Category: Brazil

(Reuters, 21.Jun.2018) – Brazil’s top labor court ruled in favor of workers at Brazil’s state-controlled oil giant Petroleo Brasileiro in a wage spat that could cost the world’s most indebted oil company up to 17 billion reais ($4.5 billion).

Petrobras, as the company is known, could still appeal the Superior Labor Court’s ruling in the case, brought by Petrobras workers seeking more pay.
***

(ExxonMobil, 7.Jun.2018) – ExxonMobil has increased its holdings in Brazil’s pre-salt basins after winning the Uirapuru exploration block with co-venturers Equinor and Petrogal Brasil during Brazil’s 4th pre-salt bid round.

The block awarded adds about 88,900 net acres to the ExxonMobil portfolio, expanding the company’s total position in the country to more than 2.2 million net acres.

“Uirapuru is a uniquely valuable block that represents tremendous opportunity for us,” said Steve Greenlee, president of ExxonMobil Exploration Company. “Brazil continues to represent a key investment for ExxonMobil, and we look forward to exploring and developing its world-class resources with our co-venturers and the government.”

Petrobras exercised its right to enter in the consortium and will be the operator. Equity interest in the Uripuru block will be 30 percent for Petrobras, 28 percent for ExxonMobil, 28 percent for Equinor and 14 percent for Petrogal Brasil.

ExxonMobil plans to obtain seismic coverage in 2018 on more than 7,500 square miles. 3-D seismic survey work is already underway on two blocks in the Northern Campos area offshore Brazil. Preparations are under way to obtain the necessary approvals to commence drilling activities.

Development plans are also under way in the Equinor-operated Carcara field, where drilling began in late April. The Carcara field contains an estimated recoverable resource of more than 2 billion barrels of high-quality oil.

ExxonMobil now has interests in a total of 25 blocks offshore Brazil. The company has had business activities in Brazil for more than 100 years and has about 1,300 employees in the country across its upstream, chemical and business service center operations.

***

(Energy Analytics Institute, Ian Silverman, 5.Jun.2018) – Ivan de Souza Monteiro is the new president of Petrobras.

Brazil’s state oil company Petrobras announced controlling shareholder informed the company of the appointment of engineer Ivan de Souza Monteiro, current interim CEO, to join Petrobras’ Board of Directors and assume the position of CEO of the company.

***

(Al Jazeera, Daniel Schweimler, 2.Jun.2018) – Pedro Parente’s resignation was one of the demands of striking workers due to worries that he was going to privatise Brazil’s share of the Latin American oil company.

https://www.aljazeera.com/news/2018/06/brazil-oil-company-petrobras-boss-resigns-truckers-strike-180602120210810.html

The boss of the biggest oil company in Brazil has resigned, driving down the share price of Petrobras by 15 percent.

He’s the highest-profile casualty so far of a truck drivers’ strike that’s virtually paralysed Brazil for nearly two weeks.

***

(Energy Analytics Institute, Ian Silverman, 1.Jun.2018) – Pedro Parente resigned as CEO of Petrobras.

In an official statement, Brazil’s state oil company Petrobras confirmed Mr. Parente had resigned his position as CEO of the company.

Petrobras said nomination of an interim CEO will be analyzed by the Board of Directors in due time.

***

(Petrobras, 30.Mar.2017) – Petrobras, in continuation to the material facts of 10/6/2016, 12/20/2016, and 3/15/2017 and to the press release of 11/21/2016, clarifies that it has notified the Federal Supreme Court of the impossibility to proceed with the divestment process for the transfer of rights relating to the fields of Baúna and Tartaruga Verde.

Furthermore on today’s date the company submitted the same information to the Federal Court of Aracaju, requesting the termination of court proceedings.

On March 15, as disclosed by Petrobras, TCU revoked the preventive order and, among other measures, upheld the permission to proceed with this sale process for being in advanced stage of negotiation, with the determination of compliance with the Court´s rules. In the face of this decision, the lack of conditions presented in the acquisition proposal and the maintenance of the effects of the judicial injunction, the continuation of this divestment process proved to be unfeasible, given the negotiation or procedural impossibility of resuming negotiations.

For this reason, the company waived the appeal before the Federal Supreme Court, which aimed to reverse the Court injunction.

Finally, Petrobras informs that requested in all judicial instances for granting judicial secrecy, considering the need to preserve its own interests and third parties interests.

***

(Petrobras, 27.Mar.2017) – Petrobras, as stated in Circular Letter CVM/SEP/01/2017, reported that it has received a request for the replacement of the substitute candidate to the Fiscal Council (FC) nominated by preferred shareholders Leblon Previdência Fundo de Investimento Multimercado and Ataulfo LLC, whose elections will take place at the Annual Shareholders Meeting to be held on April 27, 2017.

Candidates nominated by preferred shareholders Leblon Previdência Fundo de Investimento Multimercado and Ataulfo LLC

Candidate —————————— Position

Sonia Julia Sulzbeck Villalobos —- Member of FC – preferred (full member)

Roberto Lamb ————————- Member of FC – preferred (alternate)

Below are the resumes of the nominated candidates:

Sonia Julia Sulzbeck Villalobos, Brazilian citizen, married, administrator, Bachelor of Public Administration (1985) from EAESP – Getúlio Vargas Foundation and Master of Business Administration with specialization in Finance (2005) from EAESP – Getúlio Vargas Foundation. In 1994, she was the First Person in South America to receive the Chartered Financial Analyst – CFA credential, by the CFA Institute. She is Professor of Post-Graduation Lato Sensu, in the matters of Asset Management and Analysis of Financial Statements by Insper. He holds positions on the Boards of Directors of CEG – Distribuidora de Gas do Rio de Janeiro SA and Telefônica do Brasil SA. He has extensive experience in the financial market, having served as Head of the investment analysis department of Banco de Investimentos Garantia SA (1989 to 1996), Where he was voted Best Analyst in Brazil by Institutional Investor magazine in 1992, 1993 and 1994. He served as Senior Vice President of Bassini, Playfair & Associates, LLC (1996 to 2002) and Latin America Manager of Larrain Vial SA (2005 to 2011). She was the founding Partner and Manager of Lanin Partners Ltd., responsible for Long / short and long-only funds of Latin American stocks (2012 to 2016).

Roberto Lamb, Brazilian, physicist. Specialized in Monetary Economics and a holds a Master’s degree in Financial Management. Former career employee at Banco do Brasil, he has served as standing Audit Committee member for several Brazilian companies, among which Marcopolo, Gerdau and AES Eletropaulo, AES Tiete Energia, and MARFRIG. Board of Directors member for CADAM S.A. based in Belém, PA, a company whose purpose is the extraction and processing of ultrafine kaolin. It is controlled by KaMin, a company that operates in the kaolin extraction and processing segment, based in the state of Georgia, USA. He is a Certified Counselor by IBGC, where he coordinated the guidelines for best practices of the Audit Committee and the Auditing Committee and participated in the development of the handbook on best practices in Risk Management. He is a professor of Financial Management at UFRGS. He is the author of the Brazilian version of the book “Fundamentals of Financial Management” by Ross, Westerfield, and Jordan (McGraw Hill-Bookman, 2013) and of the Brazilian version of “Financial Administration” by Ross, Westerfield, and Jaffe (McGraw Hill-Bookman, 2015).

The names nominated above:

— In the last 5 years, they have not been subjected to criminal conviction, conviction in an administrative proceeding of the CVM and a final and unappealable conviction, in the judicial or administrative sphere, that has suspended or disqualified them for practicing professional or commercial activity;

— Do not have a marital relationship, stable union or informationable parentage according to item 12.9 of the Reference Form;

— They have no relationship of subordination with related parties of the Company.

— Meet the independence criteria of the Brazilian Institute of Corporate Governance (IBGC).

— They had the information provided by the “Fiscal Counselor Registry of the Ministry of Planning, Development and Management” analyzed by Petrobras and the Ministry of Finance, which concluded that the nominees are not subject to any impediment and have all the requirements set forth in the Law 6,404/1976, Law 13303/2016 and Decree 8.945/2016, according to the minutes of the Temporary Eligibility Committee of Petrobras, which will be disclosed at http://www.investidorpetrobras.com.br/en/governancacorporativa/Governing bodies/committees, up to the date of the Annual General Meeting.

***

(Petrobras, 27.Mar.2017) – Petrobras reports that in the meeting held yesterday Petrobras’ Board of Directors approved the reelection of CEO Pedro Pullen Parente for a two-year term in the company’s Executive Office.

Mr. Pedro Parente had been elected CEO as of May 31, 2016, following the term in office of the previous CEO, Mr. Aldemir Bendine. A new two-year term begins with this reelection.

The election process followed the rules of Petrobras Nomination Policy for the Members of the Fiscal Council, Board of Directors and Executive Office, including the review of integrity analyzes and the fulfillment of such other requirements for the position. The Nominating, Compensation and Succession Committee of Petrobras’ Board of Directors evaluated all relevant documentation and recommended the approval of the new term in office to the Company’s Board of Directors.

***

(Petrobras, 27.Mar.2017) – Petrobras, in continuation to the material fact disclosed on December 28, 2016, informed that, the Shareholders’ Extraordinary General Meeting approved the sale of 100% of the shares held by Petrobras in PetroquímicaSuape and Citepe to Grupo Petrotemex S.A. de C.V. and Dak Americas Exterior, S.L, subsidiaries of Alpek, S.A.B. de C.V., for the amount of $385 million, which will be paid on the closing date, and it is subject to working capital, net debt, and recoverable taxes adjustments.

This transaction is part of the 2015-2016 partnership and divestment program, that reached $13.6 billion in the biennium, and it is still subject to the fulfillment of usual precedent conditions, among them the approval of the operation by the Administrative Council for Economic Defense (CADE). The sale is aligned to Petrobras Strategic Plan, which provides for business portfolio optimization with full withdrawal from petrochemical interests.

Furthermore, at the moment, there is no restriction to continuing this transaction, since the Regional Federal Court revoked the injunction that suspended the operation, as disclosed on the material fact of February 22, 2017.

Petrobras also clarifies that the decision of the Brazilian Federal Accounting Court (TCU), issued and announced on March 15, 2017, does not interfere in this sale process, due to the fact that the purchase and sale agreement of PetroquímicaSuape and Citepe was already signed on December 28, 2016, prior to the publication of said decision.

***

(Petrobras, 24.Mar.2017) – Petrobras informed that the Administrative Board of Tax Appeals (CARF) issued on 3/22/17 a decision in favor of the Company, in the administrative proceeding that addresses the deductibility of expenses incurred by Petrobras in the development of oil and gas production, for the purposes of calculating the Income Tax for Legal Entities (IRPJ) and Social Contribution on Net Profits (CSLL) for the 2009 period. However, the Company has not yet been notified of the content of the decision, so that its legal department can proceed to an appropriate analysis. It should be noted that the National Treasury may still appeal the decision. In such a case, if the appeal is accepted, Petrobras may apply to the courts to defend their rights. Therefore, this is not a final decision in favor of the company.

The information pertaining to this proceeding has been incorporated in the 2014 financial statements, the year of sanction, and remained reflected therein in the Company’s financial statements for the 2015 and 2016 fiscal years, in explanatory note 30 (Judicial proceedings and contingencies – item 30.3 – taxation proceedings).

Petrobras did not consider the information to be suitable to the effect that it could impact investor decisions in relation to Company securities.

***

(Petrobras, 23.Mar.2017) – Petrobras’ results in 2016 were marked by a significant improvement in its operational performance over the course of the year, reflected in a reversal from the loss posted in 3Q16 to a net profit of R$2.51 billion in 4Q16, and a reduction in indebtedness.

Despite lower oil prices in 2016, an 8% decline in sales of oil products in the Brazilian market, and reduced power generation, the company obtained higher diesel and gasoline margins than in 2015. It also cut its spending on imports, royalties, sales, general and administrative expenses, and net financial expenses.

Exports increased 12% in 4Q16, amounting to 634,000 barrels per day of oil and oil products. Most notably, oil exports rose 14%, making the company a net exporter from Brazil in 2016.

In operational terms, Petrobras also achieved its production target for the second year in a row, producing 2.144 million barrels per day of oil in Brazil, and in December it set a new monthly record by producing 2.9 million barrels of oil equivalent per day, including oil and gas, in Brazil and abroad.

Thanks to higher operating cash generation and a 32% reduction in investment, the company achieved free cash flow of R$41.57 billion. 4Q16 was the seventh consecutive quarter of positive free cash flow, demonstrating the greater capital discipline the company has been pursuing.

Petrobras’ net debt declined 20%, to R$314 billion or $96.4 billion, due to the amortization and early payment of debts using resources from disposals and cash flow, as well as the appreciation of the Brazilian real. Debt management also enabled an increase in the average debt term, from 7.14 to 7.46 years.

EBITDA, an indicator widely used in the financial markets as a yardstick for cash flow, was R$24.8 billion in 4Q16 and R$88.7 billion in 2016, up 16% from the previous year.

As a result, the net debt to EBITDA ratio fell from 5.11 at the end of 2015 to 3.54 at the end of 2016. The target established in the company’s Business and Management Plan is to reach 2.5 by the end of 2018.

***

(Petrobras, 23.Mar.2017) – Petrobras informed that Mr. Paulo José dos Reis Souza, member of the Fiscal Council, submitted his resignation to the post, effective on March 27, 2017.

The election of the new member of the Fiscal Council appointed by the controlling shareholder will be in the Extraordinary General Meeting, on March 27, 2017.

***

(Petrobras, 15.Mar.2017) – Petrobras, in continuation to the material facts disclosed on 12/8/2016 and 12/20/2016, reports that the decision by the Federal Accounting Court (TCU) issued, repealed the preventive order preventing the company from initiating new divestment projects and concluding those in progress and, as for the merit, ordered Petrobras to adopt its reviewed divestment process methodology for the divestment projects of the company.

The decision also allows Petrobras to conclude two of its projects – sale of interest in the Baúna and Tartaruga Verde fields and sale of interest in Saint Malo field in the U.S. Gulf of Mexico – which were already included in the list of five projects authorized by TCU in the 12/7/2016 preventive order, using the reviewed divestment process methodology, as of the currently stage, and to apply the reviewed divestment process methodology to other projects from the beginning.

Petrobras also informs that the divestment process methodology is subject to continuous improvement, always observing the best market practices in acquisition and divestment transactions. In order to improve its competitive process, based on the recommendations suggested by the TCU, the divestment process methodology was then reviewed and presented to the Court, culminating with the decision issued today.

Such decision is crucial for the company to move forward with its Divestment Plan, which is considered one of the main pillars to achieve the goal of reducing leverage.

Petrobras reaffirms the maintenance of its partnership and divestment target established in the Strategic Plan of $21 billion for the 2017/2018 biennium.

***

(Moody’s, 15.Mar.2017) – On 15 March 2017 Moody’s changed the outlook on the Government of Brazil’s Ba2 rating to stable from negative, reflecting Moody’s expectation that the downside risks are abating and macroeconomic conditions stabilizing.

As stated in our previous reports, the change in Brazil´s outlook does not directly affect the B2 ratings or stable outlook of state-owned oil company Petroleo Brasileiro S.A. (Petrobras).

Petrobras’ ratings and outlook reflect Moody’s joint-default analysis for the company as a governmentrelated issuer. The ratings reflect the rating agency’s assumption of a moderate likelihood of timely extraordinary support from the Brazilian government. As well, Moody’s assumption for default dependence between Petrobras and the government continues to be moderate. This assessment currently results in a one-notch uplift of Petrobras’ senior unsecured rating to B2 from its b3 Baseline Credit Assessment (BCA).

On 21 October 2016, Moody’s raised Petrobras’ Baseline Credit Assessment to b3 from caa2, upgraded its ratings to B2 from B3, and changed the ratings outlook to stable from negative. The action incorporated improvements in the company’s liquidity profile and in the regulatory framework in Brazil, both of which reduced Petrobras’ credit risk. Moody’s continues to monitor progress on Petrobras’ execution of asset sales, operational improvements, and debt refinancing initiatives.

Following the $13.75 billion in bond issuances since May 2016, Petrobras’ debt amortization schedule has improved, although debt maturing in 2017 and 2018 remains high at $21.45 billion as of September 30, 2016. In addition, the class action lawsuit, the US Securities Exchange Commission (SEC)’s civil investigation and the US Department of Justice (DoJ)’s criminal investigation related to bribery and corruption could negatively affect the company’s cash position in an amount yet unclear. While Moody’s believes Petrobras’ dispute with Brazil’s federal securities regulator CVM over the company’s 2013-15 financial statements will not cause a material enough restatement to prompt the agency to take a negative rating action, any resolution with CVM could result in some future cash implications for dividend payments.

Petrobras’ lower capital spending in relation to about $13.6 billion in asset sales could indicate a reduction in its future revenues and cash flow. But any actions that strengthen Petrobras’ liquidity while also improving its operating margins and leverage would likely have a greater impact on the company’s credit quality than reductions in its production, revenues and reserve base.

Petrobras is an integrated energy company, with total assets of $247 billion as of 30 September 2016. The company dominates Brazil’s oil and natural gas production, as well as downstream refining and marketing. Petrobras also holds a significant stake in petrochemicals and a position in sugar-based ethanol production and distribution. The Brazilian government directly and indirectly owns about 46% of Petrobras’ outstanding capital stock and 60.5% of its voting shares.

***

(Petrobras, 14.Mar.2017) – Petrobras’ oil and natural gas production in February totaled 2.82 million barrels of oil equivalent per day (boed), with 2.703 million boed produced in Brazil and 113,000 boed abroad.

Average domestic oil output stood at 2.20 million barrels per day (bpd), 1% down on the January figure. This was mainly due to a scheduled stoppage on FPSO Cidade de Paraty in the Santos Basin’s Lula Nordeste pre-salt field, and termination of the Anticipated Production System (SPA) test phase in the Búzios field under the Rights Transfer Agreement. The SPA was designed to gather information about the behavior of the reservoirs in the oilfield.

In February, production of natural gas in Brazil (excluding liquefied gas) stood at 80.2 million m³/d, 1% down on the previous month, mainly because of a scheduled stoppage on the FPSO Cidade de Paraty.

Pre-salt Production

In February, oil and natural gas production managed by Petrobras (own and third party output) in the presalt layer was 1.53 million boed, showing growth of 41% against the February 2016 figure. However, compared to January this year, this figure is represents a 3% drop, which was due to a scheduled stoppage on FPSO Cidade de Paraty in the Santos Basin’s Lula Nordeste pre-salt field, and termination of the SPA test phase in the Búzios field.

Gas and oil production abroad

In February, oil output from oilfields abroad stood at 63.5 million bpd, 8% down on the previous month. Natural gas production amounted to 8.4 million m³/d, 3% down on the January 2017 figure. This was mainly due to operational stoppages in the Lucius and Hadrian South fields in the U.S. because of limitations in the distribution capacity of third-party facilities.

***

(Petrobras, 24.Feb.2017) – Petrobras announces its Board of Directors has approved settlements to end four individual lawsuits filed before the Federal Court of New York, USA, by New York City Employees Retirement System (and others), Transamerica Income Shares, Inc. (and others), Internationale Kapitalanlagegesellschaft mbH, Lord Abbett Investment Trust – Lord Abbett Short Duration Income Fund (and others).

Petrobras had already agreed settlements for fifteen other individual lawsuits before the Federal Court of New York, as announced on October 21, 2016 and November 23, 2016.

As a result of the agreements reached and the stage of ongoing negotiations with other plaintiffs in individual lawsuits, the Company, currently, expects the total provision for 2016 to be $372 million, of which a $364 million provision has already been set on September 30, 2016.

These four individual lawsuits had been consolidated for the purposes of the judgment with twenty-three other individual lawsuits and a class action filed against the Company (and others) before the Federal Court of New York, USA. With today’s announcement, Petrobras has reached an agreement in nineteen individual lawsuits from a total of twenty-seven, which were consolidated with the class action.

Currently, Petrobras cannot reliably estimate the outcome of the class action.

These agreements, the terms of which are confidential, aim to eliminate uncertainties, charges and costs associated with the continuity of such disputes and do not constitute any acknowledgment of liability on the part of Petrobras, which will continue to firmly defend itself in other ongoing lawsuits.

***

(Petrobras, 23.Feb.2017) – Further to the relevant fact disclosed on January 31, 2017, Petrobras announced that the Federal Regional Court of the 5th Region granted the stay of proceedings sought by Petrobras concerning the sale of the shares in Companhia Petroquímica de Pernambuco (PetroquímicaSuape) and Companhia Integrada Têxtil de Pernambuco (Citepe).

With the Court’s favorable decision, the company can proceed with this sale, one of five transactions given the go-ahead following the provisional ruling of the Brazilian Federal Accounting Court (TCU), as disclosed on December 20, 2016.

***

(Petrobras, 12.Feb.2017) – Petrobras reported average oil production in Brazil reached an annual historical record in 2016, at 2.144.256 barrels per day (bpd), 0.75% above the results for the prior year and in line with the 2,145 thousand bpd target forecast for the period. For the second year in a row, the company has met forecast plans, reinforcing its commitment to the predictability of its projections.

Average annual production operated in the pre-salt layer in 2016 was also the highest in the company’s history, reaching 1.02 million barrels of oil per day and surpassing the 2015 production by 33%.

If Petrobras’ own natural gas production, which reached in 2016 an unprecedented 77 million m³ per day, is considered, total production in the country reaches 2.63 million of barrels of oil equivalent per day (boed) – 1% more than the levels for 2015, also a new record for Petrobras.

The main highlights for production expansion in 2016 were the significant production growth in the Lula field (Iracema Norte and Iracema Sul areas, with FPSOs Cidade de Itaguaí and Cidade de Mangaratiba) and in the Sapinhoá field (FPSO Cidade de Ilhabela), located in the Santos Basin’s pre-salt layer, in addition to the Parque das Baleias area (P-58), in the Espírito Santo state section of the Campos Basin. Additionally, operations for three production systems started, two of which in the Lula field (FPSO Cidade de Maricá and FPSO Cidade de Saquarema) and one in Lapa (FPSO Cidade de Caraguatatuba), located in the Santos Basin’s pre-salt layer.

The utilization rate for Petrobras’ gas in Brazil also achieved its annual record in 2016, reaching 96%, a result of the efforts undertaken by the operating efficiency improvement and gas use optimization programs.

Record productions in December

In December 2016, the company also surpassed its monthly and daily production historical records: average oil production in Brazil for the first time exceeded 2.3 million bpd, 3% above the record registered in September 2016, and production on December 28 achieved 2.4 million barrels of oil.

In gas production, there was a 2% increase in comparison to the previous month, achieving 81.8 million m³/day. As such, oil and natural-gas production in Brazil in December were 2.82 million boed, 3% higher than what was recorded in November 2016 and 6% higher than December 2015, which also represents a new monthly production record for the company.

Oil production operated by Petrobras in the pre-salt layer reached in December the new monthly record of 1.27 million bpd, a 9% increase in comparison to production in November, which was 1.16 million bpd. Moreover, Petrobras reached a 1.34 million barrels daily record on December 29.

Meanwhile, oil and natural-gas production operated in the pre-salt layer were 1.58 million boe/d, displaying a significant 45% increase between December 2015 and December 2016, also representing a new monthly record.

Internationally, average oil production in December was 61 thousand bpd and average natural gas production was 10.3 million m³/day. As such, in December, 122 thousand boe/d were produced globally.

If oil and gas production in Brazil and internationally are consolidated, production in December 2016 was 2.94 million boed, which also represents a new monthly record.

International oil and gas production in 2016

Internationally, average oil production in 2016 was 80 thousand bpd, 19% below the volumes in the previous year. Average natural gas production reached 13.7 million m³/day, 11% below 2015 production. Reduction occurred mainly because of divestments executed, such as the sale of Petrobras Argentina.

If production in Brazil and internationally are consolidated, average oil production in 2016 was 2.22 million bpd, while average annual production of oil and gas was 2.79 million boed, the same level as in 2015.

***

(Petrobras, 6.Feb.2017) – The floating platform will operate in the Santos Basin pre-salt and it will be the seventh unit deployed in Lula field.

On February 4, 2017 the floating production, storage and offloading vessel (FPSO) P-66 left the Brasfels shipyard in Angra dos Reis, Rio de Janeiro. It is now heading to the Lula Sul module in the Lula field, Santos Basin pre-salt, where it is expected to arrive in days. The production system will come online after the vessel has been moored and the first production well has been connected.

P-66 is the Lula Consortium’s first FPSO to be deployed in the Santos Basin pre-salt. It was assembled at the Brasfels shipyard in Angra dos Reis, where the equipment and systems were also tested.

The FPSO will separate the oil from the gas and water during the production process, storing it in tanks, and finally transferring it into oil tankers, which will then transport it. P66 will be connected to 10 production wells and 8 injector wells, and it will be able to process up to 150,000 barrels of oil per day and 6 million cubic meters of natural gas per day.

Lula field is located within the BM-S-11 concession area, operated by Petrobras (65% WI) in partnership with BG E&P Brasil (25% WI), a subsidiary of Royal Dutch Shell plc (25% WI), and Petrogal Brasil (10% W).

***

(Petrobras, 16.Sept.2015) – Petrobras’ oil and natural gas production in Brazil and abroad reached 2.88 MMboe/d in Aug.2015, a new record. It is up 0.8% on the previous record of 2.86 MMboe/d set in Dec.2014. This volume is also up 4.5% on Aug.2014 (2.76 MMboe/d). Oil and natural gas production was up 3.1% on the previous month (July) when 2.80 MMboe/d were produced.

Petrobras’ total oil and natural gas production of in Brazil was 2.69 MMboe/d, up 3.1% on the previous month (2.61 MMboe/d), which is also a new domestic production record (0.6% up on the previous record of 2.67 MMboe/d set in Dec.2014).

It is worth noting that total production operated by Petrobras in Brazil, including the portion operated for partner companies, exceeded 3 MMboe/d for the first time when 3.01 MMboe/d were produced. The company’s oil production was 2.21 MMb/d (3% higher than the 2.14 MMb/d produced in the previous month) making it the second best mark ever reach.

The increase reflects the FPSO Cidade de Itaguaí coming on stream on 31.July.2015. The vessel is anchored in Iracema Norte, an area located in the northwest portion of the Lula field, in the Santos Basin pre-salt. This platform has the capacity to process 150 Mb/d of oil and 8 MMcm/d of gas. Additionally, platforms that were undergoing scheduled maintenance returned on stream, contributing to the good performance in the month.

Natural gas production in Brazil, excluding liquefied gas, also set a new record of 77.2 MMcm/d (3.6% higher than the previous month).

New records in the pre-salt

In the pre-salt, two new records were set: daily production operated by Petrobras, with a volume of 896 Mb/d recorded on Aug.19; and the monthly production operated by the company, which reached 859 Mb/d for the month.

Oil and gas production abroad

Abroad, 192 Mboe/d were produced, 3.8% up on the 185 Mboe/d produced in July. This is mainly due to the return to operation of the platform in the Saint Malo field, in the Gulf of Mexico, in the United States. Oil production was 101 Mb/d, 5.2% up on than the 96 Mb/d produced in July and the average natural gas production abroad was 15.4 MMcm/d, 1.9% up on July’s production, which was 15.1 MMcm/d.

***

(Petrobras, 15.Sep.2015) – Petrobras hereby responds to BM&FBovespa Official Letter 2851/2015-SAE, which requests the following clarifications:

BM&FBovespa Official Letter 2851/2015-SAE       “We request that you provide clarification, by 9 a.m. on 9.Sep.2015, of the content of the article published by the newspaper Valor Econômico on 14.Sep.2015, entitled “Petrobras promises unprecedented expense cuts”, as well as any other information deemed important.”

Clarification

As disclosed in the material fact of 29.Jun.2015, the 2015-2019 Business and Management Plan envisages the adoption of optimization measures and productivity gains in order to reduce manageable operating expenses (total costs and expenses less raw material acquisitions).

Initiatives already identified by the company show that this can be achieved by greater efficiency in regard to the management of contracted services, the streamlining of structures and the reorganization of businesses, the optimization of personnel costs and a reduction in expenditures on inputs, in order to ensure a manageable operating expense ceiling of $142 bln between 2015-2019.

With this in mind, on 26.Aug.2015 all company employees were informed of the first immediate impact measures to reduce manageable operating expenses, including a reduction in expenses associated with travel and transportation, the hiring of consultants, events and communications (freebies and printed publications), training programs outside Petrobras University, and personnel.

In addition, on September 10 Petrobras presented the trade unions with its proposal for the social clauses in the 2015 Collective Bargaining Agreement, including the possibility of administrative area employees on flexi time opting for a 30-hour working week with a proportional reduction in compensation (25%).

These and other measures will play a fundamental role in achieving the goal established by the 20152019 Business and Management Plan, ensuring the Company’s alignment with the current business environment.

***

(Petrobras, 15.Sep.2015) – Petrobras’ Board of Directors approved the appointment of Director Luiz Nelson Guedes de Carvalho at a meeting.

Carvalho will chair this Board during Mr. Murilo Pinto de Oliveira Ferreira’s leave of absence, which was granted by the Council until 30.Nov.2015.

The alternate to the Chairman of the company’s Board of Directors, Mr. Clovis Torres Junior, will also not take part in the Board’s proceedings until 30.Nov.2015.

***

(Petrobras, 14.Sep.2015) – Petrobras’ Chair of the Board of Directors, Murilo Ferreira, has advised the Board that he will be on leave of absence until 30.Nov.2015.

***

(Petrobras, 26.Aug.2015) – Petrobras sets new daily and monthly records for oil extraction in the pre-salt layer.     Petrobras’ average oil and natural gas production rose 1.8% in July 2015 compared to the previous month and reached 2.796 MMboe/d. The company produced 2.746 MMboe/d in Jun.2015. Production is up 3.6% on Jul.2014 (2.699 MMboe/d).

On Jul.8, Petrobras set a new daily oil production record in the pre-salt layer: 865 Mb/d. This production does not include natural gas extraction. Monthly production was 798 Mb/d, 6.9% higher than the existing record for Jun.

Oil and gas Production in Brazil

Petrobras’ total oil and natural gas production in Brazil was 2.611 MMboe/d, 2.3% up on the previous month (2.553 MMboe/d).

Oil production (not including natural gas) was 2.142 MMb/d, 2.6% up on the 2.088 MMb/d produced in Jun. The increase reflects new wells coming on stream at platforms P-58, in the Parque das Baleias, and P-62, in the Roncador field, both located in the Campos Basin; and on the FPSO Cidade of Mangaratiba, anchored in Iracema Sul, in the Santos pre-salt basin. FPSO is an acronym for a Floating production, storage and offloading unit.

Note that, as announced to the market and the press on 31.Jul.2015, the FPSO Cidade de Itaguaí came on stream in Iracema Norte, which is located in the Lula field in the Santos pre-salt basin. This new unit has the capacity to process 150 Mb/d of oil and 8 MMcm/d of gas.

Natural gas production in Brazil, excluding liquefied natural gas, was 74.524 MMcm/d, 0.9% up on the total production in June (73.886 MMcm/d).

Oil and gas Production abroad

Abroad, 184.6 Mboe/d were produced, 4.2% down on the 192.7 Mboe/d produced in Jun, mainly due to the scheduled shutdown of the platform in the Saint Malo field, in the Gulf of Mexico.

Oil production was 95.9 Mb/d, 5.9% down on the 101.900 Mb/d produced in Jun. and the average production of natural gas was 15.1 MMcm/d, 2% down on the previous month’s production, which was 15.4 MMcm/d.

***

(Petrobras, 26.Aug.2015) – Petrobras has submitted to the Brazilian Financial and Capital Markets Association (ANBIMA) a request for the preliminary analysis of registration for the public offer of simple debentures, not convertible into shares, unsecured, in up to 3 series, to be held in accordance with the procedures of CVM Instruction 400, of 29.Dec.2003 and CVM Instruction 471, of 8.Aug.2008.

The offer will initially be for 300,000 debentures with a face value of R$10,000, on the issue date, for a total initial amount of R$3,000,000,000). This amount may be increased through the exercise of the possible distribution of additional debentures and supplementary debentures.

The proceeds of the offer will be used (i) for the planned investments in the Business and Management Plan and/or extending the company’s debt profile; and/or (ii) to fund the expenses already incurred or to be incurred related to the prioritized investment project, in accordance with Law 12,431/11, as will be described in the offer documents.

In due course, a notice to the market will be issued, in accordance with Article 53 of CVM Instruction 400/03, containing information on: (i) the other characteristics of the issue; (ii) where to obtain the preliminary prospectus; (iii) the estimated dates and venues for the disclosure of the offering; and (iv) the conditions, the procedure and the bookbuilding date.

The offer will begin only after (i) the granting of the offer registration by the CVM; (ii) registration for the distribution and trading of the debentures on the CETIP and/or the BM&FBOVESPA, as applicable; (iii) the disclosure of the launch announcement; and (iv) the availability of the final prospectus to investors, including the reference form, prepared by the Company in accordance with CVM Instruction 480, of 7.Dec.2009, as amended.

***

(Petrobras, 7.Aug.2015) – Following the publication of Joint Regulation RFB/PGFN #1064 and Regulatory Instruction 1576 in the Official Gazette on 3.Aug.2015, by the Brazilian Internal Revenue and the Office of the General Council to the National Treasury, Petrobras has decided to include, under these regulations, the processes relating to the liability for Financial Transactions Tax (IOF) on loan agreements with foreign subsidiaries (loan transactions between Petrobras System Companies) for years 2007 and 2009 to 2012, amounting to R$2.8 bln.

The above-mentioned regulations allow taxpayers who joined the scheme in 2014 to include tax liabilities on their original dates. In addition to being able to take advantage of tax losses and a negative basis for Social Contributions against Net Profits by settling tax liabilities, the scheme also has advantages in terms of reductions in fines and interest.

Notwithstanding the financial advantages for the settlement of tax liabilities, any legal action taken would require guarantees to be provided, as well as a substantial increase in the amount of the liability as time progressed due to interest and additional financial charges. There is also the risk of cancellation of the Federal Tax Clearance Certificate, which could inflict losses on the Company through measures such as prohibiting it from importing and exporting oil and oil products.

Given the financial advantages offered, the Company has opted to include these liabilities under the scheme instituted by Law 12.996/14, and accordingly recognize a total amount of R$3.1 bln under tax expenses and R$1.3 bln under financial expenses in the income statement for the second quarter of 2015.

***

(Petrobras, 7.Aug.2015) – Petrobras made net earnings of R$5.9 bln in the 1H:15, down 43% from the 1H:14. This result mainly reflects an increase in net financial expenses and recognition of a Financial Operations Tax (IOF) expense involving loans between different Petrobras group companies.

Operating earnings were R$22.8 bln, up 39% from the 1H:14. The main factor that contributed to this growth was higher margins in oil product sales.

Adjusted EBITDA in the 1H:15 was R$41.3 billion, up 35% from the 1H:14.

Free cash flow was R$4.5 bln, compared with minus R$15.8 bln in the 1H:14.

Investment amounted to R$36.2 bln, down 13% from the 1H:14. The exploration and production area in Brazil accounted for 78% of this investment. In dollar terms, investment totaled $12 bln, down 33% from the 1H:14 ($18.1 bln).

Petrobras received R$157 mln of sums retrieved as part of the Federal Police’s “Lava Jato” anticorruption investigation.

***

(Petrobras, 31.Jul.2015) – The Federal Public Prosecution Ministry returned R$139 mln misappropriated by former employees to Petrobras.

Petrobras has made its supplier management process stricter. Its suppliers must now provide detailed information about their structure, finances and mechanisms for compliance and combating fraud and corruption, among other items, which are evaluated through a process called Integrity Due Diligence.

The aim is to make the procurement of goods and services more secure and mitigate risks regarding fraud and corruption. The company has been implementing measures to ensure only suppliers with proven compliance and integrity mechanisms remain in Petrobras’ registry and can participate in competitive tenders. These measures were announced on 31.Jul.2015 during a ceremony to formally return funds to the company retrieved by the Federal Public Prosecution Ministry.

In all, R$139 mln was returned – R$69 mln of funds misappropriated by former employee Pedro Barusco, and R$70 mln misappropriated by former director Paulo Roberto Costa. This was Petrobras’ second such reimbursement. In May, the Federal Public Prosecution Ministry returned R$157 mln retrieved as part of the “Lava Jato” anti-corruption investigation.

Petrobras’ review of its suppliers’ status is beginning with companies whose activities have been suspended by courts due to evidence uncovered by the Lava Jato investigation. At the same time, the company is evaluating suppliers whose contracts are in the renewal process or that have applied to join the corporate registry.

Besides attesting to the veracity of the information they provide, the companies that remain in Petrobras’ supplier database will give it authorization to conduct audits of their integrity systems and mechanisms to combat fraud and corruption.

Collective Decisions

Petrobras is also carrying out a series of initiatives to improve its internal controls. One of the guiding principles of these changes is the limitation of individual decisions at all levels of the company and the promotion of collective decisions.

Another measure is the creation of two new committees (Strategy and Finance), in addition to three existing ones (Audit; Safety, Environment & Health; and Remuneration & Succession), to advise the Board of Directors on issues, providing more detailed analysis of all topics submitted to it.

All projects planned and approved within the company must now be evaluated using a matrix that takes into consideration possible risks, including from a control and transparency perspective.

Reporting And Investigation

To encourage people to report any signs of irregularities, Petrobras has begun the process of hiring an external, independent specialized reporting channel.

This channel will be available 24 hours a day, in several languages, and will also be open to external stakeholders and anonymous reports. This format has already been adopted by several other large oil companies with good governance practices.

Another reform is related to the functioning of Internal Investigation Commissions, created whenever it is necessary to examine signs of irregularities committed by Petrobras employees. From now on, all such commissions that investigate possible cases of fraud and corruption will be composed of representatives of the Business Security, Audit, Legal and Compliance areas. Whenever they identify possible crimes, the commissions’ reports will be submitted to the Public Prosecution Ministry and police authorities.

Another measure is that the Internal Audit area will now participate in all meetings of Petrobras’ Executive Board, contributing to the production of audit plans from the beginning of the project approval process.

Punishment For Employees

In order to create stricter penalties for employees involved in breaches of Petrobras’ rules, a Disciplinary Committee has been established, reporting to the Governance, Risk and Compliance Department.

This committee’s role is to ensure that punishments imposed on company employees are appropriate given the gravity of the irregularities. The committee is also tasked with punishing managers who fail to investigate or punish their subordinates.

***

(Petrobras,  17.Jul.2015) – Due to the unfavorable final ruling by the Tax Appeals Board (CARF), Petrobras paid R$1.6 bln to cover the Tax Deficiency Notice issued by the Brazilian Federal Revenue Service, R$1.2 bln in cash and R$0.4 bln in tax losses.

The Tax Deficiency Notice relates to Financial Operations Tax (IOF) on loans made by the company to its overseas subsidiaries in 2008. The discussion began in 2012 and over time the probative-evidentiary context proved to be unfavorable to the position defended by the company.

Consequently, appealing the decision in court would involve the constitution of a guarantee, as well as a substantial increase in the amount of the debt over time due to interest and additional financial charges.

It is important to note that if the payment were not made, in addition to the above impacts, the debt would be registered as delinquent, which would prevent the renewal of the Federal Tax Clearance Certificate or even result in its cancellation, which could substantially jeopardize the company, for example, by preventing it from importing and exporting oil and oil products.

This payment will be recognized in the financial statements for the 2Q:15, with a negative impact of R$1.4 bln, net of taxes.

***

(Petrobras, 29.Jun.2015) – On 26.Jun.2015, the Board of Directors of Petrobras approved the 2015–2019 Business and Management Plan. The plan earmarks investments of $130.3 billion for 2015-2019. The investment portfolio prioritizes oil exploration and production (E&P) in Brazil, especially in the pre-salt. Of the total amount, 83% ($108.6 billion) will go to E&P. In other business segments, investments are targeted basically at maintaining operations and projects related to transferring the oil and natural gas produced.

Total investments in the previous plan have been cut by 37% and are allocated to business segments as follows. Note: Table not available.

The basic objectives of the plan are to reduce the company’s indebtedness and to generate value for shareholders. The goal is to cut indebtedness levels by reducing leverage (Net Indebtedness/(net indebtedness + net assets)) to below 40% by 2018 and 35% by 2020, and the ratio of net indebtedness to Ebitda (earnings before interest, taxes, depreciation and amortization) to less than 3 by 2018 and 2.5 by 2020.

The financial plan is based on the following main assumptions:

— Oil product prices in Brazil at parity with imports;

— Brent Price (average): $60/bbl in 2015 and $70/bbl from 2016 to 2019;

— Exchange rate (average): as shown below. Note: Table not available.

The amount of divestment for the period between 2015 and 2016 has been revised to $15.1 billion (30% in Exploration and Production, 30% Downstream and 40% Gas and Power). The Plan also includes efforts to restructure business, retire assets and further divestment, totaling $42.6 billion between 2017 and 2018.

Divestment is common among large oil companies throughout the world. Over the past few years, in addition to mergers and acquisitions by the private oil companies, most asset acquisitions have been made by Asian national oil companies (NOC) and finance companies.

Of planned investments in E&P, 86% will be allocated to production development, 11% to exploration and 3% to operational support. $64.4 billion will be earmarked for new production systems in Brazil, including 91% of this figure for the pre-salt. In terms of exploration in Brazil, investments will be concentrated in the Minimum Exploratory Program for each block.

Downstream will receive investments of $12.8 billion, including 69% for maintenance and infrastructure, 11% for completing work on the Abreu e Lima Refinery and 10% for Distribution. The total amount includes investment in Comperj for receiving and processing gas, maintaining equipment, etc.

Gas and Power have been allocated $6.3 billion, chiefly for gas pipelines for transferring gas from the pre-salt, as well as the associated processing units (UPGNs).

Oil, NGL and Natural Gas Production Curve

The production targets for oil, NGL (natural gas liquids) and natural gas in Brazil have been updated to reflect the postponements of low-maturity projects and delays in the delivery of production units, largely due to limitations of Brazilian suppliers.

The company plans to reach total oil and gas production (domestic and international) of 3.7 MMboe/d in 2020, by which time the pre-salt will account for 66% of total oil production in Brazil.

The reduction in Petrobras’ investments follows a global trend in the oil and gas industry and is directly linked to the in oil prices on the world market. All companies in the sector, whether majors, national or independent, have been forecasting a cut in investments in all areas, including E&P. Average global E&P investments this year are down 20% on the 2014 figure.

The Plan allows for the adoption of measures for optimization and productivity gains to reduce Manageable Operating Costs (total costs and expenses, excluding costs related to basic materials). Actions already planned indicate that this could be achieved by greater efficiency in managing contracted services, rationalizing structures and reorganizing the company´s businesses, optimizing personnel costs and reducing expenditure on inputs.

Note that the company is subject to various risk factors that could adversely affect its cash flow projections, including:

— Fluctuations in market variables, such as oil prices and exchange rates;

— Divestment operations and other business restructuring plans, subject to market conditions prevailing as and when transactions are made;

— Achieving oil and natural gas production targets at a time when suppliers in Brazil are experiencing difficulties.

***

(Petrobras, 8.May.2015) – Petrobras’ Board of Directors has unanimously approved the new composition of its Audit Committee, by appointing Directors Luiz Nelson Guedes, Luiz Augusto Fraga Navarro de Britto Filho and Roberto da Cunha Castello Branco as the new members of this Committee.

The Board of Directors has also unanimously approved the appointment of Director Luiz Nelson Guedes de Carvalho as the President of Petrobras’ Audit Committee.

***

(Petrobras, 28.Apr.2015) – On 24.Apr.2015, Petrobras submitted a request to assist the Federal Prosecutors Office in seven criminal lawsuits related to Operação Lava Jato (Operation Car Wash), in which the company is the defendant.

These lawsuits have been filed at the 13th Federal Court in Curitiba (Paraná state).

This indicates that Petrobras, which is already collaborating with the public authorities, is seeking to act firmly in order to remedy its losses, as a conviction may guarantee that the company is compensated for the damage caused by these crimes.

Petrobras is taking all possible measures with the Brazilian authorities in order to remedy the damage incurred as a result of the unlawful acts reported as part of Operação Lava Jato.

***

(Petrobras, 23.Apr.2015) – Petrobras presented a loss of R$21.6 billion for the year 2014, mainly due to an asset impairment charge of R$44.6 billion, a write-down of improperly capitalized additional spending within the scope of the Federal Police’s “Operação Lava Jato” anticorruption probe (R$6.2 billion), a provision for losses from power sector receivables (R$4.5 billion), write-downs related to the construction of the Premium I and II refineries (R$2.8 billion), and a provision for the Program to Encourage Voluntary Severance (PIDV) (R$2.4 billion).

In the 3Q:14, a loss of R$5.3 billion was made. The difference in relation to the R$3.1 billion net earnings reported on 27.Jan.2015 reflects the write-down of improperly capitalized additional spending within the scope of Operação Lava Jato (R$6.2 billion), as well as an extra R$1.6 billion provision for losses from power sector receivables.

The R$26.6 billion loss in the 4Q:14 reflected the asset impairment. Most of this loss was related to refining activities, due to project planning problems, the use of a discount rate with a higher risk premium, the postponement of expected cash inflow and lower economic growth. In exploration and production, the impairment resulted from the decline in oil prices. As an operational highlight, Petrobras’ oil and natural gas production (in Brazil and abroad) grew by 5% in relation to 2013, reaching an average of 2.669 Mmboe/d in 2014. Pre-salt production contributed 381,000 b/d during the year, with record oil production of 713,000 b/d achieved on 21.Dec.2014.

During the year, four new platforms came on line and 87 new wells were interconnected in Brazil.

In refining, total production of oil products in 2014 was 2.170 MMb/d, up 2% from 2013. The first part of the RNEST refinery began operating in Nov.2014.

Investments totaled R$87.1 billion in 2014, down 17% from 2013.

The company ended the year with R$68.9 billion in cash.

***

(Petrobras, 27.Mar.2015) – The Petrobras Annual Shareholders’ Meeting scheduled for April 29, 2015 will elect new members of the Board of Directors and Fiscal Council.

Petrobras has not yet completed the preparatory work on the company’s third quarter 2014 and annual 2014 financial statements for examination by independent auditors, approval by the Audit Committee, Fiscal Council and Board of Directors, and subsequent release.

Additional items on the Annual Shareholders’ Meeting agenda, including examining, discussing and voting on the financial statements, accepting the administrative accounts, deliberating on the allocation of net profits for the year and 2014 dividend distribution, and approving the capital budget for the 2015 fiscal year, will be on the agenda of an Extraordinary General Meeting to be held at the earliest opportunity.

Petrobras would like to reaffirm its commitment to finalizing the financial statements as soon as possible, but as yet is unable to specify a completion date.

***

(Petrobras, 25.Mar.2015) – At a meeting on March 24, 2015, Petrobras’ Executive Board gave the go-ahead for a project to review its corporate governance and organizational management model, based on the new business environment and review of the company’s investment plan.

The project will be headed by Senior Management with the support of the Executive Board, and implemented by a group of executives with expertise in various areas of the company.

***

(Petrobras, 22.Mar.2015) – Economist Guido Mantega resigned on March 23, 2015 from the Petrobras’ Board of Directors, leaving his position as President.

The Board approved by majority vote the election of Luciano Galvão Coutinho as the new President.

No new board member was elected. Luciano Galvão Coutinho has been a Petrobras board member since April 2008. He is also on the Board of Directors of Petrobras Distribuidora S.A. and has been President of the National Economic and Social Development Bank (BNDES) since April 2007.

In compliance with Brazilian Corporate Law and the company’s Articles of Association, Coutinho’s election is valid until the next Shareholders’ Meeting.

***

(Petrobras, 19.Mar.2015) – Petrobras output from the Santos and Campos basin pre-salt clusters reached record levels in February. On 26 of the month, records were broken for own output, which rose to 555,000 barrels per day (bpd), and for output from concessions operated for other companies (including operations run for partner companies), which reached 737,000 bpd.

Petrobras’ total oil and natural gas production in February 2015 was 2.801 million barrels of oil equivalent per day (boed), down 1.5% on the January figure (2.845 million boed). This February total includes both oil and natural gas, with domestic production at 2.612 million boed and foreign output at 189,000 boed.

Domestic oil and natural gas output reaches 2.612 million boed.

Total oil and natural gas production in Brazil for February 2015 was 2.612 million boed, down 1.8% on January’s figure (2.661 million boed).

Total production operated by Petrobras in Brazil was 2.854 million boed.

Petrobras domestic output of oil alone was 2.146 million barrels per day (bpd), down 2.1% on January’s figure of 2.192 million bpd. Oil output from operations in Brazil (including operations run for partner companies) was 2.319 million bpd, down 2.1% on last month’s figure (2.370 million bpd).

February’s slight in production was primarily due to planned maintenance shutdowns of platforms P19, in Marlim field and P-58, in Parque das Baleias, both in Campos Basin. FPSO Cidade de Angra dos Reis, in the Santos basin’s Lula field, was also shut down for scheduled maintenance. The fall in output due to shutdowns was partially offset by seven new offshore wells in the Campos and Santos Basins which came onstream in February.

Record level for utilization of natural gas

Petrobras’ own production of natural gas in Brazil, excluding the volume liquefied, stood at 73.968 million m3/day in February, 0.8% down on the January figure. Gas production excluding the volume liquefied but including operations run for partner companies, reached 84.958 million m3/day.

In February, utilization of natural gas produced reached 96.5%, a historic monthly level for domestic gas output and surpassing the previous record of 96.3% set in September 2013.

Production abroad in February increases 2.7%

In February, output of oil and natural gas abroad reached 189,000 boed, up 2.7% on January’s figure of 184,000 boed.

Average oil output abroad in February stood at 100,000 bpd, up 2.1% on January’s figure of 98,000 bpd, primarily due to the start-up of new production wells in the Saint Malo and Lucius fields in the United States.

Average natural gas output abroad was 15.016 million m³/day, up 2.5% on the January figure of 14.646 million m³/day due to a boost in output from the Sábalo field in the Bolivian San Antonio block.

***

(Petrobras, 13.May.2015) – Petrobras CEO Aldemir Bendine participated in a ceremony to return to Petrobras sums recovered through the Federal Police’s “Operação Lava Jato” anti-corruption investigation.

At the event, a symbolic handover of R$157 million to the company took place, in reference to the sums retrieved by the Federal Public Prosecution Ministry through Operação Lava Jato. The ceremony was held at the headquarters of the Office of the Chief Federal Prosecutor, in Brasília. These sums were kept in secret accounts in Switzerland and repatriated through joint work by the Federal Public Prosecution Ministry, the Federal Police, the Federal Revenue Service and the Federal Courts. The judicial bank account that is receiving back the stolen amounts now has a balance of approximately R$205 million.

Bendine emphasized the importance of the event for the company at its current moment. “A day like this, when we retake the first installment of the resources lost through these practices, reinforces that Petrobras is on the right track to overcome this crisis and become once more a source not just of pride, but also good prospects and good results for its employees, shareholders and the whole of Brazilian society,” he said. He also stressed the company’s efforts to recover the stolen resources and to collaborate with the investigations conducted by the public authorities.

“In another area, we have jointly filed lawsuits for improper conduct against former employees and executives, and companies. We have filed two requests and over the next two weeks we will lodge three more. In this first batch of lawsuits alone, we expect to recover R$1.3 billion, plus moral damages, whose values have not yet been determined,” stated Bendine.

The chief federal prosecutor, Rodrigo Janot Monteiro de Barros, stressed the importance of the money’s return. “We are doing our part by guaranteeing that the money diverted through corruption is returned to Petrobras’ coffers.” Janot added that one of the objectives of the public authorities’ action is to recover what was taken from a company that fell victim to a criminal scheme.

The ceremony was opened by the federal public prosecutor of the state of Paraná, Deltan Martinazzo Dallagnol, who is coordinating the Lava Jato task force. According to him, the initiative has been a historic milestone for Brazilian institutions. “This return of money gives us hope. The millions that are being returned today to Petrobras were obtained through collaborative agreements involving the Federal Public Prosecution Ministry, those under investigation and defendants.”

The event was also attended by federal judge Nivaldo Brunoni, who is the director of the Paraná Judicial Service; the vice-president of the Brazilian Association of Federal Judges (Ajufe), Candice Galvão; Federal Police officer Erika Miali; and the head of the Research and Investigation Office of the 9th Fiscal Region of the Federal Revenue Service, Roberto Leonel.

***

(Petrobras, 12.Mar.2015) – On March 10, 2015 Petrobras started up its early production system in the Santos Basin’s Buzios field. This will be the first large-scale long-term production run in the Rights’ Transfer area, to be handled by FPSO Dynamic Producer, tied back to well 2-ANP-1RJS. Average output will be limited to 15,000 barrels of oil per day due to restrictions on gas use.

This early production system will enable Petrobras to produce for a six-month period and gather important information to optimize the field’s first permanent production system on platform P-74, which is currently in the final conversion phase at the Inhaúma shipyard, in Rio de Janeiro.

The Buzios field is around 200 km off the coast of Rio de Janeiro, with water depths ranging from 1,600 to 2,100 m. Commerciality was declared in December of 2013.

Rights’ Transfer Agreement – A Rights’ Transfer agreement is a concession agreement between Petrobras and Brazilian Federal Government covering a group of pre-salt areas and fields in the Santos Basin. The agreement legally authorizes Petrobras to carry out oil and natural gas exploration and production in these areas, with production capped at 5 billion barrels of oil equivalent (oil and gas), and subject to payments to the Federal Government.

***

(Petrobras, 2.Mar.2015) – Petrobras announced that its Executive Board, on a meeting on February 26, 2015, has approved the company’s two-year (2015/2016) divestment plan.

Divestitures total $13.7 billion, and include Exploration & Production assets in Brazil and abroad (30%), as well as assets in the Downstream (30%) and Gas & Energy (40%) segments.

The approved divestment amounts represent a rise when compared to the $5-$11 billion allocated in the 2014-2018 Business & Management Plan, as released in February 2014.

This plan is part of Petrobras’ financial planning aimed at reducing leverage, preserving cash and focusing on priority investments, mainly oil and gas production in Brazil in areas of high productivity and return.

Please note that the approved amount of $13.7 billion is Petrobras’ best estimate, however, it is susceptible to changes in the market, including but not limited to, Brent barrel price, exchange rate, and economic growth in Brazil and abroad. Market changes may lead Petrobras to adjust its divestment target accordingly.

The appropriate Governance authorities, including the Executive Board and the Board of Directors, will review and approve each asset sale transaction.

These operations are also subject to approval by the relevant Brazilian and international regulatory agencies, as applicable.

New announcements deemed relevant will be made to the market in a timely manner.

***