Petrobras begins negotiation with BP towards a Strategic Alliance


Rio de Janeiro, October 31, 2017 – Petrobras informs that has signed a Letter Of
Intent (LOI) with BP to jointly identify and evaluate business opportunities
involving assets or ventures in Brazil and abroad, which include cooperation on
upstream, downstream, gas transportation and marketing, LNG, oil trading,
lubricants, aviation fuel, power generation and distribution, renewables,
technology and low carbon initiatives, with the purpose of developing a
potential strategic alliance between the companies.

This LOI was signed in London, on October 18, 2017, by Mr. Jorge Celestino,
Petrobras’ Chief Refining and Natural Gas Executive Officer, and Mr. Bernard
Looney, BP’s Upstream Chief Executive.

As an important step, the companies have successfully participated together on
the ANP’s third bidding round under the production sharing regime, and have
acquired exploration and production rights for the Alto do Cabo Frio block, in a
consortia 50%-50%, and Peroba Block, jointly with CNODC, a subsidiary of CNPC,
in a consortia 40% Petrobras, 40% BP and 20% CNODC, as announced through the
Material Fact on October 27, 2017.

Additionally, Petrobras and CNPC have also signed a Memorandum of Understanding
with the goal to form a comprehensive strategic alliance, as announced on July
4, 2017.

For Petrobras, the achievement of partnerships is an important strategy of the
2017-2021 Business and Management Plan. Strategic partnerships have the
potential benefits of sharing risks, increasing investment capacity in the oil
and gas supply chain, technological exchanges, and the enhancement of corporate
governance.


_______________________________________________________________________________________
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
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, that are subject to risks and uncertainties.
The forward-looking statements, which address the Company’s expected business
and financial performance, among other matters, contain words such as “believe,”
“expect,” “estimate,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,”
“will,” “may,” “should,” “could,” “would,” “likely,” and similar expressions.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made. There is no
assurance that the expected events, trends or results will actually occur. We
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information or future events or for any
other reason.

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, 2016, and
the Company’s other filings with the U.S. Securities and Exchange Commission.