Petrobras about expression of interest on E&P assets

-

Rio de Janeiro, October 15, 2019 - Petróleo Brasileiro S.A. - Petrobras, following up on the release disclosed on 09/30/2019, reports that it has extended until 10/21/2019 the notification deadline for companies to express their interest on the sale of eight onshore exploratory blocks located in the Recôncavo Basin. There is no prejudice for the companies that have already expressed their interest.

The deadline for signing the Confidentiality Agreement and other documents provided for in the Teaser was postponed to 10/25/2019.

The adjusted Teaser is available on Petrobras website:http://www.petrobras.com.br/ri

Subsequent stages of the project will be reported to the market in due course.

This operation is in line with the company's portfolio optimization and improvement of capital allocation, aiming at creating value for our shareholders.

About the exploratory blocks

The eight onshore exploratory blocks comprise the concessions REC-T-32_R12,REC-T-40_R12,REC-T-50_R12,REC-T-51_R12,REC-T-52_R12,REC-T-60_R12,REC-T-61_R12 and REC-T- 70_R12. The blocks are located in an area with deployed infrastructure and a proven oil system, close to fields in production. Petrobras holds 100% interest in these eight concessions. Offers must be submitted by block.

This material is being provided pursuant to Brazilian regulatory requirements, does not constitute an offering, under the U.S. securities laws, and is not a solicitation, invitation or offer to buy or sell any securities. The information on our website is not and shall not be deemed part of this report on Form 6-K.

www.petrobras.com.br/ri

For more information:

PETRÓLEO BRASILEIRO S.A. - PETROBRAS | Investors Relations email: petroinvest@petrobras.com.br/acionistas@petrobras.com.br Av. República do Chile, 65 - 1002 - 20031-912 - Rio de Janeiro, RJ. Tel.: 55 (21) 3224-1510/9947 | 0800-282-1540

This document may contain forecasts within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Trading Act of 1934, as amended (Trading Act) that reflect the expectations of the Company's officers. The terms: "anticipates", "believes", "expects", "predicts", "intends", "plans", "projects", "aims", "should," and similar terms, aim to identify such forecasts, which evidently involve risks or uncertainties, predicted or not by the Company. Therefore, future results of the Company's operations may differ from current expectations, and the reader should not rely solely on the information included herein.

On-shore Exploratory Concessions Opportunity,

Recôncavo Basin, Brazil

October 2019

On-shore Exploratory Concessions Opportunity, Recôncavo Basin, Brazil

Summary

Petróleo Brasileiro S.A. ("Petrobras") is undertaking a process ( "The Process") to sell the entirety of its equity interets in eight onshore Concessions - REC- T-32_R12,REC-T-40_R12,REC-T-50_R12,REC-T-51_R12,REC-T-52_R12,REC-T-60_R12,REC-T-61_R12 e REC-T-70_R12, located at Recôncavo Basin, Brazil ("The Potential Transaction").

Block

BID Round

Area (km²)

Petrobras holds 100% of the Participating Interest in these eight

concessions, located at Recôncavo Basin, Bahia.

REC-T-32

Bid 12

31,39

REC-T-40

Bid 12

31,38

The Minimum Exploratory Program (MEP) related to 1st Exploratory

Period for the Concessions REC-T-50_R12,REC-T-52_R12,REC-T-60_R12,

REC-T-50

Bid 12

26,97

REC-T-61_R12 and REC-T-70_R12.

REC-T-51

Bid 12

25,5

For the Concessions REC-T-32_R12,REC-T-40_R12 and REC-T- 51_R12, it is

necesseray to drill wells in order to fulfill the MEP.

REC-T-52

Bid 12

28,6

The MEP related to 2nd Exploratory Period is one well in each concession.

REC-T-60

Bid 12

31,38

Offers must be submitted per Block.

REC-T-61

Bid 12

31,38

REC-T-70

Bid 12

24,34

Location Map

Highlights

  • Blocks located in area with infrastructure
  • Proven petroleum system, near to production fields.
  • 3D Seismic data recently acquired (SPEC) - possibilty to map new Exploratory Opportunities

1

On-shore Exploratory Concessions Opportunity, Recôncavo Basin, Brazil

Requirements for Eligibility of Prospective Purchaser

1. In order to participate in the Process, the Prospective Purchaser must meet the following criteria ("Eligibility Requirements"):

    1. Minimum net equity of R$ 5.500.000,00 to be qualified as Operator and R$ 1.375.000,00 to be qualified as non-operator financial criteria);
    2. Currently be qualified by the ANP to act as Operator C, according to ANP´s "Oferta Permanente" Tender Protocol. Companies qualified as Operator A and B can also participate, considering that, according to Brazilian legislation, are also qualified to operate in onshore areas (technical criteria).
  1. Prospective Purchaser will be allowed to form a consortium with an independent party, or parties, to participate in this Process.
    1. In this case, Prospective Purchaser must inform Petrobras, by written notice, of such intention and the parties or independente parties must sign the Confidentiality Agreement and the Compliance Certificate, as establish in item 6, separetley, and also must meet the criteria established in itens 3 and 4 below.
    2. One or more independent parties may participate in the Process jointly with Prospective Purchaser, considering that, for all purposes of the Process, the original Prospective Purchaser and the party or independent party may be treated as one Prospective Purchaser.
    3. For the purpose of this Process, the parties must indicate which one will be the leader of such consortium.
    4. The leader must meet the Eligibility Requirements.
  2. By participating in the Process, the Prospective Purchaser shall undertake not to take any action or omission that violates any applicable law regarding business ethics, including, but not limited to, the US Foreign Corrupt Practices Act, the UK Bribery Act and Brazilian Federal Law n. 12.846/2013 (Brazilian Anti-Corruption Laws).
  3. The Prospective Purchaser shall not be listed in the following restrictive lists:

(A) "Cadastro Nacional de Empresas Inidôneas e Suspensas (CEIS)

(Available at:http://www.portaldatransparencia.gov.br/ceis);

(B) "Cadastro Nacional de Empresas Punidas (CNEP)

(Available at :http://www.portaltransparencia.gov.br/sancoes/cnep);

(C) "Empresas impedidas de transacionar com a Petrobras"

(Available at :http://transparencia.petrobras.com.br/licitacoes-contratos).

4.1 In case the Prospective Purchaser, or any of its afiliates, is identified in the abovementioned hypothesis, or fail to meet any of the above mentioned requirements, it will be excluded from the Process at any time.

2

On-shore Exploratory Concessions Opportunity, Recôncavo Basin, Brazil

Requirements for Eligibility of Prospective Purchaser

)

  1. In the Compliance Certificate, the Prospective Purchaser must declare neither the Prospective Purcharser nor any of its afiliates (i) is subject to any sanctions; (ii) is located, has been constitued or is resident in a country subject to any sanctions; or (iii) has the predominant part of its commercial affiliation or business with any Sanctioned Person or in a Sanctioned Country.
    1. Petrobras will evaluate the information presented by the Prospective Purchaser regarding the above item, and in case is identified in the abovementioned hypothesis, the Prospective Purchaser will be excluded from the Process, in compliance with the rules applicable to Petrobras.
    2. Sanctions means (i) sanctions, (ii) regulations, (iii) embargoes ou (iv) restrictive measures that were administered, enacted, imposed or executed by the World Bank, the United Nations Security Council, the United States of America, Canada, the United Kingdom, the European Union, the Netherlands, Brazil and the respective governmental institutions and agencies of any mentioned previously.
  2. In order to participate in the Process and comply the requirements, Prospective Purchaser shall sign a Compliance Certificate, following the document to be provided by Petrobras.
    1. The accuracy of the declaration and the fulfillment of the requirements mentioned above will be verified by Petrobras after the acceptance, by the Prospective Purchaser, of the confidentiality obligations necessary to participate in the Process.
  3. During the Process, Petrobras may perform preventive risk analysis, in compliance with Anti-Corruption Law and the Petrobras Program for Preventing Curruption.

3

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

Disclaimer

PETROBRAS - Petróleo Brasileiro SA published this content on 15 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 October 2019 01:47:01 UTC