Turning Petrobras around · Turning Petrobras around . Disclaimer FORWARD-LOOKING STATEMENTS: The presentation may contain forward-looking statements about future events within the

© 2017 General Electric Company - All rights reserved

Nelson Silva Chief of Strategy and Performance Officer

Turning Petrobras around

Disclaimer

FORWARD-LOOKING STATEMENTS:

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 2016 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.

Petrobras HSE activities on a typical day Headcount at shipyards 38,000

Toolbox Dialogues 4,000

Work Permits 10,000

Confined Space Entry Permits 400

Interventions 1,500

Work Permits Audits 2,000

Job Safety Analysis 4,500

Distance travelled by trucks (km/day) 1,700,000

Source: Petrobras and subsidiaries

Our daily safety challenge

3

Commitment to Life Program —

Challenging business environment —

§  Uncertainties of global economy

§  Oil industry

§  Changes in the competitive scenario: shale oil/gas

§  Portfolio optimization and adjustments to the workforce

§  Petrobras’ context

§  “Car-wash” operation

§  Challenging regulatory framework

§  High debt levels and cost of borrowing

§  Economic and political crisis in Brazil

4

Low oil prices’ challenge continues… —

Source: Bloomberg

Oil Price (Brent -US$/bbl)

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

5

Return on average capital employed (ROACE) x Brent US$/bbl

0

20

40

60

80

100

120

0%

5%

10%

15%

20%

25%

30%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1S16

ROACE Industry average* Brent

%

ROACE

Brent

Source: Evaluate Energy and corporate reports (Petrobras, Shell, Exxon, Chevron, BP, Statoil, ENI, ConocoPhillips, Ecopetrol and Total)

…driving down the industry’s results —

6

The oil and gas industry is cutting both investments and costs —

Upstream Global Investments (2007-2017) (US$)

Global Industry Cost (US$/boe)

Source: IEA - World Energy Investment 2016

0

100

200

300

400

500

600

700

800

900

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

-25%

-24%

US$ Bi

0

10

20

30

40

50

60 Other Expenses Taxes Other than Income

Production Expenses Development Costs

Exploration Costs

US$

per

boe

of

prod

ucti

on

Source: IHS Markit 7

1

4

7

2

5

8

3

6

Source: BCG

Technical standardization

Organizational rightsizing

Improved workforce efficiency

Supply-chain partnering and renegotiation

Maintenance optimization

Optimization of logistics

Greater cooperation with industry

players

Streamlining overhead, real

estate and support service costs

Eight key areas of cost savings to reboot the business model —

8

To be an integrated energy company focused on oil and gas that evolves with society, creating high value with a unique technical capability

PETROBRAS UPDATED VISION —

9

Main Metrics of Strategic Plan (SP) and Business and Management Plan (BMP) —

SAFETY FINANCIAL

Reduction of

36% In the Total Recordable Injury

Frequency Rate (TRIFR*)

Reduction in

LEVERAGE Net Debt/EBITDA

* TRIFR = reportable incidents per million man-hours

TO

2.5

in 2018

FROM

5.3 in 2015

TO

1.4

in 2018

FROM

2.2 in 2015

10

EVOLUTION

Strategic Drivers —

11

Investment spending by Petrobras (Capex) —

2017 Capex US$ 19.2 Billion

0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

100.00

2015-2019 BMP 2017-2021 BMP

81% 82%

17%

17%

2%

1%

Comparison of total capex (US$ Billion)

Exploration & Production (E&P) Other segments Refining & Natural Gas (RNG)

98.4

74.1

-25%

12

Cost reductions —

142

126

2015-2019 BMP

2017-2021 Estimates

2017-2021 BMP

-18%

53% 37%

10%

E&P RGN Demais áreas

Manageable operating costs* (US$ Billion)

153

* Manageable operating costs: lifting, refining, logistics and distribution costs, overhead and others

Refining & Natural Gas (RNG)

13

Other segments

Partnerships and divestments create benefits —

2015-2016 2017-2018

21

13.6

Amount in US$ Billion

§  Capex and risk sharing

§  Technological exchange

§  Strengthening of corporate

governance

* Press Release Jan 2017 – US$ 19,5 + 1,5 Bi - new target

14

CAMPOS BASIN

7 (100%)

2

Production Fields

Exploration Blocks non Operated

SANTOS BASIN

7

3

Producing Fields

Exploration Blocks

SANTOS BASIN

1 Exploration Block

SANTOS BASIN

10 Producing Fields (100%)

Cutting edge technological development

Lower finding costs

Fast production growth

Lower CAPEX

Lower lifting cost

Competitive breakeven

As the pre-salt experience demonstrates —

15

Key messages —

16

§  Safety is Petrobras’ top priority

§  The industry needs to reboot its business model

§  The Brazilian business and regulatory

environment is improving

§  Petrobras is turning around

Thank you! Nelson Silva Chief of Strategy and Performance Officer