Petrobras informs on the Addendum to the Cessation Commitment (TCC)

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(Petrobras, 5.Jul.2024) — Petrobras, in continuity to the Material Fact disclosed on 22 May 2024, informs that the Court of the Administrative Council for Economic Defense (CADE) and Petrobras signed an addendum to the Terms of Cessation Commitment (“TCC”) for Refining, signed in 2019, through which new obligations were agreed involving the activities carried out by Petrobras in the supply of oil and oil derivatives to third parties in Brazil.

The new obligations preserve the TCC’s original objective of maintaining competitiveness in the refining market. The addendum also covers investigations initiated by CADE after the conclusion of the TCC in 2019, suspending these administrative investigations involving Petrobras.

Due to the obligation assumed with CADE, Petrobras made available to the market, through its website, the Guidelines for Marketing Petroleum (crude oil) to third parties for deliveries by sea, as follows:

Oil Marketing Guidelines for Deliveries by Sea

1. Petrobras must preserve and prioritize its financial results, seeking to maximize its value generation;

2. Petrobras must seek to maximize value generation by always practicing competitive prices, aligned with the international market;

3. Aiming to maximize the company’s value generation, the authority responsible for approving each transaction must base its decision on Market references at the time of negotiation, including: (a) the counterparty’s supply alternatives, and (b) the opportunity cost for Petrobras. The counterparty’s alternative cost contemplates the main supply alternatives, while the opportunity cost for Petrobras is based on the company’s alternatives.

Among other agreed obligations, we highlight that Petrobras commits to offer, to any independent refinery located in Brazil, the possibility of entering a Frame Contract by which, according to the conditions established in the TCC, independent refineries will be guaranteed a minimum volume availability for oil to be delivered by sea during monthly trading periods, without any purchase commitment with Petrobras.

Additionally, Petrobras commits to present to CADE information, as defined in the Work Plan attached to the TCC, that allows verification of the non-discriminatory nature of the sale of oil (crude oil) to third parties and of Petrobras’ commercial sale strategy for petroleum derivatives, demonstrating its adherence to the terms of the TCC and to the provisions of the Brazilian Competition Defense Law (Law 12,529/2011).

As already mentioned to the market, the obligations agreed in the Addendum to TCC for Refining are valid for 3 years and can be extended for the same period, and the addendum exempts Petrobras from continuing with the divestments in refinery which has not yet been concluded, as provided in the original agreement, despite the company’s best efforts.

Petrobras considers that the signing of the addendum to the TCC consolidates the cooperation efforts between CADE and the company and is aligned with the current transition in the configuration of the Brazilian refining system.


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