Petrobras Comments On TOR Agreement Amendment

(Petrobras, 23.Oct.2019) — Petrobras, in addition to the press release issued on May 21, 2019, reports that its Board of Directors has ratified the signature and approved adjustments to the draft Amendment to the Transfer of Rights Agreement.

Such ratification occurs after the issuing of MME Ordinance No. 265 of June 21, 2019, and MME Ordinance No. 363/2019, of September 18, 2019, which amended MME Ordinance No. 213/2019, of April 23, 2019, in view of the Company’s understanding that such regulations are acceptable and reflect the implementation of recommendations by the Federal Court of Accounts (TCU) to the Ministry of Mines and Energy. 

Adjustments to the draft of the Amendment were also made as a result of a formal request from the Ministry of Mines and Energy, in response to reservations made by TCU, and do not affect Petrobras’ rights.

The amendment provides for the reimbursement to Petrobras of US$ 9.058 billion (nine billion and fifty-eight million dollars), which, converted to Reais according to the rules of the Transfer of Rights Agreement and updated by the Selic rate until September 30, 2019, reach a total of R$ 34.075 billion (thirty-four billion and seventy-five million reais). The amount of the reimbursement will be adjusted by the Selic rate until its effective settlement, which will occur together with the receipt – by the Federal Government – of an amount equal to or higher than the signing bonus of the bidding process of the volumes exceeding the Transfer of Rights Agreement or until December 27, 2020, which ever happens first.

The collegiate body also recommended that the execution of the Amendment occurs until 10/31/2019, that is, prior to Transfer of Rights surplus bidding, and that its signature is subject to the budgetary solution for the payment by the Federal Government to Petrobras.

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