Rio de Janeiro, July 31, 2015 - Petróleo Brasileiro S.A. - Petrobras hereby announces that it has begun production from the Iracema Norte project with the startup on this Friday (July/31) of the Cidade de Itaguaí platform. The Iracema Norte area is located in the Lula field, in the pre-salt area of the Santos Basin.

The Cidade de Itaguaí platform is an FPSO (Floating Production, Storage and Offloading) unit, anchored at a depth of 2,220 meters around 240 km from the coast. The plataform will have the capacity to process up to 150,000 barrels of oil and 8 million m3 of gas per day, and a storage capacity of 1.6 million barrels of oil.

The 7-LL-36A-RJS well, the first to be connected to the platform, has a daily production potential of 32,000 barrels. The oil produced in the Iracema Norte area is high quality and of medium density (30º API) and will be transported by shuttle tankers. The Cidade de Itaguaí FPSO will be connected to eight producing wells and nine injection wells. Peak production of 150,000 oil barrels per day is expected to be reached at the beginning of 2017.

The construction and integration of the platform modules in Brazil involved shipyards in Rio de Janeiro (Itaguaí and Angra dos Reis) and São Paulo (São Sebastião).

The Iracema Norte area is located in the BM-S-11 concession, operated by Petrobras (65%) in association with BG E&P Brasil Ltda (25%) and Petrogal Brasil S.A. (10%).

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