Petrobras, pursuant to the Material Fact published yesterday. May 12, 2016 hereby announces the signature, today, of a Sale and Purchase Agreement (SPA) with Pampa Energía, for the sale of its interest in Petrobras Argentina (PESA) held through Petrobras Participaciones S.L. (PPSL).

The amount of US$892 million from the sale of 67.19% of PESA will be paid in two installments, the first of which, corresponding to 20% of the total amount (US$178 million) having been deposited in an escrow account today. The remainder will be paid on conclusion of the transaction, expected to occur within three months.

The transaction also envisages subsequent contingent payments related to possible concession renewals and other future events.

Also as part of the transaction, Petrobras guaranteed that it would continue operating in the exploration and production segment in Argentina through the subsequent acquisition of 33.6% of the Rio Neuquen concession. The acquisition of the Colpa Caranda asset, in Bolivia, is also considered strategic, due to synergies with Brazil’s natural gas market.

This transaction, carried out through a competitive process, is an important part of Petrobras’ 2015-16 Divestment Plan.