Petrobras reaches agreement with investors to settle eleven individual securities actions in the United States

Rio de Janeiro, November 23, 2016 – Petróleo Brasileiro S.A. – Petrobras announces that its Board of Directors approved, in a meeting held today, agreements to settle eleven individual securities actions brought before the US District Court for the Southern District of New York by Abbey Life Assurance Company Limited, et al., Aberdeen Emerging Markets Fund, et al., Aberdeen Latin American Income Fund Limited, et al., Danske, et al., Delaware Enhanced Global Dividend and Income Fund, et al., Dimensional Emerging Markets Fund, et al., Manning & Napier Advisors, LLC, et al., Russell Investment Company, et al., Skagen, et al., State of Alaska Department of Revenue, Treasury Division, et al., State Street Cayman Trust Co., Ltd, and Ohio Public Employees Retirement System. Petrobras has previously settled four individual securities actions brought in the Southern District of New York, as announced on October 21, 2016.

In its third quarter financial statement released November 10, 2016, Petrobras recognized a US$ 364 million provision. The costs of the settlements announced today will be applied against that provision.

The eleven actions were consolidated for trial purposes with 12 other similar actions, as well as the four previously settled actions and the class action filed against the Company (and others) before the US District Court for the Southern District of New York. With the settlement of these eleven actions, along with the four that were previously settled, Petrobras has settled more than half of the individual actions consolidated with the class action.

At this time, it is not possible for the Company to make a reliable estimate with respect to the potential outcome of the class action.

Petrobras denies all allegations of wrongdoing and continues to defend itself vigorously in all pending actions. The settlements, the terms of which are confidential, are aimed at eliminating the uncertainties, burdens and expense of ongoing litigation.

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