Rio de Janeiro, January 29, 2018 – Petróleo Brasileiro S.A. – Petrobras, further to the press release disclosed on August 23, 2017 and January 2, 2018, informs that its Board of Directors approved today the adhesion to the installment payment program established by Law 13586/2017, which covers the processes related to the requirement of Withholding Income Tax (‘IRRF’) on remittances abroad for payment of charter vessels covering the 2008-2014 period.

According to the regulation, for taxable events occurring up to December 31, 2014, companies may adopt the maximum percentages set forth in Law 9481/1997, art. 1, § 2, with the wording given by Law 13043/2014, by paying the tax difference levied on the percentage of charter contracts that exceeds the legal thresholds, plus interest in arrears and reduction of 100% of fines, split into up to twelve monthly and successive installments, the first (or full payment) being due on January 31, 2018.

The company will pay R$ 1.7 billion in twelve monthly and successive installments, in the approximate amount of R$ 144 million each, the first being due on January 31, 2018 and the remaining ones on the last working day of the following months, updated by the SELIC rate.

The enrollment will allow the settlement of administrative and legal disputes related to IRRF for the 2008-2013 period, which total R$ 28 billion. Of this amount, R$ 21 billion is included in note 29.3. Contingent liabilities in the financial statements of the third quarter of 2017, for the period 2008-2012, and R$ 7 billion relate to 2013. In the case of the 2014 fiscal year, the company will make the payment under the program, eliminating penalty risks.

The negative impact on the results of the fourth quarter of 2017 will be approximately R$ 1.1 billion, net of taxes.

The decision to enroll in the program was based on the economic benefits, since keeping the disputes would imply a financial effort to comply with judicial guarantees.

The administrative and legal disputes related to cases in which the incidence of CIDE, PIS and COFINS is under discussion will be maintained, since these contributions were not included in the program, due to a veto to the Bill on the conversion of Provisional Measure 795/2017.