On June 05, 2018, Petróleo Brasileiro S.A. ("Petrobras") formally expressed to the National Energy Policy Council ("CNPE") its interest in being the operator of one area that will be offered in the 5th Pre-Salt Bid Round under the Production Sharing Regime ("5th Pre-Salt Bid Round") scheduled for the second semester of 2018, following the procedure mentioned in our Legal Update on Decree No. 9.041/2017.

Of the four areas offered in the 5th Pre-Salt Bid Round (described in our previous Legal Update), Petrobras intends to operate, with a minimum participating interest of 30 percent, only Sudoeste de Tartaruga Verde.

For this area, pursuant to Decree No. 9.041/2017, Petrobras will have the “pull out option” to refuse to enter into a production sharing agreement if the federal government’s profit oil percentage offered by another company or consortium—declared as the winner—is higher than the minimum percentage established in the tender protocol.

With respect to the other three areas offered — Saturno, Titã and Pau-Brasil — Petrobras can participate on equal terms and conditions with the other bidding companies.