Fact sheet BP

BP

in Brazil The acquisition of Devon Energy do Brasil is the foundation for the company’s long-term E&P growth in the country.

BP’s growth in Brazil - Highlights The acquisition of Devon Energy do Brasil is the foundation for the company’s long-term E&P growth in the country. BP has gained access to 10 concessions, onshore and offshore, in a variety of geological settings and at all stages of the E&P cycle: exploration, appraisal, development and production: • BP has gaineds access to one producing field (Polvo) and 4 discoveries (Xerelete Field, Fragata, Itaipu and Wahoo) • BP becomes operator of the Polvo field, currently producing ~ 25 kbopd, and of blocks BM-C-32 (Itaipu discovery) and BM-C-34 (C-M-471, C-M-473 and Fragata discovery) in Campos Basin; Block BMCAL-13 in Camamu-Almada Basin; and onshore Block BT-PN-2 in Parnaiba Basin • BP becomes a non-operating partner in blocks BM-C-30 (Wahoo discovery), BM-C-35 and Xerelete Field (former BC-2 block), all in Campos Basin; and onshore Block BT-PN-3 in Parnaiba Basin BP’s commitment to Brazil, is evidenced by growing investments in a variety of energy businesses: ethanol production (BP Biofuels), aviation fuel (Air BP) and lubricants and process fluids (Castrol).

Following its latest acquisition, BP will be now present in nine Brazilian states (Bahia, Espírito Santo, Goiás, Maranhão, Mato Grosso, Minas Gerais, Paraná, Rio de Janeiro, and São Paulo) and the Federal District.

Key facts about BP global operations • BP is one of the world’s largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. The BP Group operates across six continents, in over 100 countries and employs around 80,000 people.

• BP began operating over 100 years ago, and since then has operated at the frontiers of the energy industry, investing in the development of various pioneering technologies and developping better ways of generating

energy. Initially called the Anglo-Persian Oil Company, it made its first oil discovery in Persia in 1908. Over the course of its history, the company has made significant discoveries and been involved in major mergers and acquisitions, growing from a local oil company into a global energy group.

• BP is a leading global player in oil and gas exploration, development and production.

In 2010, it produced 3.8 million barrels of oil equivalent per day as operator.

• BP is a global biofuels supplier, through its dedicated business unit BP Biofuels. It was the first oil company to invest in sugarcane ethanol production in Brazil.

• Every year, Air BP delivers more than 26 million tonnes of fuels and lubricants to over 600 airports in approximately 50 countries across the world.

• Castrol is one of the BP Group’s most important companies in the lubricants sector.

In addition to its famous products for cars and motorcycles, Castrol supplies lubricants for heavy transportation, refrigeration, steelmaking and marine applications, as well as industry in general.

Brazil and BP BP has been active in the Brazilian energy sector for more than half a century, since Castrol built a lubricants plant in Rio de Janeiro in 1957. The Castrol line of lubricants now features products for the automotive, motorcycle, marine and industrial sectors. For the industrial market, Castrol supplies a large variety of oils, greases and cutting fluids. It provides specific lubricants for the shipping industry and produces highquality fluids for the growing offshore oil and gas market. For the automotive market, it supplies advanced, high-performance products for vehicle engines powered by gasoline, ethanol, diesel and natural gas.

During the 1970s and 1980s, BP conducted exploration activities in the country, acquiring seismic data in the Santos, Amazonas and Paraná basins and drilling four wells in Santos Basin. Between 1999 and 2005, BP operated two deepwater blocks in Foz do Amazonas

Basin (BFZ-2 and BMFZA-1), drilling three wells around 500 km to the north of Belém, Pará.

BP is present in the aviation fuel sector through Air BP. In 2002, it began operating at five small airports in the states of Rio de Janeiro and São Paulo. In 2004, it expanded to 13 airports in five states and the Federal District, supplying commercial, military and general aviation customers.

In 2008, BP became the first oil company to invest in the Brazilian sugarcane ethanol industry when it invested in a 50% stake in Tropical BioEnergia S.A., a joint venture with LDC Bioenergia and Brasil Ecodiesel.

In 2010 Butamax Advanced Biofuels (a joint venture between BP and DuPont) inaugurated the first laboratory in Latin America devoted exclusively to the development of biobutanol, located in Paulínia (São Paulo).

In 2011, BP has agreed to pay approximately US$680 million to acquire 83 per cent of the shares of the Brazilian ethanol producer Companhia Nacional de Açúcar e Álcool (CNAA).

BP will become the operator of two ethanol mills, located in Goiás and Minas Gerais states.

BP workforce By receiving approval to acquire control of Devon Energy do Brasil Ltda., BP Group affiliated companies’ collaborators will rise to around 4,200 in Brazil. With these investments, BP plans to create jobs, generate revenues for the country, train Brazilian professionals and contribute to the development of Brazilian goods and services suppliers, with the support of BP’s global experience.

Developing people and skills BP looks to maximize the use of local resources in its businesses in all parts of the world where it operates. The company develops partnerships with universities and technical schools and helps training professionals who are indispensible to the execution of BP’s plans. It also runs in-house training centres to expose local employees to BP’s deep experience and global knowledge.

BP’s philosophy is that its technicians staff is temporarily assigned and are is limited to helping to implement projects, but also have the responsibility to train and guide local professionals, in order to develop them for technical and leadership positions both in their own country and elsewhere.

Investment in the community BP seeks to generate positive socioeconomic impacts in the communities of the regions where it operates. The company develops responsible operations and invests in projects that involve local people, respecting their cultural and economic traditions, and engaging with their businesses. The initiatives in which BP participates are expected to generate jobs and income, raise local governments’ tax revenues and create more opportunities for regional suppliers. Respect for human rights and the development of transparent, responsible relationships with stakeholders involved in its projects are fundamental BP values.

fish to more distant markets has given the fishermen pricing autonomy. The project was initiated by Devon Energy do Brasil Ltda. and will be maintained by BP.

E&P in Brazil – highlights • Upon receiving approval to acquire control of Devon Energy do Brasil Ltda., BP’s will gain access to ten concession areas – seven in Campos Basin (Rio de Janeiro and Espírito Santo States), one in CamamuAlmada Basin (Bahia) and two in Parnaíba Basin (Maranhão).

• Polvo Field in Campos Basin has been producing since July 2007, bringing around

• Xerelete Field (Campos Basin) is currently in the development phase. The other blocks acquired are in the exploration phase: BMC-30 (Wahoo discovery), BM-C-32 (Itaipu discovery), BM-C-34 (C-M-471, C-M-473 and Fragata discovery) and BM-C-35, located in Campos Basin; BM-CAL-13 in CamamuAlmada Basin; and BT-PN-2 and BT-PN-3 in Parnaíba Basin.

• BP will become Petrobras’ partner in block BM-C-34 (C-M-471, C-M-473 and Fragata

BP’s concession areas in Brazil Exploration Phase Concession

Geological Basin

Operator

When it starts operations in new areas or carries out acquisitions, BP conducts thorough studies to create projects that are suited to local realities and people’s needs. These evaluations examine both the positive and negative impacts that may be generated by operations. Accordingly, BP’s projects look to reinforce the positive aspects and minimize the negative ones. One of BP’s objectives is to invest in sustainable projects that will thrive independently of its operations in the region.

BM-C-30

Campos Basin (RJ/ ES)

Anadarko

BM-C-32

Campos Basin (RJ/ ES)

BP

BM-C-34 (C-M-471 and C-M-473)

Campos Basin (RJ/ ES)

BP

Here are some examples of current projects: Focus on the Future – A partnership with Augusto Mota University and the Association of Nova Brasília Residents (Rio de Janeiro) to train young people for photography-related professions, through indoor and outdoor classes on photography, Microsoft Office, Adobe Photoshop and entrepreneurship.

BT-PN-2

Parnaíba Basin (MA)

BP

BT-PN-3

Parnaíba Basin (MA)

Petrobras

Creating Logistics Infrastructure for the Z-22 Fishermen’s Community – This project supports the fishing community in the municipality of Rio das Ostras (Rio de Janeiro) in the social, economic and environmental spheres. The purchase of a refrigerated truck to transport

25,000 barrels of oil to the surface every day.

Polvo was the first entirely private-sector project to start production on the Brazilian continental shelf.

BM-C-35 BM-CAL-13

Campos Basin (RJ/ ES) Camamu-Almada Basin (BA)

Petrobras BP

Concession-holder(s) Anadarko 30% BP 25% IBV Brasil 25% SK Energy 20% BP 40% Anadarko 33.33% SK Energy 26.67% BP 30% Petrobras 50% Maersk 20% Petrobras 65% BP 35%

ANP Licensing Round

BP 100%

Round 7 (2005)

BP 40% Petrobras 40% Vale 20% BP 40% Petrobras 40% Vale 20%

Round 6 (2004)

Round 6 (2004) Round 7 (2005) Round 7 (2005)

Round 9 (2007) Round 9 (2007)

Production Phase Concession Polvo Xerelete

Geological Basin Campos Basin (RJ/ ES) Campos Basin (RJ/ ES)

Operator BP Petrobras

Concession-holder(s) BP 60% SK Energy 40% Petrobras 41.175% BP 17.650% Total 41.175%

ANP Licensing Round Round 2 (2000) Round Zero (1998)

discovery), block BM-C-35 and Xerelete Field, in Campos Basin; and block BT-PN-2 and block BT-PN-3 in Parnaíba Basin.

BP Group family activities in Brazil

• Other partners will be Anadarko (from USA), IBV Brasil (from India), Maersk (from Denmark), SK (from South Korea) Total (from France) and Vale (from Brazil).

São Luís

Guillermo Quintero, BP President in Brazil Following 30 years of experience in the oil and gas sector, Guillermo Quintero was appointed Regional President of BP Brazil in 2010. He acts as the face of BP in the Region and represents the company internally and externally. This includes acting as the Head of Country in Brazil, ensuring consistency in the implementation of policies and representing BP across the businesses in Upstream, Downstream and Alternative Energy. He served as leader of the company’s Middle East and Pakistan areas in 2009. In 2006, after an assignment in Argentina, he took over the then recently created Andean Business Unit (Venezuela and Colombia). Four years before, in 2000, he had joined the BP Group’s team as Vice-President of Joint Ventures in Latin America and the Caribbean, based in Venezuela. He ran his own consultancy in 1991, representing ARCO International Oil & Gas in Venezuela, his country of origin. He has a degree in Chemical Engineering from the University of South California.

To find out more information, please contact: Máquina PR Telephone: 55 21 3478 3100 Daniele Lua daniele.lua@maquina.inf.br Milena Herdeiro milena.herdeiro@maquina.inf.br Carolina Lang carolina.lang@maquina.inf.br

BT-PN-2 BT-PN-3 40% BP 40% BP Maranhão

Bahia

Mato Grosso Cuiabá

Goiás Brasília Goiânia Minas Gerais Belo Horizonte

Air BP Rio de Janeiro - RJ (Galeão and Jacarepaguá airports) Cabo Frio - RJ Jundiaí - SP São Paulo - SP (Campo de Marte and Helicidade airports, headquarter) Campinas - SP Ribeirão Preto - SP Maringá - PR Foz do Iguaçu - PR Cuiabá - MT Brasília - DF Goiânia - GO

Espírito Santo Vitória

São Paulo Paraná Curitiba

Rio de Janeiro Rio de São Paulo Janeiro

BM-C-30 25% BP

BM-C-34 (C-M-471 & C-M-473) 30% BP Polvo 60% BP Xerelete 17.65% BP

BP Biocombustíveis Edéia - GO Itumbiara - GO Campina Verde - MG (under construction) Ituiutaba - MG Campinas - SP (headquarter) Castrol Rio de Janeiro - RJ Barueri - SP (headquarter) E&P - Concessions Rio de Janeiro - RJ (headquarter)

Salvador BM-CAL-13 100% BP BM-C-32 40% BP

Concessions operated by BP

BM-C-35 35% BP