Extraordinary General Meeting approved the sale of Liquigás


Rio de Janeiro, January 31, 2017 - Petróleo Brasileiro S.A. - Petrobras
announces that, today, the Shareholders’ Extraordinary General Meeting approved
the sale of its wholly-owned subsidiary Liquigás Distribuidora S.A.
(“Liquigás”), announced on November 17, 2016.

The Shareholders’ Meeting approved the sale of 100% of the shares held by
Petrobras of Liquigás to Companhia Ultragaz S.A., a wholly-owned subsidiary of
Ultrapar Participações S.A., for the amount of R$ 2.67 billion.

Liquigás operates in the bottling, distribution and trading of liquefied
petroleum gas (LPG). The company is present in almost all Brazilian states, and
has 23 operating centers, 19 warehouses, one road-railroad storage and loading
base, and a network of approximately 4,800 authorized resellers.

The conclusion of the operation is still subject to compliance with preceding
conditions negotiated.

The sale of PetroquímicaSuape and Citepe was removed from the Shareholders’
Meeting agenda due to the Regional Federal Court decision that granted the
injunction determining the suspension of the sale of these assets, as disclosed
today in a material fact.

Petrobras is taking all the necessary judicial measures to protect its investors
and own interests.

PetroquímicaSuape and Citepe are wholly-owned subsidiaries of Petrobras and are
part of the company’s Chemical-Textile Industrial Complex, located in Ipojuca,
in the state of Pernambuco.

The operating cash flow generation of the Citepe-Suape Complex is negative,
which demands regular capital contributions. In the case of the sale process is
not executed, Petrobras will analyze the possibility of closing this Complex, in
order to reduce the additional capital contributions that pressures the
company’s cash.

Both transactions are aligned to Petrobras’ Strategic Plan/2017-21 Business and
Management Plan, withdrawing entirely from LPG distribution and petrochemical
business. These transactions are part of the partnership and divestment program
that reached US$13.6 billion in 2015-2016 period.
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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.