Oil and natural gas production in November

Rio de Janeiro, December 15, 2016 – Petróleo Brasileiro S.A. –  Petrobras
informs that its total oil and natural gas production in November was 2.86
million barrels of oil equivalent per day (boed), of which 2.74 million were
produced in Brazil and 0.12 million boed abroad.

Average oil production in the country was 2.23 million barrels per day (bpd), a
2% growth compared to October. This output was mainly due to a better
operational performance of platforms in Parque das Baleias complex and FPSO
Cidade Saquarema, installed in the Lula field, at the pre-salt layer in Santos
Basin. Another highlight was the start of production of a new well connected to
FPSO Cidade Maricá, also in Lula.

Pre-salt production

Oil production operated by Petrobras (own and partners’ share) at the pre-salt
layer achieved the 1-billion accrued barrels mark in November, six years after
the first commercial production at this province. This result reflects the
company’s technological knowledge and efficiency level reached in its production
activities at the pre-salt layer.

In November, oil and natural gas production operated by Petrobras at the
pre-salt layer was 1.45 million barrels of oil equivalent per day (boed), a 2%
increase in relation to the previous month.

Moreover, the average oil production operated by Petrobras in pre-salt was 1.16
million bpd, 1.5% higher than in the previous month. It is noteworthy that the
Company and its partners reached a new daily production record in that province
by producing a volume of 1.25 million barrels of oil on the 9th day of the
month.

Natural gas production

Natural gas production in Brazil, except for the liquefied volume, was 80.5
million m³/day, 3.8% higher than in the previous month due to the better
operating performance by the Parque das Baleias platforms and by FPSO Cidade
Saquarema, in addition to FPSO Cidade de Santos’ return to operation after a
scheduled stoppage.

Average natural gas production abroad, except for the liquefied volume, was 9.1
million m³/d, 5.3% lower than in the previous month, due mainly to the
maintenance stoppage at the Hadrian South/Lucius platform.

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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

FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the meaning of Section
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Exchange Act of 1934, as amended, that are subject to risks and uncertainties.
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The Company’s actual results could differ materially from those expressed or
forecast in any forward-looking statements as a result of a variety of
assumptions and factors. These factors include, but are not limited to, the
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
the “Lava Jato Operation”; (iii) the effectiveness of the Company’s risk
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.