Fiscal notification on remittances abroad for payments of vessel charters

Rio de Janeiro, January 2, 2018 – Petróleo Brasileiro S.A. – Petrobras informs
that received today a fiscal notification by the Federal Revenue of Brazil,
requiring payment of withholding income tax (IRRF), contribution of intervention
in the economic domain (CIDE) and social contributions (PIS and COFINS) on
remittances abroad for payment of vessel charters, regarding 2013 fiscal year,
in the amount of R$ 17 billion, of which R$ 7 billion refers only to IRRF.
According to the Federal Revenue, the executed agreements were related to
services and not to vessel charters, reason for these tax requirements.
This amount is in addition to the value disclosed in Petrobras’ financial
statements (ITR) for the 3rd quarter of 2017 in disputes of the same nature,
totaling approximately R$ 45 billion, according to explanatory note 29.3 – Legal
proceedings not provisioned.
Of all these disputes, around 45% are related to IRRF and can be terminated
through the installment program adhesion instituted by Law no. 13.586/2017, as
disclosed to the market today. The company will evaluate the conditions offered
by the program and will submit the decision on the possible adhesion to the
competent authorities.
Facts deemed relevant will be timely disclosed to the market.
______________________________________________________________________________
www.petrobras.com.br/ir
Contacts:
PETRÓLEO BRASILEIRO S.A. – PETROBRAS | Investor Relations Department | 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.