Petrobras reports that it has acquired one offshore block in the 16th ANP Bidding Round under the Concession Regime, held by the National Agency of Petroleum, Natural Gas and Biofuels (ANP). The company is advancing its partnership strategy and will be the operator.

The total amount of the signature bonus to be paid by the company still in 2019 is around R$ 1.432 billion. In addition to the signature bonus, the judgment criteria also considered in the public sale was the Minimum Exploration Program (“MEP”) to be applied on the block, expressed in Work Units (“WU”) - covering the number of wells to be drilled, and the seismic extension to be employed during the exploratory activity.

As in the previous bidding rounds, Petrobras acted selectively in the auction held today, as a result of its strategic vision to recompose its exploratory portfolio, in which it seeks to ensure the sustainability of its future oil and gas production.

This Campos Basin deep-water block was acquired by Petrobras in partnership with BP Energy do Brasil Ltda. The companies have identified large geological potential in this block, which supports their competitive proposal. The exploratory blocks in the Campos Basin region has been highly competitive in the ANP bidding rounds carried out in 2017 and 2018.

The operation in consortia with major companies is aligned with Petrobras’ strategic objective to strengthen partnerships, sharing risks, combining technical and technological skills and capturing synergies to leverage results.

About Petrobras

Petrobras has 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.