Petroleo Brasileiro Petrobras : Exercise of Pre-emption Right in the Fourth Bidding Round of areas under Production Sharing Regime

Rio de Janeiro, December 14, 2017 - Petróleo Brasileiro SA - Petrobras reports that today it submitted to the National Energy Policy Council (CNPE) an expression of interest to exercise the pre-emption right for the 4th Bid Round of Exploration Block under the production sharing regime, pursuant to Law 12,351/2010 and Federal Decree 9,041/2017.

Considering the parameters disclosed in CNPE Resolution no. 21 of 2017, after technical analysis, approval by the Executive Board and resolution within the Board of Directors, Petrobras decided to express interest in exercising the pre-emption rights in the following areas, with the minimum percentage of 30% in each area, focusing on maximizing the value of its portfolio: Dois Irmãos, Três Marias and Uirapuru.

The amount corresponding to the signature bonus to be paid by the company, considering the auction results confirm the minimum stake indicated above in each block, is R$ 945 million.

Petrobras' position in these bidding processes is in line with the fundamentals of its Strategic Plan, which provides for the sustainability of oil and gas production, with the continuation of the exploration portfolio strengthening and partnerships.

It is important to note that Petrobras may increase the percentage of 30% indicated for the areas where it is exercising its pre-emption rights, forming consortiums to participate in the bidding processes.

In relation to the areas in which Petrobras has not exercised its pre-emption right, the company may participate on an equal basis with other bidders, whether acting as operator or non-operator.

With the conclusion of this round, which might take place in June 2018, the company will timely communicate to the market the results of its participation, in compliance with current legislation.