We have started negotiations with BP for a strategic alliance

We have 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.