Clarification on News: Deleveraging Target

Rio de Janeiro, February 1, 2018 – Petróleo Brasileiro S.A. – Petrobras reports that it received today, Official Letter no. 148/2018-GEA, which requests the following clarification:

Official Letter no. 148/2018-  SAE

“Dear Gentlemen,

A news article published by the Valor Econômico newspaper, on 2/1/2018, under the headline “Petrobras Leverage”, states, among other information, that if the price of Brent remains close to US$ 70 as it has been traded recently, the ratio between the company’s net debt and EBITDA is expected to reach 2 times by the end of this year, compared to the formal target of 2.5 times.

We request clarification on the item noted, by 9 am on 2/2/2018, with its confirmation or not, as well as other information deemed important.

Clarification

In the disclosure of the 2018 – 2022 Business and Management Plan, Petrobras presented a sensitivity analysis of the financial leverage indicator (net debt/EBITDA) to the price of oil.

This analysis was featured on slide 11 of the presentation of the Plan to analysts and investors, filed with the Securities and Exchange Commission of Brazil (CVM) on 12/22/2017 at 2:45 pm.

Said sensitivity is made to assess the financial situation of Petrobras in different oil price scenarios and provides that, if the price of Brent crude is US$ 53/barrel (assumption used by the company for the year 2018 in its planning), Petrobras’ leverage index will reach 3.3 by the end of the year. This study also indicates that in a scenario of oil prices at US$ 62.4/barrel (average of the monthly prices of Brent futures contracts for 2018), the forecast is to meet the company’s deleveraging target of 2.5 by the end of the year. And if the price of oil remains at US$70/barrel, the leverage indicator will exceed the target, reaching 2.0 still in 2018.