Clarification Regarding News Articles: Evaluation of Partners for BR Distribuidora

Rio de Janeiro, July 18, 2016 - Petróleo Brasileiro S.A. (Petrobras) hereby responds to Official Letter 347/2016-CVM/SEP/GEA-1, requesting clarification, as follows:

Official Letter 347/2016-CVM/SEP/GEA-1

'Dear Sir,

We are writing in regard to the news stories published today in three newspapers - 'Petrobrás aceita compartilhar controle da BR Distribuidora e atrai investidores' ['Petrobras agrees to share control of BR Distribuidora and attracts investors'], in the Economy and Business section of O Estado de São Paulo; 'Tudo por um sócio' ['Everything for a partner'], in the Economy section of Globo; and 'Petrobras avalia propostas para compra de fatia da BR' ['Petrobras considers proposals to buy stake in BR'], in the Companies section of Valor Econômico - which contain statements about offers to buy a stake in BR Distribuidora.

We request a statement from Petrobras about the content of these articles, as well as other information you consider important regarding the subject. This statement should be submitted via the Empresa.NET system, in the 'Market Announcement' category. Type: 'Clarifications about CVM/BOVESPA consultations.' Subject: 'News published in media.' It must include a copy of this official letter.'

Clarification

In line with the press release released today, Petrobras announces that, regarding the search for a strategic partner for its subsidiary Petrobras Distribuidora (BR), it is evaluating the proposals it has received, and so far Petrobras' Executive Board and Board of Directors have not taken any decision about an alteration to the type of sale, aiming share of control.

However, it is expected that this subject will be evaluated by Petrobras' internal governance bodies and a decision will be taken by the Board of Directors by the end of July.