Petrobras Pension Plan (Petros): Deficit Equating Plan

Rio de Janeiro, September 12, 2017 - Petróleo Brasileiro S.A. - Petrobras, further to the material fact disclosed on 6/23/2016, reports that it was notified by Fundação Petrobras de Seguridade Social (Petros) that its Deliberative Board has approved, in a meeting held today, the Deficit Equating Plan (PED) for the Petrobras System Petros Plan (PPSP).

The PED provides for equating the total value of the deficit recorded in 2015, namely, R$ 22.6 billion. It is estimated that this amount, updated to the date set for onset of plan implementation (December 2017) will reach around R$ 27.7 billion.

PPSP is a plan of Established Benefits and, according to Petros, the main causes for this deficit were actuarial structural adjustments (such as updating family profiles and improvement to the life expectancy of the participants and beneficiaries), agreements and legal provisions, plus impacts of economic environment on investment, which resulted in profitability below the actuarial target, as occurred with most pension funds.

Pursuant to Complementary Laws 108/2001 and 109/2001, as well as Supplementary Pension Plan Managing Board Resolution - CGPC 26/2008, the deficit must be equally divided between the sponsors (Petrobras, Petrobras Distribuidora - BR, and Petros) and PPSP participants and beneficiaries. Therefore, Petrobras will be responsible for a total value of R$ 12.8 billion, and BR for R$ 0.9 billion.

Sponsor disbursement will decrease over 18 years, and in the first year it is estimated at R$ 1.4 billion for Petrobras and R$ 89 million for BR.

For participants and beneficiaries, the estimated contribution as well as other additional information will be available on Petros' website (www.petros.com.br).

After the approval by Petros' Deliberative Board, the PED will be evaluated by the Board of Directors of Petrobras and remitted to the Secretaria for Coordination and Governance of State-Owned Companies (SEST) and, if this body issues a favorable opinion ,the plan shall be implemented by Petros within 60 days.

The deficit is already included in the financial statements of Petrobras and does not impact the result of 2017.

Information on the Petrobras System Petros Plan is presented in Explanatory Note 21 - Employee benefits (Post-Employment) to the Financial Statements of Petrobras referring to the 2nd quarter of 2017.