Petrobras reports that its Executive Board approved a Resilience Plan (Plan) meant to contribute to the maximization of value for shareholders and for Brazil.

The Plan includes additional actions to 2019-2023 PNG and is consistent with the company's five strategic pillars: (a) maximization of return on capital employed; (b) reduction of the cost of capital; (c) continuous search for low costs; (d) meritocracy; (e) respect for people and the environment and focus on operations safety.

The Plan was structured in three value generation levers, as described below.

Expansion of the divestment program, with the inclusion of more mature fields of oil and gas in land and in shallow waters, midstream and downstream assets. It is worth noting that the adjustment does not include the revision of the refineries’ divestment package, still under study.

The divestments of assets in which we are not natural owners contribute to improving capital allocation, thereby increasing value generation. At the same time, they make it possible to reduce indebtedness and the cost of capital.

Recently, Standard and Poor's and Fitch Ratings have both improved Petrobras' credit risk on a stand-alone basis from bb- to bb and BB- to BB+, respectively, which is a first step in the process of regaining the investment grade.

The second lever comprises a decrease in manageable operating costs estimated at US$ 8.1 billion (6.6%) compared to the total amount of US$ 122.6 billion budgeted in the 2019-2023 PNG. Staff expense cuts (the company will shortly announce a voluntary severance program) as well as reduction in discretionary expenses, such as advertising, sponsorship, and others, in addition to savings from optimization of use of office buildings are the main sources of cost reduction.

The company will continue to explore opportunities for additional cost cuts through change in processes and digital transformation.

Finally, we are working to release the excess capital parked in cash, which allows its reallocation to more productive uses.

There is no forecast of changes in the investment program approved in the 2019-2023 PNG. The schedule for the new oil and gas production systems is maintained, except for Búzios 5, which will postpone its operation start-up from 2021 to 2022, in view of the delay in the platform charter procurement process, with an estimated production impact of 60 thousand boed in the 2022-2023 period.