Petroleo Brasileiro Petrobras : Reduction of Significant Shareholding Interest

Rio de Janeiro, May 19, 2017 - Petróleo Brasileiro S.A. - Petrobras, in compliance with article 12 of CVM Instruction no. 358, dated of 1/3/2002, informs that it was notified by BlackRock, Inc. ('BlackRock') that the latter has sold preferred shares issued by the company, and as of May 18, 2017 it manages shareholding interest less than 5% of the preferred shares issued by Petrobras, and no longer qualifies as holder of significant shareholding interest in the capital stock of the company, as per the information below.

I. share interests held by BlackRock reached a combined 236,160,949 preferred shares and 21,159,865 American Depositary Receipts (ADRs), which represent preferred shares, to a total of 278,480,679 preferred shares, equivalent to approximately 4.97% of total preferred shares issued by the company, and 343,600 cash-settlement derivative financial instruments referenced by preferred shares, which represent approximately 0.006% of total preferred shares issued by the company;

II. the purpose of the aforementioned share interests is strictly investment, whereas there is no intention to alter shareholding control or the administrative structure of Petrobras;

III. BlackRock celebrated no contracts or agreements governing the exercise of voting rights or the purchase and sale of securities issued by Petrobras;

IV. BlackRock has registered headquarters at 55 East 52nd Street, New York City, New York State, 10022-0002, United States of America.