Reichstul: "Brazil todayplays a major business rolein the world oil industry".

Rio Oil & Gas Expo2002 is alreadyconsidered a success nine monthsbefore the event.

Reichstul: "Brazil todayplays a major business rolein the world oil industry".

Executives forecastbusiness opportunitiesin the 17th WPC.

www.wpc2002.com

5

6

Up-to-date news.3

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2PHILIPPE REICHSTUL

PETROBRAS CEO

RIC

AR

DO

AZ

OU

RY

- KE

YD

ISC

N o v e m b e r / D e c e m b e r 2 0 0 1

The best of Rio in the tourprogramme.

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Brazil: workshop for theworld s petroleum industry

TThe selection of Brazil — andRio de Janeiro in particular —to host the 17th WorldPetroleum Congress (17th

WPC) could not have been a betterchoice. While Rio de Janeiro is theregion where the oil industry is mostactive, Brazil is currently the countrywith the greatest business potentialfor the sector anywhere in the world.

In Brazil we are witnessing a unique convergence of favourablecircumstances for the oil and gassector. Not least because the countryis now consuming 1.9 million barrels of oil per day, against productionaveraging 1.4 million bpd and a dailyrefining volume of 1.7 million barrels.With the ending of the oil monopoly,this difference between production andconsumption, allied to growth forecastsfor the next decade, constitutes anopen field for all those companiesdisposed to compete in this market.Nor should we forget that Brazil hasopened the doors to one of thegreatest developing markets for gasconsumption anywhere in the world.

Brazil s energy deficit will be tackled,both in the short and medium term, by pursuing an ambitiousprogram for expanding gas-poweredthermoelectric energy production.More than 40 power plants should bebuilt by the year 2005. Meanwhile,gas consumption is forecast to growat a rapid rate, supplying industry,residential homes, and a growingfleet of gas-powered vehicles. Inorder to carry this gas to the power-hungry towns, cities and regions, wewill need to increase our network ofpipelines, also demanding significantinvestments. The construction of amajor gas-petrochemicals complexin Rio de Janeiro state is openinganother major front for the utilisationof the gas input. The implications ofthis surge in new projects will beenormous for the petroleum industryas a whole.

Brazil s National Organisation ofPetroleum Industries (ONIP) hasestimated that with the opening of the market, the Brazilian oil and gas sector will generate investments of around U$ 85 billionover the next 10 years. Of this total, no less than U$ 65 billion will be destined for exploration and production, boosted by the newacreage licensed by the NationalPetroleum Agency. The expansion

program for thermoelectric plants will also generate investments of U$ 15 billion, according to ONIP.

Demand for floats, tubing, cables,valves, connectors, turbines, pumpsand all the plant and the machineryneeded to get these projects up andrunning will be enormous. It isestimated that half of the U$ 85billion in investment will flow fromindustry orders for capital goods.The other half will be absorbed bythe sector providing services andsupport, in areas such as research,seismic surveys and logistics.

The Rio Oil & Gas Expo 2002 is expected to attract some 35thousand visitors to Rio de Janeiro,and gather more than 800 exhibitorsat stands to be mounted in 30 thousand square metres ofexhibition space at the Riocentro.The most important oil and gascompanies in the world will all berepresented here. It will be a giganticmeeting point for all the producers,suppliers and service industriesworking in this sector. Brazil hasturned itself into a tremendousworkshop for the world s petroleumindustry. This congress will thereforeprovide an excellent businessopportunity for all present. Sowelcome to Brazil: workshop for the world s oil and gas industry.

WELCOME LETTER

"It will be a massive encounter of producers,

suppliers and serviceproviders in the oil industry"

"It will be a massive encounter of producers,

suppliers and serviceproviders in the oil industry"

november/december 2001

Philippe Reichstul Petrobras CEO

wpc 1/3/02 3:51 PM Page 2

OPEC President & Sonatrach CEO - Chakib KhelilOPEC Secretary General - Al Rodr guez AraquePetrobras CEO - Henri Philippe ReichstulChevronTexaco CEO - David O ReillySaudi Aramco CEO - Abdallah S. Jum ahRepsol YPF CEO - Alfonso CortinaNorsk Hydro CEO - Egil Myklebust

Schlumberger CEO - Euan BairdShell Vice-president for Latin America - Lew WattsInternational Gas Union President - Hiroshi UranoPricewaterhouseCoopers World Leader in Petroleum Practice - Richard D. PatersonMinister of Mines and Energy of Brazil - Jos Jorge de Vasconcelos LimaSyncrude Canada Chairman & CEO - Eric Newall

Nigerian President Advisor for Energy and Petroleum - Rilwanu LukmanGazprom Chairman of the Board - A. B. MillerTotalFinaElf CEO for Refining and Marketing - Jean Paul VettierPresident PDVSA - Guaicaipuro Lameda Montero

R E V I E W A N D F O R E C A S T P A P E R S - R F P sBlock 1: Excelling in the Exploration andProduction of Oil and Gas

RFP 1: Role of Research and Development as a Driving Force for Future Exploration and ProductionAuthors: Donald L. Paul - Chevron CorporationAbdulaziz U. Al-Kaabi - King Fahd University of Petroleum & Minerals

RFP 2: Will the Carbon Age (Oil and Gas) Terminate Before Depletion of Reserves?Author: M.J. Groeneveld - Shell

RFP 3: Optimising Opex and Capex in New Discoveries and ProductionAuthor: Paul H. Ziff - Ziff Energy Group

Block 2: Excelling in Refining and DeliveringQuality Petrochemicals

RFP 1: Current Status and Future Developmentsin Catalytic Technology Related to Refining and Petrochemistry

Authors: Herman van Wechem - ShellGermain Martino - IFP

RFP 2: Fuel Cell Driven Cars, Challenges and Future DevelopmentAuthor: Ferdinand Panik - Daimler Chrysler AG

RFP 3: Advances in Standardisations of and Specifications for Petroleum ProductsAuthor: John Price - ExxonMobil

Block 3: Excelling in Delivering Clean Energyand Quality Products from Natural Gas

RFP 1: Oil and Gas Prices: Perpetuated CouplingAuthors: Peter Nicol - ABN AMRO Valery Remizov - Gazprom

RFP 2: Methane Leakage Reduction, Technical SolutionsAuthor: Christian P. Beckervordersand - Ruhrgas AG

RFP 3: Economic Use of Hydrates: Dream or Reality?Author: Georgy Cherkashov - Institute of Ocean Geology

Block 4: Excellence & Responsibility inManaging the Petroleum Business withEconomic, Environmental and SocialDimensions

RFP 1: Industry and Government Perspectives on Benefits Sharing and Distribution Associatedwith the Upstream PetroleumAuthors: Eloy Fernandez y Fernandez - BrazilianPetroleum AgencyDavid F. Asmus - AIPN

RFP 2: Safety and Environment Management SystemsAuthor: Bernard Tramier - TotalFinaElf

RFP 3: Human Resources - Forecasting the Big IssuesAuthor: Tony B. Hayward - BP

Sustainability of the oil and gas industry in BrazilThe World Summit on Sustainable Development - the petroleum industry, perspective and responseBalancing petroleum business and its social

responsibility: enhancing reputation and building a competitive edgeRisks and opportunities facing the petroleum industry at the down of a new century

E-Business in the petroleum industryNatural Gas: the bridging fuel to a sustainablefuturePetroleum/automobile industry synergies

K E Y N O T E S P E A K E R S

P L E N A R Y S E S S I O N S

Balancing knowledge with social responsibility

3

WHAT IS ON

w w w. w p c 2 0 0 2 . c o m

TThis photograph shows the 17th WPC home page,containing all informationon the congress, on the

Rio Oil & Gas Expo 2002, on Rio de Janeiro, as well as theofficial newsletter, technicaltours, speakers and everythingelse that will take place before

and during the event. Developedby Promon*IP, one of Brazil smost respected systemsintegration firms, WPC s is a user-friendly site, and will be updated often in English and Portuguese. The site will bethe principal medium betweenorganisers and delegates.

www.wpc2002.com

THE DETAILED PROGRAMME WILL BE ANNOUNCED SHORTLYON THE EVENT’S WEBSITE WWW.WPC2002.COM

wpc 1/3/02 3:51 PM Page 3

IIn the 26th floor of a building indowntown Rio de Janeiro, a teamof 21 people bends over a map of the Riocentro

conventions facility in order to checkevent organisation details. Bookedto host the 17th WPC and Rio Oil &Gas Expo 2002, this facility boasts100 thousand square meters in area,and there s a great deal of work leftto be done so as to determine howeach little space is going to be taken.

A stunning view may be seen from the huge window panessurrounding the whole floor whereIBP (Brazilian Oil and Gas Institute)is headquartered. The sky and the sea are bright-blue and thepleasant temperature suggests funand games. Far off, the profile of theCorcovado and the Sugar Loafpreside over the unique beauty ofGuanabara Bay, not to mention the

Tijuca Forest and the famousbeaches. Yet at present, no onepays attention to the landscape.Every one feels both exhilarated andtired after months of hard work clinching deals with suppliersand sponsors. The OrganisingCommittee is planning on makingthe first week of September anunforgettable experience for the 3,000 WPC delegates and thosewho will accompany them.

Beautiful days such as this one should provide a suitablebackground for the plenary sessionsand forums on technologicalexcellence and social responsibilityin the oil industry. According to Rio de Janeiro tourism authorities,taken together, the 17th WPC andRio Oil & Gas Expo 2002 will bringabout U$ 13 million to the city. The director at JZ/Hyrnastha,

Professional Congress Organiser,Beatriz Lemgruber, estimates thatthe congress and the exhibition willgenerate 5,000 temporary jobs.

Three hundred and fifty journalistsfrom every corner of the world areexpected for the event. EdelmanPublic Relations Worldwide won the bid for the public relations andmedia consultant s job. Marsh, thecongress newest partner, has just been hired as Official RiskConsultants.

THE 17TH WPC DOES ITS OWN MARKETING INCONGRESSES AND FAIRSBy taking part in national andinternational expos, the 17th WPCorganising committee deploys one ofits most powerful marketing tools.We are promoting the event in the

right places , explains its executivedirector Milton Costa Filho, who

Opening up of the Brazilian marketdecisive for the Congress

in Rio

BUENOS AIRES: WEC/AOG

4

LATEST NEWS

november/december 2001

IMPORTANT EVENTS VISITED BY EXECUTIVE COMMITTEE MEMBERS

¥OTC - Offshore Technology Conference,Houston, United States - April 30-May 3, 2001

¥Society of Exploration Geophysicists(SEG) Annual Meeting and InternationalExposition, San Antonio, United States -September 10-14, 2001

¥WPC Asian Regional Meeting/IPPE,Shanghai, China - September 17-20,2001

¥SPE - Society of Petroleum EngineersAnnual Technical Conference andExhibition, New Orleans, United

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5w w w. w p c 2 0 0 2 . c o m

RRio Oil & Gas Expo 2002(ROGE) hand in handwith the 17th WorldPetroleum Congress will

offer executives who attend the17th WPC a unique opportunity todo business. This traditionalexpo promoted by Brazilian Oiland Gas Institute (IBP) hasconvened every two years in Riode Janeiro since 1982. As thecentre of the national oil industry,Rio de Janeiro state answers for80% and 45% of domestic oiland natural gas production,respectively. This makes itscapital city the ideal place forevents of this sort. The executivesecretary of IBP, lvaro Teixeira,explains: For the first time, RioOil & Gas, Latin America s

largest expo, is happeningtogether with a WPC congress,showing numerical evidence ofthe expo s growth.

Though the sponsorshipprogramme drawn up for ROGE2002 will be launched only by early January, the event isalready viewed as succesful.We ve already sold 25,000

square meters, celebrates Ana Guedes, in charge of IBP s events sector. Rio Oil &Gas Expo works as a launchingpad for new technology trends.Expos provide a suitable venuefor administrators to show themarket what they are doing toimprove their products andservices.

ROGE expects record attendance

Exhibitors

350

500

650

800

Visitors

16,000

28,500

30,000

35,000

Area

11,000 m2

14,678 m2

21,000 m2

30,000 m2

Year

1996

1998

2000

2002*

Rio Oil & Gas grows at every edition

Organising committee is currently focusing on closerrelations with the 34 sponsors and endeavours to reachapproximately 45 companies and institutions. Nine firms have joined in the last two months — TotalFinaElf,Shell, Baker Hughes, Statoil, Maritima, Fels Setal, Esso,Transocean and Marsh.See other sponsors on page 8.

SPONSORS AND ENDEAVOURS

States - September 30-October 3, 2001

¥Deep Offshore Technology (DOT),Rio de Janeiro, Brazil - October 17-19, 2001

¥18th World Energy Congress, BuenosAires, Argentina - October 21-25, 2001

¥APLA - 21th Latin American Petrochemical Annual Meeting, Rio de Janeiro, Brazil - November10-13, 2001

¥1st Petroleum P&D Congress, Natal,Brazil - November 26-28, 2001

recently travelled to the OffshoreEurope 2001 Oil and Gas ExhibitionConference in Aberdeen, Scotland,and to several other congresses andexhibitions.

Another important event in which the17th WPC took part was the 18th

World Energy Congress held inArgentina last October. Given therelevance of the congresses visited,executive committee memberscarried out several promotionactivities in Buenos Aires: organisingdrawings, polling participants, settingup two booths as well as organisinga reception in the Brazilian Embassyfor more than 200 guests.

MILTON (LEFT) AND THE EXECUTIVE SECRETARY OF THE IBP,LVARO TEIXEIRA, INVITED OPEC PRESIDENT, CHAKIB KHELIL

(CENTER) TO TAKE PART IN THE 17TH WPC.

*Expected

wpc 1/3/02 3:51 PM Page 5

JJo o Pedro Gouv a Vieira Filho,member of Ipiranga s executivecommittee and president of theNational Fuel Distributors Union

(SINDICOM) says that in view of thelarge investments that internationalcompanies are making in the offshoresegment of the industry, E&Pprospects in Brazil are very exciting.Read additional comments by one ofthe country s most importantbusinessmen.

What do you expect from the 17th

WPC?JPGVF- This will be the first time thatBrazil will host such an important event

in the energy business. The state ofdevelopment of the national oil andgas industry, the opening of the sectorto new investors, the mastery ofoffshore E&P technology and the hugepotential of the Brazilian market, allcontributed to Brazil having beenchosen as host for the congress. Given

so many factors, we can only believethat this meeting will afford a great deal of knowledge, experience and technology-sharing among participants.

Could you share your views on themarket for oil, gas and energy inBrazil?JPGVF- The Country s current electricpower crisis proved, among otherthings, that the strategic option theBrazilian government made as it gavepriority to investments in theexploration, transportation and retailingof oil and natural gas, was completelyin line with the future.

In the past, natural gas used torepresent 2% of the Brazilian energy

matrix. It is now being estimated thatthis percentage will reach 12% in the10 years to come.

Considering the investments thatinternational companies are making inthe offshore segment, we can say thatprospects in E&P are quite good.Moreover, we believe that Brazil mayreach self-sufficiency in oil productionsometime in the current decade.

We are expecting the full liberalizationof the oil and by-products trade tooccur in early 2002. This will fostercompetition to the direct advantage ofconsumers. Given this scenario, we believe that the oil and gas market will be an important source of development for this country.

What advantages are there insponsoring the congress?JPGVF- As Brazil s largest privatelyowned company, it is only natural thatIpiranga should rank among thesponsors of this congress. After all, thisis the biggest and most importantmeeting in the international oil and gasbusiness. The approximately threethousand delegates expected willsurely make this a very lively event asthey exchange knowledge, informationand business opportunities.

New opportunities

JO O PEDRO GOUV A VIEIRA FILHO

IPIRANGA: GOLD SPONSOR

Considering the investmentsthat international companies aremaking in the offshore segment,

we can say that prospects inE&P are quite good

Considering the investmentsthat international companies aremaking in the offshore segment,

we can say that prospects inE&P are quite good

6

FACE TO FACE

november/december 2001

WWe also expect to enhance theknowledge we have of newtechniques as well as tolearn about new companies

and new opportunities, states TobiasCepelowicz, president of Petroserv, a100% Brazilian company and theCongress first Bronze Sponsor.

What are you expecting from the17th WPC?TC- Petroserv expects to be able topublicise its entrepreneurial skills aswidely as possible, in such way as toobtain new clients and prospectivepartners. We expect to enhance theknowledge we have of new techniquesas well as learn about new companies

and new opportunities, especially inE&P.

Could you share your views on themarket for oil, gas and energy inBrazil?TC- Undoubtedly, in the short tomedium run, this is going to be themarket to be in for excellentopportunities. The recently enactedpetroleum legislation allowed theentrance of new players committed tobringing investments and, above all,new ideas. The number of employmentopportunities will rise significantly.New operation bases will open,promoting accelerated development inseveral municipalities. The increase in

natural gas consumption has broughtmeaningful results in several industrysegments. The construction ofthermoelectric plants and the laying ofnew gas pipelines have leveraged theconstruction and engineering marketssignificantly.

What advantages are there insponsoring the congress?TC- First of all, the recognition of anevent of such magnitude as this one. By sponsoring the 17th WPC weintend to show how serious we areabout publicizing our Company sinvolvement in the industry, and aboutcontributing toward the event scomplete success.

Exciting prospects

wpc 1/3/02 3:51 PM Page 6

TThe colonial-style buildings of Old Rio and landmarkssuch as the Corcovado andthe Sugar Loaf. The tour

programme developed for 17th WPCdelegates and their accompanyingpersons was designed so as to offer something for every one, allowing them to becomeacquainted with the many sidesand charms of Rio de Janeiro.

According to organiser, JosRoberto Costa, Blumar TravelAgency director, the programmeencompasses the three mostattractive aspects of Rio: the touristsites, the city s natural exuberanceand its cultural and historic side.

Some of the tours offered will takeyou to the world-famous SugarLoaf and, of course, the Corcovado,where you will be able to hug Riode Janeiro from above whilestanding at the feet of the statue of

Christ the Redeemer. And if youare among those who would like to learn something about localcustoms, a place to go is the HippieFair meeting every Sunday inIpanema. There, you can shop forhandcrafts and souvenirs.

For the historically inclined, a visitto the downtown area is a must.The Historical and Cultural Tour will take you to sites of historicrelevance such as the S o Bento Monastery, Pra a XV, thetwo-storey colonial-style buildingsof Old Rio, the MetropolitanCathedral, Arco do Teles, theCandel ria Church and the Bancodo Brasil Cultural Center. To top itall off, a stop for tea in Rio deJaneiro s centenary tea room,Confeitaria Colombo.

If you would like to leave the urbanfrenzy behind, you may wish totake a short trip to Petr polis. Just

one hour away from Rio, nested inthe mountains, the Imperial Town —as Petr polis is often called forhaving served as Emperor DomPedro II s summer residence —lures visitors with a host ofattractions. Landmarks such as theImperial Museum, the wonderfulCrystal Palace and the town speriod architecture are some of the most popular attractions.Petr polis is also a gastronomiccentre, offering Brazilian, Frenchand Italian cuisines.

The sight of Rio from above and aunique and unforgettable thrill awaitthose who take the Helicopter Ride.Another equally interesting optionis the Jeep tour in Tijuca Forest,the world s largest urban forest.Aside from allowing you to becomeacquainted with the exuberantvegetation of this singular park, thistour will also give you theopportunity to stroll along parktrails and valleys. As the mostexotic trips, the Jeep Tour andHelicopter Ride are likely to attractthe largest number of visitorsamong delegates, Jos RobertoCosta believes.

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TOURISM

w w w. w p c 2 0 0 2 . c o m

For additional tourinformation, please call

(+55 21) 3875-9300

or visit:

PHOTOS: RICARDO AZOURY - KEYDISC

The delights of Rio de Janeiro

for all

wpc 1/3/02 3:51 PM Page 7

Rio WPC 2002 News is a publication of the 17th World Petroleum Congress - Brazilian Organising Committee. General Secretariat:

Almirante Barroso Ave. 52, 26th floor - 20031-000 - Rio de Janeiro - RJ - Brazil - Phone: 55 21 2282-2002 - Fax: 55 21 2282-2005

E-mail: brasoc@wpc2002.com - website: http://www.wpc2002.com

Master Sponsor

The 17th World Petroleum Congress is proudly sponsored by:

Institutional Sponsors Gold Sponsors

Silver Sponsors

Bronze Sponsors

Official Legal Advisors Official Air Carrier Official Auditors and Consultants Official Risk Consultants

8 november/december 2001

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