Revision of the Transfer of Rights Agreement – Surplus Volumes

Rio de Janeiro, November 6, 2017 - Petróleo Brasileiro S.A. – Petrobras
clarifies, regarding the volumes in surplus to the contracted volumes in areas
under the Transfer of Rights Agreement, that:

1. The Transfer of Rights Agreement, through which Petrobras acquired the right
to produce up to 5 billion barrels in pre-salt areas, was signed between
Petrobras and the Federal Government in 2010.  As a result of the activities
under transfer of rights, commerciality has been declared for the fields of
Búzios, Sépia, Itapu, Sul de Lula, Sul de Sapinhoá, Norte and Sul de Berbigão,
Norte and Sul de Sururu, and Atapu. The beginning of commercial production will
occur in the first half of 2018.

2. Over the past 7 years, with the volume of information acquired through the
drilling of more than 50 wells and long-duration production testing, plus the
extensive knowledge acquired in the pre-salt layer of the Santos Basin, it was
possible to conclude that there are volumes higher than the 5 billion barrels of
oil equivalent originally contracted.

3. To support the Revision process provided for in the Transfer of Rights
Agreement, Petrobras has commissioned the preparation of reports from DeGolyer &
MacNaughton, and ANP has hired the services of Gaffney, Cline & Associates. Both
certification companies are recognized as international references in the oil
industry.  The opinion by DeGolyer & MacNaughton, hired by Petrobras, was
prepared to quantify the cash flows from Transfer of Rights areas, in order to
support the valuation of the 5 billion barrels under contract, and does not
address scenarios of surplus volumes. Petrobras, based on the large volume of
data that it has acquired, built its own estimates of surplus volumes, whose
upper and lower statistical limits are lower than those disclosed by ANP.

4. Petrobras considers that the existence of surplus volumes in areas under
Transfer of Rights constitutes an opportunity for both parties, namely, the
Government and Petrobras, to build an agreement related to compensating
Petrobras in the Contract Revision process. As such, in order to support a
possible negotiation related to the payment in the form of rights on the surplus
volumes, Petrobras is complementing its assessment on such volumes, through an
opinion of DeGolyer & MacNaughton, which will be available in approximately 30
days.

Facts deemed material in this matter shall be timely communicated to the market.


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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
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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, 2016, and
the Company’s other filings with the U.S. Securities and Exchange Commission.