Petrobras (“Petrobras”) (NYSE: PBR) announces the commencement of offers by its wholly-owned subsidiary Petrobras Global Finance B.V. (“PGF”) to purchase for cash PGF’s notes of the series set forth in the table below for an aggregate purchase price, excluding accrued and unpaid interest, of up to US$4.0 billion (all such notes, collectively, the “Notes” and each a “series” of Notes), subject to the “Acceptance Priority Level” of such series of Notes and subject to proration (the “Tender Offers”). The Tender Offers are conditioned upon certain customary offering conditions.

The following table sets forth the series of Notes subject to the Tender Offers and the consideration payable for Notes accepted for purchase in the Tender Offers.

1. As of the date hereof, including Notes held by Petrobras or its affiliates.
    
2. Per US$1,000 or €1,000, as applicable.
    
3. Includes the Early Tender Premium.


The Tender Offers will expire at 11:59 p.m., New York City time, on April 11, 2018 unless earlier terminated or extended by PGF (such time and date, as they may be extended, the “Expiration Date”).  Notes tendered may be withdrawn at any time prior to 5:00 p.m., New York City time, on March 28, 2018, unless extended, but not thereafter.  Holders of Notes of any series that are validly tendered and not validly withdrawn on or prior to 5:00 p.m., New York City time, on March 28, 2018, unless extended (such time and date, as they may be extended, the “Early Tender Date”) and accepted for purchase will be eligible to receive the total consideration indicated in the table above with respect to such series of Notes (the “Total Consideration”), which includes an early tender premium in the amount indicated in the table above (the “Early Tender Premium”).  Holders of Notes of any series that are validly tendered after the Early Tender Date but on or before the Expiration Date and accepted for purchase will receive only the applicable tender offer consideration, which is equal to the Total Consideration applicable to that series of Notes minus the applicable Early Tender Premium (the “Tender Offer Consideration”).  In addition to the Total Consideration and the Tender Offer Consideration, as applicable, holders whose Notes are purchased in the Tender Offers will also receive accrued interest consisting of accrued and unpaid interest from, and including, the last interest payment date for the Notes of any series to, but not including, the applicable settlement date.

Subject to the terms and conditions of the Tender Offers, if the purchase of all Notes validly tendered in the Tender Offers would cause PGF to purchase an aggregate principal amount of Notes that would result in an aggregate amount in cash to be paid to holders, excluding accrued and unpaid interest, in excess of US$4.0 billion (the “Tender Cap”), then only an aggregate principal amount of Notes that results in the payment of an aggregate amount to holders not in excess of the Tender Cap will be accepted in the Tender Offers.  PGF will pro rate the Notes accepted in the Tender Offers pursuant to the acceptance priority procedures described in the offer to purchase dated March 15, 2018 (as may be amended or supplemented from time to time, the “Offer to Purchase”).  PGF may, in its sole discretion and subject to applicable law, increase the Tender Cap.

In determining the amount of Notes purchased against the Tender Cap and available for purchases pursuant to the Tender Offers, the aggregate U.S. dollar-equivalent principal amount of Notes denominated in Euros shall be calculated at the applicable exchange rate, as of 2:00 p.m., New York City time, on the business day prior to the date on which we accept for purchase Notes validly tendered at or prior to the Early Tender Date or the Expiration Date, as reported on Bloomberg screen page “FXIP” under the heading “FX Rate vs. USD,” (or, if such screen is unavailable, a generally recognized source for currency quotations selected by the dealer managers with quotes as of a time as close as reasonably possible to the aforementioned).

The Tender Offers are being made pursuant to the Offer to Purchase and the related letter of transmittal dated March 15, 2018 (as may be amended or supplemented from time to time, the “Letter of Transmittal”), which set forth in more detail the terms and conditions of the Tender Offers.