On May 25, 2017, Petróleo Brasileiro SA ("Petrobras") formally submitted to the National Energy Policy Council ("CNPE") its interest in being the operator of three areas that will be offered in the Bid Rounds under the production sharing regime ("Pre-salt Bid Rounds") scheduled for 2017, following the procedure mentioned in our legal update on Decree No. 9.041/2017.

Among the total of eight areas to be offered in the Pre-salt Bid Rounds, Petrobras intends to operate, with a minimum participating interest of 30%, the unitization area (“open acreage”) adjacent to Sapinhoá Field — 2nd Pre-Salt Bid Round, and the areas of Peroba and Alto de Cabo Frio Central – 3rd Pre-Salt Bid Round.

For the above three areas, pursuant to Decree No. 9.041/2017, Petrobras will be provided with the “pull out option” to refuse to enter into a production sharing agreement with another company or consortium declared as the winner of the bidding round. This only applies in cases where the Federal Government’s profit oil percentage offered by another consortium is higher than the minimum percentage established in the tender protocol.

With respect to the other five areas offered, Petrobras may participate on equal terms and conditions with the other bidding companies.