Petrobras on E&P assets in the Pelotas Basin

March 16, 2019

Petróleo Brasileiro S.A. – Petrobras, following up on the press release disclosed on 12/23/2019, announces the beginning of the binding phase related to the sale of part of
its interest in exploratory blocks belonging to the BM-P-2 concession, located in the Pelotas Basin deep waters, in the state of Rio Grande do Sul.

Petrobras and Total are partners in this concession and each has a 50% stake, with Petrobras as the operator. It will be a joint divestment, between 30% and 65% of participating interest and Petrobras will remain the operator of the concession.

Potential buyers qualified for this phase will receive a process letter with detailed information on the divestment process, including guidelines for due diligence and submission of binding proposals.

This announcement is in accordance with Petrobras’ divestment guidelines and with the provisions of the special procedure for assignment of rights to exploration, development and production of oil, natural gas and other fluid hydrocarbons, provided for in Decree 9,355/2018.

This transaction is in line with the portfolio optimization and the improvement of the company’s capital allocation, aiming at generating value for our shareholders.

About the exploratory blocks
The BM-P-2 Concession is located in the Pelotas Basin deep waters , in water depths between 1,000 m and 2,000 m, and was acquired by Petrobras (100% interest) in 2004 in the 6th Bidding Round of the National Agency of Petroleum, Natural Gas and Biofuels (ANP). Total became a partner with the acquisition of a 50% stake in 2013.

Currently, the concession contemplates the exploratory blocks P-M-1269, P-M-1271, P-M-1351 and PM-1353 and is strategically positioned in relation to the 17 th Bidding Round announced by the ANP, scheduled for 2020, in which blocks from the Pelotas Basin shall be offered. This concession presents a reduced exploratory commitment with the potential to prove significant volumes and establish a position in a new exploratory frontier.

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