Petrobras hedges oil prices

Rio de Janeiro, March 22, 2019 – Petróleo Brasileiro S.A. – Petrobras informs that implemented a hedge strategy to protect part of its oil production expected for the year of 2019. Put options have been acquired with exercise price referenced to the average of Brent oil prices, from April to the end of 2019 at US$ 60/barrel. The total prize is US$ 320 million and the options will expire on 12/31/2019.

The strategy aims to hedge the export operations planned for the period, partially protecting the company’s operating cash flow for 2019, ensuring a minimum level of realization price for the volume. Thus, there is protection against the scenarios of low prices, but the fruition of higher prices in Brent’s upside scenarios remains.

This operation is in line with the company’s Resiliency Plan.

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