Petrobras – Exercise of Pre-emption Right in the Fifth Bidding Round of areas under Production Sharing Regime

Rio de Janeiro, June 5, 2018 – Petróleo Brasileiro SA – Petrobras informs that today it submitted to the National Energy Policy Council (CNPE) an expression of interest to exercise the pre-emption right for the 5th Bid Round of Exploration Block under the production sharing regime, pursuant to Brazilian Law 12.351/2010 and Federal Decree 9.041/2017.

Considering the parameters disclosed in CNPE Resolution No. 04 of 2018, after technical analysis, approval by the Executive Board and resolution within the Board of Directors, Petrobras decided to express interest in exercising the pre-emption right in “Sudoeste de Tartaruga Verde” block, as an operator and with a 30% stake.

The amount corresponding to the signature bonus to be paid by the company is R$ 21 million, considering that the auction results confirm the stake indicated above.

It is important to note that Petrobras may increase the percentage of 30% indicated for the area where it is exercising its pre-emption right, forming consortiums to participate in the bidding processes.

In relation to the areas in which Petrobras has not exercised its pre-emption right, the company may participate on an equal basis with other bidders, whether acting as operator or non-operator.

With the conclusion of this round, which might take place in September 2018, the company will timely communicate to the market the results of its participation, in compliance with current legislation.

Petrobras’ position in the bidding processes sponsored by the Petroleum National Agency (ANP) is in line with the fundamentals of its Strategic Plan, which provides for the sustainability of oil and gas production, with the continuation of the exploration portfolio strengthening and partnerships.

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