Petrobras, in continuation to the material fact disclosed on March 15, 2017, informs that its Executive Board approved yesterday the composition of its new divestment portfolio, consisting of projects that will follow the revised divestment methodology proceedings since the beginning, in compliance with the decision of the Federal Accounting Court (TCU).

To build the new portfolio, following TCU decision, it is necessary to terminate ongoing projects for which purchase and sale contracts have not yet been signed, a measure that was also approved yesterday.

Petrobras is taking all the internal necessary measures for the approval of its new portfolio by the Executive Board. Within two weeks, the projects that compose the new portfolio and which are qualified to initiate the structuring stage will be promptly started, and subsequently disclosed to the market.

Petrobras further reports that the aforementioned measures do not interfere with the achievement of the US$ 21 billion target in partnerships and divestments defined in the Strategic Plan for the 2017/2018 biennium.

The tables below offer information on the divestment projects disclosed to the market since the second half of 2016 for which transaction closing has not yet occurred.

It should be noted that projects for which purchase and sale contracts have already been signed can advance to conclusion, and are detailed in table 2.

Terminated divestment projects which will be assessed to compose the new portfolio:

Project - Transfer of rights for a set of onshore fields

Stage - Process has already been suspended by injunction decision of the Federal Court of Sergipe, as disclosed in the material fact dated of 12/05/2016.

Project - Transfer of shallow water rights in the States of Sergipe and Ceará 

Stage - Regional Federal Court of Sergipe (5th Region) has revoked the injunction that suspended the transaction, as disclosed in material fact dated of 1/23/2017.

Project - Sale of capital interest in BR Distribuidora

Stage - Process has already been suspended by injunction decision of the Federal Court of Sergipe, as disclosed in the material fact dated of 12/05/2016.

Project - Sale of transfer of rights for Baúna and Tartaruga Verde fields 

Stage - Exempted from TCU preventive order of 12/7/2016. The company dropped the motion before the Federal Supreme Court to suspend the injunction issued by Federal Court of Sergipe that prevented the execution of contracts, and requested the dismissal of this legal claim, as per material fact dated of 3/29/2017.

Project - Sale of participation in the Saint Malo field, in the Gulf of Mexico 

Stage - Exempted from TCU preventive order of 3/15/2017. The project will not continue as it did not achieve the expected results.

Divestment projects upheld 

Project - Sale of 90% stake in the Nova Tansportadora do Sudeste 

Stage - Contracts signed on 9/23/2016, prior to the TCU preventive order of 12/7/2016 preventing the execution of divestment contracts. Shareholders’ Meeting of Petrobras approved the sale, as disclosed on material fact of 11/30/2016. Injunction ordering the halt of sale was suspended, as per material fact of 03/09/2017. Transaction completion still subject to the fulfillment of usual prior conditions.

Project - Sale of Liquigás 

Stage - Contracts signed on 11/17/2016, prior to the TCU preventive order of 12/7/2016. Shareholders’ Meeting of Petrobras approved the sale, as per material fact of 1/31/2017. Transaction completion subject to the fulfillment of usual prior conditions, including Administrative Council for Economic Defense (CADE) approval.

Project - Sale of PetroquímicaSuape and Citepe 

Stage - Contracts signed on 12/28/2016, as exempted under the TCU preventive order of 12/7/2016. Injunction suspending this project was itself suspended pursuant to appeal by Petrobras, as per material fact of 2/22/2017. Shareholders’ Meeting of Petrobras approved the sale, as per material fact of 3/27/2017. Transaction completion subject to the fulfillment of usual prior conditions, including CADE approval.

Note: Does not include strategic partnerships