Petrobras – Clarification on Revision of the Transfer of Rights Agreement

Rio de Janeiro, January 08, de 2019 – Petróleo Brasileiro S.A. – Petrobras clarifies, on news published in the press, on an eventual agreement related to the Revision process of the Transfer of Rights Agreement (“Agreement”) that:

Since November 2017, the company established an internal commission, in charge of negotiating the review of the Agreement with representatives of the Federal Government, which established via Inter-ministerial Ordinance 15/2018, the Inter-ministerial Commission in order to negotiate and conclude the terms of the Revision of the Agreement.

With the progress of discussions by the parties, the National Board of Energy Policy [Conselho Nacional de Política Energética] (CNPE) recommended to the Ministry of Mines and Energy [Ministério de Minas e Energia] (MME), via Resolution 12/2018, prior remittance of the draft of the amendment to the Agreement for analysis by the Federal Court of Accounts [Tribunal de Contas da União] (TCU). This was done on 09/14/2018.

However, the Review of the Agreement is still subject to conclusion of analysis by the TCU, to approvals by the National Board of Energy Policy and by the governance bodies of Petrobras – Executive Office and Board of Directors, based on an eventual recommendation of the Minority Members’ Committee. Therefore, any amount to be received by Petrobras can only be confirmed and disclosed to the market as of finalization of these stages.

The draft being analyzed by the TCU consolidates one, among the scenarios discussed between the commissions of the Government and Petrobras.  This scenario, after pronouncement by the TCU and approval by the parties, may result in credit for the benefit of Petrobras of approximately US$ 14 billion.

Material facts on the subject shall be timely communicated to the market.

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