Petrobras announces that at a meeting held today (jul 22), its Board of Directors approved an alteration to the model to be used to dispose of a stake in its subsidiary Petrobras Distribuidora (BR). The competitive bid process under way will be terminated and replaced by a new sale method.

As part of the competitive bid process, Petrobras received three proposals that were analyzed and found not to meet the company’s objectives as expressed in the respective request for proposals.

Thus, the Executive Board and Board of Directors have decided to start a new competitive bid process aimed at maximizing the value of the fuel distribution business, in line with Petrobras’ strategic objectives and keeping the operation integrated into the oil chain.

The new process will look for partners with which Petrobras will share control of the distributor, through a corporate structure that will involve two share classes – common and preferred. Petrobras will retain the majority of the company’s total capital, but will have 49% of the voting shares.

Strategic issues for Petrobras must be properly reflected in the partnership structure as a condition for the transaction to be completed.

Facts deemed relevant regarding the subject will be announced to the market in due course.