Rio de Janeiro, November 29, 2018 – Petróleo Brasileiro SA – Petrobras reports that its Board of Directors approved yesterday the end of the Special Committee set up in December 2014 to provide a reporting line for the independent investigations conducted by Trench, Rossi e Watanabe Advogados and Gibson, Dunn & Crutcher LLP. Likewise, it also approved the ending of the investigation activities directed by the Special Committee and carried out by these external law firms under the guidance of the Special Committee.
As announced in a release dated 12/23/2014, the Special Committee, composed of Andreas Pohlmann, Ellen Gracie Northfleet and the Petrobras Governance and Compliance Executive Officer, was set up to act independently, reporting directly to the company Board of Directors, with duties and responsibilities in the planning, conduction and conclusion phases of the investigation conducted by the law firms.
After nearly four years of work, the Special Committee and the law firms had all the conditions necessary to carry out their duties. Since the independent investigation was established, Petrobras has managed to strengthen its internal controls; to progress in relation to corporate governance; as well as to implement additional tools designed for the prevention, detection, internal investigation and remediation of irregularities, thereby improving its integrity program.
In addition, the company has recently entered into agreements aimed to end the investigations conducted by the Department of Justice (“DOJ”) and by the Securities & Exchange Commission (“SEC”) in the United States related to internal controls, accounting records and financial statements of the company, as disclosed in the Material Fact dated 09/27/2018. The US authorities recognized as appropriate the remediation measures adopted by the company, and that the weaknesses detected in internal controls were adequately corrected.
The activities of the Special Committee and the law firms shall be permanently executed by the designated Petrobras’ areas, which, under the leadership of the Governance and Compliance Department, are adequately structured to this end.
Accordingly, there will be no impact on Petrobras’ actions to investigate irregularities, including in relation to Operation Car Wash, which is still ongoing. The company reiterates its commitment to keep effectively collaborating with Brazilian and American public authorities.