Petrobras reports that it acquired seven blocks in the 14th Round of Bids under the Shared Production regime, held today by the National Agency of Petroleum, Natural Gas and Biofuels (ANP), six of which offshore and one onshore. The company will be the operator in all blocks, including the offshore blocks, where Petrobras will hold 50% participation, in partnership with ExxonMobil.

The total amount of the signature bonus to be paid by the company is R$1.8 billion, which represents 0.8% of the investments foreseen in the 2017-2021 Business and Management Plan, and will be reallocated within the currently approved budget.

In addition to the signature bonus, the judgment criteria also considered in the public sale was the Minimum Exploration Program (EMP) to be applied on the block, expressed in Work Units (UTs) - covering the number of wells to be drilled, and the seismic extension to be employed during the exploratory activity.

The table below summarizes the result of Petrobras’ participation in the 14th Round of ANP Bidding:

Petrobras acted selectively in the auction, reflecting its strategic vision and marking the beginning of the recomposition of its exploratory portfolio, which seeks to recover the relationship between reserves and production and ensure the sustainability of the company’s future oil and gas production. In addition, the operation in consortia is aligned with the strategic objective to strengthen partnerships, sharing risks, combining technical and technological skills and capturing synergies.

In the Campos Basin, Petrobras acquired in partnership with ExxonMobil, the six sector blocks of the SC-AP3 sector, located in deep waters. Both companies identified a great geological potential in these areas which supported their competitive proposals. This was the most disputed sector in the public sale, having attracted interest from six other companies (Shell, Repsol, Total, BP, CNOOC and Karoon). A total of 13 bids were submitted in the competition for the blocks of this sector, demonstrating the liquidity of the acquired assets. The consortium with ExxonMobil in the Campos Basin represents the beginning of a promising partnership and will enable the capture of synergies through the technical excellence of both companies.

In the Paraná Basin, Petrobras acquired 100% of an onshore block at a new exploratory frontier area, with the expectation of discovering natural gas deposits in the vicinity of the Brazil-Bolivia gas pipeline. The block is located in the central part of the basin, close to the most developed region of South America, with high energy demand and inserted into the country's largest consumer hub.

After the auction held today, there will be the qualifying stage of the winning bidders and subsequent signing of the contracts.