Petrobras discloses its proved reserves of oil, condensate and natural gas, according to SEC (US Securities and Exchange Commission) regulation, estimated at 8.816 billion barrels of oil equivalent (boe), as of December 31, 2020. Oil and condensate, and natural gas correspond to 86% and 14% of this total, respectively.

In 2020, we booked new reserves related to the approval of new projects and the good performance of reservoirs, especially in Santos Basin pre-salt, resulting in an appropriation equivalent to 101% of the year's production. This effect was partially offset by the reduction of oil prices by 32% in 2020, used as future prices, according to SEC regulation.

Considering positive and negative effects on our reserves, and disregarding the reduction due to assets sold, the reserves replacement was 29% of 2020 production.

Asset sales in 2020 are aligned with the maximization of portfolio value, focused on world-class deepwater and ultra-deepwater assets, and their impact was not relevant to the total volume of reserves.

The 2020 reserves still do not consider new projects to be implemented as the result of the acquisition of the Transfer of Rights Surplus. These volumes will be considered after signing the coparticipation agreements for Búzios and Itapu fields.

The graph below presents the evolution of proved reserves, in billions of barrels of oil equivalent.

The R/P ratio (ratio between proved reserves and production) is 9.6 years.

Petrobras historically submits at least 90% of its proved reserves to independent evaluation according to SEC definitions. Currently, this evaluation is conducted by DeGolyer and MacNaughton (D&M).

Petrobras also estimates reserves according to the ANP/SPE (National Agency of Petroleum, Natural Gas and Biofuels / Society of Petroleum Engineers) definitions. On December 31, 2020, proved reserves according to those definitions reached 9.427 billion barrels of oil equivalent.

The differences between the reserves estimated by ANP/SPE definitions and those estimated using SEC regulation are mainly due to different economic assumptions and to the possibility of considering as reserves those quantities forecasted to be produced after concession contract expiration in fields in Brazil according to ANP reserves regulation.