Petrobras approves execution of Term Sheet with Odebrecht S.A. to remove provisional ban

Rio de Janeiro, July 06, 2018 – Petróleo Brasileiro S.A. – Petrobras informs that yesterday its Executive Board approved the execution of a Term Sheet with Odebrecht S.A., providing for a set of integrity obligations for Odebrecht group companies to enable the removal of the provisional ban imposed by Petrobras since December 29, 2014, to which are currently subject the companies: (i) Construtora Norberto Odebrecht S.A. (currently Odebrecht Engenharia e Construção S.A.); e (ii) Odebrecht Óleo e Gás S.A. (currently Ocyan S.A.).

Odebrecht S.A. became eligible to sign the Term Sheet pursuant to the execution of leniency agreements with the Federal Prosecutor’s Office (MPF) and with US authorities, as well as the adoption of a set of measures for the prevention, detection and remediation of acts of fraud and corruption that were verified by Petrobras.

Among the obligations provided in the Term Sheet is the maintenance of an effective integrity program, consisting of specific improvement points established by Petrobras, based on the outcome of an integrity due diligence procedure, and subject to continuous verification, including the possibility of Petrobras auditing.

The Term Sheet also provides that, at the time of its signature, Ocyan S.A.’s Degree of Risk of Integrity (Grau de Risco de Integridade – GRI) will be reassessed, which will allow, as per the integrity criteria, its participation in Petrobras’ bidding processes. Odebrecht Engenharia e Construção S.A. will be reevaluated only after compliance with the specific improvement points of its integrity program, established in the Term.

It should be clarified that another 14 companies remain under provisional ban, and therefore temporarily prevented from being hired and participating in Petrobras biddings. In 2017, two other companies underwent the same review process and had the provisional ban removed.

Petrobras continues to follow the progress of leniency agreements and the adoption of compliance measures by other companies that are part of the provisional ban list.

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