Petroleo Brasileiro Petrobras : Approval of the Production Individualization Agreement of Lula's Joint Reservoir - Santos Basin

Rio de Janeiro, March 18, 2019 - Petróleo Brasileiro S.A. - Petrobras reports that it has been notified by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) on the approval of its proposal for a Production Individualization Agreement (AIP) of Lula's joint reservoir located in the Santos Basin.

Lula's Joint Reservoir comprises of Lula's reservoir, shared between:

• BM-S-11 Consortium Contract (Lula Field), operated by Petrobras (65%), in partnership with Shell (25%) and Galp (10%);

• the Tupi South Block of the Transfer of Rights Agreement (Sul de Lula field) operated by Petrobras with a 100% interest; and

• the Non-Contracted Area, which belongs to the Federal Government, represented by Pre-Sal Petróleo - PPSA in the AIP, as provided for in Law 12.351/2010.

Lula's AIP does not cover the so-called Iracema reservoir in the Lula field, which remains with the same interests of the BM-S-11 consortium.

The agreement establishes the interest of each of the parties and the rules for the joint execution of oil and natural gas development and production operations in the joint reservoir. The interest of each party in Lula's joint reservoir are as follows:

Parties	Lula's Joint Reservoir
Petrobras (operator)	67.216%
Shell Brasil Petróleo Ltda.	23.024%
Petrogal Brasil S.A.	9.209%
Pré-sal Petróleo - PPSA	0.551%

With the change in interests there will be an impact increasing Petrobras' production up to 20 thousand bpd. Additionally, an equalization between the expenses incurred and the revenue obtained with the volumes produced up to the effective date of the AIP will be necessary, whose estimated net result is not considered material for the company.

With the approval of the ANP, the AIP will be effective as of April 1, 2019.

Lula's Joint Reservoir Map