100 days Business Plan

General Assumptions
(company identity confidential)

This is a supposed Business Plan and the confidentiality of the executive search didn’t allow to gather information, see the overview of the company, the description of its products and services, its management bios, the nature and use of its technology, how it differentiates from the market, etc. Considering a corporation which expertise and technological edge focused on oil & gas industry, we intend to analyze the Brazilian market and opportunities in Oil & Gas industry.  To analyze Oil & Gas Brazilian industry, some information is provided on slides 3 to 17, in order to explain possible business assessments, that may occur depending on the corporation expertise. COMMENTS  Some comments are attached on these slides.

General Assumptions (cont’.)

Important questions should be answered, some specific for Brazilian market:

 How the corporation stands in the market;  Which are the opportunities within its current contracts, the
possible claims and contracts revisions;

 Which should be new business opportunities (for example are
there opportunities on technological cooperation and R&D?);

 How to improve relationship with Petrobras generally and with
CENPES R&D Center in order to generate future services and contracts.

 How to better be positioned on Petrobras new investments and
locations.

2

Services and Equipments corporations have therefore an increasing consistent market and business opportunities on E&P onshore and offshore (which represents more than 85% of Brazilian Oil & Gas production and 60% of Petrobras investments) New Investment Plan (2006-2010) has expected investments of US$56.4 Billion, yearly average of US$11.3 Billion. Investment Breakdown (including international investments): E&P Downstream Gas & Energy Petrochemical Corporate Retail System US$ US$ US$ US$ US$ US$ 34.1 11.4 06.7 02.1 01.1 01.0 Billion Billion Billion Billion Billion Billion (60%) (20%) (12%) (04%) (02%) (02%)

Source: Petrobras Business Plan 2006-2010 (Petrobras 2015) Finance Director presentation, AMCHAM, September 2005

3

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil Energy and Power International Conference, Houston, November 2005

4

Downstream investments: US$11.4 Billion on upgrades, fuel quality improvement on existed refineries and a 200,000 bpd new refinery (Petrobras/PDVSA Joint venture).

Source: Ministry of Mines and Energy

5

6

New Players on E&P market: Auction rounds attracted new investors. Some companies will be future customers on oil & gas services (in the near future, Devon, Encana, Repsol, Shell).

7

Offshore market: Petrobras is leader in Subsea Trees installation and operation. Centralized operations on Campos Basin and nearby Espirito Santo and Santos Basins are business advantage. Other companies has world widespread operations.

8

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil Energy and Power International Conference, Houston, November 2005

9

Offshore and onshore market: New O&G companies, new business opportunities

Source: ANP “The role of ANP in an ever more competitive market”, Brazil Energy and Power International Conference, Houston,

10

Offshore market: Where the corporation have contracts on these Production Systems? And where to go?

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil Energy and Power International Conference, Houston, November 2005

11

Production Systems Starting-up

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil Energy and Power International Conference, Houston, November 2005

12

Offshore market: Future Production Systems – the market to hunt and improve business opportunities

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil Energy and Power International Conference, Houston, November 2005

13

Offshore market: Long term projects and future frontiers

Production Systems – Future Frontiers

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil Energy and Power International Conference, Houston, November 2005

14

Is there any technological edge to offer that will allow corporation to be part of E&P Strategy?

Petrobras E&P Strategy
Increase production and reserves
Strenghtehn expertise in deep and ultra-deep waters; Perform on-shore and in shallow water fields focusing on profitable opportunities; Implement practices and new technologies in areas with high exploitation degree in order to optimize recovery factor; Develop exploratory efforts in new frontiers in order to assure a sustainable reserve / production ratio.

Perform with operational excellence and social and environmental responsibility
Source: Petrobras E&P “Domestic E&P – Challenges and Strategy” Brazil Energy and Power International Conference, Houston, November 2005

15

Wishful Thinking – Early Production Units and Extended Well Testing & Phased Development could be opportunities to cooperate with Petrobras?

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil Energy and Power International Conference, Houston, November 2005

16

Cooperation Programs – How to reach them

Source: Petrobras E&P “Domestic E&P – Challenges and Strategy”, Brazil Energy and Power International Conference, Houston, November 2005

17

How to manage and improve the corporation business in Brazil
Considering the market conditions (previous slides from ANP and Petrobras), the 100 first days as a Sales/Business Development Manager in a Oil & Gas Services and Equipment corporation should be based on the following guidelines:

Understanding the corporation (first 20 days)
Learning about the corporate culture and traditions: their ethics, values and the relationship with the stakeholders. How the organization is structured. Understanding IT, business and communicating systems. Understanding financial and budget procedures. How it reaches its market position and customers. Learning about the core business and international activities strategy. What are the milestones. Learning human resources values. Core competencies and what differentiate the corporation on the market. Announcing the new human resource within the corporation and market, visiting business units and customers. Integrating to the team work and daily business activities and routines. Integrating the communication and corporation systems according to general procedures of the corporation. 18

How to establish and improve general ideas on actual budget, strategic and business plan
Hands on business (next 60 days)
Corporation market conditions in Brazil (Benchmark and Market share). Acknowledgment of the core business, strengthness and weakness, team expertise and profile, general resources, planning and budged for the country, general strategy. General operation and risk management, current contracts, general claims or revising contracts, extensions on current contracts, new bids. Some questions about the core competencies of the corporation: Are there opportunities in other countries that could be practiced in Brazil? Are there opportunities to increase relationship in Petrobras business overseas which could improve business opportunities for the corporation?

19

Starting the job
Integrating the team work (next 10 days)
Defining milestones, personal, team, regional and corporation, according to provided status and general corporation procedures. Attending the established business and strategic program. Team work organization and interaction with corporation staff in order to organize and be introduced to previous and current business. Organize timesheet to improve activities and relationship within the corporation. Troubleshooting and urgent management on current business. How to improve relationship with the market and better understanding the Petrobras structure (from Headquarter to operation units, key persons, where are the decision making). Opportunities to grow with technological edges and cooperation (Research Centers, Official Financing Agencies, Technological Institutes and Universities). Possible joint ventures and acquisitions within Brazilian Market. Strategic presence on Chambers of Commerce (USA, UK, Canada, France), Industry Associations, Trade Fairs and Conferences.
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Answering the questions
 How the corporation stands in the market?
It is quite important to pinpoint corporation position in the market and analyze all opportunities that could arise: from new contracts that could be generated in the current portfolio (value chain) to business opportunities like joint ventures and M&A. Another question that need to be answered is how the corporation stands on the competition (sometimes there are cooperation between companies, exchange of contracts, subcontracts, etc.)

 Which are the opportunities within its current contracts, the possible claims and
contracts revisions:

Sometimes Petrobras contracts are tough and there are opportunities to increase contract value with extensions, claims, misunderstandings clauses that might generate some surplus and margins on current contracts.
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Answering the questions, cont’.

 Which should be new business opportunities (for example are there opportunities to
technological cooperation on R&D?)

Some Financing Agency promote new developments in Brazil. Several projects are under development and some of them could be business opportunities depending on corporation core business. It should be worthwhile to have a look on these projects.

 How to improve relationship with Petrobras generally and with R&D CENPES in
order to generate future services and contracts?

Research and Development Center (Petrobras CENPES) have several programs under development extending technological edges and frontiers . Corporation should have a look on cooperation opportunities. Being in origin of new projects might benefit future contracts and specifications (bids with similar corporation spec’s)

 How to better be positioned on Petrobras new investments and locations?
It is quite important to improve contact on new locations such Vitoria and Santos, where several new E&P investments and decisions will be located.
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Acknowledgments

Information about the hiring company are strictly confidential. The market and data information is a selection of public presentations and the comments are based on general ideas from the author and do not necessarily are consistent.

Information about business plan were researched through the following web sites:
www.brs-inc.com/business_plan.asp www.bplans.com/sp/businessplans.cfm www.sba.gov/starting_business/planning

Joaquim P. Leão, Rio de Janeiro, January 12, 2006 joaquimpleao@gmail.com 55-21-9961-1960

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