Closing of Nansei Sekiyu sale

Rio de Janeiro, December 29, 2016 – Petróleo Brasileiro S.A. – Petrobras informs
that it closed yesterday (December 28), the sale of 100% of the shares in Nansei
Sekiyu (“NSS”) to Taiyo Oil Company (“Taiyo”).

The operation was completed through the payment of US$ 165 million made
yesterday by Taiyo, after compliance with all previous conditions set forth in
the agreement signed on October 17, 2016. This amount is still subject to final
adjustments.

NSS is a company wholly-owned by Petrobras International Braspetro – PIB BV
located on the Island of Okinawa, in Japan. It has a refinery with a processing
capacity of 100,000 barrels of oil per day, 36 tanks that store 9.5 million
barrels of oil and oil products, three piers for loading and unloading ships and
a monobuoy.

Taiyo is a privately-held Japanese company headquartered in Tokyo that imports,
exports, refines and sells oil products. It has nine offices/branches including
one oil refinery in Japan.

The operation was recorded in the partnerships and divestments program that
reached US$ 13.6 billion on the 2015-2016 period. The sale is aligned with the
Petrobras’ Strategic Plan, which aims to optimize the business portfolio.



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www.petrobras.com.br/ir
Contacts:
PETRÓLEO BRASILEIRO S.A. – PETROBRAS | Investor Relations Department I e-mail:
petroinvest@petrobras.com.br
Av. República do Chile, 65 – 10th floor, 1002 – B – 20031-912 – Rio de Janeiro,
RJ | Phone: 55 (21) 3224-1510 / 3224-9947

FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, that are subject to risks and uncertainties.
The forward-looking statements, which address the Company’s expected business
and financial performance, among other matters, contain words such as “believe,”
“expect,” “estimate,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,”
“will,” “may,” “should,” “could,” “would,” “likely,” and similar expressions.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made. There is no
assurance that the expected events, trends or results will actually occur. We
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information or future events or for any
other reason.

The Company’s actual results could differ materially from those expressed or
forecast in any forward-looking statements as a result of a variety of
assumptions and factors. These factors include, but are not limited to, the
following: (i) failure to comply with laws or regulations, including fraudulent
activity, corruption, and bribery; (ii) the outcome of ongoing corruption
investigations and any new facts or information that may arise in relation to
the “Lava Jato Operation”; (iii) the effectiveness of the Company’s risk
management policies and procedures, including operational risk; and (iv)
litigation, such as class actions or proceedings brought by governmental and
regulatory agencies.  A description of other factors can be found in the
Company’s Annual Report on Form 20-F for the year ended December 31, 2015, and
the Company’s other filings with the U.S. Securities and Exchange Commission.