Firjan Petroleum - May 2019

2 Firjan PETROLEUM Brazil is in transition. Not different from many economies in the world, but particularly committed to change. The projections are considered to be a slower growth that can be glimpsed, which, in the oil environment, means that price goals must align with those ones of great protagonists producers. According to specialized consultancies, we can expect values about USD 70 per barrel for Brent this coming quarter. Therefore, more than ever, we need to be competitive in the dispute over funds for our projects to develop Brazilian oil production. Competition for investments and financial funds will become increasingly tight. And the lower our associated costs, the greater our chances of winning. Our country has one of the largest offshore markets in the world. With the operators diversity we see today in Brazil, it is possible to see the arrival of a wide diversity of suppliers from other countries dedicated to increasing their trade relations with Brazil. All this investment must also unfold under the gas environment. Moving forward in the negotiations for a regulation of openness, we will put ourselves in the radar of many potential investors and we will conquer the necessary conditions for increasing the production. BRAZIL: PROTAGONIST IN OIL AND NATURAL GAS According to market information, Brazil is the largest producer of natural gas in South America. Five years from now, we can be the largest in Latin America and the third in the Americas – behind the USA and Canada. Expectations for gas are of strong and perennial demand growth in the long run. The gas was chosen as the transition fuel for the new energy matrix, in line with the global decarbonization targets. Caring for the best return for all is in our purpose. The more producers, traders, distributors and consumers, the more mature our market will be; and the more experienced, the closer we will be to having competitive prices. It is true that we have long been at the forefront of a clean and sustainable energy matrix. We are free from the use addiction of coal. Our generation potential is even greater the further we move towards renewable energies. Thus, we maintain our commitment to contribute to our companies being even more capable in aggregating value and contributing to the economic recovery of our state, always focusing on national and international participation. Eduardo Eugenio Gouvêa Vieira President of Firjan A R T I C L E