Cancellation of ANP sanction on governmental participations in the Lula Field

04/03/2018

Rio de Janeiro, April 3, 2018 – Petróleo Brasileiro S.A. – Petrobras, further to the Material Fact of March 31, 2017, reports that Consortium BM-S-11, formed by Petrobras (65%), as operator, in partnership with Shell Brasil Petróleo Ltda. (25%) and Petrogal Brasil (10%), received on March 29, 2018, the decision of the National Agency of Petroleum, Natural Gas and Biofuels – ANP, for the nullity of the administrative proceeding whose scope was to recalculate government participations in the Lula Field, in the pre-salt layer of the Santos Basin.

Said sanction was due to interpretation differences in the application of the oil prices used to calculate government participations in the period from May 2013 to December 2016.

The consortium members believed that they acted in accordance with the regulatory legislation in force at the time of the facts, reason why they submitted their defense in the administrative sphere.

Information referring to this proceeding, for which the portion that corresponds to Petrobras amounts to R$ 1.8 billion, updated as of March 2018, is included in explanatory note 30.3 – Contingent liabilities, civil nature, on the 4Q 2017 financial statements (DFP).