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Petrobras focus on its strengthsRio de Janeiro

October 25, 2017

—

2

Disclaimer

FORWARD-LOOKING STATEMENTS:

DISCLAIMER

The presentation may contain forward-looking statements about future events

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 not

based on historical facts and are not assurances of future results. Such forward-

looking statements merely reflect the Company’s current views and estimates of

future economic circumstances, industry conditions, company performance and

financial results. Such terms as "anticipate", "believe", "expect", "forecast",

"intend", "plan", "project", "seek", "should", along with similar or analogous

expressions, are used to identify such forward-looking statements. Readers are

cautioned that these statements are only projections and may differ materially

from actual future results or events. Readers are referred to the documents

filed by the Company with the SEC, specifically the Company’s most recent

Annual Report on Form 20-F, which identify important risk factors that could

cause actual results to differ from those contained in the forward-looking

statements, including, among other things, risks relating to general economic

and business conditions, including crude oil and other commodity prices, refining

margins and prevailing exchange rates, uncertainties inherent in making

estimates of our oil and gas reserves including recently discovered oil and gas

reserves, international and Brazilian political, economic and social

developments, receipt of governmental approvals and licenses and our ability to

obtain financing.

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. Figures for 2017 on are estimates or targets.

All forward-looking statements are expressly qualified in their entirety by this

cautionary statement, and you should not place reliance on any forward-looking

statement contained in this presentation.

In addition, this presentation also contains certain financial measures that are

not recognized under Brazilian GAAP or IFRS. These measures do not have

standardized meanings and may not be comparable to similarly-titled measures

provided by other companies. We are providing these measures because we use

them as a measure of company performance; they should not be considered in

isolation or as a substitute for other financial measures that have been disclosed

in accordance with Brazilian GAAP or IFRS.

NON-SEC COMPLIANT OIL AND GAS RESERVES:

CAUTIONARY STATEMENT FOR US INVESTORS

We present certain data in this presentation, such as oil and gas resources, that

we are not permitted to present in documents filed with the United States

Securities and Exchange Commission (SEC) under new Subpart 1200 to Regulation

S-K because such terms do not qualify as proved, probable or possible reserves

under Rule 4-10(a) of Regulation S-X.

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108.8

98.9

52.3

44.1

52.2

2013 2014 2015 2016 2017*

Oil Price - Brent (Annual average – Nominal)

* Average until October 13, 2017 Source: Bloomberg

US$/b

arr

el

1.62.1

1.41.9

1.4

0.5 0.3 0.60.2

-0.7

87

89

91

93

95

97

99

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

Excess of Supply Oil Supply Oil Demand

Balance between Oil Demand and Supply

Source: International Energy Agency – September/2017 Oil Market Report

Million b

pd

Global Oil & Gas sector has changed.

Oil prices will be lower for longer or lower forever?

—

4

US crude oil production expected to increase through end of 2017,

setting record in 2018

Challenges from the demand side

We learn daily that there are challenges ahead

—

Source: US Energy Information Administration, Short-Term Outlook (Oct 16 2017)

5

1997 1998 1999 2006 2008 2013

End of

Petrobras

monopoly

Market opening:

competitive

environment

New companies

entered Brazil

in partnerships

with Petrobras

Beginning of

bid rounds

Pre-salt

discovery

Beginning of

discussions of

new pre-salt

regulatory

framework

Interruption of

bid rounds

Libra

Bid Round

Review of regulatory

frameworks to attract

more investments

Pre-emption rights in pre-salt

bidding rounds

Improvement in local content

policy

Improvement in natural gas

regulatory framework

Predictability of bidding

rounds

Renewal of special tax regime

(REPETRO)

Divestment process

methodology approved by

Federal Accounting Court

(TCU)

16 bid roundswith several companies taking part

Brazil is taking the opportunity to improve its business environment

_

2016/2017

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DistributionRefining & Trading

others27 %

3 %

19 %

20 %

31 %

+100 Other retailers

99 %

1 %

Exploration & Production

79% of

demand

49 %

51 %

21% of

demand

Third

parties

Production

Import

Source: ANP (Brazil), June 2017

Companies with production in Brazil

Source: ANP (Brazil), up to December 2016 Source: Sindcom (Brazil), up to May 2017

51%26%

12%

3%

3% 2% 3%

+40 other E&P

companies

with partners standalone

Other

companies

With opportunities in all Oil & Gas segments

—

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Financial

Operational

Strategic

2015 1H2017

US$ billion (1st half)7.2Free cash flow 1.4

%53Leverage 60

million boe/d

2.7Crude oil, NGL and

Gas production - Brazil 2.6

12Manageable Operating Costs 15

thousand employees63Petrobras workforce 79

X

3.2Net debt/LTM Adjusted

EBITDA ratio

5.1

injuries/MM man-hours

1.1Total Recordable Injury

Frequency Rate 2.2

US$ billion

114Gross debt 126

%

3324Adjusted EBITDA margin

11Lifting cost – Brazil* 13

US$/boe (1st half)

1H2017Main Indicators

US$ billion (1st half)

*excluding government take

At Petrobras, results are being delivered as promised

—

Safety is our top priority

—

Source: Petrobras and subsidiaries

HSE: Health, security and environment

Reduction

36%on the Total Recordable Injury

Frequency Rate (TRIFR*)

TO

1.4in 2018

FROM

2 .2in 2015

1.1in 2Q17

Safety metric

On going assessment of safety

procedures

Stricter rules and enforcement of

HSE procedures in all supplier

contracts

Systemic treatment of HSE

issues

“Commitment to Life” Program

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On going training program on

HSE Golden Rules

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2.13 2.15 2.072.13 2.15 2.17

2015 2016 2017

Petrobras - Oil production in Brazil

Business Plan target Results

2.77

20212021

+ 18 newproduction

units

2021 oil production

target in Brazil

* 1H 2017 average

MM

bbl/

d

*

Production targets were met in 2015 and 2016 and we are ahead of schedule

in 2017

—

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E&P Capex / Total Capex

Onshore and shallow

Deep and Ultradeep

water

Pre-salt

(Ebitda/boe)

1.9x

1.6x

Higher Profitability

30%

40%

50%

60%

70%

80%

90%

100%

2002 2004 2006 2008 2010 2012 2014 2016

Peers Petrobras

Note: Peers considers RDS, ExxonMobil, Chevron and BP

E&P Capex

2017-2021

Investments are focused on more profitable projects

—

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Feb-10 Jan-11 Dec-11 Nov-12 Oct-13 Sep-14 Aug-15 Jul-16 Jun-17

Post-salt + Onshore

49%

Pre-salt

51%

Daily production record

1,423 kbbl/d in

June,19

Loweroperating

costs

Lifting costs below US$7 per barrel

Higher oil quality

Higher margin

More domestic oil in the refineries

Lighter products yield

Higher gas ratio

Higher gas availability

Pre-salt already represents half of our operated production

—

Pre-salt delivers higher revenues

and lower costs to the companyOperated Oil Production in

Brazil

(kbbl/d)

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With a competitive breakeven

_

Middle East

Russia

Algeria

China Brazil

Kazakhstan

NATightOil

Canadaoil sands

WestAfrica

Norwayand UK

USGoM

Venezuela

$0

$20

$40

$60

$80

$100

$120

0 3.000 6.000 9.000 12.000 15.000 18.000 21.000 24.000 27.000

2016 f

ull-c

ycle

Bre

nt

Bre

akeven,

US$/bbl

New crude oil production, thousand b/d

.

* Breakeven price range

for a typical Pre-salt

project

Sources: IHS Markit 2016; *Petrobras

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Competitive portfolio breakevenPoint-forward breakeven reduction of 30%

Petrobras is building a competitive upstream portfolio in a lower price scenario

—

Portfolio 2017 2:

30 US$/bbl

Portfolio 2014 1:

43 US$/bbl

Pre-salt knowledge base

Technology development

Portfolio management & selectiveness

High productivity and low lifting cost

Selectiveness for new exploratory

opportunities

Preemption rights in pre-salt areas

ToR 3 renegotiation

Better regulatory and tax framework

Lower local content requirements

Renewal of special tax regime (Repetro)

1) Business Plan 2014-18

2) Business Plan 2017-21

3) Transfer of Rights

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BRAZIL-BOLIVIA

GAS PIPELINE

MS PR

SP

6 blocks in the Campos Basin

• Partnership with Exxon, with 50% WI

• Petrobras is the operator

• Potential Pre-salt play

• Most competitive sector of the bid

• Eight big companies bid for this sector:

Petrobras, Exxon, BP, Shell, Total, CNOOC,

Repsol and Karoon

1 block in the Paraná Basin

• Gas opportunity

• New exploratory frontier

• Installed infrastructure

Following its portfolio strategy, the company was awarded seven new blocks

in the 14th Brazil bid round

—

Brazil’s 14th Bidding Round (September 27, 2017)

Concession regime

Simplified rules including lower local

content requirements

High liquidity blocks

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Partnerships and Divestments are being made under the same strategy

of portfolio optimization

—

Petrochemicals

Biofuels

Gas Pipelines

Distribution

Assets Abroad

Strategic Partnerships

We reached US$ 13.6 billion in 2015-16 and are committed

to the 2017-18 target

13.6

21.0

2015-2016 2017-2018

Strategic Partnerships:

IPO of Petrobras Distribuidora

71 onshore fields

31 shallow water fields

Distribution & Retail in Paraguay

North/Northeast gas pipelines

Fertilizer units

Announced in 2017

CNPC

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WELLSSUBSEARESERVOIR FACILITIES

WAG (6°)

LWR

WAG (6°)

LWR

JUMPER (6°)

Simplified Project of Intelligent Completion

US$ 82 million

saved by reducing (12 days) the completion process of

injections wells

Single-line WAG

US$300 million

saved by cutting the number of flexible lines

used

Appraisal Strategy Optimization

US$360 million

saved in Libra projects, by decreasing (460 days) the

evaluation phase

CO2 separation and reinjection

4.5 MM tons

separated and reinjected in Lula and Sapinhoá fields

between 2010-2016

The company is constantly developing innovative solutions to reduce costs in

offshore projects

—

Note: Water Alternating Gas (WAG)

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Leading technologies will allow cost reduction, extended oil production

plateau and reservoir management improvements in the Pre-salt

—

Takes advantage of CO2 in liquidstate under certain pressure and

temperature providing a GasOil Ratio Reduction.

Dense Phase CO2

Separation Hi-SepTM

Partners: Aker, FMC, GE, OneSubsea,

and Saipem

High performance membranes for CO2 separation from natural gas allowing smaller processing

plants withhigher capacity

Carbon Molecular Sieve Membranes

Partner: Shell

Compact gas treatment system based on membranes capable of

removing H2S and water, reducing topside

weight and FPSO costs

All Membrane Technology

Partner:Air Liquide

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And the company is also dedicated to reduce its operating costs

—R

$ B

illion

78,47068,829

63,152

2015 2016 1H17

Technical standardization

Contracts renegotiation: reduction in fleet and daily rates

Organizational restructuring (cut of managerial functions)

Process reorganization

Main initiatives

Manageable operating costs Number of employees in Petrobras system

9387

39

2015 2016 1H17

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Law

13.303

Petrobras

By-Laws

Certifications

B3

Strong restrictions for nominations to the Board of Directors

Disclosure rules related to the controller shareholder’s interest

Minimum requirements and impediments for executive nomination

Minority Committee to evaluate relevant transactions with related parties

(federal government, among others)

Certification in the Corporate Governance Program for State-Owned Companies

Annual evaluation of the member of Board of Directors by an external organization

Code of Ethics annual training

Petrobras is creating conditions to maintain a strong governance in the long run

—What has changed?

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Active liability management have resulted in maturities extension—

1,9

6.2

13.011.8

13.1

16.0

9.46.9 7.2

5.3 4.36.3

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Position as of September 30, 2017

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Debt Amortization ScheduleUS$ Billion

Position as of December 31, 2014

6.8

13.4

10.8

15.2

20.4

9.3

2.9

6.4

3.81.9 1.9

0.7 0.9

12.5

1.91.9

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With consistent improvement in our performance

—

Adjusted EBITDAR$ Billion 50

57 60 59 62 53 63 59

77 89

44

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H17

Adjusted EBITDA Margin%

Free Cash FlowR$ Billion

29 27

33 28

25 19 21

18 24

31 33

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H17

-3.3 -3.5-18.9

-26.9-13.1

-25.7-41.8

-19.6

15.9

41.622.7

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H17

BrentUS$/bbl

73 99 63 80 111 112 109 99 52 44 52

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In a nutshell…

Global energy market is challenging and requires greater level of

efficiency from Oil & Gas companies

Petrobras is regaining momentum, but a lot still needs to be done

We are focusing in our strengths and in a partnership-driven business

model

Increasing cooperation with operators, suppliers and academia

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Thank you!