Petrobras on actions in the natural gas chain

April 9, 2020

Petróleo Brasileiro S.A. – Petrobras reports that it has been working to reduce the impacts of the COVID-19 (coronavirus) pandemic on the natural gas chain, since the slowdown in the Brazilian and the global economic activity has the direct effect of reducing the
market consumption of natural gas.

Therefore, Petrobras proposed the payment in installments, by the local distribution companies (CDL), of the invoices falling due in April, May, and June 2020 referring to the contracts for the purchase of natural gas to support the non-thermoelectric market (industrial, residential, commercial and automotive). The measure is a temporary and negotiated response from the company that meets the demand of natural gas distributors, impacted by the crisis caused by the new coronavirus.

In addition, Petrobras will not charge penalties for non-compliance with the daily demand schedule or the contract obligations of capacity charges or minimum compensation (ship or pay and take or pay) relating to volumes of natural gas impacted by reduced demand, reflecting restrictive measures on the circulation of people and reduced economic activity. Such measures are valid as long as the impacts on the affected contract obligations are proven.

Furthermore, the company informs that it maintains negotiations with other agents in the natural gas chain in order to reduce the effects of the pandemic.

Petrobras is continuously monitoring the current scenario and its developments on the gas market and highlights the understanding that, given the severity, unpredictability and unprecedented nature of the matter, actions taken by all agents in the natural gas chain are necessary to reduce impacts on this industry.

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