Page 1

#60

READ_ the print version WATCH_ the videos online ACCESS_extra content on the website INTERACT_ with the iPad version SHARE_on social networks

| www.petrobras.com/magazine

BRICs in focus: a conversation in London with

#60

| www.petrobras.com/magazine

JIM O’NEILL deep

waters

PRE-SALT AND THE FUTURE

Rio Municipal Theatre VIEWS OF A CENTENARY THEATRE

MOBILITY TRANSPORT, URBANIZATION, SUSTAINABILITY: ONE ROAD, MANY CHALLENGES

in discussion RENEWABLE ENERGIES

around the world

PERU, BIRTHPLACE OF PRE-COLUMBIAN CULTURE

research

Waste Land

THE NEW GENERATION OF BRAZILIAN SCIENTISTS

CINEMA AND SOCIAL TRANSFORMATION

n:[mobility] the act of being mobile. To be within a world that turns incessantly. It is movement; volubility; inconstancy; velocity.


#60

READ_ the print version WATCH_ the videos online ACCESS_extra content on the website INTERACT_ with the iPad version SHARE_on social networks

| www.petrobras.com/magazine

BRICs in focus: a conversation in London with

#60

| www.petrobras.com/magazine

JIM O’NEILL deep

waters

PRE-SALT AND THE FUTURE

Rio Municipal Theatre VIEWS OF A CENTENARY THEATRE

MOBILITY TRANSPORT, URBANIZATION, SUSTAINABILITY: ONE ROAD, MANY CHALLENGES

in discussion RENEWABLE ENERGIES

around the world

PERU, BIRTHPLACE OF PRE-COLUMBIAN CULTURE

research

Waste Land

THE NEW GENERATION OF BRAZILIAN SCIENTISTS

CINEMA AND SOCIAL TRANSFORMATION

n:[mobility] the act of being mobile. To be within a world that turns incessantly. It is movement; volubility; inconstancy; velocity.


_TO OUR READERS We now present you the new Petrobras Magazine. A magazine produced especially for the reader who wants to understand the changes and challenges of the world today, and the way in which Petrobras, the third largest energy company in the world (*), deals with them. Challenges that impact on the future of the global economy, on the production of the energy that we use daily, on the growth of our business and on the commitment we make to the environment and to society.

#60 / 2011 - a quarterly publication by Petrobras Corporate Communication www.petrobras.com/magazine

_MOBILITY EXECUTIVE MANAGER FOR CORPORATE COMMUNICATION_ WILSON SANTAROSA | INTERNATIONAL COMMUNICATION MANAGER_ IZEUSSE DIAS BRAGA JUNIOR | RELATIONSHIP MANAGER_ GILBERTO PUIG | SPECIAL PROJECTS MANAGER_ PATRICIA DE MELLO DIAS | MULTIMEDIA MANAGER_ PATRICIA FRAGA DE CASTRO E SILVA | EDITOR AND COORDINATOR_ ESTEPHANI BEILER ZAVARISE | EDITORS_ CLAUDIA GISELE PERES MARTINS, ERIC MOREIRA SILVA, LEONARDO QUEIROZ DE SÁ, VINICIUS BASTIANI, VIVIANE CASTRO DAVICO

In London: Jim O’Neill (pictured left) receives our team in his office

We want you to think of these challenges based on quality content, with depth, and enjoying the pleasure of good reading. That is why we worked intensely on this new editorial and graphical project. A project which values diversity of opinions; which shows text and images in the print edition, and complements them with video and podcasts, infographics and other content on the company’s new global website – www.petrobras.com. A project which is also present in new media, with the launch of the magazine application for the iPad.

editorial staff

ADRIANO FERREIRA LIMA_ SOCIAL RESPONSIBILITY | EDUARDO GUTTERRES VILLELA_ EXPLORATION AND PRODUCTION | JOSE CARLOS COELHO CIDADE_INTERNATIONAL AREA | LINDINOR SÁ LARANGEIRA_DOWNSTREAM | LIZA RAMALHO ALBUQUERQUE_ RESEARCH CENTER | MARIO ADRIANO VIEIRA CAMPANILE_ CORPORATE IMAGE AND BRAND | MARIZA PELEGRINETI LOURENCO GRYNSZPAN_ ENGINEERING | NILTON MARLUCIO DE ARRUDA_ HEALTH, SAFETY, ENERGY EFFICIENCY AND THE ENVIRONMENT | ORLANDO COSTA GONÇALVES JUNIOR_ INVESTOR RELATIONS | PATRICIA ALVES DO REGO SILVA_STAFF RELATIONS | PAULA DE OLIVEIRA ALMADA MORAES_PRESS | SANDRA VASCONCELLOS CHAVES_GAS AND ENERGY | VALÉRIO TITO GAMA_ PETROBRAS BIOCOMBUSTÍVEL

_we count on

All this is happening at a special moment in Petrobras’ history. This is a year of great prospects. Recently, we overcame the challenges to reach the pre-salt layer at the bottom of the sea; and the world recognized our effort, investing solidly in the company’s stocks, consolidating the largest capitalization ever realized by a company on the stock exchange.

production

WWW.SELULOID.COM

PUBLISHER_ FLAVIO ROZEMBLATT | CUSTOMER SERVICE DIRECTOR_ PALOMA BRAGANÇA DIRECTOR OF OPERATIONS_ GUSTAVO GUIMARÃES | DESIGN DIRECTOR_ CYNTHIA HOMSI CUSTOMER SERVICE_ JOANA FIGUEIREDO / CLARA BOTELHO | EDITOR_ MARCO ANTONIO BARBOSA | REPORTERS_VINICIUS MEDEIROS / FERNANDO MIRAGAYA | DESIGNERS_ JOANA PETERSEN / TATHYANA RAUPP | DIGITAL ART DIRECTOR_ EDUARDO ARAUJO | WEB DESIGNER_ DIOGO ADIALA | WEB DEVELOPER_ MARCELO PAULA | VIDEO DESIGNERS_ GIZELLA WERNECK / LIARA CASTRO | DIRECTOR OF PHOTOGRAPHY (VIDEO)_ STEFAN HESS | PROJECTS COORDINATOR_ CARLA UYARA | FINANCIAL MANAGER_ ROBERTA FERRAZ | REVISION_ PETER DOYLE

[2]

[1]

Making of: Snapshots from the photo session which produced the cover images and from this edition’s main article

Petrobras Magazine is not sold. To request a subscription, information or to send letters or suggestions, contact the editorial staff: Petrobras/International Communication Av. República do Chile, 65, sala 1001 • Rio de Janeiro – RJ | CEP: 20031-912 Brasil E-mail: petromag@petrobras.com.br Web: www.petrobras.com/magazine

We know that an integrated energy company is not just one that extracts oil from the depths of the ocean and brings energy to you, but also a company that relates to its public in a transparent way. Therefore, our objective is to make Petrobras Magazine your reference on the world of energy and our operations. We hope you enjoy the reading! The Petrobras Magazine Team

The partial or complete reproduction of the articles published herein is authorized by mentioning the source. ©Copyright 2011 by Petrobras. Affiliated to the Brazilian Association of Business Communications

(*) PFC Energy Ranking 2011

[3]

[4]

[5]

[1] max moure_ “I am really connected to sport and

how to enjoy the magazine

movement. To capture the issue of urban mobility in images was a creative task which interested me a lot.” [2] marc

recco_ “To manipulate and rework the photo used on the cover was challenging, comparable to the complexity of the theme.”

[3] gabriel gianordoli_ “To transform numbers into images helps people see the significance and reveals interesting points from the articles about mobility and pre-salt In Peru: backstage scenes of the video which complements the Around the World section

exploration.” [4] felipe varanda_ “The Municipal Theatre never seems to be the same, each time I return I see a detail which has always been there and I had never noticed.” [5]

carlos tautz_ “Today we are witnessing the development of a generation of researchers who will contribute greatly to the advancement of technology in Brazil.”

cover photo: Max Moure /www.casa13.com.br image processing: Marc Recco thanks to Asics, Reserva

Angola Rua Pedro Felix Machado, 51/2º andar – Luanda - 2665 ANGOLA | Tel: (244 2) 39 0330 Argentina Av. Maipú, 1 - Buenos Aires – C1084ABA - ARGENTINA | Tel: (54 11) 4344-6072 Bolivia Av. Grigota, esquina Los Troncos, casi 4º anillo – casilla 6886 Santa Cruz de la Sierra – BOLIVIA| Tel: (591 3) 358 6030 Chile Av. Cerro Colorado, 5240 - piso 14 / Região Metropolitana – Lãs Condes Santiago – CHILE| Tel: (00562) 328 4700 China Level 12th floor, units 21-25 - China World Tower 1 -JianGuoMenWai Avenue, Beijing - 100004 CHINA Tel: (86 10) 650 598 37 Colombia Carretera 7, 71/21 - Edifício Bancafe / torre B - 17º piso – Santa Fé de Bogotá / DC – COLOMBIA | Tel: (57 1) 313 5000 Cuba Miramar Business Center – Edifício Beijing, Piso Nro.2, Oficina 216 – Avenida 3º, entre 76 e 78, Miramar – Municipio Playa, – Ciudad de La Havana, CUBA Ecuador Esquina de Av. Amazonas N 39 123 y José Arízaga, Edificio Amazonas - Plaza, piso 5, Quito – ECUADOR | Tel: (592-2) 2985-300 Iran 1st floor Amini Building - Anahita, nº 5 - Africa, Blvd.– Tehran - 19176433 67 - IRAN Japan Tokyo Ginko Bldg. 5th floor, rooms 505/506 - Marunouchi, 1-3-1 – Chiyoda-ku – Tokyo- 100-0005 JAPAN| Tel: (813) 5218-1200 Libya Al Fateh Tower, 2 - rooms 156 and 157 - Tripoli – LIBYA | Tel: (218 91) 215-0634 Mexico AVENIDA Paseo de la Reforma, 115, piso 11, oficina 1101 Colonia Lomas de Chapultepec - México/DF - 11000 MÉXICO| Tel: +52 (55) 30 67 91 00 Nigeria Plot 98, Adeola Odeku Street - 5th Floor, Victoria Island Lagos – NIGERIA | Tel: (+234 1) 462-1300 Paraguay Avda. Aviadores del Chaco esq. Cañada., 2806/Edif. Petrobras San Jorge - Asunción – PARAGUAY| Tel: (595 21) 618 1592 Peru Amador Merino Reyna, 285 piso 5 - San Isidro Lima – PERÚ | Tel: (51 1) 222 4455 Portugal Lagoas Park, Edifício 11/1º Norte - Porto Salvo – Oeiras - 2740-270 - PORTUGAL | Tel: (351 210) 992 845 Singapore 8 EU Tong Sen Street #22-89, The Central, Singapore 059818 – SINGAPORE | Tel: (65) 6550 50 92 Tanzania Off Chole Road, Plot 1403/1A - Masaki Area – Dar Es Salaam - 31391 - TANZANIA | Tel: (255 22) 216 5676 The Netherlands Weenapoint, torrent A - Weena 722, 3e. Verdieping – 3014 DA - Rotterdam – THE NETHERLANDS | Tel: (31 010) 206-7000 Turkey Iran Caddesi, Karum Is Merkezi, 5.Kat, F Asansoru, 427 / 21 - Kavaklidere Cankya – Ankara - 6680 - TURKEY| Tel: (90 312) 457 6222 United Kingdom 4th floor, 20 North Audley Street, London - W1K 6WL - UK | Tel: (44 0 20) 7535 1100 Uruguay Plaza Independência, 831 - piso 10, CP 11100 – Montevideo - URUGUAY| Tel: (598 2) 500-84-00 USA – Houston 10350 Richmond Avenue, Suíte 1400– Houston, TX - 77042 USA | Tel: (1 713) 808-2000 USA – New York 570 Lexington, 43rd floor, New York -10022-6837 USA | Tel: (1 212) 829 1517 Venezuela Av. Venezuela del Rosal, Edificio Torre Lamaletto, piso 8 Caracas – VENEZUELA| Tel: (58 212) 957-7300

Petrobras Magazine is not limited to paper. Boxes with this color, spread throughout the edition, indicate that there is extended content from the article in question, either on the internet (at our site www.petrobras. com/magazine) or the iPad version of the magazine. Our information reaches you in a dynamic way. The new Petrobras Magazine – interconnected and integrated. Interactive and current. Read. Access. Participate. Enjoy.

print magazine_

iPad_ Interactivity, videos, audio, photos and unpublished texts

facebook_ Updates, new content and comments: facebook.com/ fanpagepetrobras

Web_ www.petrobras.com/ magazine: official site with photos and unpublished texts


_TO OUR READERS We now present you the new Petrobras Magazine. A magazine produced especially for the reader who wants to understand the changes and challenges of the world today, and the way in which Petrobras, the third largest energy company in the world (*), deals with them. Challenges that impact on the future of the global economy, on the production of the energy that we use daily, on the growth of our business and on the commitment we make to the environment and to society.

#60 / 2011 - a quarterly publication by Petrobras Corporate Communication www.petrobras.com/magazine

_MOBILITY EXECUTIVE MANAGER FOR CORPORATE COMMUNICATION_ WILSON SANTAROSA | INTERNATIONAL COMMUNICATION MANAGER_ IZEUSSE DIAS BRAGA JUNIOR | RELATIONSHIP MANAGER_ GILBERTO PUIG | SPECIAL PROJECTS MANAGER_ PATRICIA DE MELLO DIAS | MULTIMEDIA MANAGER_ PATRICIA FRAGA DE CASTRO E SILVA | EDITOR AND COORDINATOR_ ESTEPHANI BEILER ZAVARISE | EDITORS_ CLAUDIA GISELE PERES MARTINS, ERIC MOREIRA SILVA, LEONARDO QUEIROZ DE SÁ, VINICIUS BASTIANI, VIVIANE CASTRO DAVICO

In London: Jim O’Neill (pictured left) receives our team in his office

We want you to think of these challenges based on quality content, with depth, and enjoying the pleasure of good reading. That is why we worked intensely on this new editorial and graphical project. A project which values diversity of opinions; which shows text and images in the print edition, and complements them with video and podcasts, infographics and other content on the company’s new global website – www.petrobras.com. A project which is also present in new media, with the launch of the magazine application for the iPad.

editorial staff

ADRIANO FERREIRA LIMA_ SOCIAL RESPONSIBILITY | EDUARDO GUTTERRES VILLELA_ EXPLORATION AND PRODUCTION | JOSE CARLOS COELHO CIDADE_INTERNATIONAL AREA | LINDINOR SÁ LARANGEIRA_DOWNSTREAM | LIZA RAMALHO ALBUQUERQUE_ RESEARCH CENTER | MARIO ADRIANO VIEIRA CAMPANILE_ CORPORATE IMAGE AND BRAND | MARIZA PELEGRINETI LOURENCO GRYNSZPAN_ ENGINEERING | NILTON MARLUCIO DE ARRUDA_ HEALTH, SAFETY, ENERGY EFFICIENCY AND THE ENVIRONMENT | ORLANDO COSTA GONÇALVES JUNIOR_ INVESTOR RELATIONS | PATRICIA ALVES DO REGO SILVA_STAFF RELATIONS | PAULA DE OLIVEIRA ALMADA MORAES_PRESS | SANDRA VASCONCELLOS CHAVES_GAS AND ENERGY | VALÉRIO TITO GAMA_ PETROBRAS BIOCOMBUSTÍVEL

_we count on

All this is happening at a special moment in Petrobras’ history. This is a year of great prospects. Recently, we overcame the challenges to reach the pre-salt layer at the bottom of the sea; and the world recognized our effort, investing solidly in the company’s stocks, consolidating the largest capitalization ever realized by a company on the stock exchange.

production

WWW.SELULOID.COM

PUBLISHER_ FLAVIO ROZEMBLATT | CUSTOMER SERVICE DIRECTOR_ PALOMA BRAGANÇA DIRECTOR OF OPERATIONS_ GUSTAVO GUIMARÃES | DESIGN DIRECTOR_ CYNTHIA HOMSI CUSTOMER SERVICE_ JOANA FIGUEIREDO / CLARA BOTELHO | EDITOR_ MARCO ANTONIO BARBOSA | REPORTERS_VINICIUS MEDEIROS / FERNANDO MIRAGAYA | DESIGNERS_ JOANA PETERSEN / TATHYANA RAUPP | DIGITAL ART DIRECTOR_ EDUARDO ARAUJO | WEB DESIGNER_ DIOGO ADIALA | WEB DEVELOPER_ MARCELO PAULA | VIDEO DESIGNERS_ GIZELLA WERNECK / LIARA CASTRO | DIRECTOR OF PHOTOGRAPHY (VIDEO)_ STEFAN HESS | PROJECTS COORDINATOR_ CARLA UYARA | FINANCIAL MANAGER_ ROBERTA FERRAZ | REVISION_ PETER DOYLE

[2]

[1]

Making of: Snapshots from the photo session which produced the cover images and from this edition’s main article

Petrobras Magazine is not sold. To request a subscription, information or to send letters or suggestions, contact the editorial staff: Petrobras/International Communication Av. República do Chile, 65, sala 1001 • Rio de Janeiro – RJ | CEP: 20031-912 Brasil E-mail: petromag@petrobras.com.br Web: www.petrobras.com/magazine

We know that an integrated energy company is not just one that extracts oil from the depths of the ocean and brings energy to you, but also a company that relates to its public in a transparent way. Therefore, our objective is to make Petrobras Magazine your reference on the world of energy and our operations. We hope you enjoy the reading! The Petrobras Magazine Team

The partial or complete reproduction of the articles published herein is authorized by mentioning the source. ©Copyright 2011 by Petrobras. Affiliated to the Brazilian Association of Business Communications

(*) PFC Energy Ranking 2011

[3]

[4]

[5]

[1] max moure_ “I am really connected to sport and

how to enjoy the magazine

movement. To capture the issue of urban mobility in images was a creative task which interested me a lot.” [2] marc

recco_ “To manipulate and rework the photo used on the cover was challenging, comparable to the complexity of the theme.”

[3] gabriel gianordoli_ “To transform numbers into images helps people see the significance and reveals interesting points from the articles about mobility and pre-salt In Peru: backstage scenes of the video which complements the Around the World section

exploration.” [4] felipe varanda_ “The Municipal Theatre never seems to be the same, each time I return I see a detail which has always been there and I had never noticed.” [5]

carlos tautz_ “Today we are witnessing the development of a generation of researchers who will contribute greatly to the advancement of technology in Brazil.”

cover photo: Max Moure /www.casa13.com.br image processing: Marc Recco thanks to Asics, Reserva

Angola Rua Pedro Felix Machado, 51/2º andar – Luanda - 2665 ANGOLA | Tel: (244 2) 39 0330 Argentina Av. Maipú, 1 - Buenos Aires – C1084ABA - ARGENTINA | Tel: (54 11) 4344-6072 Bolivia Av. Grigota, esquina Los Troncos, casi 4º anillo – casilla 6886 Santa Cruz de la Sierra – BOLIVIA| Tel: (591 3) 358 6030 Chile Av. Cerro Colorado, 5240 - piso 14 / Região Metropolitana – Lãs Condes Santiago – CHILE| Tel: (00562) 328 4700 China Level 12th floor, units 21-25 - China World Tower 1 -JianGuoMenWai Avenue, Beijing - 100004 CHINA Tel: (86 10) 650 598 37 Colombia Carretera 7, 71/21 - Edifício Bancafe / torre B - 17º piso – Santa Fé de Bogotá / DC – COLOMBIA | Tel: (57 1) 313 5000 Cuba Miramar Business Center – Edifício Beijing, Piso Nro.2, Oficina 216 – Avenida 3º, entre 76 e 78, Miramar – Municipio Playa, – Ciudad de La Havana, CUBA Ecuador Esquina de Av. Amazonas N 39 123 y José Arízaga, Edificio Amazonas - Plaza, piso 5, Quito – ECUADOR | Tel: (592-2) 2985-300 Iran 1st floor Amini Building - Anahita, nº 5 - Africa, Blvd.– Tehran - 19176433 67 - IRAN Japan Tokyo Ginko Bldg. 5th floor, rooms 505/506 - Marunouchi, 1-3-1 – Chiyoda-ku – Tokyo- 100-0005 JAPAN| Tel: (813) 5218-1200 Libya Al Fateh Tower, 2 - rooms 156 and 157 - Tripoli – LIBYA | Tel: (218 91) 215-0634 Mexico AVENIDA Paseo de la Reforma, 115, piso 11, oficina 1101 Colonia Lomas de Chapultepec - México/DF - 11000 MÉXICO| Tel: +52 (55) 30 67 91 00 Nigeria Plot 98, Adeola Odeku Street - 5th Floor, Victoria Island Lagos – NIGERIA | Tel: (+234 1) 462-1300 Paraguay Avda. Aviadores del Chaco esq. Cañada., 2806/Edif. Petrobras San Jorge - Asunción – PARAGUAY| Tel: (595 21) 618 1592 Peru Amador Merino Reyna, 285 piso 5 - San Isidro Lima – PERÚ | Tel: (51 1) 222 4455 Portugal Lagoas Park, Edifício 11/1º Norte - Porto Salvo – Oeiras - 2740-270 - PORTUGAL | Tel: (351 210) 992 845 Singapore 8 EU Tong Sen Street #22-89, The Central, Singapore 059818 – SINGAPORE | Tel: (65) 6550 50 92 Tanzania Off Chole Road, Plot 1403/1A - Masaki Area – Dar Es Salaam - 31391 - TANZANIA | Tel: (255 22) 216 5676 The Netherlands Weenapoint, torrent A - Weena 722, 3e. Verdieping – 3014 DA - Rotterdam – THE NETHERLANDS | Tel: (31 010) 206-7000 Turkey Iran Caddesi, Karum Is Merkezi, 5.Kat, F Asansoru, 427 / 21 - Kavaklidere Cankya – Ankara - 6680 - TURKEY| Tel: (90 312) 457 6222 United Kingdom 4th floor, 20 North Audley Street, London - W1K 6WL - UK | Tel: (44 0 20) 7535 1100 Uruguay Plaza Independência, 831 - piso 10, CP 11100 – Montevideo - URUGUAY| Tel: (598 2) 500-84-00 USA – Houston 10350 Richmond Avenue, Suíte 1400– Houston, TX - 77042 USA | Tel: (1 713) 808-2000 USA – New York 570 Lexington, 43rd floor, New York -10022-6837 USA | Tel: (1 212) 829 1517 Venezuela Av. Venezuela del Rosal, Edificio Torre Lamaletto, piso 8 Caracas – VENEZUELA| Tel: (58 212) 957-7300

Petrobras Magazine is not limited to paper. Boxes with this color, spread throughout the edition, indicate that there is extended content from the article in question, either on the internet (at our site www.petrobras. com/magazine) or the iPad version of the magazine. Our information reaches you in a dynamic way. The new Petrobras Magazine – interconnected and integrated. Interactive and current. Read. Access. Participate. Enjoy.

print magazine_

iPad_ Interactivity, videos, audio, photos and unpublished texts

facebook_ Updates, new content and comments: facebook.com/ fanpagepetrobras

Web_ www.petrobras.com/ magazine: official site with photos and unpublished texts


_TO OUR READERS We now present you the new Petrobras Magazine. A magazine produced especially for the reader who wants to understand the changes and challenges of the world today, and the way in which Petrobras, the third largest energy company in the world (*), deals with them. Challenges that impact on the future of the global economy, on the production of the energy that we use daily, on the growth of our business and on the commitment we make to the environment and to society.

#60 / 2011 - a quarterly publication by Petrobras Corporate Communication www.petrobras.com/magazine

_MOBILITY EXECUTIVE MANAGER FOR CORPORATE COMMUNICATION_ WILSON SANTAROSA | INTERNATIONAL COMMUNICATION MANAGER_ IZEUSSE DIAS BRAGA JUNIOR | RELATIONSHIP MANAGER_ GILBERTO PUIG | SPECIAL PROJECTS MANAGER_ PATRICIA DE MELLO DIAS | MULTIMEDIA MANAGER_ PATRICIA FRAGA DE CASTRO E SILVA | EDITOR AND COORDINATOR_ ESTEPHANI BEILER ZAVARISE | EDITORS_ CLAUDIA GISELE PERES MARTINS, ERIC MOREIRA SILVA, LEONARDO QUEIROZ DE SÁ, VINICIUS BASTIANI, VIVIANE CASTRO DAVICO

In London: Jim O’Neill (pictured left) receives our team in his office

We want you to think of these challenges based on quality content, with depth, and enjoying the pleasure of good reading. That is why we worked intensely on this new editorial and graphical project. A project which values diversity of opinions; which shows text and images in the print edition, and complements them with video and podcasts, infographics and other content on the company’s new global website – www.petrobras.com. A project which is also present in new media, with the launch of the magazine application for the iPad.

editorial staff

ADRIANO FERREIRA LIMA_ SOCIAL RESPONSIBILITY | EDUARDO GUTTERRES VILLELA_ EXPLORATION AND PRODUCTION | JOSE CARLOS COELHO CIDADE_INTERNATIONAL AREA | LINDINOR SÁ LARANGEIRA_DOWNSTREAM | LIZA RAMALHO ALBUQUERQUE_ RESEARCH CENTER | MARIO ADRIANO VIEIRA CAMPANILE_ CORPORATE IMAGE AND BRAND | MARIZA PELEGRINETI LOURENCO GRYNSZPAN_ ENGINEERING | NILTON MARLUCIO DE ARRUDA_ HEALTH, SAFETY, ENERGY EFFICIENCY AND THE ENVIRONMENT | ORLANDO COSTA GONÇALVES JUNIOR_ INVESTOR RELATIONS | PATRICIA ALVES DO REGO SILVA_STAFF RELATIONS | PAULA DE OLIVEIRA ALMADA MORAES_PRESS | SANDRA VASCONCELLOS CHAVES_GAS AND ENERGY | VALÉRIO TITO GAMA_ PETROBRAS BIOCOMBUSTÍVEL

_we count on

All this is happening at a special moment in Petrobras’ history. This is a year of great prospects. Recently, we overcame the challenges to reach the pre-salt layer at the bottom of the sea; and the world recognized our effort, investing solidly in the company’s stocks, consolidating the largest capitalization ever realized by a company on the stock exchange.

production

WWW.SELULOID.COM

PUBLISHER_ FLAVIO ROZEMBLATT | CUSTOMER SERVICE DIRECTOR_ PALOMA BRAGANÇA DIRECTOR OF OPERATIONS_ GUSTAVO GUIMARÃES | DESIGN DIRECTOR_ CYNTHIA HOMSI CUSTOMER SERVICE_ JOANA FIGUEIREDO / CLARA BOTELHO | EDITOR_ MARCO ANTONIO BARBOSA | REPORTERS_VINICIUS MEDEIROS / FERNANDO MIRAGAYA | DESIGNERS_ JOANA PETERSEN / TATHYANA RAUPP | DIGITAL ART DIRECTOR_ EDUARDO ARAUJO | WEB DESIGNER_ DIOGO ADIALA | WEB DEVELOPER_ MARCELO PAULA | VIDEO DESIGNERS_ GIZELLA WERNECK / LIARA CASTRO | DIRECTOR OF PHOTOGRAPHY (VIDEO)_ STEFAN HESS | PROJECTS COORDINATOR_ CARLA UYARA | FINANCIAL MANAGER_ ROBERTA FERRAZ | REVISION_ PETER DOYLE

[2]

[1]

Making of: Snapshots from the photo session which produced the cover images and from this edition’s main article

Petrobras Magazine is not sold. To request a subscription, information or to send letters or suggestions, contact the editorial staff: Petrobras/International Communication Av. República do Chile, 65, sala 1001 • Rio de Janeiro – RJ | CEP: 20031-912 Brasil E-mail: petromag@petrobras.com.br Web: www.petrobras.com/magazine

We know that an integrated energy company is not just one that extracts oil from the depths of the ocean and brings energy to you, but also a company that relates to its public in a transparent way. Therefore, our objective is to make Petrobras Magazine your reference on the world of energy and our operations. We hope you enjoy the reading! The Petrobras Magazine Team

The partial or complete reproduction of the articles published herein is authorized by mentioning the source. ©Copyright 2011 by Petrobras. Affiliated to the Brazilian Association of Business Communications

(*) PFC Energy Ranking 2011

[3]

[4]

[5]

[1] max moure_ “I am really connected to sport and

how to enjoy the magazine

movement. To capture the issue of urban mobility in images was a creative task which interested me a lot.” [2] marc

recco_ “To manipulate and rework the photo used on the cover was challenging, comparable to the complexity of the theme.”

[3] gabriel gianordoli_ “To transform numbers into images helps people see the significance and reveals interesting points from the articles about mobility and pre-salt In Peru: backstage scenes of the video which complements the Around the World section

exploration.” [4] felipe varanda_ “The Municipal Theatre never seems to be the same, each time I return I see a detail which has always been there and I had never noticed.” [5]

carlos tautz_ “Today we are witnessing the development of a generation of researchers who will contribute greatly to the advancement of technology in Brazil.”

cover photo: Max Moure /www.casa13.com.br image processing: Marc Recco thanks to Asics, Reserva

Angola Rua Pedro Felix Machado, 51/2º andar – Luanda - 2665 ANGOLA | Tel: (244 2) 39 0330 Argentina Av. Maipú, 1 - Buenos Aires – C1084ABA - ARGENTINA | Tel: (54 11) 4344-6072 Bolivia Av. Grigota, esquina Los Troncos, casi 4º anillo – casilla 6886 Santa Cruz de la Sierra – BOLIVIA| Tel: (591 3) 358 6030 Chile Av. Cerro Colorado, 5240 - piso 14 / Região Metropolitana – Lãs Condes Santiago – CHILE| Tel: (00562) 328 4700 China Level 12th floor, units 21-25 - China World Tower 1 -JianGuoMenWai Avenue, Beijing - 100004 CHINA Tel: (86 10) 650 598 37 Colombia Carretera 7, 71/21 - Edifício Bancafe / torre B - 17º piso – Santa Fé de Bogotá / DC – COLOMBIA | Tel: (57 1) 313 5000 Cuba Miramar Business Center – Edifício Beijing, Piso Nro.2, Oficina 216 – Avenida 3º, entre 76 e 78, Miramar – Municipio Playa, – Ciudad de La Havana, CUBA Ecuador Esquina de Av. Amazonas N 39 123 y José Arízaga, Edificio Amazonas - Plaza, piso 5, Quito – ECUADOR | Tel: (592-2) 2985-300 Iran 1st floor Amini Building - Anahita, nº 5 - Africa, Blvd.– Tehran - 19176433 67 - IRAN Japan Tokyo Ginko Bldg. 5th floor, rooms 505/506 - Marunouchi, 1-3-1 – Chiyoda-ku – Tokyo- 100-0005 JAPAN| Tel: (813) 5218-1200 Libya Al Fateh Tower, 2 - rooms 156 and 157 - Tripoli – LIBYA | Tel: (218 91) 215-0634 Mexico AVENIDA Paseo de la Reforma, 115, piso 11, oficina 1101 Colonia Lomas de Chapultepec - México/DF - 11000 MÉXICO| Tel: +52 (55) 30 67 91 00 Nigeria Plot 98, Adeola Odeku Street - 5th Floor, Victoria Island Lagos – NIGERIA | Tel: (+234 1) 462-1300 Paraguay Avda. Aviadores del Chaco esq. Cañada., 2806/Edif. Petrobras San Jorge - Asunción – PARAGUAY| Tel: (595 21) 618 1592 Peru Amador Merino Reyna, 285 piso 5 - San Isidro Lima – PERÚ | Tel: (51 1) 222 4455 Portugal Lagoas Park, Edifício 11/1º Norte - Porto Salvo – Oeiras - 2740-270 - PORTUGAL | Tel: (351 210) 992 845 Singapore 8 EU Tong Sen Street #22-89, The Central, Singapore 059818 – SINGAPORE | Tel: (65) 6550 50 92 Tanzania Off Chole Road, Plot 1403/1A - Masaki Area – Dar Es Salaam - 31391 - TANZANIA | Tel: (255 22) 216 5676 The Netherlands Weenapoint, torrent A - Weena 722, 3e. Verdieping – 3014 DA - Rotterdam – THE NETHERLANDS | Tel: (31 010) 206-7000 Turkey Iran Caddesi, Karum Is Merkezi, 5.Kat, F Asansoru, 427 / 21 - Kavaklidere Cankya – Ankara - 6680 - TURKEY| Tel: (90 312) 457 6222 United Kingdom 4th floor, 20 North Audley Street, London - W1K 6WL - UK | Tel: (44 0 20) 7535 1100 Uruguay Plaza Independência, 831 - piso 10, CP 11100 – Montevideo - URUGUAY| Tel: (598 2) 500-84-00 USA – Houston 10350 Richmond Avenue, Suíte 1400– Houston, TX - 77042 USA | Tel: (1 713) 808-2000 USA – New York 570 Lexington, 43rd floor, New York -10022-6837 USA | Tel: (1 212) 829 1517 Venezuela Av. Venezuela del Rosal, Edificio Torre Lamaletto, piso 8 Caracas – VENEZUELA| Tel: (58 212) 957-7300

Petrobras Magazine is not limited to paper. Boxes with this color, spread throughout the edition, indicate that there is extended content from the article in question, either on the internet (at our site www.petrobras. com/magazine) or the iPad version of the magazine. Our information reaches you in a dynamic way. The new Petrobras Magazine – interconnected and integrated. Interactive and current. Read. Access. Participate. Enjoy.

print magazine_

iPad_ Interactivity, videos, audio, photos and unpublished texts

facebook_ Updates, new content and comments: facebook.com/ fanpagepetrobras

Web_ www.petrobras.com/ magazine: official site with photos and unpublished texts


14 6 _INTERVIEW

16

A conversation in London with the father of the BRICs

_NEWS

The latest news about Petrobras

_GLOBAL CHALLENGE: MOBILITY Alternatives for urban transport in the 21st century

20 14 _IN DISCUSSION

42

_BUSINESS

Pre-salt reserves drive Petrobras’ growth

ILLUSTRATION GABRIEL GIANORDOLI

David Renné and the future of renewable energies


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CONTENTS

_AROUND THE WORLD: PERU

#60 _MOBILITY

Where the Inca legacy meets modernity

36 _TECHNOLOGY

The emergence of an advanced technological pole in the energy sector in Brazil

52 48 _CULTURE

Waste Land: cinema and social transformation

_ESSAY

The renovated Rio de Janeiro Municipal Theatre reveals itself to our camera

62 _OVERVIEW

Where and how Petrobras operates around the world


CREATOR OF THE ACRONYM BRIC, the English economist spoke to Petrobras Magazine in London about DEVELOPING COUNTRIES, Brazil’s challenges and the global energy market

1

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Jim O’ NEILL

interview

BY VINICIUS MEDEIROS AND ESTEPHANI ZAVARISE

PHOTOS MIGUEL A. FONTA

O’Neill against the urban skyline of Hong Kong: anticipating the paths of the world economy

audio_ Hear excerpts of the interview at www.petrobras.com/ magazine and on the iPad version

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fter creating the BRIC concept in 2001 – the acronym that associates Brazil, Russia, India and China, developing countries with distinctive cultural, political and geographical traits but also presenting accelerated degrees of economic growth — economist Jim O’Neill was elevated to the condition of “oracle” on the future of the global economy. By coining the term that would be adopted by everybody as being synonymous with developing nations presenting low investment risks, tagging them as being fundamental for the world economy, he had a major impact on the international financial establishment. Anybody who enters the headquarters of the Goldman Sachs Asset Management investment bank in London will get the impression that he or she has somehow arrived at many different places at precisely the same time. Simultaneously, there one breathes the fluctuations of the world’s various stock exchanges: the atmosphere of Tokyo, Shanghai, Hong Kong, Frankfurt, São Paulo and New York. From the heart of the London financial center, O’Neill, who is chairman of the bank that is specialized in financial planning and investment strategies for high income individuals and companies, customarily issues his opinions about the global economy — always focused on the four countries which have made him renowned worldwide.

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My bet continues to be on the BRICs. If there is going to be one big story of the next decade, it will be about the

CONSUMPTION OF THESE NATIONS” An invitation to a traditional late afternoon English tea was the starting point for an animated conversation with O’Neill, a native of Manchester who is crazy about soccer and fanatical about the most popular team in his home city (Manchester United, present in innumerable photos on display in the economist’s office). Relaxed and at ease, he spoke with Petrobras Magazine about his new wagers on the global economy, the prospects for Brazil and the energy market, without forgetting to comment on his sports passions.


interview 1

After the creation of the acronym “BRIC” in 2001, you and your team identified another 11 countries with good potential for economic growth, called the “Next Eleven.” This time, your bet was centered on four of these 11 countries: Mexico, Indonesia, South Korea and Turkey. Why have these countries been able to pull away from the rest of the pack?

Jim O’Neill: I identified these four countries, alongside the BRICs, as countries that were economically strong enough not to be considered “emerging.” Today, I prefer to call them “growing markets.” Many similarities link the eight nations: large populations, a considerable level of development, economic success and seriousness regarding business dealings, which makes them good safe havens for investors in search of liquidity. These are the characteristics that distinguish them from the other emerging countries. For example, on an individual basis all of them represent at least 1% of the world GDP. Let’s look at the example of South Korea, which has one of the highest levels of education and use of technology. It is almost an insult to consider it an emerging country. Nevertheless, all of these nations still need to convince investors to no longer treat them as such.

2

In the last decade, besides coining the acronym BRIC, you also predicted the decline of the dollar against the euro and other important international currencies. Previously, during the 1990s, you anticipated the appreciation of the yen on the international markets. After getting it right so many times, what are your next wagers regarding the world economy?

Jim O’Neill: My bet continues to be on the BRICs and, mainly, their consumers. If there will be one big story of the next decade, it will be about the consumption of these nations. What is certain is that we no longer live in a world dominated by American consumers, but by the BRIC consumers. Recently, I heard a story that confirms this: the Louis Vuitton store in Paris slapped on a purchase limit because of the heavy presence of Chinese tourists. Stores on Madison Avenue, in New York, are seeking employees who speak Portuguese fluently to attend to Brazilians. A few weeks ago I was in South Beach in Miami (USA), and I was amazed to see so many Brazilians there. I only heard Portuguese around me… Therefore, this proves that we are entering a new phase.

3

In your opinion, what will be Brazil’s role in the global economy in the upcoming years?

Jim O’Neill: With regard to Brazil, I believe that we are in an interesting year. During its first decade as a BRIC, Brazil underwent difficulties during the first five years and emerged petrobras magazine 9


just fine, and now is doing very well economically speaking. As an investor, I believe that one must observe and wait. The explanation is simple: President Luis Inácio Lula da Silva, who in my opinion was probably the main political leader of the G-20 over the past decade, has just left government. And substituting him is not an easy task. The mission is as hard as substituting Alex Ferguson as the coach of Manchester United (laughter). However, Brazil is a fantastic country, blessed with a good climate and various sources of renewable energy. Previously, one bet on Australia as the country of the future; however, Brazil has all the conditions needed for growth and to become an even stronger power.

4

In this regard, what are the main challenges for the new president, Dilma Rousseff?

Jim O’Neill: Her biggest challenge, apparently, is the simplest: to maintain the success that has been attained over the past few years. Brazil became a new country in the past decade, particularly regarding the task of maintaining inflation at a stable level. I was once in São Paulo to participate in a conference together with economist Paulo Lamy and he told me that the inflation projected for that year would be the same as when he was a young man. This is incredible! One must remember that the current good moment came about in part because of the administration of (former Brazilian president) Fernando Henrique Cardoso and my good friend Armínio Fraga (director of the Central Bank during the administration of Fernando Henrique), but the results were actually transformed into reality during the government of Lula.

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The economist in his office at the London headquarters of Goldman Sachs Asset Management: Manchester United photos on the walls


interview Therefore, Dilma’s major challenge is to guarantee that this continues, because Brazil has a terrible economic history. Another point that should be noted is foreign exchange. I have friends in Rio de Janeiro and São Paulo who visit me in London and find the cost of living here very low. No other citizen in the world would share this opinion. The Brazilian real currency is very strong and this causes problems for Brazilian industry, and could yet weaken the power of the Central Bank. Nevertheless, control of inflation is vital.

5

How could the recent discoveries

your evaluation of how 7 What’s the crisis in the Middle East could affect the energy industry in the

BRAZIL is a fantastic

country, blessed with a good climate and various sources of renewable energy. The country has all the conditions needed for GROWTH and to become an even STRONGER POWER”

of major oil reserves on the Brazilian coast influence the Brazilian economy?

Jim O’Neill: Sincerely, I don’t know. At first glance, it seems exciting. But Brazil must be very careful. Will the discoveries leverage the country? Perhaps yes, perhaps not. If we look back over 100 years, the majority of the successful world economies were not tied to commodities. One of the things that I closely follow is the performance of Petrobras. What happens to the company will be very important (for the economy of Brazil). Speaking in generic terms, I believe that the Brazilian government seems to be quite wise to help Petrobras with its investments, because, in this very complex world, the purely private companies will not invest capital at the level that Petrobras is investing. Therefore, this seems to me to be a very smart move.

6

And can these discoveries increase the importance of Brazil in the global economy?

Jim O’Neill: They already have. Petrobras recently issued shares and investors from around the world wanted a piece of the company. If I’m not mistaken, it was the largest issue ever conducted in the world (a record amount of R$ 120 billion was obtained). Therefore, the discoveries already have, in a certain manner, changed the position of Brazil with regard to global investors and also the role of Brazil in the world energy industry.

short, medium and long terms?

Jim O’Neill: (laughter) I’ve been in the market for 30 years and I’ve learned some of my predictions do not come true. At the same time, I have a Ph.D in oil. But I have concluded that making predictions about the price of a barrel of oil is close to insanity. Today, what really influences the price of oil on the international markets is the Chinese economy, and not what happens in the Middle East. At this moment, many analysts are writing about this subject with a great degree of confidence. But I believe there is a great possibility that they are all wrong. In theory, however, because of the stability of Brazilian policies, the scenario is promising — mainly in the short and medium term. A recent article in the Financial Times written by a former executive of British Petroleum (BP) discusses the topic, arguing that there are many reserves in politically unstable regions, which favors Brazil. Over the long term, everything depends on Petrobras’ success. Furthermore, the situation can change in the Middle East. I’m quite anxious to see what is going to happen in Egypt (after an ebullient

A prize for the public offer Completed in November 2010, the most recent capitalization of Petrobras resulted in a capital increase from R$ 120.249 billion to R$ 373.76 billion. The largest IPO worldwide has also secured an international prize for the company. In March, the magazine Latin Lawyer, important publication on business and corporate law in Latin America, granted Petrobras the Latin Lawyer Deal of the Year Award in the category “Corporate Finance”. According to the publication, the offer was organized and performed in an unprecedented way and managed with excellence.

petrobras magazine 11


political process that culminated with the fall of Hosni Mubarak in February after 30 years in power, the Egyptian army reported it will hold parliamentary elections in September). In the past, I never thought that the Middle East and North Africa would be good economic bets. However, if we analyze the fact that the region has a population of 400 million people, the double of Brazil, there is major unexploited potential, with chances of seeing a new BRIC.

8

Do you believe that the increasing pressure by society for a more sustainable energy model could lead to major changes in the energy industry, especially regarding safety issues?

One of the things that I closely follow is the performance of Petrobras. The company recently issued shares and investors from around the world wanted a piece of the company. The DISCOVERIES (OF PRE-SALT) have already, in 9 a certain way, changed the position of Brazil with regard to global investors and also the role of the country in the world ENERGY industry”

10

Jim O’Neill: The case of BP in the Gulf of Mexico and all of the repercussions that were caused are good examples. There are other locations where the environmental risks for exploration are quite substantial. That is where the big challenge for the industry can be found. Therefore, I believe that the private companies are not the ideal organizations to resolve the world energy problem. I say this because not only does it require enormous amounts of capital but involves human and environmental risks. Should private companies take that responsibility (to solve the world energy problem)? Once again, I think this represents a good opportunity for Petrobras. Regarding energy matrixes, in what direction do you think the industry is going?

Jim O’Neill: Let’s look again at the five-year economic plan that has been prepared by China. Prime Minister Wen Jiabao announced a target of 7% growth per year (which is less than the average of the last few years), and the reason for this involved both energy and environmental issues. I visit China frequently and I have seen the transformation of the cities, which continue to be polluted, even outside of the large metropolitan areas. Nevertheless, there is a movement towards change. I can see that the Chinese are concerned. The five-year plan also shows great interest in alternative energy sources. I believe that the wind, solar and obviously biofuel markets have major potential for growth during the decade, and Brazil also could be a beneficiary of this. Which has the best potential among these energy sources, in your opinion?

Jim O’Neill: I’m not a specialist in this matter, but I believe that all have good potential. Despite a negative 12 petrobras magazine


interview

history, nuclear energy could be adjusted for some countries, as could hydroelectric power, as we see in Brazil. I believe the solar power matrix is also a good bet. China, for example, is investing heavily in this sector, building large solar projects near Mongolia, as well as in the neighboring country itself. It is clear that today these energy sources are not cheap. However, the tendency is for constant innovation that will change this situation.

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only been to the country six times, always between Rio de Janeiro and São Paulo. Anyway, analyzing the legacy for the nation and the stage in which it is currently found, I feel that the competition is an excellent opportunity for Brazil to reduce its notorious infrastructure bottlenecks, mainly in the cities outside of the Rio-São Paulo axis.

Astute observer of the global economy, O’Neill jokes about his supposed clairvoyance: “I have already learned that some of my predictions will not come true”

a football fan, is it your dream 12 As to see a final between Brazil and England?

Changing the subject, what about the next World Cup that will be in Brazil?

Jim O’Neill: I expect to receive an invitation to spend the four weeks of the World Cup there… generally, people think I’m an expert on Brazil, but that is not the truth. I’ve

Jim O’Neill: (big laugh) No, England doesn’t have a good team. And furthermore, if we remember the times the two teams have played in World Cups, Brazil became the champion; we wouldn’t have the slightest chance. petrobras magazine 13


_David S. RennĂŠ Born in the United States, RenĂŠe currently is the president of the International Solar Energy Society (Ises), an organization devoted to the research and prospecting of renewable energy sources, with emphasis on solar power. It has developed initiatives linked to solar, wind and water energy together with the United Nations and the U.S. government and is a project leader at the National Renewable Energy Laboratory.

14 petrobras 14 petrobrasmagazine magazine


in discussion

Energy

in transformation BY DAVID S. RENNÉ

PHOTO ANDRÉ VALENTIM

We are seeing a significant TRANSFORMATION of the ROLE of ENERGY IN OUR SOCIETY. We need to establish secure, economic and environmentally responsible sources of energy for the future, options that take advantage of unlimited and renewable resources. Many companies already benefit from the new clean energy opportunities, being guided by this transformation. Brazil is a country that is blessed with an abundance of renewable energy, and that successfully uses water resources to generate electricity, as well as employing biofuels as clean and renewable solutions for transportation. In the country, there is enormous flexibility for expanding the supply of clean energy, exploiting technology in the field of wind, solar and other sources of power. With policies that are adjusted to financing incentives and mechanisms, Brazilian industrial companies and the country’s overall economy are prepared to reap excellent benefits from this global transformation. Around the world, the technical and economic potential of solar, wind, water and other renewable energy sources by far outpace current demand for power. Now, the new situation that is emerging as a result of governmental policies, technological discoveries and financial conditions must be faced to allow us to take full advantage of these abundant energy options. Nevertheless, there are many crucial barriers that must be overcome so that we can expand this field. For example, the infrastructure necessary to support these systems, such as nationwide networks capable of sustaining, at a reasonable cost, the large penetration of various different resources; a well-trained and growing labor force; adequate regulatory procedures; greater efficiency on the part of consumers; and wider acceptance of the general public and companies. All of these factors are critical on the road to clean and renewable sources of energy. Innovative technologies in the field of energy have had success in the marketplace, thanks to a variety of positive factors: the growth of sales, which reduces costs through a very favorable “learning curve” (estimated at about 20% over the past three decades); continuous improvements in system efficiencies, which reduces the cost per KW/h produced; innovative business models that take advantage of the unique financing opportunities; and, perhaps most important, favorable official policies that offer an attractive business environment for projects in this segment.

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Petrobras breaks the record for

In December of 2010, Petrobras registered historic sales records of gasoline and aviation kerosene in Brazil. The company also broke production and sales records in the asphalt segment last year.

July, 2010 (557,860 m³, or 117,000 barrels/ day). In 2010, there was a rise of 16.6% in the Brazilian market of gasoline and aviation kerosene when compared to 2009, a reflection of the growth in the national economy.

The amount of gasoline traded in the last month of 2010 totaled 1.966 million m³ (12,366,000 barrels/month or 399,000 a day), passing the previous record from March of the same year, by 50,000 m³ (314,000 barrels). Contributors to December’s record were the month’s typical seasonal conditions and the rise in hydrated ethanol prices since mid-June, 2010, which helped gasoline become the preferred fuel for owners of flex-fuel vehicles in the majority of Brazilian states. In 2010, Petrobras’ sales of gasoline increased 17.8% in relation to 2009.

In the asphalt segment, the good results in 2010 were reached, above all, due to the high demand for asphalt binders, utilized mainly in infrastructure works in Brazil. Asphalt production in 2010, reached the milestone of 2.763 million tons, exceeding 2009 totals (2.097 million tons) by 32%. The main increase occurred in the internal market, whose sales hit 3 million tons, 43% more than in 2009.

PETROBRAS BEGINS operations in Benin, Africa

Petrobras sells Petroleum Asphalt Cement (PAC) and Diluted Petroleum Asphalts (PDA) to distributors and to the National Transport Infrastructure Department (DNIT - Departamento Nacional de Infraestrutura de Transportes). These products are used directly in road paving services or are industrialized at the distributors’ factories.

In February, Petrobras acquired a 50% share in Block 4 off the coast of the West African country of Benin. The area in question measures approximately 7,400 square kilometers, in waters between 200 and 3,000 meters deep, at an average distance of 60 km off the coast. It is expected that light petroleum will be found there, in keeping with the pattern of discoveries made in other exploratory activities on the African continent. The company already operates in countries such as Angola, Libya, Namibia, Nigeria and Tanzania.

Photo: José Caldas / Petrobras Image Bank

As for the sales of gasoline and aviation kerosene by Petrobras during December of 2010, they totaled 585,450 m³ (119,000 barrels/day) in volume, which represents an increase of 4.9% on the previous record, registered in

Photo: thinkstockphotos

GASOLINE, AVIATION KEROSENE AND ASPHALT SALES

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Exploration will be undertaken in partnership with the Compagnie Béninoise des Hydrocarbures (CBH), a subsidiary of Lusitania Petroleum which holds the other 50% of the rights to the area and continues as operator of the asset. Petrobras, however, has the right to assume control of the operation. The company will carry out acquisition and processing operations of 2,250 square kilometers of seismic 3D data this year. Once the exploratory potential of the area has been confirmed, the consortium will commit to drilling three oil-wells.


Photo: Juarez Cavalcanti / Petrobras Image Bank

news

PETROBRAS INVESTS in fertilizing units

The road to Brazilian self-sufficiency in fertilizers was shortened in March, when Petrobras, Companhia Energética de Minas Gerais (Cemig) and the Minas Gerais State Government signed a Protocol of Intentions for the construction of a Nitrogenous Fertilizer Unit (UFN V), in the municipality of Uberaba. The unit, which will also meet demand from the states of Goiás, Mato Grosso and from part of São Paulo, will have the capacity to produce 519,000 tons a year of ammonia and will consume 1,257,000 m³ of natural gas a day. Work will start in February, 2012, with a scheduled conclusion date of December, 2014. US$ 1.3 billion will be invested in the project, which forms part of the Brazilian Government’s Accelerated Growth Program 2 (PAC 2). Currently, Brazil is the fourth largest importer of fertilizers in the world. With the implementation of UFN V, the country will become self-sufficient in ammonia, which is the raw material used in the production of mono-ammonium phosphate (MAP), a binary

fertilizer that contains phosphorus and nitrogen and is utilized mainly in the cultivation of maize, sugar cane and coffee, among other agricultural products. The president of Brazil, Dilma Rousseff, who was present at the signing of the Protocol of Intentions, highlighted the importance of the unit. “We want to be self-sufficient in fertilizers by 2020, but even more than that, we want access to this market as a producer and exporter.” Currently, Brazil counts on two fertilizer factories which produce urea and ammonia: FAFEN-BA, in Camaçari, in Bahia state, and FAFEN-SE, in Laranjeiras, in the state of Sergipe. Together, they have a production capacity of 1,056 tons of urea and a marketable excess of 255,000 tons of ammonia. Besides UFN V, Petrobras is investing in the construction of UFN III, in Três Lagoas, Mato Grosso do Sul, and UFN IV in Linhares, Espírito Santo state, as well as the expansion of FAFEN-SE which, as from January, 2013, will also produce ammonium sulfate fertilizer.

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Implementation of a third

LNG REGASIFICATION Terminal in BRAZIL

announced

The terminal will be installed in Baía de Todos os Santos, in the state of Bahia,

LNG transferring machinery at the Pecém Ship Transport Terminal

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and will be linked together with the gas pipeline system at two points. It will even make it possible to export gas to the Southeast region, if necessary. Today, Brazil already has LNG terminals at Pecém, in Ceará state, with a regasification capacity of 7 million m³/ day, and in Baía de Guanabara, in Rio de Janeiro, with a 14 million m³/day regasification capacity. From September, 2013, when the TRBA begins operations, Brazil will have the capacity to regasify 35 million m³/day, a greater volume than the 31 million m³/day of natural gas currently imported from Bolivia.

Photo: Leopoldo Kaswiner / Petrobras Image Bank

In March, Petrobras announced the implementation of the Bahia Liquefied Natural Gas Regasification Terminal (TRBA), in the Northeast of Brazil. Work on the complex, which will be capable of regasifying 14 million m³ of liquefied gas (LNG) a day, starts in March 2012. The terminal should begin operation in 2013. The investment, of USD 706 million, forms part of the Brazilian Government’s Accelerated Growth Program (PAC- Programa de Aceleração do Crescimento).


news Logistics company created for

Photo: Geraldo Falcão / Petrobras Image Bank

ETHANOL TRANSPORTATION The company Logum Logistics Inc., created to implement a multiform logistics system for the transport and storage of ethanol in Brazil, starts operations at the end of 2012. Petrobras holds 20% of the limited company, which also includes, among its owners, Copersucar S.A., Cosan S.A. Indústria e Comércio and Odebrecht Transport Participações S.A., each with 20%, as well as Camargo Correa Óleo e Gás Inc. and Uniduto Logística S.A., each owning 10%.

Petrobras Distribuidora enlarges lubricant factory In March, the subsidiary Petrobras Distribuidora signed a contract for the enlargement and modernization of the lubricant factory located in Duque de Caxias, in the state of Rio de Janeiro. Latin America’s largest industrial lubricant plant in a single refinery, the unit will see its monthly production capacity increase by 70%, taking the current 25,000 cubic meters produced per month to up to 42,000 m³. The work, scheduled to finish by the end of 2012, will provide new equipment for the lubricant factory, a new grease production line and a storage area, as well as the incorporation of modern automation and control systems, ensuring greater efficiency and productivity at the plant.

The company, founded in March, will be responsible for the construction, development and operation of a logistics, loading, unloading, movement and stock, and port and river terminal operations system, which will involve polyducts (multi-use pipelines), waterways, highways and cabotage. With investments of R$ 6 billion, the Multi-Form Ethanol Logistics System will extend across approximately 1,300 km and 45 Brazilian cities, linking the principal

ethanol-producing regions in the states of São Paulo, Minas Gerais, Goiás and Mato Grosso to the Petrobras refinery in Paulínia, in São Paulo state. When finished, the system will have the capacity to transport up to 21 million cubic meters of fuel per year. It will also make the process of exporting the product run more smoothly. At the moment, the majority of the ethanol is transported to the ports by heavy goods vehicles. Transpetro, a subsidiary of Petrobras, will construct and operate the waterway transport vessels and will also operate the pipeline system for Logum. Alberto Guimarães, CEO of Logum, says that the undertaking will lead to a reduction of 20% in ethanol transport costs in Brazil, as well as contributing to the preservation of the highway network and the environment, as it will be possible to reduce CO2 emissions by 7,000 tons a year.

Multi-Form Ethanol Logistics System

petrobras magazine 19


and yet,

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IT


MOVES global challenge

In a world that is apparently condemned to traffic jams, WHO REALLY NEEDS TO MOVE? The people or the cars? Sustainable transport, urban planning, new energy sources, INNOVATIVE individual ATTITUDES : ways to rethink mobility in the 21st century to make MAN – and not vehicles – the PRIORITY BY MARCO ANTONIO BARBOSA

thanks to: Chilli beans, Lode, Wollner

STYLING MARIANA ROSALBA

PHOTO MAX MOURE / WWW.CASA13.COM.BR

IMAGE PROCESSING MARC RECCO

BEAUTY RENATA VELUDO

video_ Watch a documentary about mobility at www.petrobras.com/magazine and on the Ipad version

petrobras magazine 21


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ny big city, rush hour. Look around. You are stationary. It doesn’t matter where: inside your car, standing on a bus, waiting for the metro or a train at the platform. Everything around you seems to be standing still. Traffic jams, delays, too many vehicles and too many people. Everything conspires so that there is no movement around you. Look again. Actually, everything is moving. Look again and you will see people walking, cyclists and motorbikes weaving between cars and buses, planes and helicopters flying in the sky. Even Planet Earth is turning on its own axis at a speed of more than 1,000 km/h. Forget the vehicles: what moves is life, people. If there is life, there is movement, and there is no traffic jam that can disprove that. And all this complex mix of objects (cars, motorbikes, trains) and structures (railways, highways, cycle paths, sidewalks), today seen as one of the most insurmountable dilemmas of the modern world, is being rethought in favor of life. Mobility needs to work for us, and not against us. The first urban bus appeared in 1662, in the city of Paris. It was a carriage pulled by seven horses, with capacity for eight passengers. It did not work out; by 1675 it was already out of circulation. The first of

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many problems with urban mobility was probably also born right then. Today the situation is even more complicated, with the continued increase in traffic congestion in large cities, accidents, atmospheric and sound pollution, and inefficient energy consumption, all generating social, economic and environmental problems. The World Energy Council warns that current modes of transport impact on the environment (they are responsible for up to 25% of energy consumption and greenhouse gas emissions), and waste time and money. Meanwhile, we, the people – who should be the reason for and object of mobility – we stay…stationary. “It is the people who need mobility, not the vehicles”, diagnoses Ronaldo Balassiano, professor and researcher of transport engineering at the Federal University of Rio de Janeiro. Author of more than 100 scientific studies on mobility and means of transport and one of the absolute references on the topic in Brazil, Balassiano is in a hurry. He fires out data, criticisms, examples and suggestions like a bullet train. His words always prioritize the human though, not the machine or the structure. “Imagine that in 2010 alone we had 3.5 million new cars produced in Brazil, and that that production is not accompanied by a circulation or parking policy. The result? A guy gets in his car to go to the corner to buy bread. Of course this is going to mess everything up.” Carlos Vinicius Massa, coordinator of Petrobras’ Technological Program of Innovation in Fuels and Lubricants (INOVA), summarizes: “The solutions for urban mobility range from good planning of the transport system, to the maintenance of the roads and highways and efficient integration between collective


global challenge

Global forum The World Energy Council, a global forum on energy and sustainability, has various studies to do with transport and mobility available on its website (www.worldenergy.org).

transports.” Actually, just recently the focus of the issue has moved from modes of transport and traffic towards a wider thought process on mobility. With the number of motorized vehicles in the world multiplying five-fold between 1950 and 1980, the priority post-World War II was to keep the cars circulating well. “This tends to prioritize high-speed highways and high-capacity automobiles”, explains the Canadian engineer Todd Alexander Litman, a member of the Institute of Transportation Engineers (USA) and author of the study Measuring Transportation: Traffic, Mobility and Accessibility. “What is needed is to think of transport users as people who are seeking access to places, services or goods, and of mobility as an end in itself.” It is in this direction that the most important studies and experiences seem to be heading in the field of mobility, a term which is now rhymed obligatorily with sustainability. The tonic is the search for innovative projects capable of managing the increasing demands of movement and of accessibility in big cities. To stimulate the use of ‘greener’ transport (public modes of transport or those which emit low amounts of carbon dioxide and toxic gases), to rethink urban planning in a way that reduces travel times and encourages non-motorized means of locomotion (reducing the environmental, economic

and social impact): that is the battle. Nevertheless, cars and buses are still (and will be, for years to come) the principal means of transport in cities. With this in mind, parallel solutions are being imagined to deal with this reality in the best way possible. “Petrobras guarantees the provision of quality fuels – that keep vehicles circulating in ideal working conditions and pollute the atmosphere less”, says Carlos Massa. “We contribute to urban mobility by producing fuels which are perfectly suited to new motoring technologies. With this, we reduce the risk of breakdowns in vehicles – which always hold up the traffic. Furthermore, we are already prepared for the future, when hybrid vehicles or ones powered by renewable sources will share more road space with gas-fuelled cars.

Acceptable congestion The development of the post-war automobile industry had an impact on the trends of urban mobility planning in the second half of the twentieth century. Wealthier countries put their faith in highways and wider and more extensive express roads – a synonym for progress. The traffic engineering was concentrated on maintaining ‘acceptable levels’ of congestion, investing little money in nonmotorized modes of transport.

petrobras magazine 23


Non-Science Fiction The “airship” conceived by Jules Verne in 1886 (left). The “dynosphere-monowheel” (right) promised to revolutionize transport in 1932

Pedal-operated vehicles Proposals for vehicles propelled by human traction were popular at the turn of the 20th century, for transit by water (above), air (below, left) or land (below, right)

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global challenge

Air train Above, a prototype of a suspended monorail vehicle moved by propeller, presented in the 1930s. The project was shelved for safety reasons

No horses! The “horseless carriage” left, promised to reach up to 186km/h. It was even tested in Belgium, in the 1920s. The Fairey Rotodyne (above) was one of various concepts of “gyroplanes” that were produced, mixing plane with helicopter. Balloons pulled by elephants were conceived (but fortunately not tested) in the 19th century


The USA has the highest average

164

WORLD

number of automobiles people, IRELAND is the country

(with two or more axles) per thousand almost 5 times more than the global average

with the highest average number of flights per capita in the world:

765

EUA

10.3

annual flights per inhabitant

The country also has the largest network of

paved highways

6.4

The NETHERLANDS is the country with the

thousand km

highest territorial density of vehicles:

196 per km2

(including cars, buses or trucks

JAPAN is the country which

most uses the metro.

In the metropolitan area of Tokyo alone, the two main underground train systems transported, in 2009, With

50

3.16 billion people

CHINA and INDIA

dominate the world thousandmarket in the production of BICYCLES. km

of navigable river and maritime routes,

CHINA

66%

BRAZIL is third in the list of countries which most use WATERWAYS as a means of transport. It is almost the same amount of river routes as in all of the countries of the European Union. 26 petrobras magazine

CHINA dominates the operation of

high-velocity trains

(capable of reaching 250 km/h or more)

INDIA

9%

4.84

thousand km

of functioning railway lines

and another 15.2 thousand km under construction.


global challenge

Less stress,

less pollution INFOGRAPHICS GABRIEL GIANORDOLI

PHOTOS THINKSTOCK

“The automobile users do not realize the cost that they impose on the rest of society because of their decision to enter the traffic flow”, summarizes Luiz Carlos Ramos Paim, mechanical engineer and consultant specialized in transport from the Legislative Chamber of Brasilia. Fewer cars on the streets, the change in emphasis from individual transport to collective transport and solutions that benefit non-motorized movement are ideas that will impact on the collective – from the quality of life of motorists and pedestrians to the air that we breathe in large cities.

driving in Brazil’), a study about the traffic chaos in large Brazilian cities.

Cycling and walking must be complementary to public transport. On the other hand, car-owners should be convinced – with increased efficiency of public transport – to leave their cars in the garage. “We would have relevant gains in economic and environmental terms, by the removal of these vehicles from the traffic”, believes Paim. Yet this all must be preceded by a change in the paradigm of respect that we have for one another. “People who are subject to the rules of public highways and the public space have not learned to be egalitarian”, affirms the anthropologist Roberto da Matta, author of Fé em Deus e pé na tábua – Como e por que você enlouquece dirigindo no Brasil (‘Faith in God and foot to the floor – How and why you get mad while

In Brazil, we have a PIONEERING history in the research of fuels that emit less pollutant gas”

As ideal as non-motorized transport seems at first glance – low-cost, healthy, non-polluting, energy-efficient – urban mobility based on combustion motors will still remain a reality for a long time. There are, though, people thinking of minimizing the impact of that reality for future generations.

explains Tadeu Cordeiro, senior management consultant for Performance of Motor Products at the Petrobras Research Center (Cenpes). At the Vehicular Test Laboratory (LEV in Portuguese), where Tadeu works, the company tests new products that assault the environment less, such as Podium gasoline, which possesses less sulfur content, as well as additives that increase the useful lifespan and ‘cleanliness’ of internal combustion motors. The LEV was also a pioneer in Brazil by experimenting, back in 2002, the first generation of hybrid (electric and combustion) cars to arrive in the country.

petrobras magazine 27


global challenge

How we got here – and

where we go now In May, 1896, New-Yorker Henry Wells entered the history books by causing the first traffic accident of the automobile era. Driving his ‘horseless carriage’, he hit a cyclist. Skipping forward 114 years, in August, 2010 we witnessed the largest traffic jam of all time – in Henei province in China, a traffic congestion that extended for more than 100 km lasted 11 days, caused by excessive heavy goods vehicle traffic and by roadworks on the highway. Can we really call this ‘evolution’? “Conventional transport planning uses indicators such as the speed of traffic and the operating cost of vehicles and ignores other accessibility factors. If we think like this, the only practical solution for traffic congestion is the expansion of the highways”, points out Todd Litman, of the Institute of Transportation Engineers. Yet with a total of 28.3 billion kilometers of highways spread across the world, is this really the solution?

28 petrobras magazine

Against this (planned) one-way (pun intended) tsunami of reinforced concrete, initiatives have emerged from diverse corners of the world, which return mobility to humanity. The stimulus for the use of a more efficient collective transport system, the incentive of non-motorized locomotion, the search for new forms of energy and the restructuring of urban spaces are the order of the day. Curitiba is the Brazilian reference in rational mobility planning – a story which began in 1968 and led the capital of Paraná to be elected, in April of last year, the most sustainable city in the world (at the last World Sustainability Conference, in Stockholm, Sweden). It was in Curitiba where the Brazilian model of the bus rapid transit system, or BRT, emerged and was exported and/or inspired similar solutions in more than 100 cities the world over.

Car Sharing

Bus Rapid Transit

Riversimple

Propagated in Europe, car-sharing permits the quick rental of automobiles for short periods. The idea is to decrease the number of private vehicles on the roads, reducing the demand for parking spaces.

The term (also translated eventually as ‘light vehicle on wheels’) encapsulates diverse solutions based on the optimization of the urban bus service. The average speed of the most efficient systems can reach 48 km/h (against the 24 km/h of conventional buses).

The Riversimple Urban Car will be produced from 2013 as the ideal of an ecologically and environmentally correct car. It will transport two passengers and will have a range of 390 km, guaranteed by an energy cell that converts hydrogen into electricity.


BRT, which commends the use of exclusive high-speed bus lanes, passenger stations (which eliminate the need to pay for a ticket after boarding the bus) and a service with extensive territorial coverage, was the solution found in cities such as Bogotá (Colombia), New York (USA), Seoul (South Korea) and Xiamen (China). It could also be the solution for the transport knot which Brazil needs to untie to be able to host the FIFA World Cup (2014) and the Olympic Games in Rio de Janeiro (2016). “There are 400 km of BRT lanes being implanted in the host-cities of the World Cup, such as São Paulo, Recife and Rio. In this aspect, we are following the global flow”, assures Luís Antonio Lindau, president of the Sustainable Transport Center of Brazil (CTS-Brasil in Portuguese).

Photos: Release

The wheeled transport solutions don’t end with fast buses. The integration of modes of transport was the route followed in Stockholm, Sweden (where bus, metro, three train lines and three more light-train vehicles function in harmony), and by Paris (which joined one of the largest metro systems in the world with six intercity and international train stations, as well as a good pedestrian infrastructure). Innovative systems of traffic control are working in Singapore (which instituted toll booths with variable tariffs in accordance with peak traffic hours). The concept of land reclamation, traditionally used to define parts of the sea that are filled in with earth, has been utilized in Seoul and New York to isolate urban areas from the circulation of private cars, prioritizing collective transport. In Portland (USA), looking to the past instead of the future, the revitalization of the city’s tram lines improved traffic and breathed new life into down-trodden areas. “The occupation of urban space needs to accompany the transport expansion”, reasons the traffic engineering specialist Ronaldo Balassiano. “The arrival of mobility in an area which is still uninhabited will inevitably bring human occupation to that area. What is needed is to think of this and transform public transport terminals into useful spaces for the population, with services, health centers, businesses. This reduces the need for large displacement to the urban centers.” In addition to that idea there are the wider demands of urbanization, such as taking advantage of areas in the process of population displacement, a better distribution of jobs and services (which reduces travel times) and the implementation of the concept of transit oriented development (TOD). “Territorial occupations which promote nonmotorized transport and electric vehicles and the decrease in space lost to parking are examples of TOD planning which are already in practice in Sweden, Germany and Australia”, notes Cathleen Sullivan, from the Institute of Transport Studies at the University of California, Berkeley (USA).

_robert cervero The status of Robert Cervero as a thinker of issues regarding mobility is rivaled by few other researchers in the world. Director of the Transport Center at the University of California, Cervero has already participated in urbanization and traffic projects and related issues in all four corners of the world (including Brazil, in the state of Ceará) and is the author of six books on the subject. He spoke to PETROBRAS MAGAZINE about who is winning and who is losing the mobility battle. What are the most urgent topics to be dealt with on the issue of urban mobility? Mobility in cities needs to be sustainable. More accessible mobility comes from a wider and more advanced public transport system, from city planning which prioritizes traffic and from urbanization which promotes walk and cycle paths – options that are also healthier – as well as urban growth which accompanies transport capacity, and not the other way around. What cities need to start thinking about these issues already? In the USA, cities such as Houston, Atlanta and Phoenix. In Latin America, São Paulo and Mexico City are still losing the fight against traffic congestion, pollution and the incessant domination of the automobile. What trends will dominate the future of mobility? Technology will play an important role. We will be able to solve environmental and energy problems with cleaner fuels. The advances in digital communications will decrease the need for physical travel.

web_ see more at www.petrobras.com/magazine

petrobras magazine 29


peru

Birthplace of the most powerful empire in pre-Columbian America, Peru preserves its past – the Inca tradition and the influence of the Spanish colonizers. Whilst in the present, it already finds itself among the

continent’s emerging nations BY MARCO ANTONIO BARBOSA

PHotos Istock / thinkstock

video_ Watch a documentary filmed on location in Peru at www.petrobras.com/magazine and on the version for the iPad

30 petrobras petrobrasmagazine magazine


around the world How to Get There Jorge Chávez International Airport, in Lima, is the main access point to the country. There are regular flights from the airport to Peru’s main cities. The Peruvian Airports and Commercial Aviation Corporation provides travelers with the telephone number (51) 1-574-5829 should they have any doubts they need clarifying. Tourist information can be found on the site www.peru.info/peru.asp (in Spanish).

Peru

Historical Data The oldest civilization in the Americas, the Caral people occupied the current territory of Peru around 2100 B.C. In 1542, the name “Peru” was used for the first time to designate the region which was home to the seat of the Inca Empire. The Viceroyalty of Peru comprised the greater part of the Spanish dominions on the continent. The country declared its independence in July 28, 1821.

petrobras petrobrasmagazine magazine 31 31


“T

There lies Peru with its riches; Here Panama and its poverty. Choose, each man, what best becomes a brave Castilian”, said the Spaniard Francisco Pizarro in 1526, upon drawing a line in the ground with his sword. On one side, due north, the uncertainty of hard times; followed by the road south, to the lands which today form the Republic of Peru. The folkloric episode, chronicled by the historian José Antonio del Busto in Francisco Pizarro, el Marqués Gobernador (1966), could well be the symbolic mark of the nation, birthplace of the Inca civilization and which today encompasses a multi-ethnic population, a great variety of mineral riches and magnificent bio-diversity. A place where the meeting of cultures (Andean, Spanish, African) has created a land full of interesting contrasts, which has been experiencing notable economic growth in this millennium.

The force of centuries-old tradition is reflected in the amount of archaeological locations in the country recognized by UNESCO as World Heritage sites – there are 13 (Brazil, whose land mass is almost seven times the size of Peru’s, has 17). The historical centers of the two major cities in Pan-culturalism the country (the capital The fourth most populated country Lima and Arequipa) are in South America (around 28.3 on the list, as well as million inhabitants), Peru grew the mythical ruins of with the miscegenation between the native people and the Spanish Machu Picchu and the colonizers. The nation also Inca constructions which received a large influx of Africans, remain in Cusco. The immigrants from other European Inca legacy spreads itself countries (Germany, Great Britain, through the estimated Italy and France) and from the Far 100,000 archaeological East (Japan and China). sites officially catalogued

across the country. Eighty percent of tourists who arrive in Peru come in search of this cultural legacy; no less than 11% of the economically active population of the country work in tourism. The (cordial) clash between colonial past and global present is accentuated in the Southeast of Peru, where Cusco is located. The city, which has been called “the Rome of the Americas”, is, according to historians, the oldest urban settlement on the whole continent, having served as the capital of the Inca Empire from the 13th century onwards. It is officially the historic capital of Peru and the biggest tourist destination in the country, receiving more than a million visitors a year. Its architectural heritage, in which pre-Columbian constructions are mixed with colonial-era buildings, is expressive. The city’s cathedral, with its Renaissance-style façade, dates from 1664. The convent and church of La Merced have been there since 1675 (the original construction was destroyed by an earthquake in 1650). The Plaza de Armas, nerve-center of the current city, is surrounded by a concentration of various buildings that have preserved their Spanish-influenced façades and roofs. It is possible to reach the square by Calle Hatun Rumiyuq, the main pedestrian thoroughfare in Cusco, also flanked with buildings with three centuries of history. As the culminating point of the region, the walls of Coricancha, or what is left of the largest Inca sanctuary, stand out. The walls were used by the European colonizers to construct the Convent of Santo Domingo. An ever-present past: in the photo above, Cusco’s historical Plaza de Armas. Below, the mythical ruins of Machu Picchu


Pre-Columbian splendour

around the world

There is evidence that the region where the city of Cusco now stands was already inhabited in the year 3000 B.C. Yet the importance of the city grew when the seat of government of the Incas was installed there, turning Cusco into the most important religious and administrative center in Latin America. A large part of the population belonged to the Inca aristocracy. Francisco Pizarro named it “Cuzco, great and noble city.�

petrobras magazine 33


Lima by night: a growing economy is driving the urbanization of the capital, the 27th most populated city in the world

In the province of Urubamba, on the outskirts of Cusco, is located the archetypal post-card picture of the country, the ‘Old Mountain’ – literal translation of the Quechua term Machu Picchu. Constructed from the 15th century on the eastern section of the Andes mountain range, the stone fortress, one of the greatest feats of ingenuity and architectural resources of the Incas, is today considered one of the Seven Modern Wonders of the World. Spread over a total area of around 326 km², the ruins of Machu Picchu carry an aura of mystery, of time stood still. It is as if we can capture a little of the original America, untouched by the Spanish conquistadores. The ‘urban’ area of the fortress has 172 buildings and includes the Temple of the Sun (where it is believed that the body of Emperor Pachacuti was once interred), the royal Inca residence and the so-called ‘sacred zone’, which includes the Main Temple, the largest religious space in the city. The idolatry that the ancient inhabitants devoted to the sun is present in the structure known as Intihuatana, a primitive type of 34 petrobras magazine

sundial, and is also present in various buildings, oriented by the solstices and the rising and setting of the sun. The capital, Lima, is one of the largest metropolitan areas in Latin America, with 7.6 million inhabitants. Amidst the urban din, however, hides a wellpreserved portion of Spanish colonial America, duly recognized as a World Heritage site in 1991. For almost 20 years, Lima has been maintaining a program of restoration and protection of its historical constructions. The most evident examples are balcones (balconies), a type of veranda typical of the buildings influenced by Spanish architecture and which were introduced to the city in the 16th century. Today, there remain around 1,800 balcones intact, which are maintained thanks to sponsorship deals between Lima City Hall and large businesses. Preserved in the same way is Plaza Mayor, scene of some of the most significant events in Peruvian history: it was there that Pizarro installed himself to


around the world found the city, and it was also where Peru’s independence from Spanish dominance was declared, in 1831. The Catholic faith brought by the Spanish conquistadores is reflected in the Convent of San Francisco (the first of the colonial buildings to be protected by UNESCO, in 1988) and in Lima Cathedral (dating from 1622). Not far from there, shines the Casona de San Marcos – the cultural center of the University of San Marcos, which comprises museums (the Lima Museum of Art and the Lima Museum of Archaeology and Anthropology), the Spanish Library of the Arts and various university institutions, all situated in historic buildings. At the same time in which it seeks to preserve its history, Lima exhibits one of the most exuberant modernization processes on the continent. Founded in January, 1553, the capital of Peru is the 27th most densely populated city in the world. Its metropolitan area comprises 57% of the country’s industrial base and 46 universities (including the aforementioned San Marcos, the oldest in Latin America, inaugurated in 1511). Districts such as Miraflores and San Isidro are as bustling and cosmopolitan as any neighborhood in São Paulo or Manhattan. Pizarro’s prediction, which guaranteed riches to those who accompanied him to Peru, has seemed to make more sense in the last few years. During almost 180 years of independence, the country has faced political and economic turbulence: from an (unsuccessful) war with Chile between 1879 and 1883 to military coup d’états in the twentieth century. In the 1980s, the nation suffered from uncontrollable inflation and an increase in drug-trafficking. Yet, with the consolidation of democracy, Peru has been experiencing economic stability (it has one of the lowest inflation rates in the world) and a notable growth in production since the turn of the century: the increase in GDP in 2008 reached 9%, a comparable level to that of China.

Tanks from Petrobras’ extraction base in El Alto (45 minutes from Talara)

Fossil fuels (especially diesel oil) are responsible for around 57% of the energy utilized by Peruvians. 27% of the country’s energy use is supplied by renewable sources (hydroelectric, biofuel and others). Natural gas provides the rest (17%). An ample project of natural gas exploration and distribution is underway, including gas pipelines for sales to the foreign market.

Talara, the X of the issue Petrobras Energía Perú, Inc. – the official name of the company that operates in Brazil’s neighboring country – started its activities in 1996. In 2010, it invested US$ 235 million in prospecting and exploration projects. Today, the company extracts 15,300 barrels of oil from its principal operation in Peru: Plot X in Bacia de Talara, in the Northeast of the nation, in which Petrobras retains 100% of the participation. The company also has 100% control over Plot 58 in Bacia Madre de Dios (close to the largest natural gas reserves in the country, in the eastern region of the Andes). Research on the volume of hydrocarbons available in the area will confirm the viability of the drilling of a third well (Taini) in the region. Prospects for exploration in Madre de Dios are high, with the development of the Integrated Project for the Development of Natural Gas. In Plot 57, in which Petrobras has 46.16% participation, favorable results in the evaluation of resources found have allowed the planning of another well in the Ucayali region (Mid-East of the country). Still in the phase of pre-exploration is Plot 117 (Marañon), where Petrobras has 50% participation. The company also develops and supports diverse initiatives geared towards the improvement of infrastructure, the preservation of the environment, the employment generation and the education in Peru. An example is supporting the project Agua y Alcantarillado, conceived to improve access to quality drinking water for the population of the El Alto district, in Talara.

petrobras magazine 35


_Rodolfo Trentin Gonçalves, University of São Paulo researcher A native of São Caetano do Sul, in São Paulo state, he is 26 years old. He moved out of his parents’ house a year ago, but still lives in São Caetano. Single, with no children; he is focused on following his career plans. “I want to become a professor at the Polytechnic School of the University of São Paulo,” he explains. He is a specialist in naval architecture and oceanic engineering. Besides his duties as a researcher, his great passion is tourism. “I like to travel to different places

and try food that I have never eaten before”, he says. His most recent trip was to China, where he visited Beijing and Shanghai. He also enjoys sports (he plays tennis) and card games (he often gets together with friends to play poker). With regards to scientific development, Rodolfo recognizes the importance of the work done at the Petrobras Research Center (Cenpes), not just for the benefit of the company, but for Brazil as a whole. “Research in technology and development form the roots for sustaining the growth of a modern nation”, he says.


voltatechnology ao mundo

brains

made in Brazil

An increase in demand from the oil and gas industry, principally because of the presalt reserves, is driving scientific innovation in Brazil and is helping to create a generation of young researchers who, instead of moving abroad, work for the benefit of technological advancement in the country BY Carlos Tautz PHotos CAROL CARQUEJEIRO / FELIPE VARANDA Styling Mariana Rosalba

W

hen 25 year-old naval engineer Rodolfo Trentin Gonçalves told his friends that he was dedicated to research at the University of São Paulo (USP), he used to hear the same question: “But don’t you work?”. His colleague Joel Sena Sales Júnior, 32, also faced a similar situation with his family, upon revealing that his professional choice would be to stay in the laboratories of the Federal University of Rio de Janeiro (UFRJ). “They thought that the job of researcher was unstable; more or less like an artist”, he recalls.

Civil engineer Fábio Martins Gonçalves Ferreira, 31, from the Federal University of Alagoas (UFAL), had better luck. Married and father of a young child, he never had to face any doubts from family or friends over his career choice. “To be involved with long-term research gives us stability”, he states. André Alves de Souza, from the research center of international oil and gas giant Schlumberger, in Rio de Janeiro, came from the Federal University of São Carlos (UFSCar), in the interior of São Paulo state. He believes that, when he was hired, “everything changed for the better. I can do everything I have always wanted to do – in research terms – in a large company”. petrobras magazine 37


The biggest impulse to researchers having more good work options in Brazil was the increased demand of the oil and gas industry for innovative technologies, especially with regards to the challenge of exploring pre-salt reserves. Petrobras alone will invest US$ 212.3 billion in Brazil until 2014, and a large part of that investment will be applied to high-complexity equipment. To attend this demand, its suppliers are also installing research centers in Brazil, close to universities and to Petrobras, intensifying the exchange of knowledge and provoking the emergence of one of the world’s most advanced poles of research in the energy sector. The center of this process is the Technological Park of the Federal University of Rio de Janeiro (UFRJ), located at Ilha do Fundão, close to the Petrobras Research Center (Cenpes). Six companies from the oil and gas industry are setting up shop there. The pioneer was Schlumberger, which, in 2010, inaugurated the Center for Research in Geo-engineering, for which it has already contracted 50 Brazilian researchers. Also in the process of

38 petrobras magazine

Brazil is now starting to create a

culturE TO DEVELOP ITS OWN RESEARCHES. Therefore, it is still a surprise for people to know that we have so many scientists”, Joel Sena Sales Júnior, researcher at the Federal University of Rio de Janeiro

installing themselves at the Park are Halliburton, Baker Hughes, FMC Technologies, Tenaris Confab and Usiminas. Furthermore, in March, the BG Group announced that it will also invest close to US$ 1.5 billion in its Global Technological Center in Rio de Janeiro by 2021, and General Electric (GE) has already installed a center on land next to the Technological Park. According to the calculations of the Rio de Janeiro State Government, these companies together have already invested almost US$ 303 million in the Park alone. “When we made the decision to construct a research center, we took into consideration the proximity of our clients, the challenges of the local industry, access to academic means and scientific knowledge and also the qualification of available professionals. Brazil comprises all these aspects”, explains Attilio Pisoni, general manager of the Schlumberger Center. Yet it is not just in companies where the intense development of new technologies is occurring. Research in the energy sector is also being stimulated in Brazilian universities, mainly through the model of thematic networks created by Petrobras in 2006. Each network brings together laboratories from diverse universities and research institutions, which

thanks to: JonnySize, Addict

What Rodolfo, Joel, Fábio and André all share in common is that they are all young and operate, in Brazil, in scientific researches over an extended period, which involve the most advanced technologies in their area. “Brazil is now starting to create this culture. Therefore, it is still a surprise for people to know that we have so many scientists”, explains Joel, who is studying his doctorate in hydro-dynamics at the Alberto Luiz Coimbra Institute of Post-graduation and Engineering Research (Coppe/UFRJ).


voltatechnology ao mundo

_Joel Sena Sales Júnior Federal University of Rio de Janeiro researcher Now 32, Joel settled in Ilha do Governador, in Rio de Janeiro, when he left his hometown of Petropolis (Rio de Janeiro state) five years ago. “Living here I am closer to the Technology Park and the Federal University (UFRJ)”, he explains. His great ambition is to become a famous professional in his field of work, experimental hydrodynamics. The researcher is completing his doctorate in the area. His taste in cinema is, shall we say, technological. “I like science-fiction films. I thought that Tron 2.0 was great”, he enthuses, revealing that he also likes history-based movies. Travel (he was recently in Italy and the Northeast of Brazil), theatre and literature (“novels, among one technical book and another”) are included in his other interests. Joel says that the importance of the work done at the Petrobras Research Center and the UFRJ Technology Park goes beyond the energy market. “The research undertaken at Cenpes not only yields results in petroleum exploration, but also serves to stimulate other technological areas in Brazil.”

petrobras magazine 39


_André Alves de Souza, Schlumberger researcher Born in São Bernardo do Campo, in São Paulo state (SP), 34 years ago. Nowadays he divides his time between Niterói (Rio de Janeiro) and São Carlos (São Paulo). A graduate of the Federal University of São Carlos (Ufscar), he left his hometown 12 years ago. One year ago, he settled in Rio de Janeiro state due to work. He is completing his doctorate in Science and Material Engineering at the São Carlos campus of the University of São Paulo (USP). He has a musical side. Away from the test tubes, he enjoys playing the guitar and the bass. “I enjoy brazilian popular music (MPB) and rock”, he says. He also likes to go to the theatre and the cinema. In literature, he prefers classic novels. “Machado de Assis is my favourite author”, he reveals. “I hope to acquire more knowledge here, putting into practice everything I learned from my academic studies”, he says. “With the research already in development at the new Schlumberger center, we hope to further strengthen Brazil’s position amongst the largest explorers and producers of oil and gas in the world.” 40 petrobras magazine


voltatechnology ao mundo act in an integrated form under the coordination of Petrobras, on themes defined by the company. Currently, there are 50 networks, in which more than 100 institutions of research and development share knowledge, experiences and infrastructure. Between 2008 and 2010, Petrobras invested US$ 2.6 billion in research, of which 56% was undertaken in collaboration with universities, foreign and Brazilian companies and other laboratories.

thanks to: Cavalera, Wollner

Among the laboratories which take part in these thematic networks is the Scientific Computation and Visualization Laboratory, from UFAL, where Fábio works. He and his colleagues agree that the possibility of dedicating themselves to scientific investigation has given them new perspectives in life. According to Carlos Tadeu da Costa Fraga, executive manager of Cenpes, at least 13,000 professionals have already worked in Brazilian institutions of science and technology in the research and development projects undertaken in partnership with Petrobras. Perhaps the greatest reward from the creation of this environment, which is so propitious to scientific research, has really been a reversal of the brain drain abroad. Previously, Brazilian scientists left the country to work abroad; now, multinationals come to Brazil to work with the country’s specialists. André, who was an intern at the Schlumberger Research Center in Boston (USA) before settling in Rio de Janeiro, explains: “The pre-salt discovery is really increasing the possibilities for us to undertake these researches, including within companies. It is a unique period for Brazil.”

Facing the challenges of the coming years Besides stimulating the scientific production applied in universities and other companies, Petrobras is also enlarging its own research center. Cenpes, which completes 48 years in 2011, doubled in area with the inauguration of the expansion, in October, 2010, now occupying 300,000 square meters. With investments of approximately US$ 700 million in the enlargement, Cenpes became one of the largest R&D centers in the Southern Hemisphere. On site, close to 1,600 technicians, engineers and researchers work on researches focused on the development of technologies which have been fundamental so that Petrobras can continue to reach its business targets. Executive manager of Cenpes, Carlos Tadeu da Costa Fraga, recalls that, since 2008, Petrobras has invested, on average, around US$ 800 million per year in their own scientific investigations and in diverse kinds of partnerships with universities and suppliers. For Tadeu, Petrobras has increased its capacity for innovation and, at the same time, contributed so that the technological development of their suppliers and Brazil itself accompanies this qualitative leap.

The pre-salt discovery is INCREASING the possibilities for us to undertake SCIENTIFIC RESEARCH, including within companies. It is a unique period for Brazil” ANDRÉ ALVES DE SOUZA, researcher at Schlumberger Center in Rio de Janeiro

petrobras magazine 41


deep

future BY VINICIUS MEDEIROS

PHOTOS PETROBRAS IMAGE BANK

INFOGRAPHICS GABRIEL GIANORDOLI

Brazil is the LEADER in the world ranking of discoveries of new oil reserves in the past decade, mainly driven by Petrobras’ SUCCESS in the pre-salt layer

The sea floor and its layers: from the depths of the Brazilian coast, discoveries which surpass those of the Middle East

42 petrobras magazine


business

Where is the pre-salt? The term “pre-salt” refers to a cluster of rocks that can be found in several points along the Brazilian coast, with the potential for generation and accumulation of oil. It’s called pre-salt because of a range of rocks that extends beneath an extensive salt layer, which in some areas can reach a thickness up to 2,000 meters. The distance between the sea surface and the oil reservoirs below the salt layer can reach more than 7,000 meters. The biggest oil findings made in Brazil by Petrobras in the pre-salt were located on the coast between the states of Santa Catarina and Espírito Santo, at a distance of about 300 kilometers offshore.

What is the potential of the pre-salt? The pre-salt could transform Brazil into a world leading producer of oil and natural gas. Petrobras has plans to produce 3.95 million barrels of oil per day in Brazil in 2020, with 1.078 million barrels coming from the pre-salt.

petrobras magazine 43


F

rom the bottom of the sea – to be more precise, the depths of the presalt layers – a truth emerges: Brazil, in the second decade of the 21st century, is presenting itself as one of the main El Dorados for oil and gas sector investments. Between 2000 and 2010, Brazil’s proven oil and natural gas reserves increased 68.5%, according to data from the National Petroleum, Natural Gas and Biofuels Agency (ANP), going from 9.854 billion barrels of oil equivalent (boe) to 16.609 billion. In the last decade, Brazil also took over the global leadership position in terms of discoveries of new reserves, according to a survey by the international consulting firm IHS Cera. Taking into account the volume and number of wells with more than 1 billion barrels, 11 of the 35 biggest discoveries around the globe were made in Brazil — which even surpassed Middle Eastern nations traditionally recognized as having the largest reservoirs on the planet. “The pre-salt is a turning point for Brazil. It has the potential to become a great competitive advantage in terms of additional reserves and for future growth. In many aspects, the stars are in alignment on behalf of the country, and it is clear that this also is the case for Petrobras. Based on the company’s success, Brazil is ready to strengthen its position as the leader of deep-water technology and to become an important oil

44 petrobras magazine

Heating up the market It is impossible to disassociate the heating up of the Brazilian energy market from Petrobras’ activities; the company has significantly boosted its investments in exploration, production and development of technology in the past few years. In 2010, its production of oil and gas increased 2.3% over 2009, reaching 2.583 million barrels of oil equivalent per day in its operations in Brazil and abroad. The good results are even better when associated with the increase in Petrobras’ proven oil, condensate and natural gas reserves, which in 2010 totaled 15.986 billion barrels (according to SPE’s criteria), up 7.5% over the previous year. Of the total, 96% is located in Brazil. Over the same amount of time, the Reserve Replacement Index, which is an important market indicator, increased 229%, whereas the reserve/production ratio closed the year at 18.4 years. At the end of last year, Petrobras declared the commercial feasibility of good quality oil and gas in the Lula and Cernambi fields, both located in the Santos Basin pre-salt layers. In the former, the recoverable amount reported to the National Petroleum Agency (ANP) was 6.5 billion barrels of oil equivalent (boe), at API 28. In the latter, the volume was 1.8 billion barrels at API 30. “Other traditional producing areas in the country also have reported increases. Today, very few companies have a reserve replacement level similar to that of Petrobras,” emphasizes Carlos Eugênio da Resurreição, general manager of the company’s Reserves and Reservoirs area. “In 2010, for each barrel of oil equivalent extracted in Brazil, 2.40 barrels of oil equivalent were appropriated, resulting in a Reserve Replacement Index of 240%. We are working to incorporate reserves that compensate production, which increases the total recovery factor, which today is at 31%,” he argues. Birol sums it up: “Petrobras can be proud of its reputation for sophistication in deep-water operations and has become a global leader in this field. The company already is one of the largest oil companies in the world, but it is probable that it will play an even bigger role in the future.”

exporter,” says John Robinson West, founder and CEO of the respected PFC Energy consulting company. In a context in which the main world oil companies are finding it difficult to make new discoveries, the pre-salt areas in Brazil are moving in the opposite direction. According to ANP data, the number of hydrocarbon shows reported by the oil companies working in the country totaled 960 during the past decade. Just between 2005 and 2010 these reports doubled: they went from 75 to 149 per year. Although many of them do not necessarily pan out to be commercially feasible reserves, the speeding up of the pace of the findings is a good indication of the heating up of the sector. Although Brazil is still distant from the Arab countries, it appears the country is heading quickly toward the top positions. Such optimism is justified when one takes into account the fact that most of the pre-salt discoveries have not yet been calculated into the current proven reserves. The total volume estimated, just in the Libra and Franco fields alone, may reach 13 billion barrels, according to the assessment of the Gaffney, Cline & Associates certification agency that was contracted by the ANP to evaluate the pre-salt accumulations — practically the same amount that Petrobras discovered in the areas that also had been put out for tender by the federal government. The largest oil reserve ever discovered in Brazil until today, the Libra prospect could contain between 3.7 billion to 15 billion barrels, with a total of 7.9 billion being most probable. Other


volta aobusiness mundo The pre-salt is a turning point for Brazil. It has the POTENTIAL to become a great competitive advantage in terms of ADDITIONAL reserves and future growth” JOHN ROBINSON WEST, CEO, PFC ENERGY

Technicians in action in Santos Basin: Petrobras’ production of oil and gas last year grew 2.3% from 2009

Evolution of Petrobras’ Proven Reserves and Accumulated Production in Brazil in the first decade of the 21st century (SPE criteria) Proven Reserves 14,000

Projection of Petrobras’ growth in production (in barrels of oil equivalent per day)

Accumulated production 15,283

millions of BOE

12,602

12,000

13,753

13,232

13,023

13,920

14,093

2010:

2,583,458

2020:

5,382,000

11,009 9,648

10,000

9,670

8,000

7,251 5,684

6,000 3,511

4,000 2,000

14,169

1,044

513

2,255

1,630

4,214

6,454

4,930

2,858

0 2000

$

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

US$ 224 billion Petrobras’ foreseen investment until 2014, one of the largest investment plans in the world energy industry

800 kilometers the range of the pre-salt layer which stretches from the state of Espírito Santo to the state of Santa Catarina, off the Brazilian coast

11

main discoveries

Brazil registered 11 of the 35 biggest petroleum discoveries in the world during the last decade, considering volume and number of wells with more than one billion barrels (source: IHS Cera)

petrobras magazine 45


discoveries still being tested by Petrobras, such as the Lula and Cernambi areas (estimated at 5 to 8 billion barrels), Iara (estimated at 3 to 4 billion) and Guará (estimated at 1 to 2 billion), as well as other pre-salt fields located in the Campos Basin (with estimates between 1 and 2 billion), until now have only had small portions included in the officially recognized Brazilian proven reserves. “I believe that Brazil will play an increasingly important role in the global energy market. Based on our numbers, we can say that it will be the third most important country in terms of growth of supply through 2035, behind only Saudi Arabia and Iraq,” says Fatih Birol, chief economist of the International Energy Agency (IEA), corroborating West’s statements.

Ships operating in the pre-salt region: reserves in the area can put Brazil amongst the largest producers in the world

46 petrobras magazine

I believe that Brazil will play an increasingly important role in the

GLOBAL ENERGY MARKET. Based on our numbers, we can say that it will be the THIRD

MOST IMPORTANT COUNTRY in terms of growth of supply through 2035”, FATIH

BIROL, CHIEF ECONOMIST, INTERNATIONAL ENERGY AGENCY

The Brazilian potential for oil and natural gas, however, is not restricted to the pre-salt regions of the Santos and Campos Basins. The Multi-Annual Geological and Geophysical Plan prepared by the ANP presents other exploration frontiers. “One of the areas with the greatest potential is the socalled Equatorial Margin, which runs from the Potiguar Basin in Rio Grande do Norte up to the headwaters of the Amazon River, a region that is analogous to the African West Coast and where major oil discoveries were recently announced. The Brazilian Equatorial basins could present a potential that is similar or even greater than those of the African basin,” says Haroldo Lima, director general of the ANP.


business More investments coming At the end of last year, the Brazilian government sanctioned a new regulatory framework for exploration in the pre-salt layers, establishing a reduction sharing mechanism. The law approved by the National Congress also determined that Petrobras would be the single operator of the blocks, with a minimum participation of 30% in the consortia that were established. Now capitalized like never before through a public share offer — the company conducted the largest capital increase the world had ever seen, obtaining R$ 120 billion through the issue of more than 4 billion shares — Petrobras currently is executing its 2010-2014 Business Plan that calls for investments totaling some US$ 224 billion. There was a quick response to the share issue operation. At the beginning of the year, Petrobras jumped to third place on the PFC Energy 50 list of the largest companies in the industry by market cap, published by the U.S. energy consulting company. Assessed at US$ 228.9 billion, Petrobras is behind only ExxonMobil (USA) and PetroChina (China). In its analysis of this ranking, PFC Energy emphasized the continuous growth of the Brazilian company, which went from 27th position in 1999, the year of the first edition of the list, up to its current placement. “The growing importance of Petrobras is comparable to the increasing political and economic influence of the emerging countries. We live in a multi-polar world, where the role of countries like Brazil will continue to expand,” said West, of PFC Energy. “The company certainly will become one of the main enterprises of the industry by 2015. It is taking all the correct steps in the direction of growth.”

petrobras magazine 47


48 petrobras magazine


culture

verything is transformed AT ONE OF THE most DEGRADED ENVIRONMENTS in Brazil - the Gramacho landfill in the State of Rio de Janeiro - a WORK OF ART that restored dignity to a community of GARBAGE COLLECTORS was born. The documentary Waste Land tells the whole story BY MARCO ANTONIO BARBOSA

petrobras magazine 49


“N

othing is lost, nothing is created, everything is transformed.” The possibilities of the famous quote from the chemist Antoine Lavoisier gain significance when faced with the reality of Jardim Gramacho, a neighborhood in the city of Duque de Caxias, in the state of Rio de Janeiro – where the largest waste landfill in Latin America is located. There, more than five thousand people find their daily sustenance, searching amongst the garbage for anything that can be sold, re-used or recycled. Who would believe that anything other than misery could be extracted from such a place? The cinematographers João Jardim, Karen Harley and Lucy Walker did when the visual artist Vik Muniz told them precisely that. Previously, Vik himself had believed in the people of Gramacho’s capacity to

produce art from trash. Sebastião Carlos dos Santos, president of the Association of Recycling Pickers of Jardim Gramacho, also believed in Vik. From this chain of belief, the documentary Lixo Extraordinário (‘Waste Land’) was born. It tells the story of the work that the artist developed with the landfill pickers. Over almost three years, using waste products as raw material, Vik and the inhabitants of Gramacho recreated day-to-day garbage as art, in photographs, pictures and paintings. In the process, Sebastião, the popular Tião, and their colleagues rediscovered their own dignity and the existence of a world outside the 1.5 million square meters of the landfill. The resulting film was not only nominated for an Oscar in 2011 for Best Feature Documentary, but won the Audience Award at the Sundance (USA) and Berlin (Germany) film festivals.


volta ao culture mundo The moment when one thing TRANSFORMS into another is the most beautiful MOMENT” VIK MUNIZ

Photos: Release

Above, Tião, the picker who serves as a model for Vik Muniz (wearing the cap, in the photo to the right). Next to him, Lucy Walker, one of the film’s directors

“I expected to see destroyed people, but they were survivors”, stated Vik Muniz about his contact with the pickers. From the original idea (to portray the people who survive off the garbage dump), the project evolved into a collaboration between the renowned New York-based Brazilian artist and the humble workers of Gramacho. Vik collaborated with people whose families have been picking garbage at the landfill for three generations. The apex of the narrative is the sale of the painting in which the artist depicted Tião posing in a bath-tub – evoking the death of the revolutionary Jean-Paul Marat (17431793), murdered during the French Revolution whilst taking a bath. In London, the piece was sold for R$ 74,000, money which was donated to the Association of Recycling Pickers. Before the scene of the sale, we hear the stories of people such as Zumbi (who started a library with books found in the trash) and Irma (who cooks meals with any acceptable food

that she can find). “The moment when one thing transforms into another is the most beautiful moment – and this applies to everything”, summarizes Vik. Petrobras also believed in this story of transformation and, through its Public Selection of Diffusion, a sponsorship project geared towards the distribution of Brazilian films, helped Lixo Extraordinário reach festivals and the commercial circuit (the film premiered in January). “We give financial support for the production of copies and for publicity campaigns”, explains Romildo Nascimento, Cinema Sponsorship coordinator at Petrobras. The work developed by Vik Muniz and the pickers also influenced the approval. “Besides the artistic quality of the documentary, the idea of social redemption promoted by the film touches on issues that are very dear to the company. The presence of Vik, a great Brazilian artist of worldrenown, helped attract attention to the project.”

A cinema thing Through the Petrobras Cultural Program, which periodically announces notices for the production and diffusion of short and feature-length films and for sponsorship of screenings and festivals, the company is the largest supporter of Brazilian cinema. “Our incentives are widespread: they range from production support to sponsorship of classic film restorations and include the fostering of study centers like the Darcy Ribeiro School of Cinema (in Rio de Janeiro) and the Nova Iguaçu School of Cinema (Rio de Janeiro state)”, says Romildo Nascimento. Since 1994, the year of the so-called retaking of national cinema, Petrobras has contributed to the production of more than 500 films, including commercial successes such as Daniel Filho’s 2006 film Se Eu Fosse Você (‘If I Were You’), Tropa de Elite (‘Elite Squad’) by José Padilha, released in 2007, and the 2008 hit Meu Nome Não é Johnny (‘My Name Ain’t Johnny’), directed by Mauro Lima. Among forthcoming releases bearing the company’s name, are Jefferson De’s Bróder, Não se Pode Viver Sem Amor (‘Love Is All We Need’) by Jorge Durán and Não se Preocupe, que Nada Vai Dar Certo, directed by Hugo Carvana.

petrobras magazine 51


a


essay

and uni versal Symbol of the URBAN

MODERNIZATION of Rio de

Janeiro – and a TROPICAL BELLE EPÓQUE model from the beginning of the 20th century – the MUNICIPAL THEATRE has recovered its full original

SPLENDOR, 101 years after it was founded PHOTOS FELIPE VARANDA

petrobras magazine 53


54 petrobras magazine


essay

Carrara marble for the Corinthian columns; stained glass windows from Germany illustrated with the muses

of the arts; bronze statues representing poetry and dance;

precious stones and crystal pieces for the staircases

petrobras magazine 55


essay

AL R TU L CU S, , I RY LLA N I U NT A CA SCAN E I C R H TO ON A T O 0 M T 2 R S L U U E A A P T H P T CH V, AR RDT NICI G U N S A O IN U E I H R S T Y RN HE M TITU WN DU ICON URE E T B S N O T N H F I A S A L C T L I I S R O A N A T E D R AV TIS S RU ND S TATIO LTU H U U O A R N R C T E A O T A ES IRS E A, CH ITOR R RIC L F P E E M RIP STR ER HE A H T G – TIN ED T CHE STRO SIN HE A L R L T F (O MAE RICA IN CALL S T). LY LES O THAT P O S R ALLE AND MP TS O C D B OS EXA EN AN -LOB ARE AL ERE LA AYÃO N T D TH L I V E A S I M U L R BID AZI RFO BR PE 56 petrobras magazine


Inaugurated in July 1909, the Rio de Janeiro Municipal Theatre was celebrated by Pereira Passos (Mayor of the city at the time) to be the culminating point of the URBANISTIC

REVOLUTION planned for the city. Inspired by the Paris Opera House, it combined classic lines with decoration inspired by the

Baroque period and by the ART NOUVEAU style

petrobras magazine 57


web_ access www.petrobras.com/magazine and see more photos from the essay

58 petrobras magazine


essay álbum

EXPANDED OVER THE YEARS,

THE THEATRE’S M AIN CONCERT HALL’S CAPACITY WENT F ROM 1,739 TO TODAY’S

2,361 SPECTATORS.

BY 1996, THE ORIG INAL CONSTRUCTION HAD RECEIVED AN ADDITION, TO BE USED AS REHEARSAL SP ACE (PREVIOUSLY DON E ON THE MAIN STAGE) OR EVEN FOR SMALL ER PERFORMANCES

petrobras magazine 59


In 2008, to commemorate its centennial, the Theatre initiated its most extensive reform. Petrobras contributed to the restoration of this heritage building and delivered a new Municipal Theatre to the city of Rio de Janeiro. The work recovered

characteristics from the 1909 construction, such as the golden hues of the faรงade (based on gold leaf) and original ornaments, panels and paintings that had

been hidden for decades


essay

petrobras magazine 61


PETROBRAS AROUND THE WORLD NETHERLANDS

UNITED KINGDOM

PORTUGAL UNITED STATES

MEXICO

LIBYA CUBA

EXPLORATION AND PRODUCTION

VENEZUELA REFINING

BENIN NIGERIA

COLOMBIA ECUADOR

DISTRIBUTION

BRAZIL LUBE OIL PLANT

ANGOLA

PERU BOLIVIA

REPRESENTATION OFFICE

PARAGUAY

NAMIBIA

HEADQUARTERS

URUGUAY PETROCHEMICAL

CHILE ARGENTINA

BIOFUELS

ELECTRICAL ENERGY

PIPELINE TRANSPORTATION

112,425 146,529 115,892

150,852

62 petrobras magazine

72,347 87,735 118,257 91,869

120,052

2010 2009 2008 2007 2006

2006

93,893

NET PROFIT FOR THE YEAR (US$ MILLIONS)

NET OPERATING REVENUE (US$ MILLIONS)

2010 2009 2008 2007

2010 2009 2008 2007

2006

SALES OF PRODUCTS AND SERVICES (US$ MILLIONS)

12,826 13,411 17,733 16,823

19,475


overview

JAPAN

CHINA

IRAN

TURKEY

INDIA

SINGAPORE

TANZANIA

AUSTRALIA

NEW ZEALAND

14,643 20,978 29,874 35,134

45,078

* Average daily production of oil, LNG and natural gas

TOTAL PROVEN RESERVES (Billions of BOE)* 2.297 2.300 2.400 2.525

2.583

2010 2009 2008 2007 2006

2006

DAILY PRODUCTION (Millions of BOE/day)*

2010 2009 2008 2007

2010 2009 2008 2007

2006

INVESTMENTS (US$ MILLIONS)

* SEC criteria

11.457 11.704 11.190 12.143

12.747


energy that moves

the world!

Petrobras joined Lomography, at www.lomography.com, to discover how people see energy around themselves and around the planet. Photographers from different continents sent thousands of pictures that together form the biggest LomoWall ever made in Latin America, exhibited at Museum of Modern Art of Rio de Janeiro, from 28th April to 15th May 2011. The exhibition marks the launch of Petrobras new global website, www.petrobras.com. Access our website and see through the lens of these photographers the result of this experience.

www.petrobras.com

Petrobras Magazine #60  

New editorial and graphic design, new sections, new content. The new Petrobras Magazine is for you to listen to, download, watch, like and s...

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