PBR.A Petroleo Brasileiro ADR

Clarifications on the Libra Pilot Project

Rio de Janeiro, March 23, 2017 – Petróleo Brasileiro S.A. – Petrobras and its
partners are committed to implementing the production sharing agreement (PSA)
for the Libra area, executed in 2013 and for which Libra Pilot, the first
definitive production system, scheduled for late 2020, is an important
milestone.

Petrobras and its partners have, since 2015, carried out bids with different
levels of local content to gather competitive proposals aligned with
international metrics and to assist ANP on discussions about the feasible level
of local content for those items that make up the Libra Pilot system project.

According to the contract, ANP has the possibility to ease compliance with local
content percentage in the procurement of goods and services if such percentage
leads to excessive terms and prices by granting a Waiver, which has already been
requested by the consortium.

The consortium estimates that, by comparing the local content level required in
the contract against the level it deems feasible, in the case that ANP decides
not to grant the Waiver and the project is nevertheless implemented, the
contractual fine value for the portion of required local content not met could
reach US$ 630 million.

The consortium is sparing no efforts to facilitate the implementation of the
Libra Pilot Project at the highest possible level of local content within
competitive deadlines, quality, and prices.



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

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The Company’s actual results could differ materially from those expressed or
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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
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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.