentina and Uruguay.
tion Terminal (TRBGUA) to TRBA. It will be Thus, in 2011 power generation was lower
NATURAL GAS MARKET Operations beginning at Gasan II, which replaced by a regasifier vessel that is currently than in the previous year due to favorable
GAS PIPELINES is 39 kilometers long, allowed for the 23-kilo- being built in South Korea and will utilize the full hydrological conditions in Brazil, since
Petrobras’ gas pipelines comprise an inte- meter section of the Gasan I gas pipeline to be potential of the TRBGUA of 20 million m³/day. hydropower reservoir levels remained high.
grated system with two interconnected pipe- decommissioned. Gaspal II, meanwhile, is 54.5
line networks. This system allows the delivery kilometers long and, together with Gasan II
and the Guararema Compression Station, in- PETROBRAS THERMAL GENERATION (AVERAGE MW)
of natural gas coming from the producing
fields, especially those in the Santos, Campos creased the Guararema – RPBC system trans- 2007 581
and Espírito Santo basins, as well as from portation capacity from 12 million m³/day to 2008 2,058
two liquefied natural gas terminals and a gas 17 million m³/day, enhancing supply for the 2009 525
pipeline connection with Bolivia. In total, the São Paulo Metropolitan Region. 2010 1,835
natural gas transport network ranges over Finally, a 31.7-kilometer long variant inter- 2011 653
9,251 kilometers, covering 412 cities, and connected two sections of the Guamaré-Cabo
includes 60 gas pipelines and branches, 154 Gas Pipeline (Nordestão), which allowed its
points of delivery, 15 receiving points and 38 maximum allowable operating pressure to be POWER GENERATION PARK natural gas and ethanol in the second turbine,
compressor stations. increased. This ensured improved supply flex- Two projects designed to increase the installed with a generation capacity of 47 MW.
Four major projects went into opera- ibility and reliability for the states of Pernam- capacity operated by Petrobras stood out In Northeastern Brazil, meanwhile, the
tion in 2011. The 96-kilometer Gastau gas buco, Paraíba and Rio Grande do Norte. in 2011. One was the conversion of the Juiz Mangue Seco, Cabugi, Potiguar and Juriti
pipeline, with a nominal capacity of 20 mil- de Fora TEP, in the state of Minas Gerais, to wind power plants were built in the state of Rio
lion m³/day, will transport the gas processed LIQUEFIED NATURAL GAS run on biofuels. The plant can now use both Grande do Norte, with 26 MW of capacity each.
at the Caraguatatuba Gas Treatment unit, Petrobras made a series of changes to its portfolio
coming from the Mexilhão and Uruguá- in the liquefied natural gas market, reaching 44
Tambaú fields and from the Lula pilot, in Master Sales Agreements (MSA) and, in 2011,
operation at the Santos Basin Pre-Salt layer, made 14 cargo purchase transactions – 12 for
increasing supply in the Southeast. Brazil and two resold on foreign markets.
120 2011 SUSTAINABILITY REPORT ANNEXES 121
Operational Performance Results and Contributions to Society
Biofuels financial results
ETHANOL Plant, in Goiás. Crushing capacity will grow FUNDING To build the PET (polyethylene terphlate
HIGHLIGHTS to 8 million tonnes/year. With the invest- To maintain the liquidity needed to implement resin) and POY (polyester yarn) plants,
To make sure production meets demand ment, annual production should grow to its investment plan, Petrobras raised funds on Companhia Integrada Têxtil de Pernambuco
on the Brazilian market, the company seeks 700,000 m³, up from the current 176,000 m³, the market, taking advantage of the recognition (Citepe) hired credit lines for the amount
acquisition transactions to boost its energy making this plant the largest unit dedicated of the quality of its credit by banks, export credit of R$ 561 million, while Companhia Petro-
park. In March 2011, for example, it invested solely to producing ethanol from sugarcane agencies and investors, thus ensuring favorable química de Pernambuco (PetroquímicaSuape)
R$ 195.4 million in the Guarani S.A. sugar, in the world, with the cogeneration of 600 costs and payment terms to fund its activities. lines worth R$ 605 million.
ethanol and energy outfit and now holds GWh/year of electricity. On the banking market, funding totaled The Alberto Pasqualini Refinery (Refap)
31.44% equity stakes in it. Guarani currently The company made the final contribution US$ 1.38 billion in Brazil and US$ 1.64 billion contracted credit lines in the order of
owns seven plants in São Paulo and one on the of R$ 22 million – totaling R$ 155 million – in other countries. On the international cap- R$ 1.11 billion to build a hydrotreatment
African continent, in Mozambique. to the capital stock of the Total Agroindústria ital markets meanwhile, bonds were issued in unit. Petrobras contracted funding worth
With the Mozambican government’s ap- Canavieira S.A. ethanol plant, which is located the amount of US$ 9.6 billion. The company R$ 1.02 billion to cover investments in the
proval of the legal framework for a 10% blend in Minas Gerais and now holds 43.58% of its also undertook liability management transac- PMXL-1 fixed platform with the Brazilian
of ethanol with gasoline (E10) from 2012, the equity interest. Total invested more than R$ 21 tions worth US$ 509 million aiming to extend Development Bank (BNDES).
associated company is developing a project to million in expanding its sugarcane production its debt profile. It raised US$ 1.39 billion in
build a distillery in the country with an eth- and R$ 11.1 million in equipment purchases. funding among export credit agencies.
anol production capacity of about 20,000 m³/ In addition, the company started invest-
year to meet the new demand when the mea- ments in the order of R$ 122 million, for the
sure comes into force. 2011-2013 period, to build the second phase
Petrobras Biocombustível, in turn, now of the plant and plans to double its crushing
owns 49% of the joint stock of Nova Fron- capacity to 2.4 million tons in 2013. After this
teira Bioenergia S.A., after an investment investment, ethanol production capacity could
worth R$ 163 million, and has announced reach 200,000 m³, while power generation
that over the next three years it will invest from bagasse may skyrocket from the current
R$ 530.7 million in revamping the Boa Vista 30 GWh/year to 86 GWh/year.
122 2011 SUSTAINABILITY REPORT ANNEXES 123
Results and Contributions to Society the company has operations. It currently has
19 projects in progress in 14 Brazilian states.
Petrobras also has an agricultural supply
program for family farmers in the Brazilian
The projects implemented under the scope semiarid region. The goal is to supply at least
Supplier management of the agreement encompass, among others,
training and developing local micro and small
30% of the company’s demand for oilseed. Ap-
proximately 66,000 family farmers in eight
enterprises, with emphasis on quality, safety, states currently take part in the program.
environment, occupational health and social
responsibility management, in addition to DIALOGUE WITH SUPPLIERS
consolidating cooperation networks. Dialogues with good and service suppliers
Petrobras enhanced the coverage of the who supply our activities takes place through
The Petrobras System favors the procurement development. In 2011, in Brazil, 95% of the “Progredir” Program, which surpassed the R$ 1 corporate relationship channels attending
of goods and services in the countries where it suppliers were Brazilian, and purchases totaled billion mark in more than 200 credit lines. De- businesses, supplier professional associations
operates, on a competitive basis and to foster US$ 37.8 billion. veloped in partnership with Prominp, BNDES and entities, and governments outside of
and six major banks with operations in Brazil, Brazil. On our website, we have the Supplier
the purpose of the initiative is to provide bank Channel, which purpose is to provide infor-
credit at reduced costs to small and midsize mation to companies interested in supplying
LOCAL CONTENT INDICATOR - PROMINP1 company suppliers. In some cases, the suppliers’ to Petrobras.
Year Realized (%) Target (%) financial cost reductions may add up to 50%.
2007 75.4 64.0
2008 75.6 66.0
DEMANDS BROUGHT UP THROUGH THE SUPPLIER CHANNEL AND ACTIONS TAKEN IN RESPONSE
2009 75.6 67.2
Concerns Petrobras actions
2010 74.6 70.2
Creation of fixed and itinerant service stations for
20112 74.8 65.6 Distance from the registration department.
Local content figures are calculated by Prominp pursuant to methods set out in each contract, which do not necessarily follow the
Lack of information about Progredir and the Credit Provision of information on the Supplier Channel
methodology used in the ANP’s Local Content Primer.
Right Investment Funds (FIDC). and direct links to program pages.
Up to the third quarter of 2011.
Lack of access to Petrobras’ Technical Standards. Access offered by the Supplier Channel.
Information about the use of the invoice in the
Questions about electronic invoices.
In line with the rules laid down by the National Brazilian industry. Petrobras’ Business Plan Supplier Channel.
Petroleum Agency (ANP), the company re- foresees integrated technological management Questions regarding the Multidisciplinary Health Availability of the statement of the parties
quires its exploration and production project with suppliers, research institutions and other accredited under the AMS on the supplier support
Insurance (AMS). services page in the Supplier Channel.
suppliers to have minimum percentage of local industry companies, with annual expenditures
content. The ANP determines the calculation in the order of US$ 1.3 billion between invest-
method to be used for this content and it refers ments and costing.
SELECTION AND ASSESSMENT Technical capacity, tradition, size and pos-
to goods (equipment and components) and ser-
Businesses interested supplying Petrobras can sible specific approvals and accreditations;
vices produced by companies installed in Brazil. SUPPLIER SUPPORT AND DEVELOPMENT
register in the reference file and are later as- Commitment with quality and ongoing im-
To enhance the scope of the legal require- Petrobras invests in developing the supplier
sessed based on five criteria, which are catego- provements, underscoring the importance of
ment, Petrobras created its own Local Content chain in Brazil, consolidating demands and
rized in a set of requirements and indicators: and encouraging certifications pursuant to the
Policy in 2011, voluntarily extending these making long-term hiring with growing local
Meeting legal requirements on the market, ISO 9001 standard.
requirements to the E&P areas’ operations content requirements. It also implements ac-
those established by the market, government The supplier reference file is permanently
and to the investments and operations of the tions to increase the domestic suppliers’ partici-
agencies, and the society; renewed through annual data updates and the
Downstream and Gas and Power areas. pation in the oil and gas industry’s productive
Evidence of economic viability to make sure periodical reassessment of the performance
In the other countries where it has op- chain, it supports the development of innova-
the company can give continuity to and com- of the registered businesses. The reference file
erations, the company uses a major part of tive Brazilian businesses and invests in initia-
plete the delivery of the service and/or per- also singles out issues for improvement of per-
its budget acquiring local goods and services. tives conceived to qualify people.
form the services; formance based on the results of reassessment.
The percentage ranges from 70% to 90% of the The agreement between Petrobras and
The registered companies can then take part in
subsidiaries’ budget, as is the case of Angola, the Brazilian Service of Support to Micro and Degree of deployment of the health, safety
the hiring processes according to the demand
Bolivia, Argentina and Nigeria. Small Enterprises (Sebrae), signed in 2008, and environment management system, un-
of each Petrobras business area.
Supplier management at Petrobras includes seeks the competitive and sustainable inser- derscoring the importance of and encouraging
Most of the contracting takes place
encouraging the technological development tion of these enterprises in the oil, gas and certifications pursuant to the ISO 14001 and
through Petronect (the company’s electronic
of the companies to meet the demands of the power productive chain in the regions where OHSAS 18001 standards;
124 2011 SUSTAINABILITY REPORT ANNEXES 125
procurement channel). In 2011, Petrobras
had 96,681 enterprises listed on Petronect, of
cases, not meeting labor obligations.
In the case of family farming, the company
Results and Contributions to Society
which 29,499 are regular suppliers. has local agreements and provides training to
Service contract managers assess the
suppliers throughout the supply period. In
companies surrounding its units, particularly
in the operating areas. The selection process
the case of suppliers of goods, non-confor- used for family farmers participating in the
mities in meeting the demand are registered. Agricultural Supply Program is done based
Where suppliers present an inferior per- on the establishment of production hubs and
formance, the Good and Service Supplier takes into account aspects related to logistics
Subcommission discusses the application and the microregions’ capability to produce
of sanctions on suppliers. Such sanctions oilseed. Farmers must have a statement of ca- IMPACTS ASSESSMENT
include preventing future transactions with pability for for family farming, a document
the company. In late 2011, ten registered issued by the Ministry of Agrarian Develop- EXAMPLES OF IMPACT ASSESSMENT AND OF COMMUNITY DEMANDS
companies were in this situation on account ment, in addition to an area of at least two Process Description
of their low performance rates pursuant hectares of land to plant oilseed and to ensure Preliminary study carried out to diagnose and assess the socioeco-
to several attributes, particularly, in three production diversity on their small properties. nomic and environmental characteristics of the communities sur-
rounding future linear (pipelines) or spot (fixed facilities) projects
aiming to minimize possible negative impacts and to address these
Environmental Assessment (EA) interferences with the population involved. This study identifies the
overall profile of the communities’ social organization and their de-
pendency on the natural resources, among other aspects, particularly
through direct surveys (interviews and the perceptions of the multi-
disciplinary technical team).
These actions include guided visits to units for stakeholders. The goal
is to disseminate information about the operations and the Emergen-
cy Response Plans to the residents of areas of influence. Community
Relationship actions with the
complaints, claims and demands are surveyed through several chan-
nels, such as social dialogue, community boards, Petrobras SCS, the
0800 toll-free phone number (Transpetro and Comperj) and the Om-
The purpose of these plans is to open a channel of dialogue on actual
Social Communication and and potential impacts, whether negative or positive, caused by the
Regional Plans ventures and the mitigation, compensation and monitoring measures
to be taken.
The initiative is designed to communicate the pipeline ranges to
sorrounding communities regarding the construction of and the care
Pipeline Communication Plans
required with the pipelines, as well as the procedures to be followed
in the event of an emergency.
Deployed when the Environmental Impact Assessment determines
Compensation Plan for the there may be relevant impacts on small-scale fishing, once drilling
Fishing Activity will be done in shallow water areas, where there are intense small-
scale fishing activities and permanent fishing grounds.
These projects monitor the possible environmental and socioeconom-
Fish Offloading Monitoring Projects
ic effects on fishing communities that surround our developments.
Developed in the Santos Basin Operation Unit, the program addresses
Participatory Action Program for
communities living in the Northern coast of the state São Paulo and
located in the area of influence of the Mexilhão Project.
Prepared in partnership with IBAMA, these programs are devel-
oped in areas influenced by Petrobras’ operations and encompasses
Workshops and lectures about issues of interest to the communities,
Workshops & lectures
addressing mainly concepts regarding safety, environment and health.
126 2011 SUSTAINABILITY REPORT ANNEXES 127
MAIN CONCERNS RAISED AND MEASURES ADOPTED Employment Practices and Human Rights
Stakeholder Topics and concerns raised Actions taken
Socioeconomic development of the
region; infrastructure improvements
(medical clinics, schools, sanitation,
Construction of community centers, promoting training courses for
young people on health, environment civil construction. Refurbishment of
schools and places where meetings and forums are held, building hospi-
roads); work and income opportuni- tals and other services as conditions for the issuing of operating permits.
ties; expropriations and the resulting Construction of Agenda 21s in the areas of influence of Petrobras to raise
compensations. the demand for infrastructure and other community services.
The units have a systematic procedure to handle all of the community’s
Social and environmental impacts
claims, including technical visits to assess such claims, always providing
derived from facility deployment:
feedback to the community through relationship channels. Most of the
odor, noise, heavy-duty vehicle traffic,
claims are handled during the unit’s managerial meetings when they can- WORKFORCE gender, the highest rate is among men (3.99%).
waste derived from the production
Communities not be addressed directly by the departments. Meetings are also held with
process, environmental impacts and
the community (at the Community Boards) to explain the nature of the
ENTRY RATE Meanwhile, if the basis for comparison is the
complaints on possible risks to people. The employee entry rate in the Petrobras operation site, the highest rate in Brazil is in
possible environmental impacts on the community’s daily activities, the
Impacts of new developments on the
local economic activities (tourism,
monitoring adopted, and actions taken. Regarding risks to people, emer- System was 6.89%. The highest rate, when ana- the Southeast (3.2%). Among the countries,
gency drills are carried out annually with the surrounding community and
fishing, etc.). lyzed by age group, occurred among employees Chile had the highest percentage (18.67%).
involving company departments and public agencies.
aged up to 25 years (1.88%). If the criterion is
The company holds frequent visits and meetings to raise awareness on
Rearding to pipeline ranges: excava- pipeline range maintenance and to increase their understanding concern-
tion, brush burning, invasion, prohib- ing the risks involved with the listed activities, encouraging a responsible
ited traffic, garbage and rubbish. relationship with and ensuring the safety of the community and of the EMPLOYEE ENTRY RATE, BY AGE GROUP (%)
26-30 31-35 36-40 41-45 46-50 51-55 56-60 61 years
Company Gender years years years years years years years of age Total
of age of age of age of age of age of age of age onwards
Male 1.52 1.06 0.62 0.35 0.19 0.11 0.06 0.05 0.02 3.99
Brazil Female 0.36 0.34 0.15 0.06 0.04 0.01 0.02 0.01 0.01 0.99
Total 1.88 1.40 0.77 0.42 0.22 0.12 0.08 0.06 0.03 4.98
Male 7.74 2.17 1.69 0.92 0.57 0.60 0.41 0.19 0.16 14.45
Outside of Brazil Female 6.75 1.86 0.96 0.77 0.53 0.36 0.12 0.05 0.01 11.42
Total 14.49 4.03 2.65 1.69 1.10 0.96 0.53 0.24 0.17 25.87
Male 2.09 1.16 0.72 0.41 0.22 0.15 0.10 0.06 0.04 4.95
Female 0.94 0.48 0.22 0.13 0.08 0.05 0.03 0.01 0.01 1.95
Total 3.04 1.64 0.94 0.53 0.30 0.20 0.12 0.07 0.05 6.89
NTRY AND TERMINATION RATES BY REGION/COUNTRY
Entry rate (%) Termination rate (%)
Region/country Male Female Total Male Female Total
South 0.20 0.02 0.22 0.19 0.03 0.22
Southeast 2.45 0.75 3.20 1.31 0.26 1.58
North 0.10 0.02 0.12 0.06 0.01 0.06
Northeast 1.19 0.20 1.39 0.47 0.06 0.52
Midwest 0.04 0.01 0.05 0.04 0.00 0.04
Total 3.99 0.99 4.98 2.06 0.36 2.42
128 2011 SUSTAINABILITY REPORT ANNEXES 129
NTRY AND TERMINATION RATES BY REGION/COUNTRY
Petrobras employees also have career and com- needs comprises the Human Resource Devel-
pensation advancement opportunities that are opment Plan (PDRH).
Entry rate (%) Termination rate (%)
based on labor market standards. Through the The Access Project, developed by Petro-
Region/country Male Female Total Male Female Total performance management system (PM), they bras in partnership with the Ministry of Edu-
Angola 0.04 0.01 0.05 0.03 0.01 0.04 are assessed based on their goals and skills and cation, allows service provider employees to
Argentina 2.21 0.65 2.86 6.25 1.36 7.61
have an opportunity for level advancements complement their elementary and high school
and promotions. PM is held annually and is educations. Classes are held at the company’s
Bolivia 0.48 0.04 0.52 0.19 0.04 0.23
aligned with the company’s strategies. Its tar- facilities under the supplementary education
Chile 9.13 9.54 18.67 8.96 9.30 18.26
gets include everyone from employees who mode and are taught by contracted teachers in
Colombia 0.24 0.16 0.40 0.23 0.13 0.36 do not hold managerial positions to executive accordance with a program that complies with
Ecuador 0.00 0.03 0.03 0.00 0.00 0.00 managers, contributing to attaining a better all legal requirements. In 2011, there were nine
EUA 0.44 0.28 0.72 0.25 0.25 0.51 understanding of the results those involved elementary education participants, with a total
Japan 0.05 0.01 0.07 0.17 0.01 0.19 should achieve. of 14,400 hours of MHT, and 28 high school
The company’s guideline is that all employees participants, who totaled 36.96 hours of MHT.
Companies outside Libya 0.03 0.00 0.03 0.05 0.03 0.08
who can be assessed have their performances ap- In February, Petrobras and the Federal
Mexico 0.01 0.03 0.04 0.08 0.03 0.11
praised over the year. In 2011, with regard to the Court of Auditors (TCU) signed a cooperation
Nigeria 0.00 0.00 0.00 0.00 0.00 0.00
2010 process, 99.4% of the employees had per- agreement to hold lectures and seminars aimed
Paraguay 0.25 0.11 0.36 0.11 0.04 0.15 formance appraisals through PM. at the institution’s technicians and auditors. The
Peru 1.37 0.40 1.77 0.28 0.09 0.37 In total, 55% of the eligible staff was in- agreement aims to encourage the improvement
Portugal 0.05 0.11 0.16 0.00 0.00 0.00 cluded in Petrobras’ level advancement and of the corporate relations between the company
Turkey 0.03 0.00 0.03 0.01 0.03 0.04
promotion process, which is based on the ac- and the TCU and to include technical and busi-
knowledgment of individual merit. This figure ness aspects both of the company and of the oil
Uruguay 0.08 0.03 0.11 0.05 0.01 0.07
was up 4% compared to 2010. The percentage and gas industry as a whole.
Venezuela 0.04 0.03 0.07 0.13 0.13 0.27
of male candidates was 54%, while of females In July, Petrobras and the Brazilian Army
Total 14.45 11.42 25.87 16.79 11.47 28.26 61%. At Petrobras Distribuidora, 52% of the signed a protocol of intentions to share edu-
eligible male staff were included, while the cational resources. Petrobras is interested in
PROFESSIONAL DEVELOPMENT AND University which, over the year, had more than figure for females was 56%. learning more about the Brazilian Army’s so-
PERFORMANCE ASSESSMENT 82,000 participations in courses and confer- Under our people management system, lutions to train military personnel, such as dis-
The Petrobras System invests in developing its ences, in addition to training courses offered all employees have individual and team goals, tance learning practices, the use of simulators
human resources. In 2011, this resulted in an to 2,368 new staff. Petrobras University of- which are planned and assessed annually in and strategy, logistics, and leadership develop-
effort that added up to more than 253,000 par- fers both on-site and distance learning classes the performance management process, and ment courses.
ticipations in continuing education courses, through the Virtual Campus program, which the staff is assessed based on their individual
both in Brazil and in other countries, and in is broadcast over the Digital TV the University corporate skills, which are attributed based on COMPENSATION AND BENEFITS
the training of new employees to hold several TV Channel. the position held. The planning of the goals for Petrobras System employee compensation
positions. There was an average of 73.5 man- In addition to the training sessions and the following year and the latest results of the is consistent with the professional activities
hours of training (MHT) in the System, adding courses taught at Petrobras University, our corporate individual skills are input for the an- carried out and is in accordance with the
up to a mean of three training participations employees have the opportunity to take grad- nual preparation of an individual development responsibilities involved in the position. In
per employee. uate-level and language courses outside of the plan. This plan lists the training and develop- 2011, the lowest wage in the Petrobras System
We encourage our employees to seek on- company, which may be paid for in full or in ment needs to be met. The set of identified was R$ 778.16, at Transpetro.
going improvements by means of Petrobras part by the company.
HOURS OF TRAINING (AVERAGE MHT1) LOWEST WAGE PAID/LOCAL MINIMUM WAGE RATIO - BRAZIL
73.5 Proportion of women Proportion of men
Bonus function 3
Petrobras 2.35 2.35
Employees with no bonus function 85.0 Petrobras Distribuidora 3.05 2.48
Employees with bonus function 32.5 Petrobras Biocombustível 3.05 3.05
Level of schooling 3
Liquigás 1.57 1.53
High school graduates 53.1 Transpetro 1.73 1.43
College graduates 119 Refap 3.05 2.53
MHT - Man-Hours of Training. Petroquisa 6.55 3.60
Petrobras; Petrobras Distribuidora; Petrobras Biocombustível; Liquigás; Transpetro; Refap; Petroquisa; units abroad.
Value of the current minimum wage in Brazil: R$545,00.
Petrobras; Petrobras Distribuidora; Petrobras Biocombustível; Liquigás; Transpetro; Refap; Petroquisa.
130 2011 SUSTAINABILITY REPORT ANNEXES 131
LOWEST WAGE PAID/LOCAL MINIMUM WAGE RATIO - OUTSIDE OF BRAZIL Colombia: children’s education, life insur- deposits, food voucher, health insurance,
ance, agreed pension fund deposits, loans, performance bonus;
Country Ratio Currency
health insurance, gym, employee education, Paraguay: loans, health insurance, perfor-
Angola 18.11 dollar1
performance bonus; mance bonuses, retirement plan;
Argentina 1.47 peso
Ecuador: wedding aid, child birth aid, life in- Turkey: food voucher, life insurance, 13th
Bolivia 5.53 boliviano
surance, food voucher, health insurance, gym; bonus salary;
Chile 1.00 chilean peso
United States: children’s education, health Uruguay: life insurance, loans, retirement plan;
Colombia 2.78 colombian peso
insurance, performance bonus;
Ecuador 2.91 United States dollar Venezuela: children’s education, loans, health
Mexico: wedding aid, child birth aid, funeral insurance, employee education, performance
EUA 1.51 United States dollar
aid, life insurance, agreed pension fund bonus.
Japan 1.01 yen
Mexico 3.82 mexican peso
Nigeria 11.45 nigerian naira PERCENTAGE OF CONTRIBUTION TO THE PENSION PLANS
Paraguay 1.37 guarani
Peru 3.85 new sol PETROS PLAN
Portugal 2.17 euro Range (R$) Rate (%) Deductions (R$)
Turkey 2.02 turkish lira Ceiling applied to plan enrollees until April 13, 19821
Uruguay 1.56 uruguayan peso 3,691.75 to 18,345.93 11.00 – 14.90 323.94 – 438.95
Venezuela 1.29 venezuelan bolivar Ceiling applied to plan enrollees after April 13, 1982 2
Amount reported in U.S. Dollars. The currency in the country is the Kwanza. up to 1,845.87 1.45 – 1.96 –
1,845,88 to 3,691.74 3.00 – 4.06 28.61 – 38.76
3,691.75 to 11,075.22 11.00 – 14.90 323.94 – 438.95
In addition to base salary and profit sharing, BENEFITS IN BRAZIL
Validity: September 1, 2011.
we offer complementary pension, educational Multidisciplinary Healthcare (AMS), a health
Validity: July 1, 2011.
benefits to children of employees (Daycare/ benefit Petrobras offers its employees, retirees,
Companion Aid, Education Aid, Preschool pensioners and their dependents;
Aid, Elementary Education Aid, Middle Under the Petros 2 Plan, the minimum regular 6%. The maximum regular contribution varies
Educational Benefits (aid for formal educa-
School Aid and the Young University Student contribution is set actuarially and individually based on the participant’s age.
tion for the children of employees, from day-
Program), in addition to medical insurance for each participant and may not be less than
care to Middle Education);
(medical, dental, psychotherapy and phar-
Young University Student Program, Special
macy benefit), extended to dependents. We
Aid Program, educational partnerships, pay-
also provide benefits that vary from one com- PETROS PLAN 2 - REGULAR CONTRIBUTION RATE
roll loan, housing agreements.
pany to another, such as food or meal voucher
Participant Sponsor Total
and an allowance for length of service, along Age group
BENEFITS OUTSIDE OF BRAZIL Minimum Maximum Minimum Maximum Minimum Maximum
with those provided for by law, such as trans-
portation vouchers and the 13th bonus salary. Angola: children’s education, aid for child Less than 30 8% 8% 16%
The complementary pension plans vary in birth, funeral aid, life insurance, food voucher, 30 to 39 9% 9% 18%
6% 6% 12%
scope and range in some System companies. loans, health insurance, supermarket aid, gym, 40 to 49 10% 10% 20%
At Petrobras and at the Petrobras Distribui- employee education; 50 or more 11% 11% 22%
dora and Refap subsidiaries, there is the Petros Argentina: children’s education, marriage Participant’s age in completed years on March 31 of each year
Plan, closed to new entrants, and the Petros 2 aid, child birth aid, funeral aid, life insurance,
Plan, offered since 2007. Transpetro offers all agreed pension fund deposits, food voucher,
employees the Transpetro Petros Pension plan, loans, health insurance, employee education,
At the overseas units, Argentina, Japan, Nigeria to participants to support them in the process
while at Liquigás there is a defined contribu- performance bonus;
and Chile offer pension plans to all employees. of preparing for retirement and enhance the
tion plan. Petrobras Biocombustível only of- Bolivia: birth and funeral aid, life insurance, Through the Preparation for Retirement employees’ quality of life. In 2011, 378 em-
fers life insurance. health insurance, gym, performance bonus; Program, Petrobras offers relevant information ployees took part in the program.
132 2011 SUSTAINABILITY REPORT ANNEXES 133
Employment Practices and Human Rights Employment Practices and Human Rights
Health and Diversity and
safety at work gender equality
FORMAL COMMITTEES THE EMPLOYEES DIVERSITY OF THE WORKFORCE
ARE REPRESENTED ON
DISTRIBUTION OF MEMBERS OF THE BOARD OF DIRECTORS AND FISCAL COUNCIL
ACT Monitoring Commission;
Age group %
Work System Commission;
Up to 30 years of age 0.00
31 to 50 35.71
HSE Commissions of Own and Contractor Aged more than 51 years 64.29
Employees and Cipas;
National Commission on Retirement; Gender %
Outsourcing Commission; Male 78.57
Committee for the Settlement of Lawsuits; Female 21.43
National Standing Committee of Benzene Total 100
(CNPBz); Race/Skin Color %
State Commissions of Benzene (CEBz); White 28.57
Not informed 71.43
Cipas of all units;
Not considering alternate members of the Audit Committee.
HSE Anomaly Inquiry Commission.
134 2011 SUSTAINABILITY REPORT ANNEXES 135
Strategy and governance Energy efficiency
VOLUNTARY REDUCTION TARGETS The company’s global operations in deep wa- CONSCIENTIOUS CONSUMPTION that in 2011 the program afforded savings in
RISKS AND OPPORTUNITIES ters, which are vulnerable to rises in sea level Petrobras is responsible for the Executive Sec- the order of 65 million liters of diesel with the
Petrobras included in its scenario studies the and to a possible increase in the number and retariat of the National Program for the Ra- Save and Transport projects, and of 562,000 m³
analysis of the potential impacts climate change intensity of hurricanes; tional Use of Oil and Natural Gas Products, of of gas in the residential sector through energy
will have on its businesses. Such analyses en- Road, maritime, inland waterway and pipe- the Mines and Energy Ministry. It is estimated efficiency and equipment labeling measures.
compass aspects such as production processes line transport operations, which handle large
and energy consumption habits, international volumes of oil, oil products, natural gas, and
negotiations on climate and energy, and the biofuels;
countries’ climate policies and their effects Water withdrawal to run its operations, which
on the carbon markets, on the development may be affected by a shortage of this resource;
of more eco-efficient technologies and on the
The biofuel operations, especially in the event
emissions of the global energy system.
of prolonged droughts or increase rainfall in
Increased strictness of the laws, whether
specific regions, affecting feedstock production;
Brazilian or international, in the climate
change area may lead to new technical and The cost of the facilities’ insurance premiums
commercial requirements in our products’ and the volume of investments to ensure their
supply chain, with the possibility of increased safety and integrity.
costs and reduced competitiveness. Petrobras has two projects registered under
We understand, however, that this scenario the Clean Development Mechanism (CDM).
also brings opportunities, such as, for example, One of them, registered in 2009, involves the
on the renewable fuels market, which can be installation of a catalyst-based system to reduce
exploited competitively by our Petrobras Bio- nitrous oxide emissions at a fertilizer plant in
combustível subsidiary, which is in charge of Bahia. The project allowed for the prevention
production and for project management in the of the release of approximately 57,000 tons of
biodiesel and ethanol areas. Petrobras expects CO2 equivalent per year into the atmosphere.
to invest US$ 4.1 billion in the biofuels busi- The Macau Wind Farm, in the state of Rio
ness between 2011 and 2015. Grande do Norte, which was also registered as
Global climate change can increase and inten- a CDM project produces 1.8 MW of electricity
sify climate phenomena such as droughts, hurri- and prevents the emission of about 1,300
canes, floods and heavy rains, which may affect: tonnes of CO2 equivalent per year.
136 2011 SUSTAINABILITY REPORT ANNEXES 137
Environment within the 50-kilometer range that defines
the legal limits of this environmental protec-
The Cílios nos Olhos d’Água, Renasce o
Verde project, for example, which the com-
tion area. The fields located closest to the park, pany has sponsored since 2011, aims to re-
Biodiversity which produce gas off the coast of Espírito
Santo, are Peroá, 165 kilometers away from the
cover the Paraíba do Sul River and the Atlantic
Forest’s riparian forests. It will also help create
limit, and Camarupim, at 216 kilometers. wildlife corridors that will connect the region’s
The company encourages the recovery and protected areas, such as the Serra da Con-
protection of the habitats located in all Bra- córdia State Park and the Açude da Concórdia
zilian biomes and in all other countries where Municipal Natural Park.
it operates. In this context, the results attained Also in 2011, we started contributing tech-
SENSITIVE AND PROTECTED AREAS Excellence in Safety, Environment, and Health by the Petrobras Environmental Program are nically and financially to a project undertaken
The mapping of protected areas with high by year 2015, is being carried out by Petrobras significant. The program currently covers 32 by the Ministry of the Environment for the
levels of biodiversity within the limits of in- System units and companies gradually. All of projects focused on the conservation of for- creation and deployment of protected marine
fluence of our activities, one of the milestones the information generated will be integrated ests and natural areas, on the productive re- areas, in line with the commitments taken on
to be achieved under the Strategic Project for into GeoPortal HSEE. conversion of the areas, and on the recovery by Brazil at the UN’s 10th Conference of Par-
of degraded areas. By late 2011, the projects ties to the Convention on Biological Diversity.
covered 177,380 hectares of worked area. Among them, it was determined there is a
PROTECTED AREAS WITH HIGH LEVELS OF BIODIVERSITY IDENTIFIED IN THE INTERNAL AREA Its completion will benefit 405,743 hectares need to protect 10% of the environmentally-
OR SURROUNDING DOWNSTREAM AREA UNITS IN BRAZIL spread among the Amazon, Caatinga, Pampa, sensitive coastal and marine environments.
Presence of a legally protected area or of Cerrado and Atlantic Forest biomes.
Type of operation Number of units an area with a high level of biodiversity
within (or partially within) the unit
Oil refining 12 9,032.03 1,920.18
Mining and production of shale oil 1 1,907 15.6
Total 13 10,939.03 1,935.78
a) The consolidated refining units are Lubnor, Recap, Reduc Regap, Refap, Reman, Repar, Replan, Revap, RLAM, RPBC and RPCC. The shale oil mining and production unit is SIX.
b) A few legally protected areas with a high rate of biodiversity: EPA in the Ceará River Estuary; Lagoa da Maraponga Ecological Park; Watershed Protection Area (WPA); Area
of Relevant Ecological Interest (AREI) of the Guanabara Bay; Serra dos Órgãos National Park; Tinguá Biological Reserve, Sauim Castanheira Ecological Reserve; Paraíba do
Sul River Basin EPA, and Serra do Mar State Park, among others.
c) The units under construction (RNEST, Comperj and Premium I and II refineries) are located in protected areas or areas with a high rate of biodiversity, such as the Guapimirim
Environmental Protection Area, the Guanabara Ecological Station, the Serra dos Órgãos National Park, the Guanabara Bay AREI, the Zumbi and Duas Lagoas Ecological Reserve,
d) Studies to map the remaining areas with a high rate of biodiversity are being completed.
A significant part of our exploration, produc- Some of our operations in other countries
tion, transportation and distribution activities also interface with protected areas, such as
is scattered through regions with a high rate of the transport of products along the 1,670
biodiversity in terrestrial and aquatic ecosys- kilometers of the Paraná-Paraguay Waterway,
tems located in major Brazilian biomes, such in Argentina. An environmental sensitivity
as the Amazon, the Atlantic Forest, Cerrado study of the Paraná River the company carried
and the Caatinga. Our operations in waters out highlighted 36 protected areas in the area
near the coast, for example, in the Potiguar of influence of this operation.
(state of Rio Grande do Norte) and Ceará In 2011, oil and gas companies operating in
(state of Ceará) basins occurs in regions char- Brazil were questioned by a non-governmental
acterized by the presence of endangered spe- environmental organization concerning ex-
cies - notably marine mammals and turtles -, ploratory activities near the Abrolhos Marine
coastal marine birds, and banks of coralline National Park environmental protection area,
algae with its associated biota. in Bahia. Petrobras has no such operations
138 2011 SUSTAINABILITY REPORT ANNEXES 139
Water resources Materials and Waste
Petrobras carries out actions to minimize the SOLID WASTE
IMPROVED WATER RESOURCE – enough to supply a city of 750,000 inhabit- generation of waste and increase reuse and re- The company has implemented a corporate
MANAGEMENT ants in an equal period. cycling at all of its units. project designed to minimize waste genera-
The company’s different business areas and Cenpes has a R&D line that selects and eval- The company works continuously on im- tion through which reduction opportunities are
subsidiaries developed 34 wastewater drainage uates wastewater treatment technologies for the proving the waste management information diagnosed in its several areas, such as explora-
and/or treatment system deployment and/or reuse of the water in the oil refining process. system and on identifying and testing new tech- tion, production and distribution of oil and oil
upgrading projects. Such technologies are tested on a pilot scale at nologies in this field. The management prac- products, biofuels and thermal power plants.
Petrobras also participates actively in 44 the Gabriel Passos Refinery (Regap). The Re- tices that are adopted are consistent with the The project also aims to identify and implement
forums in Brazil and abroad conceived to search Center also uses mobile units composed new Brazilian National Policy on Solid Waste. innovative treatment technologies that may be
monitor and contribute to the participatory of two trucks fitted with pilot scale equipment adopted after their technical, economic and en-
management of water resources. that can test up to 90 technological routes for MATERIAL CONSUMPTION vironmental feasibility is analyzed.
In 2011, Petrobras and the Rio de Janeiro water treatment and reuse. This initiative aims In 2011, Petrobras spent about R$ 95.5 billion in One of the company’s goals by prioritizing
State Water and Sewage Company (Cedae) to facilitate studies at each refinery, simulating raw material and product procurement. Since waste treatment and disposal technologies that
signed a contract for water reuse at Comperj. specific operating conditions for the different good and service acquisition is decentralized allow for reuse or recycling is to minimize the
The project, unprecedented in Brazil, will use water and wastewater characteristics, thereby and is under the responsibility of the various amount of waste sent to landfills, an alterna-
treated sewage water in the steam generation reducing deployment time and costs. areas and units, the company had not consoli- tive that should be used only when no other
and boiler cooling processes, among others. Another example of technological devel- dated until late that year the total volume of ma- options are available.
By avoiding uptake from surface and ground- opment is the pioneering Subsea Oil-Water terials used and, consequently, the percentage of In order to minimize the risks of inadequate
water sources, water that can be used for con- Separation System (SSAO), which is currently inputs sourced from recycling. Worthy of note, management, environmental service providers
sumption by the surrounding population will being deployed at the P-37 platform, in the however, are the significant results a few units are submitted to regular audits, particularly in
not be used in the operation. The project will Campos Basin, to separate and treat at least reached. This is the case, for example, of Petro- the waste management, collection, transporta-
reuse up to 1,500 liters of water per second, a 70% of the production water and reinject it bras Distribuidora’s lubricants plant, where 75% tion, treatment and disposal area. The goal is
volume equivalent to 47.3 million m³ a year into the reservoir itself. of materials such as metal pails, vials, drums also to encourage the improvement not only of
and pumps are recycled. the operating standards but also of the quality
To minimize possible risks to the imple- of services provided. These suppliers must be
mentation of the company’s investment licensed by the environmental agencies.
program, the future demand for goods and In 2011, the Petrobras System reused 37%
services is identified and characterized. This of hazardous solid waste generated at its pro-
makes it possible to identify potential gaps duction processes, emphasizing, in this per-
in advance and to trigger preventive actions centage, energy recovery through the reuse
that can avoid issues associated with the lack of the waste as fuel in cement kilns. The total
of supply or with the supply of inputs in inad- hazardous waste generated was 23% below the
equate conditions. maximum allowable limit (MAL) set forth by
the Company for the period and added up to
There was no international transport of
waste in the year.
140 2011 SUSTAINABILITY REPORT ANNEXES 141
Products and services
PRODUCTION X HAZARDOUS WASTE GENERATED
To lessen the impact of its services and prod- with the proper state of maintenance of the
ucts on the environment, the company invests cylinders during their lifecycle, as they are
Year Production (thousand m³/day of oil) Hazardous waste generated (tonnes/year)
in technological development, in diversifying the main package used. Made of steel, the cyl-
2009 313 258 its product portfolio and in production man- inders have an average useful life of 27 years
2010 318 271 agement to avoid waste and ensure that its and undergo a requalification process after 15
fuels and packaging are within the required years in service.
2011 321 281
safety and environmental quality standards. Petrobras System’s initiatives to collect
A remarkable case is that of Petrobras Dis- waste derived from products sold and their
tribuidora, which was launched in December, packaging include:
PERCENTAGE DISTRIBUTION OF THE AMOUNTS OF WASTE PER DESTINATION the Service Station of the Future, which uses Recovery of about 35% of the lubricating oil
Recovery 2% systems and equipment that can provide sold by the service station network in 2011;
greater energy efficiency and reduce environ-
Reuse 1% Recovery of about 1.31% of the volume of
mental impacts. Among the devices, the high-
packaged lubricants sold, which equates to
Reuse as fuel 33% lights are taps fitted with timers, the capture
approximately 3,048 m³/year; this process is
Biological treatment 22% of rainwater for irrigation, to clean floors and
implemented in cities located in Rio Grande
wash cars, and the recycling of car wash water,
Incineration 8% do Sul, Santa Catarina and Paraná and in the
which can reduce input consumption by half.
Disposal in landfill 7% capital cities of the states of São Paulo and Rio
Solar energy is also used in an electric vehicle
Others 26% battery charging station and to heat water used
Reuse of about 176,000 car and 18,100 truck
to wash vehicles, thereby reducing the use of
tires to produce 7,680 tonnes of ecological
chemicals and the volume needed for rinsing
asphalt that utilizes a percentage of ground tire
by up to 10%.
Liquigás controls 100% of the packaging
it puts on the market. Based on its business Receipt of 963.7 tonnes of shredded tires for
features, the company is especially concerned processing, equivalent to about 128,000 tires.
142 2011 SUSTAINABILITY REPORT ANNEXES 143
FINES monitoring analyses concerning the quality of
The Brazilian Institute of Environment and Nat- the production water disposed of during spe-
ural Resources (IBAMA) issued five notices of cific periods at a few platforms operating in
infraction against Petrobras in 2011. The fines the Campos Basin.
imposed under these notices amounted to In 2011, there were no cases of non-mon-
R$ 14.2 million. The company has the right to etary sanctions or suits filed in connection
defense and to submit appeals for these cases. with arbitration mechanisms, resulting from
Only fines for amounts equal to or greater than non-compliance with environmental laws and
R$ 1 million were considered. Of the men- regulations or for the supply and use of prod-
tioned notices, four are related to the lack of ucts and services
144 2011 SUSTAINABILITY REPORT ANNEXES 145
5 - Personnel Indicators 2011 2010
SOCIAL BALANCE SHEET No. of employees at the end of period 81,918 80,492
No. of people hired during the period II 3,447 4,353
On December 31, 2011 and 2010
Outsourced employees i
(In millions of Reais, unless otherwise indicated)
No. of interns 1,825 1,402
No. of employees over 45 years old 35,927 34,504
1 - Calculation Basis 2011 2010 No. of female employees 13,860 13,408
No. of management positions held by women 14.4% 13.3%
Consolidated sales revenue (NI) 244,176 211,842
No. of African descent employees working
Earnings before interest and taxes, at the company III
consolidated (OI) % of management positions held by
Gross payroll (FPB) 13,026 11,462
No. of employees with disabilities or
special needs V
2 - Internal Social Indicators Amount % on FPB % on NI Amount % on FPB % on NI
Food 845 6.49% 0.35% 741 6.46% 0.35% 6 - Relevant information as a corporate citizen 2011 Goals for 2012
Compulsory social charges 6,477 49.72% 2.65% 5,475 47.77% 2.58% Ratio between the highest and lowest
Private pension 328 2.52% 0.13% 350 3.05% 0,17% remuneration at the company
Total number of occupational accidents 653 487
Health 2,427 18.63% 0.99% 2,064 18.01% 0.97%
The social and environmental projects carried
( ) directors
(×) directors ( ) all
( ) directors (×) directors ( ) all
Occupational safety and health at work 180 1.38% 0.07% 114 0.99% 0.05% out by the company were defined by: and managers employees and managers employees
Education 133 1.02% 0.05% 118 1.03% 0.06% The standards of safety and health in the (×) directors ( ) all
( ) all + Cipa (×) directors ( ) all
( ) all + Cipa
Culture 11 0.09% 0.00% 10 0.09% 0.00% workplace were defined by: and managers employees and managers employees
Concerning the employees’ freedom of (×) will
Capacity building and professional development 418 3.21% 0.17% 366 3.19% 0.17%
( ) does not ( ) adopts ILO (×) encourages ( ) will not ( ) will adopt
association, their right to collective bargaining encourage and
get involved standards and complies get involved ILO standards
Day care or day care assistance 90 0.69% 0.04% 6 0.05% 0.00% comply with the
and internal representation, the company: with ILO
Profit or income sharing 1,560 11.98% 0.64% 1,691 14.75% 0.80%
The private pension plan includes: ( ) directors
( ) directors (×) all ( ) directors
( ) directors (×) all
Others 76 0.58% 0.03% 71 0.62% 0.03% and managers employees and managers employees
Total - Internal social indicators 12,545 96.34% 5.13% 11,006 96.02% 5.19% Profit or income sharing includes: ( ) directors
( ) directors (×) all ( ) directors
( ) directors (×) all
and managers employees and managers employees
In selecting suppliers, the same ethical, social
3 - External Social Indicators Amount % on OI % on NI Amount % on OI % on NI ( ) are not ( ) are ( ) are not ( ) are (×) will be
responsibility and environmental responsibility considered suggested (×) are required considered suggested required
standards the company adopts:
Generation of Income and Job Opportunities 48 0.10% 0.02% 44 0.09% 0.02%
In selecting suppliers, the same ethical, social
Education for Professional Qualification 57 0.12% 0.02% 56 0.11% 0.03%
responsibility and environmental responsibility
( ) does not
( ) supports (×) organizes ( ) will not get
( ) will support (×) will organize
get involved and encourages involved and encourage
Guarantee of Rights of Children and Adolescents I
70 0.15% 0.03% 79 0.16% 0.04% standards the company adopts:
Culture 182 0.40% 0.07% 170 0.34% 0.08% at the company at Procon in the Courts at the company at Procon in the Courts
Total number of consumer claims and criticism:VI 11,230 5 17 5,138 4 8
Sports 80 0.17% 0.03% 81 0.16% 0.04%
at the company at Procon in the Courts at the company at Procon in the Courts
% of claims and criticism addressed or settled: VI 93.8% 80% 29.4% 99.1% 100% 87.5%
Others 33 0.07% 0.00% 20 0.04% 0.01%
Total contributions to society 470 1.02% 0.19% 450 0.90% 0.21% Total value added to distribute In 2011: 181,081 In 2010: 157,053
Government: 58% Employee(s): 10% Government: 56% Employee(s): 13%
Taxation (excluding social charges) 97,826 213.08% 40.06% 82,971 167.28% 39.17% Value-Added Distribution (VAD) Shareholders: 7% Third parties: 13% Shareholders: 7% Third parties: 9%
Total - External social indicators 98,296 214.10% 40.26% 83,421 168.19% 39.37% Withheld: 12% Withheld: 15%
7 – Other Information
4 - Environmental Indicators Amount % on OI % on NI Amount % on OI % on NI
1) The company does not use child or slave labor, it is not involved in prostitutionor sexual exploitation of children or adolescents, and it is not involved in corruption.
Investments related to company production/ 2) The company values and respects diversity, both internally and externally.
2,550 5.55% 1.04% 2,165 4.37% 1.02%
operation I. Includes R$ 19.1 million in transfers to the Fund for Childhood and Adolescence (FIA).
II. Information of Petrobras System in Brazil concerning hiring by means of a public selection process.
Investments in external programs and/or projects 172 0.37% 0.07% 258 0.52% 0.12% III. 2011 Information relating to employees of Petrobras Controladora, Petrobras Distribuidora, Transpetro, Liquigás and Refap who declared themselves black
(brown and black).
Total investments in the environment 2,722 5.93% 1.11% 2,423 4.89% 1.13% IV. Of all leadership positions of Petrobras Controladora held by employees who reported race/color, 24.9% are held by people who declared themselves black
(brown and black).
Concerning “annual goals” to minimize waste, ( ) does not have goals ( ) does not have goals V. Information on Petrobras Controladora, Petrobras Distribuidora, and Transpetro, corresponding to 5.3% of the staff holding positions for which it is expected
general consumption in production/operation, ( ) complies 0-50% ( ) complies 0-50% openings will be set aside for people with disabilities.
and to increase efficiency in natural resource use, ( ) complies 51-75% ( ) complies 51-75% VI. The information on the company includes the amount of claims and criticism received by Petrobras Controladora and Petrobras Distribuidora. The targets for 2012
the company: (×) complies 76-100% (×) complies 76-100% do not contain Petrobras Distribuidora’s CSC estimates.
i. Unaudited information.
146 2011 SUSTAINABILITY REPORT SOCIAL BALANCE SHEET 147
TABLE OF CONTENTS GRI
INDICATOR DESCRIPTION PAGES INDICATOR DESCRIPTION PAGES
Strategy & Analysis Governance, Commitments and Engagement
Statement by holder highest decision-making power in the organization (such as the Governance structure of the organization, including committees under the top
1.1 CEO, chairperson of the board of directors or equivalent post) on the relevance of 2 4.1 governance body responsible for specific tasks such as establishing a strategy or 12
sustainability to the organization and its strategy supervising the organization
1.2 Description of the key impacts, risks, and opportunities 20, 21, 22, 24, 59, 61, 87, 88, 92, 136 Indication if the president of the highest governance body is also a CEO (and, if so, his/
Organizational Profile 4.2 her functions within the administration of the organization and the reasons for such 97
2.1 Name of the organization 8
For organizations that have a unitary board structure, state the number of members of
2.2 Main brands, products and/or services 8, 96, 105
4.3 the highest governance body who are independent and/or non-executive members of the 97
The organization’s operating structure, including main divisions, operating units,
2.3 10, 13 highest governance body
subsidiaries, and joint ventures
Mechanisms for shareholders and employees to make recommendations or provide
2.4 Address of the organization’s head office 8 4.4 18
instructions to the highest governance body
Number of countries in which the organization operates and name of countries where its
Relationship between remuneration for members of the highest governance body,
2.5 main operations are located or are especially relevant to the questions of sustainability 9
4.5 executive board, and other executives (including termination agreements) and the 98
covered by the report
organization’s performance (including social and environmental performance)
2.6 Type and legal nature of the property 8
Processes in force for the highest governance body to ensure conflicts of interest
Markets attended (including a geographic description, sectors attended, and types of 4.6 15
2.7 8, 9, 96 are avoided
Process for determining the composition, qualifications and expertise of the members of
2.8 Size of the organization capa, 8
4.7 the highest governance body and its committees, including any consideration of gender 97
Main changes during the period covered by the report referring to size,
2.9 14 or any other indicators of diversity
structure or share holdings
Statements of mission and values, codes of conduct and relevant in-company principles
2.10 Awards received in the reporting period 164
4.8 for the economic, social and environmental performance as well as the stage of their capa, 16
Report Parameters implementation
3.1 Period covered by the report (such as fiscal/calendar year) for the information provided 4 Procedures of the highest governance body to supervise the identification and
3.2 Date of latest previous report (if any) 4 management, by the organization, of the economic, environmental and social
3.3 Cycle of report issue (annual, biennial, etc.) 4 4.9 97
performance, including relevant risks and opportunities, as well as agreement with or
3.4 Data for contact in case of questions about the report or its content 4 conformity to internationally agreed standards, codes of conduct, and principles
Process for definition of report content, including: determination of materiality; Processes for self-assessment of performance of the highest governance body,
3.5 prioritization of topics in the report; identification of which stakeholders the organization 5 4.10 97
particularly regarding to the economic, environmental, and social performance
expects to use the report 4.11 Explanation of whether and how the organization adopts the principle of precaution 25
Report boundary (such as countries, divisions, subsidiaries, leased facilities, joint Charters, principles or other externally-developed economic, environmental, and social
3.6 4 4.12 12, 16, 17, 18, 98
ventures, suppliers). For further instructions, consult the GRI Boundary Protocol initiatives that the organization subscribes to or endorses
3.7 Statement about any specific restraints regarding scope or boundary of report 4 Participation in associations (such as industry federations) and/or national/international
Basis for preparing the report which refers to joint ventures, subsidiaries, leased advocacy bodies in which the organization: has a seat in groups responsible for corporate
3.8 facilities, outsourced operations and other organizations that can significantly affect the 4 4.13 17, 98, 99
governance; is part of projects or committees; contributes with resources in excess of
ability to compare periods and/or organizations the basic rate as a member organization; considers its role as a member strategic
Data measuring techniques and data bases, including hypotheses and techniques that 4.14 List of groups of stakeholders groups engaged by the organization 29
sustain the estimates applied to compiling the indicators and other information in the report 4.15 Basis for identifying and selecting stakeholders with which to engage 29
Explanation of the consequences of any reformulations of information provided in earlier Approaches to engage stakeholders, including the frequency of engagement per 29, 30, 31, 60, 106, 107,
3.10 reports and the reasons for such reformulations (e.g., mergers/takeovers, change in 4 4.16
stakeholder type and group 108, 109, 125, 126
period or base-year, nature of the business, measurement methods) Main topics and concerns raised through the engagement of stakeholders and what
Major changes in comparison with earlier years with regard to scope, boundary or 4.17 31, 107, 108, 125, 128
3.11 4 measures the organization has adopted to address them
measurement methods adopted in the report ECONOMIC
3.12 Table that identifies the location of the information in the report 148 Information about the form of management 12, 15, 16, 20, 21, 22, 24
Policy and current practice related to finding external check for the report. If the Economic Performance
verification is not included in the sustainability report, it is necessary to explain the scope
3.13 4, 162 Direct economic value earned and distributed, including revenues, operating costs,
and basis of any external check provided, and the relationship between the reporting
EC1 employee compensation, donations and other community investments, retained earnings 54, 56, 57
organization and the auditor(s)
and payments to capital providers and governments
Financial implications and other risks and opportunities for the organization’s activities
EC2 81, 136
Essential indicators due to climate change
Additional indicators EC3 Coverage of obligations of defined benefit pension plan offered by the organization 133
EC4 Significant financial support received from the government 56
148 2011 SUSTAINABILITY REPORT TABLE OF CONTENTS GRI 149
INDICATOR DESCRIPTION PAGES INDICATOR DESCRIPTION PAGES
Market Presence including Local Content Products & Services
Variation in proportion of the lowest wage, by gender, compared to the local minimum Initiatives to mitigate environmental impacts of products and services and extent of
EC5 131, 132 EN26 143
wage in locations of significant operation impact mitigation
Policy, practices and proportion of spending on locally-based suppliers at locations of Percentage of products sold and their packaging materials that are reclaimed by
EC6 21, 124 EN27 143
significant operation category
Procedures for local hiring and proportion of senior management hired from the local Compliance
community at locations of significant operation Monetary value of significant fines and total number of non-monetary sanctions for non-
Indirect Economic Impacts compliance with environmental laws and regulations
Development and impact of investments in infrastructure and services provided, primarily Transportation
EC8 21, 128
for public benefit, by means of commercial engagement, in kind or pro bono activities Significant environmental impacts of transporting products and other goods and
Identification and description of significant indirect economic impacts, including the EN29 materials used for the organization’s operations, and transporting members of the 92, 93
EC9 27, 58, 59, 124, 125
extent of impacts workforce
Information about the form of management 80, 81, 84, 86, 87, 90, 92, 141, 143 EN30 Total environmental expenditures by type 81
EN1 Materials used by weight or volume 141 Labor and Decent Work Practices
EN2 Percentage of materials used from recycling 141 Information about the form of management 68, 71, 72,73,74,75, 76, 130,131
EN3 Direct energy consumption by primary energy source 83 LA1 Total workforce by employment type, employment contract, and region, per gender 69, 70
EN4 Indirect energy consumption by primary energy source 83 Total number and rate of new employee hires and employee turnover by age, gender
EN5 Energy saved due to conservation and efficiency improvements 83 and region
Initiatives to provide energy-efficient or renewable energy based products and services, Benefits provided to full-time employees that are not provided to temporary or part time
EN6 83 LA3 131, 132,133
and reductions in energy requirements as a result of these initiatives employees by the major operations.
EN7 Initiatives to reduce indirect energy consumption and reductions achieved 83 LA15 Return-to-work and retention rates after maternity/paternity leave, by gender 76
Water Relationship between Workers and Governance
EN8 Total water withdrawal per source 90, 91 LA4 Percentage of employees covered by collective bargaining agreements 71
EN9 Water sources significantly affected by the withdrawal of water 91 Minimum advance notice for operational changes, including if this procedure is specified
EN10 Percentage and total volume of water recycled and reused 91, 140 in collective bargaining agreements
Biodiversity Workplace Health and Safety
Location and size of land owned, leased, managed in protected areas, or adjacent to, Percentage of total workforce represented in formal joint management-worker health
and areas of high biodiversity value outside protected areas LA6 and safety committees that help monitor and advice on occupational health and safety 134
Description of significant impacts of activities, products and services on biodiversity in programs
EN12 87, 88
protected areas and areas of high biodiversity value outside protected areas Rates of injury, occupational diseases, lost days, and absenteeism and work-related
LA7 73, 74
EN13 Habitats protected or restored 139 fatalities by region and gender
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity 87, 88, 89 Education, training, counseling, prevention and risk control programs in place to assist
LA8 72, 73
Number of IUCN Red List species and national conservation lists species with habitats in workforce members, their families or community members regarding serious diseases
EN15 88, 138 LA9 Topics related to health and safety covered by formal agreements with trade unions 71, 72
areas affected by operations, by level of extinction risk
Emissions, Effluents and Residues Training and Education
EN16 Total direct and indirect greenhouse gas emissions, by weight 54, 56, 57 LA10 Average hours of training per year, per employee, by gender and employee category. 130
EN17 Other relevant indirect greenhouse gases emissions, by weight 81, 136 Programs for skills management and lifelong learning that support the continued
LA11 131, 133
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 133 employability of employees and assist them in managing career endings
EN19 Emissions of ozone-depleting substances, by weight 54, 56, 57 Percentage of employees receiving regular performance and career development reviews, by
EN20 NOx, SOx and other significant air emissions by type and weight 81, 136 gender
EN21 Total water discharge by quality and destination 133 Diversity and Equal Opportunity
EN22 Total weight of waste by type and disposal method 81, 136 Composition of governance bodies and breakdown of employees per category according
LA13 75, 135
EN23 Total number and volume of significant spills 133 to gender, age group, minority group membership and other indicators of diversity
Weight of transported, imported, exported or treated waste deemed hazardous under Equal pay for men and women
EN24 the terms of the Basel Convention - Annex I, II, III and VIII, and percentage of transported 141 Ratio of basic salary and remuneration of women to men by employee category, by
waste shipped internationally significant locations of operation
Identity, size, protected status, and biodiversity value of water bodies and related habitats Human Rights
significantly affected by the reporting organization’s discharges of water and runoff Information about the form of management 77
Essential indicators Percentage and total number of significant investment agreements and contracts that
Additional indicators HR1 include clauses incorporating aspects of human rights concerns or that have undergone 77
human rights screening
Percentage of significant suppliers and contractors that underwent screening on human
rights and actions taken
150 2011 SUSTAINABILITY REPORT TABLE OF CONTENTS GRI 151
INDICATOR DESCRIPTION PAGES INDICATOR DESCRIPTION PAGES
Human Rights Product Liability
Procurement process Information about the form of management 15, 16, 112
Total hours of employee training on policies and procedures concerning aspects of Customer Health and Safety
human rights relevant to operations, including the percentage of employees trained Life cycle stages in which health and safety impacts of products and services are
Non-discrimination PR1 assessed for improvement, and percentage of significant products and services 112, 113
HR4 Total number of incidents of discrimination and corrective actions taken 19 categories subject to such procedures
Freedom of Association Total number of incidents of non-compliance with regulations and voluntary codes
Operations and significant suppliers identified in which the right to exercise freedom PR2 concerning health and safety impacts of products and services during their life cycle, 114
HR5 of association and collective bargaining may be at significant risk and actions taken to 71 by type of outcomes
support these rights Product and Service Labeling
Child Labor Type of product and service information required for labeling procedures and
Operations and significant suppliers identified as having significant risk for incidents of percentage of significant products and services subject to such requirements
HR6 77 Total number of incidents of non-compliance with regulations and voluntary codes
child labor, and measures taken to contribute to the effective elimination of child labor PR4 113
Forced Labor or Similar to Slavery concerning product and service information and labeling by type of outcomes
Operations and significant suppliers identified as having significant risk for incidents of Practices related to customer satisfaction, including results of surveys measuring
PR5 110, 111
HR7 forced or compulsory labor and measures to contribute to the elimination of all forms of 77 customer satisfaction
forced or compulsory labor Communications and Marketing
Safety Practices Programs for adherence to laws, standards and voluntary codes related to marketing
Percentage of security personnel trained in the organization’s policies or procedures communications, including advertising, promotion and sponsorship
HR8 19 Total number of cases of non-compliance with regulations and voluntary codes concerning
concerning aspects of human rights that are relevant to operations
Indigenous Rights PR7 marketing communications, including advertising, promotions and sponsorship, per type of 114
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken 59, 60 outcome
Assessment Customer Privacy
Percentage and total number of operations that have been subject to human rights Total number of substantiated complaints regarding breaches of privacy and loss of
HR10 59, 60, 77 PR8 111
reviews and/or impact assessments customer data
HR11 Number of complaints regarding human rights received through official channels 19 Monetary value of (significant) fines for non-compliance with laws and regulations
concerning the provision and use of products and services
Information about the form of management 16, 19, 59, 61, 98
Local communities Essential indicators
Percentage of operations with implemented local community engagement, impact Additional indicators
SO1 59, 60, 61
assessments, and development programs
SO9 Operations with significant potential and actual negative impacts on local communities 59, 60, 61
Prevention and mitigation measures implemented in operations with significant potential
SO10 61, 127, 128
and actual negative impacts on local communities
SO2 Percentage and total number of business units analyzed for risks related to corruption 19
Percentage of employees trained in organization’s anti-corruption policies and
SO4 Actions taken in response to incidents of corruption 18, 19
Positions regarding public policy and participation in developing public policy
and in lobbying
Total value of financial and in-kind contributions to political parties, politicians and related
institutions by country
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly
SO7 113, 114
practices and their outcomes
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with laws and regulations
152 2011 SUSTAINABILITY REPORT TABLE OF CONTENTS GRI 153
14. Product Stewardship
POLICIES AND GUIDELINES SOCIAL RESPONSIBILITY POLICY
The company shall take care of all health, To Petrobras, social responsibility is a mecha-
safety and environment aspects of its products, nism for the integrated, ethical, and trans-
from their origin to final destination, as well as parent management of its business and
be committee to continuously reduce potential activities and of its relationships with all of its
impacts its products may cause. stakeholders, driving human rights and citi-
HEALTH, SAFETY AND ENVIRONMENT (HSE) 5. Operation and Maintenance
The company’s operations shall be carried out 15. Assessment and Continuously zenship, respecting human and cultural diver-
POLICY AND GUIDELINES
according to established procedures and using Improvement sity, not allowing discrimination, degrading
Educate, train and commit workers to the
adequate facilities and equipment, inspected Assurance of health, safety and environmental work, child and compulsory labor and con-
HSE issues, getting suppliers, communities,
and fit to meet health, safety and environment performance shall be promoted at all levels of tributing to sustainable development and to
competent bodies, worker representative enti-
requirements; the company, in order to ensure improvements reduce social inequality.
ties and other stakeholders involved;
in these areas. 1. Corporate Performance
Promote reporting and investigation of HSE 6. Management of Change
Temporary or permanent changes shall bee Make sure Petrobras System’s corporate gover-
issues, and consider HSE performance into
HUMAN RESOURCE POLICY nance is committed to ethics and transparency
consequence and recognition systems; evaluated in order to eliminate and/or mini-
The Human Resource (HR) Policies and in its relationship with its stakeholders.
Promote health, the protection of human mize implementation risks.
Guidelines, set pursuant to Petrobras’ vision
life and the environment, through risk iden- 7. Acquisition of Goods and Services 2. Management
and mission, govern the HR Function within
tification, control and monitoring, bringing Contractors’, suppliers’ and partners’ health, Ensure integrated social responsibility man-
scope of the company.
safety procedures into line with the best inter- safety and environment performance shall be agement at the Petrobras System.
1. Attract, develop, train and retain people, in-
national practices and maintain a permanent consistent with the Petrobras’ System. 3. Sustainable Development
vesting in their talent and improving their tech-
state of readiness for emergencies; 8. Training, Education, and Awareness Carry Petrobras System’s business and activities
nical and managerial competencies, meeting
Ensure the sustainability of projects, un- Training, education and awareness shall be out with social responsibility, implementing its
the market’s dynamic needs and seeking to sus-
dertaking and products over their life cycle, continuously promoted in order to reinforce commitments pursuant to the principles set
tain competitive excellence.
considering the impacts and benefits from an the workforce’s commitment to health, safety forth by the UN’s Global Compact and con-
2. Ensure the appropriate staff for the business tributing to sustainable development.
economic, environmental and social viewpoint; and environment performance.
objectives and have competitive compensation
Consider the ecoefficiency of operations, 9. Information Management 4. Human rights
practices compared to the market.
minimizing the adverse impacts inherent in Information and knowledge regarding health, Respect and support internationally-acknowl-
3. Promote management practices and pro- edged human rights, guiding Petrobras System’s
the activities of the industry. safety and environment shall be accurate, up-
cesses that lead to satisfaction at work and to all actions based on the promotion of the princi-
dated and documented in order to facilitate its
of its employees’ commitment with Petrobras ples of decent work and non-discrimination.
1. Leadership and Accountability consultation and use.
System’s goals and ethical principles.
By integrating health, safety and environment 10. Communications 5. Diversity
into our corporate strategy, Petrobras confirms 4. Inspire a unique, humanized business cul-
Information concerning health, safety and the Respect the human and cultural diversity of
the commitment of all employees and contrac- ture, one that respects local values, encourages
environment shall be reported clearly, objec- its workforce and of the countries where it has
tors to excellence in these areas. knowledge consolidation and exchange, and
tively and promptly in order to produce ex- operations.
prioritizes the results achieved by both teams
2. Regulatory Compliance pected effects. 6. Labor Principles
The company’s activities shall comply with 11. Contingency Support the eradication of child, slave, and
5. Encourage and acknowledge the workers’
the current health, safety and environment Emergency scenarios shall be predicted, and degrading work in Petrobras System’s pro-
citizenship and support initiatives connected
legislation. emergency must be responded to promptly ductive chain.
with Petrobras System’s social responsibility.
3. Risk Evaluation and Management and efficiently reduce their impacts.
6. Maintain a permanent negotiation process to 7. Sustainable Social Investment
Risks inherent to the company’s activities shall 12. Community Relations build solutions with the employees’ labor union. Seek sustainability for social investments
be identified, evaluated and managed to pre- The company shall care for the safety of the for a worthy, productive insertion of the
7. Adjust the outsourcing practices, making them
vent accidents and/or ensure the minimization communities where it operates, and shall keep communities.
compatible with the HR, Knowledge Manage-
of their effects. the communities informed of impacts and/or
ment, HSE and Information Security policies re- 8. Workforce Commitment
4. New Projects risks eventually caused by its activities.
garding Petrobras System’s business and activities. Commit the workforce to Petrobras System’s
New projects shall be in compliance with the 13. Accident and Incident Analysis Social Responsibility Policy.
legislation and incorporate the best health, Accidents and incidents caused by the compa-
safety and environment practices during their ny’s activities shall be reviewed, investigated and
entire life cycle. documented to prevent their recurrence and/or
to ensure the minimization of their effects.
154 2011 SUSTAINABILITY REPORT POLICIES AND GUIDELINES 155
GLOSSARY Deep waters FPSO (Floating, Production, Storage and
Ocean waters in areas where water depths gen- Offloading)
erally range between 300 meters and 1,500 me- Floating Oil Production, Storage, and
ters. In general, such limits result from aspects Offloading unit built on a vessel.
related to the state of the art in the technology
Barrel of oil equivalent (boe) Carbonatic reservoirs required for stationary drilling or production Fuel oil
Unit that is normally used to express liquid Rocks formed predominantly by carbonates units, limits of human diving. The heavier fractions from atmospheric distil-
and gas volumes in the same unit of measure- originated from biological and biochemical lation of petroleum. Widely used as an indus-
ment (barrels). A cubic meter of domestic processes, with porosity and permeability that Derivative trial fuel in boilers, furnaces, etc.
natural gas is approximately 0.00629 barrel of allow the storage of oil, gas and water. A contract or security whose value is related
oil equivalent. There are different rates for each to the price movement of a security, hedge Hedge
natural gas and oil composition. Boed means Clean Development Mechanism (CDM) instrument. A position or combination of financial positions
barrels of oil equivalent per day. Projects certified under the Kyoto Protocol and that contribute to reduce some type of risk.
carried out in developing countries (which have Direct carbon sequestration
Biodiesel no targets in the protocol) to reduce greenhouse Capturing and safe storage of carbon dioxide Ibovespa
A fuel that is an alternative to diesel fuel. It is gas emissions. These projects allow developed (CO2) before it reaches the atmosphere. Bovespa Index. The price variation index for a
renewable and biodegradable and is obtained countries to acquire carbon credits to meet their theoretical share portfolio set periodically by
from the chemical reaction of animal or veg- targets for reducing greenhouse gases. Dow Jones Sustainability Index (DSJI) the São Paulo Stock Exchange.
etable oils, with alcohol in the presence of a Reflects the return of a theoretical portfolio
catalyst (a reaction known as transesterifica- Cogeneration composed of stocks of companies listed on the Jet Fuel
tion). It can also be obtained by means of the Simultaneous generation of electricity and New York Stock Exchange with the best per- Aviation kerosene.
cracking and esterification processes. thermal energy (heat/processing steam), formance in all dimensions that measure cor-
through the sequential and efficient use of porate sustainability. Considered the world’s Liquefied Natural Gas (LNG)
Biopolymers quantities of energy from the same source. It most important sustainability index, the DJSI Natural gas cooled to temperatures below -160 ºC
Materials rated structurally as polysaccharides, increases the thermal efficiency of a thermody- is used as an analysis parameter by socially and to be transferred and stored in liquid form.
polyesters or polyamides, which raw material namic system as a whole. environmentally responsible investors.
is a primary source of carbon. Liquefied Petroleum Gas (LPG)
Condensate Downstream A blend of hydrocarbons with high-pressure
Block Liquid from natural gas obtained in the ordi- Refining of crude oil, natural gas treat- steam, obtained from natural gas in special
A small portion of a sedimentary basin where nary field separation process, which is main- ment, transportation and oil product trade/ refinery processors and kept in its liquid state
activities are carried out for the exploration tained in the liquid phase at normal pressure distribution. under special surface storage conditions.
and production of oil and natural gas. and temperature conditions.
E&P Market value
Bpd Conversion Exploration and production of oil and natural gas. A company’s value measured based on the
Barrels per day. Cubic meter: 1 m³ = 1,000 liters = 6.28994113 price of its shares on the market, according to
barrels; Extended Well Test (EWT) the following formula: (share price x number
Brent Barrel: 1b = 0.158984 m³ = 158.984 liters. Well tests with total flow time of more than of shares).
A blend of oils produced in the North Sea, 72 hours, performed during the exploration
coming from the Brent and Ninian oil systems, Corporate governance phase for the sole purpose of obtaining data Naphtha
with 39.4° API gravity and sulfur content of Relationship among economic agents (share- and information in order to get to know the An oil product mainly used as feedstock by the
0.34%. holders, executives, board members) with ca- reservoirs. Hydrocarbons produced during the petrochemical industry to produce ethylene
pacity to influence/determine the direction and EWT are also subject to royalties. and propylene, along with other liquid frac-
Carbon fixation the performance of a corporation. Good corpo- tions such as benzene, toluene and xylene.
Storage of atmospheric CO2 by biomass, by rate governance assures the partners that there Field
means of planting or reforestation, by ab- will be fairness, transparency, and account- An area that produces oil or natural gas encom- National Interconnected System (SIN)
sorbing the gas to perform photosynthesis. ability for the results. passing one or more continuous reservoirs, Formed by companies from Southern, South-
This compensates, during the plant’s growth possibly at variable depths, including facilities eastern, Midwestern, Northeastern, and parts
period, for part of the emissions. and equipment destined for production. of Northern Brazil, the system comprises the
entire structure of production and transmis-
sion of electricity in Brazil, operating in a co-
ordinated, centralized manner to gain from
the interaction between different agents. In
Brazil, this system is hydrothermal, with a pre-
dominance in hydroelectric generation.
156 2011 SUSTAINABILITY REPORT GLOSSARY 157
National Petroleum Agency (ANP) Regasification
The regulatory body for the oil and natural gas A physical process whereby, through tempera-
industry in Brazil. ture elevation, natural gas in the liquid phase
(liquid natural gas) returns to its original gas-
Natural gas eous state.
Any hydrocarbon or mixture of hydrocarbons
that remains in a gaseous state under normal Reserves
atmospheric conditions, extracted directly Discovered oil or natural gas resources that are
from oil or gas reservoirs, including wet, dry, commercially recoverable from a specific date.
residual and rare gases.
Reserve Replacement Index (RRI)
Oil Relation between recoverable volume and the
The portion of petroleum that exists in liquid accumulated output of a given year.
state under original reservoir conditions and
which remains as a liquid under surface pres- Roadshows
sure and temperature conditions. Presentation or event to publicize the com-
pany or its products in other markets.
Organization of Petroleum Exporting Coun- SEC
tries. Angola, Saudi Arabia, Algeria, Ecuador, Securities and Exchange Commission Regu-
Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, UAE lator and watchdog of the American capitals
and Venezuela. market, equivalent, in Brazil, to the “Comissão
de Valores Mobiliários” (CVM).
Mix of the knowledge accumulated by tradi- Second generation biodiesel
tional societies with innovative techniques Fuel made from residual biomass coming from
aiming to create a “permanent culture,” one other industrial processes, particularly sugar-
that is sustainable and based on cooperation cane bagasse.
between man and nature.
Petroleum A Contract to exchange payment flows be-
Any liquid hydrocarbon in its natural state, tween two parties. A traditional type of oil
such as crude oil and condensate. swap consists of a contract in which one party
buys for a determined fixed price and sells at a
Proved reserves future floating price.
Oil and/or natural gas reserves that, based
upon the analysis of geological and engi- TEP
neering data, are estimated to be profitably Thermoelectric power plant.
recoverable from reservoirs discovered and
evaluated to a high degree of certainty, taking Ultra-deep waters
into account prevailing economic conditions, Ocean waters located in areas were water
feasible operational methods, and Brazilian depths are generally greater than 1,500 meters.
petroleum and tax regulations.
158 2011 SUSTAINABILITY REPORT GLOSSARY 159
José Sergio Gabrielli de Azevedo
CFO and Investor Director for Exploration and Downstream International Area Service
Relations Officer Gas & Power Production Director Director Director Director
Almir Guilherme Barbassa Maria das Graças Silva Foster Guilherme de Oliveira Estrella Paulo Roberto Costa Jorge Luiz Zelada Renato de Souza Duque
BOARD OF DIRECTORS
Miriam Aparecida Belchior AUDIT COMMITTEE
José Sergio Gabrielli de Azevedo
Francisco Roberto de Albuquerque
Luciano Galvão Coutinho
Márcio Pereira Zimmermann Full Members
Sergio Franklin Quintella Marcus Pereira Aucélio
Josué Christiano Gomes da Silva César Acosta Rech
Jorge Gerdau Johannpeter Marisete Fátima Dadald Pereira
Nelson Rocha Augusto
Maria Lúcia de Oliveira Falcón
Referred to December 31, 2011
160 2011 SUSTAINABILITY REPORT MANAGEMENT 2011 161
INDEPENDENT AUDITORS’ LIMITED ASSURANCE REPORT EDITORIAL STAFF
The Board of Directors and Shareholders Responsible for the information Photographs
Petróleo Brasileiro S.A. - Petrobras
Rio de Janeiro - RJ Armando Ramos Tripodi Petrobras’ Image Bank
Executive Manager for Social Responsibility Page 7 – Paulo Arthur
Introduction Scope and limitations Page 10 – Studio Markos Fortes
We have been engaged for the purpose of applying Limited The objective of our work was to apply limited assurance Wilson Santarosa
Page 12 – Geraldo Falcão
Assurance Procedures on the sustainability information con- procedures on the sustainability information disclosed in the Executive Manager for Corporate
Page 14 – Roberto Rosa
tained in the Sustainability Report of Petroleo Brasileiro S.A - Company’s Sustainability Report, not including the assess- Communications
Page 23 – Rogério Reis
Petrobras (“Company”), related to the year ended December ment of the application level declared by the Company in its
31, 2011, which was prepared under the Company’s manage- Sustainability Report and the appropriateness of its policies, Theodore Helms Page 26 – Geraldo Falcão
ment responsibility. Our responsibility is to issue a Limited practices and sustainability performance. Executive Manager for Investor Relations Page 33 – Geraldo Falcão
Assurance report on this sustainability information. The applied procedures do not represent an examination Page 34 – Roberto Rosa
in accordance with the Brazilian and international audit rules Marcos Menezes (CRC-RJ 35.286/0-1) Page 39 – Geraldo Falcão
Procedures of Limited Assurance for financial statements. In addition, we do not provide any Executive Accounting Manager
Page 42 – Rogério Reis
The limited assurance procedures were performed in accor- assurance on the achievability of future information (such as
Page 45 – Eudes Santana
dance with the standards NBC TO 3000 – Assurance Engage- targets, expectations and ambitions) nor on qualitative infor- Social Responsibility, Corporate
Communications and Investor Relations Page 53 – Roberto Rosa
ment Other than Audit and Review, issued by CFC – Accounting mation that is under subjective evaluation.
Federal Council and with ISAE 3000 - International Standard General Coordination, Production and Page 59 – André Valentim
on Assurance Engagements, issued by International Auditing Conclusion Editing Page 61 - Geraldo Falcão
and Assurance Standards Board - IAASB., both related to as- Based on the procedures described above, we have not identi- Page 63 – Eduardo Valduga
surance engagements other than audits or reviews of historical fied any relevant modification that should be perfomed on the Writing Page 64 – Rogério Reis
financial information. sustainability information contained in the Sustainability Report Adriano Lima
Page 67 – Rogério Reis
The procedures comprised: (a) the planning of the work, of Petroleo Brasileiro S.A. - Petrobras, related to the year ended Bruno Moreira Cazonatti
Page 68 – Rogério Reis
considering the relevance, coherence, volume of quantitative December 31, 2011, to agree with the GRI-G3.1 guidelines and Carla Duarte
Elissa Cardoso Page 72 – André Valentim
and qualitative information and operational and internal con- with the records and files that subsidized its elaboration.
trol systems that served as a basis for the preparation of the Luis Augusto Nobre Page 79 – Bruno Veiga
sustainability information contained in the Company’s Sus- Sérgio Vieira do Nascimento Page 80 – Franciele Sbersi
tainability Report; (b) the understanding of the calculation Rio de Janeiro, June 21, 2012. Page 86 – Petrobras’ Image Bank
methodology and the consolidation of the performance indica- Editorial Production Page 90 – André Valentim
tors through interviews with the personnel responsible for the S2Publicom
Page 93 – André Valentim
preparation of information; (c) the comparison, on a sample
basis, of the quantitative and qualitative information with the kpmg Editorial Production and Editing
Transpetro’s Image Bank
sustainability information disclosed at the Sustainability Re- Flávia da Matta Design
Page 46 - Renata Mello
port; and (d) the comparison of the financial indicators with KPMG Auditores Independentes
English Translation Page 48 – Renata Mello
the financial statements and/or accounting records. CRC-SP-014428/O-6-F-RJ
Personal Image Bank
Reporting criteria Bernardo Moreira Peixoto Neto
The sustainability information contained in the Compa- Contador CRC RJ-064887/O-8 Printing Page 89 – Fernando Moraes
ny’s Sustainability Report was prepared according to the Gráfica Aquarela
Global Reporting Initiative guidelines (GRI-G3.1) for sus-
162 2011 SUSTAINABILITY REPORT 163
ACKNOWLEDGMENTS, AWARDS, AND CERTIFICATIONS
Global 100 Ranking reputation, according to a survey published by the Reputation Insti- Company of the Dreams of Brazilian University Students secure it, the company improved procedures and created supplier se-
For the second consecutive year, Petrobras was listed among the one tute conducted among 47,000 people from 15 countries. The com- and Newly Grads lection criteria for the procurement of sustainable products intended for
hundred most sustainable corporations in the world. The ranking, pany is also the only energy corporation to appear on the list, holding Petrobras was chosen for the eighth consecutive time as one of ten regular use. This is the first green building operation and maintenance
prepared by the Canadian Corporate Knights magazine, analyzed the 93rd place. companies preferred among Brazilian university students and newly certification received in Brazil.
3500 enterprises from 24 countries and various sectors of the grads. In 2011, it remained in second place in the ranking, the same re-
economy. The company climbed 12 positions compared to 2010 and Most Valuable Brand in Latin America sult achieved in 2010. Conducted by the Cia de Talentos consultancy firm Green Building Brazil Awards
was ranked 88th. A survey conducted by American marketing research agency since 2002, the survey polled 40,000 young Brazilians for this issue. The expansion project for the Leopoldo Américo Miguez de Mello Research
Millward Brown ranked Petrobras as the most valuable brand in & Development Center (Cenpes) was awarded the Green Building Brazil
Forbes Magazine Ranking Latin America. According to the study, the company was ranked 61st Most Admired Human Resources in Brazil award in the “Sustainable Public Works” category. The award granted by
Petrobras is the world’s eighth largest publicly traded company, among the world’s most valuable, up 12 positions compared with the Petrobras was listed among the human resources areas that are the Green Building Council Brasil (GBC Brazil) non-governmental organi-
according to a ranking prepared by Forbes magazine in 2011. The previous year. In Brazil, Petrobras came in first place. most admired in Brazil in 2011, in a survey conducted by Gestão e RH zation recognizes distinguished efforts in sustainable construction.
company climbed ten positions compared to 2010. When considering Editora. The company was also elected one of the 20 most admired
the “profit” and “market value” criteria, Petrobras came in fifth place Most Valuable Brands in 2011 businesses by people management professionals in the Country. The Largest and Best in Transport
and is the only Latin American company on the list. Petrobras was voted the third most valuable Brazilian brand of 2011 event is in its sixth edition, and this is the fourth consecutive year Transpetro was elected the largest transport operator in net operating
in a survey conducted by the Interbrand consultancy firm. This is the Petrobras is featured on the list. income and the best transport operator in the “Maritime and Riverine
Fortune Magazine Ranking fourth time Petrobras appears among the top ten of the ranking. The Transportation” category in the 2011 Best and Largest in Transport awards
Petrobras rose 20 positions and reached the 34th spot in the ranking methodology was developed by Interbrand and the London Business 2011 IR Magazine Awards conducted by the Transporte Moderno magazine. The ranking assessed the
of the largest companies in the world published by Fortune maga- School in 1988 and until 2011 had been applied to assess more than Petrobras was voted the company with the best relationships with in- financial statements of 1048 companies in 22 transportation categories.
zine in 2011. The ranking takes into account criteria such as revenue, 5000 brands. dividual investors by the 2011 IR Magazine Awards. The awards are in
profit, capital and minority shareholder interest for fiscal year 2010. their seventh edition, and this is the sixth time Petrobras is granted Latin Lawyer Deal of the Year Awards
Folha Top of Mind Award the prize. The company also got the honorable mention in the “Best Petrobras was awarded the Latin Lawyer Deal of the Year Award in the
The Best of “Dinheiro” For the ninth year in a row, Petrobras was the most recalled brand IR Website” category, with one of the top five sites among Brazilian “Corporate Finance” category for its performance in the 2010 capitaliza-
Petrobras and its subsidiary Transpetro were the winners of the The by Brazilian consumers in the “Fuel” category of the Folha Top of enterprises. tion process, which resulted in the largest public share offer in the world.
Best of “Dinheiro” awards in the “Oil and Gas” and “Transportation Mind Awards. Latin Lawyer is a law magazine that focuses on business and corporate
Services” categories, respectively. Organized by IstoÉ Dinheiro mag- Institutional Investor Award law in Latin America.
azine, the initiative is the outcome of a survey on the management 2011 Intangibles Brazil Award In the second edition of the 2011 Latin American Executive Team
practices of the 500 biggest companies operating in Brazil. Petrobras Petrobras was granted three trophies in the 2011 Intangibles ranking, sponsored by Institutional Investor magazine, Petrobras Entrepreneur Friend of Sports Award
also appears in first in “Net Income.” Brazil Awards, an initiative of Consumidor Moderno magazine and was considered the company with the best investor relations prac- Petrobras was the most awarded company in the second edition of the
of Dom Strategy Partners, which analyzes the country’s largest tice, and CFO and Investor Relations Officer, Almir Barbassa, was Business Friend of Sports awards, sponsored by the Ministry of Sports.
“Most Admired Companies in Brazil” Ranking organizations, particularly those listed in the Valor 1000 ranking. voted the best Chief Financial Officer. Both categories are in the oil The company received nine trophies for its strong performance in devel-
Petrobras was one of the highlights of the 14th edition of the “Most In the “Intangible Assets” segment, the company was granted the and gas sector. In the same awards, José Sergio Gabrielli de Aze- oping sports in Brazil. In the “Best Friend of Education Sports” category,
Admired Companies in Brazil” ranking, prepared by Oficcina Sophia Corporate Knowledge award. Two trophies were awarded under vedo, Petrobras CEO in late 2011, was elected the Chief Executive Petrobras was awarded first place.
Institute and sponsored by the Carta Capital magazine. The company the “Sectors of the Economy” category, one in the “Infrastructure” Officer - CEO of the year by fund manager analysts.
was recognized in three categories: “Ten Most Admired Companies category, and the other to Petrobras Distribuidora for its performance 2011 Project of the Year Award
Regardless of Industry,” “Ten Most Admired Leaders,” and “Fuel or in “Wholesale and Logistics.” 2011 Transparency Trophy The Mundo Project Management Magazine, a Brazilian publication special-
Oil Product Distributors.” In the 15th edition of the Transparency Trophy, Petrobras was ac- izing in and targeted to the project management community, presented the
Most Sustainable Energy Company in Latin America knowledged for the quality of its financial statements. The award has 2011 Project of the Year award to Petrobras for the Abreu e Lima Refinery
Exame Magazine’s Largest and Best Petrobras secured the best score in the study on sustainability been organized by the National Association of Executives in Finance, deployment project. The Project of the Year award is in its fourth edition.
For the second consecutive year, the Alberto Pasqualini Refinery carried out among the largest energy companies in Latin America, Administration and Accounting (Anefac), the Research Institute of
(Refap) was granted Exame magazine’s Best and Biggest award in conducted by Spanish consultancy firm Management & Excellence Accounting, Actuarial and Financial Foundation (Fipecafi), and Se- 2011 Energy Company, by the Platts Agency
the “Chemical and Petrochemical” category. The 38th edition of the (M&E) in partnership with LatinFinance magazine. The consultancy rasa Experian since 1997. Petrobras was doubly honored by the Platts Global Energy Awards as the
Best and Biggest yearbook evaluates data on about 3000 companies firm assessed about 200 sustainability-, social responsibility-, 2011 Energy Company and Energy Producer of the Year. In its 12th edition,
based on their most recent financial statements. corporate governance- and environmental and financial practice- Most Admired Knowledge Enterprise Awards the award honors energy companies for their performance and innovation.
related attributes. Petrobras was awarded for its initiatives in knowledge management
Exame/IBRC Award by the 2011 Most Admired Knowledge Enterprise Award Brazil in the Corporate Citizen Certificate
Petrobras Distribuidora was granted the best company in the oil and Award for Combating the Sexual Exploitation of Children “Innovation” category. The company ranked fifth in the overall clas- The Rio de Janeiro Regional Accounting Council (CRC-RJ) granted Trans-
gas industry award in the Exame/IBRC Customer Service ranking, Petrobras was granted the Neide Castanha award for its contribu- sification. The award is in its second edition in Brazil and has been petro the Corporate Citizen Certificate. In addition to its contributions to
and was included in the list of the 25 best in Brazil in all segments. tions to combating the sexual exploitation of children through the held worldwide, in 27 countries, since 2005. society and the environment, Transpetro’ social balance evaluates invest-
implementation of the Dial 100 hotline service, in partnership with ments in food, private pension, health, education, culture, training and in
The 100 Most Respected Companies in the World the Presidency of the Republic Human Rights Secretariat, to receive Leadership in Energy and Environmental Design Certification the professional development of its workforce.
Petrobras was the only Latin American company featured in the complaints over the direct and toll-free 100 hotline. Petrobras’ building in São Paulo was granted the Leadership in
ranking of the one hundred global corporations with the best Energy and Environmental Design Certification (LEED - O&M). To
164 2011 SUSTAINABILITY REPORT 165
ACKNOWLEDGMENTS, AWARDS, AND CERTIFICATIONS
Industry of the Year Award
The Pasadena Refinery, in Pasadena, Texas (USA), was granted the
Industry of the Year award by the city’s Chamber of Commerce for
excellence in community service. Since the purchase of the refinery
in 2008, Petrobras has made investments to improve the efficiency
and safety of its operations.
Highlight of the Year Award in Chile
Petrobras Chile was granted the Outstanding Company of the Year
award for 2010 for the contribution it has made to the economic
development of Brazil and Chile. In February 2011, Bureau Veritas,
a leading global certification consultancy firm, granted Petrobras’
plant in Maipu and the plant the company operates at the Santiago
airport certification for various standards: ISO 9001, for quality man-
agement; ISO 14001, for environmental management; and OHSAS
18001, for occupational health and safety.
Petroleum Executive of the Year by Energy Intelligence
Energy Intelligence, an independent provider of information and
analysis for the global energy industry, chose the CEO of Petrobras
in late 2011, José Sergio Gabrielli de Azevedo, as the 2011 Petro-
leum Executive of the year from among the leaders of the hundred
largest companies in the industry in the world.
Personality in the Oil & Gas Industry Award
Petrobras’ CEO in late 2011, José Sergio Gabrielli de Azevedo was
one of the winners in the “Oil and Gas Industry” category of the
Leaders from Brazil Award, granted by the Business Leaders Group
(Lide) and the Brasil Econômico journal.
Entrepreneur Executive of the Year, by Ernst & Young Terco
Petrobras’ CEO in late 2011, José Sergio Gabrielli de Azevedo was
voted the 2010 Entrepreneur Executive of the Year by Ernst & Young
Terco. This is the 13th edition of the Entrepreneur of the Year Award,
held in partnership with the Endeavor Institute. The award is carried
For more information:
out in more than 50 countries and 140 cities around the world.
Financial Executive of the Year, by Latin Trade Social Responsibility /
Petrobras’ CFO and Investor Relations Officer, Almir Guilherme Bar- Performance Assessment Management
bassa, was named the 2010 Chief Financial Officer (CFO) in Brazil, in
the “Expansion” category, by Latin Trade. Among the criteria for this firstname.lastname@example.org
award, the group highlighted the success attained by the company’s Av. República do Chile, 65 sala 1601
capitalization process that year. Centro - Rio de Janeiro – RJ, Brazil
Zip Code: 20031-912
Dewhurst Award during the 20th World Petroleum Congress
Petrobras’ Director of Exploration and Production, Guilherme Es-
trella, was granted the 2011 Dewhurst award at the 20th World Pe- To get to know the digital version of the Report,
troleum Congress in Doha, Qatar, for his individual contribution to
166 2011 SUSTAINABILITY REPORT 167