Decision of the CADE Court on the sale of Liquigás

02/28/2018

Rio de Janeiro, February 28, 2018 - Petróleo Brasileiro S.A. - Petrobras, further to the Press Releases disclosed on 6/30/2017, 8/28/2017 and 11/22/2017, reports that the Court of the Administrative Council of Economic Defense (CADE) evaluated the Act of Concentration no. 08700.002155/2017-51, related to the sale of Liquigás Distribuidora S.A., a wholly-owned subsidiary of Petrobras, to Companhia Ultragaz S.A., and has decided, by the majority of its members, for its disapproval.

Said decision constitutes a case of termination of Liquigás sale contract, object of the Material Fact disclosed on 11/17/2016, whereas a fine is levied against Companhia Ultragaz S.A., in favor of Petrobras, in the total amount of R$ 286.2 million, due from the publication date of the decision in the Official Federal Gazette.

Petrobras will analyze immediately the alternatives for the divestment of Liquigás that remains in the partnerships and divestments program of Petrobras in accordance with its Strategic Plan, which aims to optimize the business portfolio, with focus on oil and gas, withdrawing entirely from LPG distribution.