Set up of Committees to Analyze the Application of Administrative Sanctions and Provisional Ban

03/06/2015

Rio de Janeiro, March 6, 2015 – Petróleo Brasileiro S.A. – Petrobras announces that its Executive Board, convened on March 5, 2015, has approved to set up Committees to Analyze the Application of Sanctions (CAASE) and provisional ban of the following companies cited as cartel participants under the Plea Bargain Agreement Terms provided by former Engineering Executive Manager, Pedro José Barusco Filho: 

1) Schahin Engenharia;
2) TKK Engenharia;

The setup of the CAASEs and the provisional ban of the above-mentioned companies follows the same criteria adopted by Petrobras when, on December 29, 2014, it setup CAASEs and temporarily banned other companies for their alleged participation in the cartel.

These companies will be temporarily banned from being contracted and from taking part in bids by Petrobras.

The adoption of preventative provisional measures by Petrobras aims to protect the company and its partners from damages that are difficult to redress financially and from harm to its image.

Petrobras will notify the companies regarding the provisional ban and will respect their right to be heard and to protect themselves.

In addition, Petrobras received an Official Letter from Brazilian Federal Prosecutor on March 3, 2015 announcing the execution of a Leniency Agreement with companies of Setal Group and requesting a reassessment of the provisional ban previously imposed.  Therefore, in order to continue its collaboration with the Brazilian Public Authorities, Petrobras has removed the said ban. 

Lastly, Petrobras reiterates its commitment to business ethics and transparency and the need to adopt consolidated compliance measures in the Petrobras Corruption Prevention Program (PPPC), which expressly provides for the application of sanctions against suppliers that breach its Code of Ethics as well as other items of the PPPC.