Petrobras starts non-binding phase for sale of UFN-III

February 21, 2020

Petróleo Brasileiro S.A. – Petrobras, following up on the release disclosed on 02/10/2020, informs the beginning of the non-binding phase related to the sale of 100% of its shares in Nitrogen Fertilizer Unit III (UFN-III).

Potential buyers qualified for this phase will receive a descriptive memorandum with more detailed information about the aforementioned asset, as well as instructions on the divestment process, including guidelines for preparing and submitting non-binding proposals.

This disclosure is in accordance with Petrobras’ divestment guidelines and with the special regime for the divestiture of assets by federal mixed-capital companies, provided for in Decree 9,188/2017.

This transaction is in line with the portfolio optimization and the improvement of the company’scapital allocation, aiming at maximizing value for its shareholders.

UFN-III is a nitrogen fertilizer industrial unit located in Três Lagoas, in the state of Mato Grosso do Sul. Construction of UFN-III began in September 2011, but it was interrupted in December 2014, with a physical advance of about 81%. After completion, the unit will have a projected urea and ammonia production capacity of 3,600 t/day and 2,200 t/day, respectively.

The completion of UFN-III will be the responsibility of the potential buyer.

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