Petro Rio S A : Demonstrações Financeiras em Padrões Internacionais - Versão em Inglês

Quarterly information - ITR

Petro Rio S.A.

March 31, 2020

Independent Auditors' Report on the Review of the Quarterly Information

Summary
Independent auditor's review report on quarterly information..................................................	3
Balance sheet.................................................................................................................................................................	5
Balance sheet.................................................................................................................................................................	6
Statements of income - restated.......................................................................................................................	7
Statements of comprehensive income - restated................................................................................	8
Statements of changes in shareholders' equity.....................................................................................	9
Statements of cash flows - restated.............................................................................................................	10
Statements of added value - restated ..........................................................................................................	11
1.	Operations .............................................................................................................................................................	12
2. Preparation basis and presentation of the financial statements....................................	14
3. Cash and cash equivalents.........................................................................................................................	21
4.	Securities................................................................................................................................................................	22
5.	Restricted cash ..................................................................................................................................................	22
6.	Accounts receivable.......................................................................................................................................	23
7.	Recoverable taxes............................................................................................................................................	23
8.	Advances to suppliers...................................................................................................................................	24
9.	Investments..........................................................................................................................................................	24
10.		Property, plant and equipment (Consolidated) ....................................................................	27
11.	Intangible assets (Consolidated) - restated ..................................................................................	30
12.		Suppliers............................................................................................................................................................	33
13.		Taxes and social contributions payable ......................................................................................	33
14.		Loans and financing..................................................................................................................................	33
15.		Lease operations CPC 06 (R2) / IFRS 16........................................................................................	35
16.		Deferred income tax and social contribution........................................................................	38
17.		Provision for abandonment (ARO).................................................................................................	39
18.		Advances to/from partners in oil and gas operations ......................................................	40
19.		Impairment....................................................................................................................................................	40
20.		Shareholders' equity ..................................................................................................................................	41
21.		Related party transactions ...................................................................................................................	44
22.		Net revenue.....................................................................................................................................................	45
23.		Costs of products sold and services rendered ........................................................................	45
24.		Other operating revenues (expenses), net.................................................................................	45
25.		Financial Net Results ...............................................................................................................................	46
26.		Segment information (Consolidated)..........................................................................................	46
27.		Objectives and policies for financial risk management..................................................	46
28.		Insurance (Not reviewed by the independent auditors) .................................................	52
29.		Contingencies................................................................................................................................................	53
30.		Subsequent Events ...................................................................................................................................	55
30.1		Acquisition of 80% of the Tubarão Martelo Field ...............................................................	55
30.2	COVID-19......................................................................................................................................................	55

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Independent auditor's review report on quarterly information

The

Shareholders, Board of Directors and Officers

Petro Rio S.A.

Rio de Janeiro - Rio de Janeiro State

Introduction

We have reviewed the accompanying individual and consolidated interim financial information of Petro Rio S.A. ("Company") contained in the Quarterly Information Form- ITR for the quarter ended March 31, 2020, which comprises the statement of financial position as of March 31, 2020 and the related statements of profit or loss, of comprehensive income (loss), of changes in equity and cash flow statement for the three-month period then ended, including the notes to financial statements.

Management is responsible for the preparation of the individual and consolidated interim financial information in accordance with NBC TG 21 - Interim Financial Reporting and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the fair presentation of this information in conformity with specific rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of Quarterly Financial Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international standards on review engagements (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the individual and consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the quarterly information referred to above is not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34, applicable to the preparation of Quarterly Financial Information (ITR), consistently with the rules issued by the Brazilian Securities and Exchange Commission.

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Other matters

Emphasis of matter - Restatement of the individual and consolidated interim financial information

We draw attention to Note 2.7.2 to the interim financial information, which has been changed and is restated to reflect the matter described in referred to note. On May 14, 2020, we issued an unmodified review report on the interim financial information of the Company, which is now being restated. Our conclusion remains unmodified, since the interim financial information and its figures corresponding to previous periods were adjusted retrospectively.

Statements of value added

The quarterly information referred to above includes the individual and consolidated statements of value added (SVA) for the three-month period ended March 31, 2020, prepared under the responsibility of the Company's management and presented as supplementary information for purposes of IAS 34. These statements have been subject to review procedures performed in conjunction with the review of quarterly information to conclude whether it is reconciled to interim financial information and accounting records, as applicable, and whether its form and content are in accordance with the criteria defined in NBC TG 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that these statements of value added were not prepared, in all material respects, in accordance with the criteria set forth by this Standard and consistently with the individual and consolidated interim financial information taken as a whole.

Review of prior-period corresponding figures

The amounts corresponding to the individual and consolidated statements of profit and loss, of comprehensive income (loss), of changes in equity, cash flows and value added, for the quarter ended March 31, 2019, presented for comparative purposes, were previously reviewed originally before the adjustments arising from the matters described in Note 2.7.2, respectively, by other independent auditors, who issued an unmodified review report on the interim financial information dated May 15, 2019. As part of our review of the 2020 interim financial information for the quarter ended March 31, 2020, we also revised the adjustments described in Note 2.7.2 that were made to change the corresponding figures relating to the quarter ended March 31, 2019. We were not engaged to audit, review or apply any other procedures on the Company's financial statements for the three-month period ended March 31, 2019 and, therefore, we do not express an opinion or any form of assurance on the interim financial statements for the quarter ended March 31, 2019 taken as a whole.

Rio de Janeiro, October 30, 2020.

ERNST & YOUNG

Auditores Independentes S.S.

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