Petrobras has signed a letter of intent (LOI) with BP to jointly identify and evaluate business opportunities involving assets or ventures in Brazil and abroad. The document provides for cooperation in exploration & production, refining, gas transportation and trade, LNG, oil, lubricant, and aviation fuel capacity, power generation and distribution, renewable energy, and low carbon technology and initiatives aiming at developing a potential strategic alliance between the companies.

Our Executive Director of Refining and Natural Gas, Jorge Celestino, and BP’s President for Upstream, Bernard Looney, signed the LOI in London, on October 18, 2017.

As an important step, we participated with BP in the NPA’s third round of bidding under the production sharing system, having acquired exploration and production rights for the Alto de Cabo Frio Central block, in a 50/50 consortium, and for the Peroba block, together with CNODC, a subsidiary of CNPC, in a consortium held 40 percent by Petrobras, 40 percent by BP, and 20 percent by CNODC.

On July 4, 2017, we also signed a Memorandum of Understanding with CNPC to form a comprehensive strategic alliance.

Partnerships are an important strategy in our 2017-2021 Business and Management Plan. Strategic partnerships have the potential benefits of sharing risks, increasing investment capacity in the oil and gas chain, of technological exchanges, and of strengthening corporate governance.

About Petrobras

We have upwards of 100 production platforms, 16 refineries, 30,000 kilometers of pipelines and more than 6,000 service stations. Our proved reserves are around 14 billion barrels of oil, a figure expected to double in the next few years. With the discovery of oil and gas in the pre-salt region, Brazil may become the world's fourth biggest oil producer in 2030.

We have built a track record of overcoming challenges since 1953, when the company was created. The main one was developing technology to explore and produce oil in deep and ultra-deep waters, where upwards of 90% of our reserves are nestled. With innovation and daringness, we are now the Brazilian company that makes the applies for the most patents in Brazil and abroad.

About BP

BP (NYSE:BP) is one of the world's largest oil and gas companies, serving millions of customers every day in more than 80 countries, and employing nearly 85,000 people. BP's business segments are oil and gas exploration & production, and refining & marketing. In alternative energies, BP has low- and no-carbon wind and biofuels businesses. Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbons basins and strong market positions in key economies.