Petrobras reaches its production target for the second consecutive year and
achieves new historical records


Rio de Janeiro, January 11, 2017 – Petróleo Brasileiro S.A. – Petrobras reports
that the Company’s average oil production in Brazil reached an annual historical
record in 2016, at 2.144.256 barrels per day (bpd), 0.75% above the results for
the prior year and in line with the 2,145 thousand bpd target forecast for the
period. For the second year in a row, the company has met forecast plans,
reinforcing its commitment to the predictability of its projections.

Average annual production operated in the pre-salt layer in 2016 was also the
highest in the company’s history, reaching 1.02 million barrels of oil per day
and surpassing the 2015 production by 33%.

If Petrobras’ own natural gas production, which reached in 2016 an unprecedented
77 million m³ per day, is considered, total production in the country reaches
2.63 million of barrels of oil equivalent per day (boed) – 1% more than the
levels for 2015, also a new record for Petrobras.

The main highlights for production expansion in 2016 were the significant
production growth in the Lula field (Iracema Norte and Iracema Sul areas, with
FPSOs Cidade de Itaguaí and Cidade de Mangaratiba) and in the Sapinhoá field
(FPSO Cidade de Ilhabela), located in the Santos Basin’s pre-salt layer, in
addition to the Parque das Baleias area (P-58), in the Espírito Santo state
section of the Campos Basin. Additionally, operations for three production
systems started, two of which in the Lula field (FPSO Cidade de Maricá and FPSO
Cidade de Saquarema) and one in Lapa (FPSO Cidade de Caraguatatuba), located in
the Santos Basin’s pre-salt layer.

The utilization rate for Petrobras’ gas in Brazil also achieved its annual
record in 2016, reaching 96%, a result of the efforts undertaken by the
operating efficiency improvement and gas use optimization programs.


Record productions in December

In December 2016, the company also surpassed its monthly and daily production
historical records: average oil production in Brazil for the first time exceeded
2.3 million bpd, 3% above the record registered in September 2016, and
production on December 28 achieved 2.4 million barrels of oil.

In gas production, there was a 2% increase in comparison to the previous month,
achieving 81.8 million m³/day. As such, oil and natural-gas production in Brazil
in December were 2.82 million boed, 3% higher than what was recorded in November
2016 and 6% higher than December 2015, which also represents a new monthly
production record for the company.

Oil production operated by Petrobras in the pre-salt layer reached in December
the new monthly record of 1.27 million bpd, a 9% increase in comparison to
production in November, which was 1.16 million bpd. Moreover, Petrobras reached
a 1.34 million barrels daily record on December 29.

Meanwhile, oil and natural-gas production operated in the pre-salt layer were
1.58 million boe/d, displaying a significant 45% increase between December 2015
and December 2016, also representing a new monthly record.

Internationally, average oil production in December was 61 thousand bpd and
average natural gas production was 10.3 million m³/day. As such, in December,
122 thousand boe/d were produced globally.

If oil and gas production in Brazil and internationally are consolidated,
production in December 2016 was 2.94 million boed, which also represents a new
monthly record.


International oil and gas production in 2016

Internationally, average oil production in 2016 was 80 thousand bpd, 19% below
the volumes in the previous year. Average natural gas production reached 13.7
million m³/day, 11% below 2015 production. Reduction occurred mainly because of
divestments executed, such as the sale of Petrobras Argentina.

If production in Brazil and internationally are consolidated, average oil
production in 2016 was 2.22 million bpd, while average annual production of oil
and gas was 2.79 million boed, the same level as in 2015.



_______________________________________________________________________________________
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

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