Clarifications regarding CVM Letter

Rio de de Janeiro, March 7, 2017 - Petróleo Brasileiro SA - Petrobras informs
that it received today a Letter No. 33/2017/CVM/SEP/GEA-5, following a meeting
of the Brazilian Securities and Exchange Commission (CVM) that took place today,
in which CVM’s Collegiate decided to publish the  Letter No.
30/2017/CVM/SEP/GEA-5 (“Letter No. 30”), dated March 3, 2017, through which
CVM’s technical area determined “the re-making, re-presentation and re-statement
of the complete annual financial statements for the periods ending on December
31, 2013, December 31, 2014, and December 31, 2015, and the re-making and
re-presentation of the respective DFP Forms, as well as the restatement and
re-presentation of the ITR Forms presented in the course of the fiscal years of
2013 (2nd and 3rd), 2014, 2015 and 2016, considering the reversals of recognized
accounting effects arising from the application of hedge accounting.”

The Company informs that in accordance with CVM Deliberation No. 463/03, the
demands set forth in Letter No. 30 are subject to appeal before the CVM’s
Collegiate, and that Petrobras will take the necessary measures to defend its
interests.

It is important to clarify that the decision of the Collegiate, adopted today,
refers exclusively to the disclosure of the content of the Letter No. 30 that
determines the publication of said accounting documents, and the analysis of the
merits of the demands is still pending decision by the same Collegiate at a
later time, since the CVM’s technical area accepted the Company’s request to
suspend the effects of the Letter No. 30.

Regarding the merits, Petrobras informs that, as announced to the market in
2013, it began to apply the accounting practice known as Hedge Accounting to its
exports, as of May 2013.

Based on this accounting practice, regulated in Brazil by the accounting
pronouncement “CPC38 - Financial Instruments: Recognition and Measurement” and
by the international accounting standard “IAS 39 - Financial Instruments
Recognition and Measurement”, Petrobras designates hedge relationships between
"highly probable future exports" and installments of certain liabilities in US
dollars, so that the exchange effects of both are recognized at the same time in
the income statement, as disclosed in its annual financial statements.

Petrobras reaffirms its understanding that it uses the Hedge Accounting practice
correctly and reiterates that the Company’s financial statements for the years
2013, 2014 and 2015 are in accordance with accounting practices adopted in
Brazil, as well as with international standards (IFRS) and were audited by an
independent auditor who issued an unqualified opinion that these statements
adequately presented, in all material respects, the financial position of
Petrobras.
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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 press release may contain 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 not based on historical
facts and are not assurances of future results. No assurance can be given that
the transactions described herein will be consummated or as to the ultimate
terms of any such transactions. All forward-looking statements are expressly
qualified in their entirety by this cautionary statement, and you should not
place reliance on any forward-looking statement contained in this press release.
Petrobras undertakes 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.