Rio de Janeiro, December 10, 2015 – Petróleo Brasileiro S.A. – Petrobras hereby responds to Official Letter 529/2015/CVM/SEP/GEA-1, which requests the following clarifications:

Official Letter no. 529/2015/CVM/SEP/GEA-1

“We refer to the article published in the Economia & Negócios (Economy and Business) section of today’s edition of the newspaper O Estado de São Paulo, entitled: Cenários do câmbio e da produção mudaram e estatal terá de contabilizar novas perdas, de acordo com o Deutsche Bank” (Changes in the production and foreign exchange scenarios will force Petrobras to recognize new losses), which states that:

Last Monday, Deutsche Bank distributed a report to its clients raising doubts concerning Petrobrás’ capacity to use future exports totaling US$21 billion to reduce the foreign exchange impact on its financial result. This recourse, called a foreign exchange hedge, has been used by the company to lessen the impact of the appreciation of the dollar on its accounts.

Currently, the company books the dollar revenue it expects from oil and fuel sales on the international market to mitigate the effect of the appreciation of the dollar against the real on its balance sheet. According to the bank, however, given the drop in oil prices and the reduction in national oil output, exports will fall and Petrobrás will no longer be able to count on this revenue to improve its cash profile. As a result, Deutsche believes the company may record a loss in 2015 and not pay dividends to its shareholders.

In theory, Petrobrás has revenue from future exports of US$58 billion in its financial balance, which it will use to offset the losses arising from the devaluation of the real. The company has dollar debt and the more dollars it has in its cash, the less exposed it is to the exchange rate.

However, the Deutsche report claims that this accounting system is no longer feasible. “We believe that recent events (decline in oil and fuel prices and output) may force Petrobrás to reassess the magnitude of its hedge accounting with future exports”, announced the report, written by analyst Alexander Burgansky.

This type of accounting was adopted by Petrobrás as of July 2013. As that time, says the bank, there was no significant impact on the financial result, nor on its shares. It was just a mechanism for reducing the impact of foreign exchange volatility on the balance sheet. “But as oil prices and Petrobrás’ financial result began to decline, the company’s exposure grew substantially due to the use of this type of accounting,” claims the report.

Given the above, we would like you to confirm if the content of this news item is in fact true and, if so, why such information was not deemed to constitute a material fact, We also request that you comment on any other relevant information on this topic.”

Clarification

Petrobras clarifies that the value protected by the hedge accounting is comfortably below the predicted value for their export earnings. The estimates of exports are periodically reviewed in order to ensure consistency between the accounting hedge and expected revenues.

Concerning the application of hedge accounting, there is no reservation in relation to their compliance with current accounting practices in the context of the revised financial statements, as well as in the audited annual financial statements.

Any material facts on this topic will be disclosed to the market on a timely basis.