Closing of Petrobras Chile sale

Rio de Janeiro, January 4, 2017 – Petróleo Brasileiro S.A. – Petrobras, further
to the Material Fact disclosed on July 22, 2016, informs that it has completed,
today, the sale of 100% of Petrobras Chile Distribuición Ltda (“PCD”) to the
Southern Cross Group.

The cash proceeds of the transaction were US$ 470 million, of which US$ 90
million derived from the distribution of net of taxes dividends of PCD, which
took place on December 9, 2016, and the remaining US$ 380 million were paid
today by Southern Cross Group. The amount is still subject to final adjustments.

PCD is Petrobras’ fuel distribution company in Chile. It has 279 service
stations, one lubricant plant, eight distribution terminals, operations at 11
airports and stakes in two logistics companies. The operation also includes
Petrobras and Lubrax brands licensing, for eight years, which can be renewed.

The Southern Cross Group is a Private Equity fund with US$ 2.9 billion in assets
under management, with focus on investments in Latin America, in companies in
the industrial, services, logistics and consumer goods sectors.

The transaction is part of the 2015-2016 partnerships and disinvestment plan,
which reached US$ 13.6 billion in the two-year period. The sale is in line with
the Strategic Plan of Petrobras, which aims to optimize the business portfolio.

_____________________________________________________________________________________
www.petrobras.com.br/ir
Contacts:
PETRÓLEO BRASILEIRO S.A. – PETROBRAS | Investor Relations Department I 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, 2015, and
the Company’s other filings with the U.S. Securities and Exchange Commission.