Petrobras reports that yesterday it signed with the French company Total new documents related to the strategic partnership between the two companies announced on 03/01/2017.

In the scope of this partnership, the companies have already signed transactions that resulted in the payment of U$ 1.95 billion to Petrobras on 01/15/2018, in addition to U$ 400 million that can be triggered by Petrobras to carry a part of its investment in the Iara area fields, and US$ 150 million as contingent payments.

With regard to technological cooperation agreements that are part of the partnership, results have already been achieved on two fronts:

• Artificial intelligence: new automatic techniques to identify geological faults, leading to significant efficiency gains.

• Low permeability reservoirs: new processes and tools to locate the potentially most productive areas, with direct applications on fields like Sururu (Iara concession).

Moving forward in the partnership, the companies signed the following agreements:

• Transfer of 10% of Petrobras rights to Total in the Lapa field, in Block BM-S-9. Petrobras is exercising the option to sell the remainder of its interest, as established in the contract signed in January 2018, when Total acquired 35% of Petrobras rights, with the operatorship. The current production of Lapa field is around 30 thousand bpd. Following this transaction, Total will hold 45% interest, Shell 30% and Repsol-Sinopec 25%.

• Investment Agreement for the creation of a Joint Venture in which Petrobras will hold 49% of the enterprise and Total Eren SA 51% to develop onshore projects in solar and wind energy segments in Brazil, as a result of the Memorandum of Understanding (MoU) signed on 07/10/2018. This Agreement is binding and provides that the parties will negotiate the necessary documents for the formalization of the Joint Venture. Initially, the Joint Venture will seek to develop a portfolio of projects of up to 500MW of installed capacity over a 5-year horizon.

The signing of this agreement is yet another step in Petrobras' strategy to develop high-value renewable-energy businesses with global partners to transition to a low-carbon matrix.

In this new phase, Total will pay Petrobras an additional amount of US$ 50 million, without considering closing price adjustments, still subject to the external approvals of CADE and ANP.

Petrobras and Total reaffirm the importance to continue evaluating new joint investment opportunities, reinforcing the existing technological cooperation between the two companies. In addition, they will continue to seek the development of new opportunities in the gas and energy segment including thermal energy.

In relation to the preliminary decision rendered on 12/19/2018 by Minister Marco Aurélio Mello in a declaratory action of unconstitutionality (ADI No. 5942) filed before the Federal Supreme Court, Petrobras clarifies that, pursuant to the Material Fact published on 12/20/2018, that decision does not apply to the transfer of rights regarding the Lapa field, since the contracts were signed on 02/28/2017 based on the legislation in force at the time.