Petrobras – Agreement with the ANP on the unification of Parque das Baleias fields

Rio de Janeiro, February 14, 2019 – Petróleo Brasileiro SA – Petrobras informs that , on this date, the Public Hearing related to the draft of the agreement to be signed with the National Petroleum, Natural Gas and Biofuels Agency (ANP) in relation to the unification of the Parque das Baleias fields was completed.

In 2014, ANP determined the unification of the Jubarte, Cachalote, Caxaréu, Baleia Franca, Baleia Anã, Baleia Azul and Pirambú Fields, which resulted in an increase in the collection of special participations (PE) charged on the fields of the so-called Parque das Baleias. In the same year, an arbitration was initiated by Petrobras for disagreement with the criteria adopted for the unification of the fields in the ANP resolution, and in July 2018, the arbitration was suspended at the initiative of the parties to seek an alternative to settle the dispute through an agreement.

In December 2018, ANP enacted a public consultation and hearing no. 34/2018, disclosing the draft agreement developed by the technical areas of Petrobras and ANP, with the unification of some fields of Parque das Baleias, as of the 4th quarter of 2016. The new PE values,  up to the 4th quarter of 2018, totaled R$ 3.5 billion.

In addition, the agreement provides for the extension of the concession period for the new unified Jubarte field, which will enable the implementation of a new production system, the Parque Integrado das Baleias, to start-up by 2022, as well as complementary projects in the area.

The agreement provides for the payment of R$ 3.5 billion by Petrobras and, with the course of the negotiation and the result of the Public Hearing, the company will recognize a provision of this amount in the consolidated gross results of the Petrobras Group for the 4th quarter of 2018.

It should be noted that the signature of the agreement is still subject to approval procedures of the relevant bodies.

The information regarding this contingency is shown in the financial statements (ITR) for the 3rd quarter of 2018, through the explanatory note 28.3. (Contigent liabilities).

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