Petrobras provides the following clarifications regarding its disinvestment processes considering the preventive order of the Brazilian Federal Accounting Court (TCU), as disclosed on 12.08.2016, and injunctions of the Brazilian Judiciary.

This TCU decision does not apply to transactions that the sale agreements have already been signed.

According to TCU’s determination, Petrobras should not start new divestment projects nor sign sale agreements related to competitive processes already in progress until TCU’s merit decision on the Company's divestment process, except for the five transactions mentioned below, which are in final stage of negotiations, therefore are allowed to proceed and have their agreements signed:

1) the sale of Petrobras’ interest in Petroquímica Suape and Citepe, that is in advanced stage of negation with Alpek, according to the material fact disclosed on 11.03.2016;

2) the sale of concession rights in Baúna and Tartaruga Verde fields;

3) the sale of interest in deepwater assets in the US Gulf of Mexico;

4) the sale of Petrobras Biocombustível (Pbio) interest in Guarani;

5) the incorporation agreement of Nova Fronteira, in which Pbio has 49% interest, executed with São Martinho S.A, as announced in the material fact disclosed on 12.12.2016;

Petrobras clarifies that, regardless of TCU’s determination, injunctions granted by the Brazilian Judiciary established the suspension of four projects in the divestment portfolio. These are:

a) sale of interest in BR Distribuidora;

b) transfer of rights of a set of onshore fields;

c) transfer of rights of a set of fields in shallow waters in the states of Sergipe e Ceará;

d) transfer of concession rights in Baúna and Tartaruga Verde fields. Therefore, despite its conclusion being authorized by the TCU, the process is suspended due to the granted injunction.

The Company informs that the Third Section of the Federal Court of Appeals for the 5th Region, by unanimity, has reversed the injunction due to Petrobras appeal, allowing the Company to proceed with the divestment project regarding a set of onshore fields, without, however, authorizing the signing agreement.

The disinvestment processes related to the other three projects are suspended, due to the above-mentioned injunctions. The Company, however, continues to take the legal actions against these injunctions, in order to proceed with these projects.

The Company is working on revising its divestment processes with the purpose of adjusting them to TCU's determinations and expects to conclude this reformulation, in the shortest time possible, with the appreciation of that Court, without changing Petrobras’ divestments and partnerships targets included in the Strategic Plan/ 2017-2021 Business and Management Plan.

Other facts deemed relevant related to the divestments will be timely communicated to the market.