On December 14, 2017, Petróleo Brasileiro S.A. ("Petrobras") formally expressed to the National Energy Policy Council ("CNPE") its interest in being the operator of three areas that will be offered in the 4th Pre-Salt Bid Round under the Production Sharing Regime ("4th Pre-Salt Bid Round") scheduled for the first semester of 2018, following the procedure mentioned in our Legal Update on Decree No. 9.041/2017.

Of the five areas offered in the 4th Pre-Salt Bid Round (described in our previous Legal Update), Petrobras intends to operate, with a minimum participating interest of 30 percent, Dois Irmãos, Três Marias and Uirapuru.

For those three areas, 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 two areas offered — Itaimbezinho and Saturno —Petrobras can participate on equal terms and conditions with the other bidding companies.