Public offering of shares for Petrobras Distribuidora (BR): Granting of Registration by CVM

Rio de Janeiro, December 14, 2017 - Petróleo Brasileiro S.A. - Petrobras reports that CVM accepted today the registration of the public offering of secondary distribution of shares for Petrobras Distribuidora S.A. ('Offering') to be held in Brazil, in the non-organized over-the-counter market, pursuant to CVM Instruction 400, of December 29, 2003 and other applicable legal and regulatory provisions, with efforts for foreign offering, pursuant to the legislation in force in the country of each investor.

The company further reports that it disclosed on this date, the Notice of Initiation and the Final Prospectus of the Offering, which involves the sale of 291,250,000 common shares at the price of R$ 15.00 per share, totaling an amount of R$ 4,368,750,000.00. Pursuant to article 24 of CVM Instruction 400, the number of shares offered under the Offering may be increased by an additional lot of up to 43,687,500 shares, under the same conditions and at the same prices of issue as initially offered ('Option of Additional Lot'). If the full Option of Additional Lot is exercised, the amount of the Offering will reach R$ 5,024,062,500.00.

The price per share was determined after the conclusion of the collection of investment intentions procedure along the institutional investors ('Bookbuilding Procedure') pursuant to article 23, paragraph 1, and article 44 of CVM Instruction 400, and in line with the provisions set forth in article 170, paragraph 1, section III, of the Brazilian Corporate Law, which was carried out by intermediary financial institutions hired by Petrobras to assist in the implementation of the Offering and whose parameter was the indications of interest, based on the quality of the demand (volume and price) gathered from institutional investors during the Bookbuilding Procedure.

Additional information regarding the Offering may be obtained in the Notice of Initiation of Distribution and in the Final Prospectus of the Offering, all of which are available at Petrobras' website www.investidorpetrobras.com.br/en/.

The Final Prospectus contains additional and supplemental information, and its reading enables a detailed analysis of the terms and conditions of the Offering and inherent risks.

This material fact is exclusively informative, pursuant to the legislation in force, and should not be construed as a notice of offer of shares. No record of the Offer or shares shall be made at any agency or regulator of capital markets in any other country, except in Brazil, with CVM.

The shares offered neither have been nor shall be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States without proper registration or an applicable exemption from registration.

Facts deemed relevant will be timely disclosed to the market.