Petrobras Board of Directors has approved some adjustments to the 2015-2019 Business and Management Plan (2015-2019 BMP).

These adjustments are designed to preserve the fundamental objectives of deleveraging and generation of value for shareholders laid down in the 2015-2019 BMP in light of new oil price and exchange rate levels.

New Brent crude price and exchange rate on which cost and investment projections are based:

                                                     Average Brent Crude Price (US$/barrel)

                                                    Average Nominal Exchange Rate (R$/US$)

Given these new baselines, investments for 2015 and 2016 have also been revised, prioritizing Brazilian oil exploration and production (E&P) projects, especially those in the pre-salt layer.

                                                              Investments (US$ billion)

Projected manageable operating costs for 2015 were maintained at US$29 billion, while the estimate for 2016 is currently under review within the scope of the ongoing annual budget.

Manageable Operating Costs (Total costs and expenses, excluding the acquisition of raw materials - US$ billion)

Divestments for 2015-2016 were maintained at US$15.1 billion, after reaching US$0.7 billion in 2015.

This adjustments for 2015 and 2016 led to a re-evaluation of the company’s portfolio of projects for the five years covered by the 2015-2019 BMP and consequent adjustment of the overall investment portfolio, as shown below.

                                               Investments – 2015-2019 (US$ billion)

* Includes investments abroad (US$4.9 billion)

** Includes BR Distribuidora

*** Engineering, Technology and Materials; Financial; Corporate and Services; Governance, Risk and Compliance; and CEO’s Office

This new 2015-2019 capex figure of US$ 98.4 billion represents a reduction of US$ 32 billion on the previous amount (US$ 130.3 billion), and is the result of portfolio optimization (- US$ 21.2 billion) and the exchange rate (-US$ 10.7 billion).

These adjustments to the investment portfolio resulted in a reduction in projected Brazilian oil production in 2016 from 2.185 million barrels per day (bpd) to 2.145 million bpd and from 2.8 million to 2.7 million bpd in 2020.

                                Average oil production in Brazil (million bpd)

Petrobras oil production in Brazil averaged 2.128 million bpd in 2015, 0.15% up on the target of 2.125 million bpd, 4.6% up on the 2014 figure (2.034 million bpd) and a new annual record for the Company, exceeding the previous record, set the year before.

Petrobras has been making continuous improvements to its Business and Management Plan and rapidly adapting to changes in the business environment, honoring its commitment to capital discipline and profitability.

Finally, it is worth noting that various risk factors may impact these projections, including:

- Changes in market variables, such as oil prices and the exchange rate;

- Divestment operations and other business restructuring, subject to prevailing market conditions and the timing of transactions;

- Achievement of oil and gas production targets against a backof difficulties with suppliers in Brazil.