Petrobras Biocombustível closes deal to sell its interest in Guarani


Rio de Janeiro, December 28, 2016 – Petróleo Brasileiro S.A. – Petrobras informs
that its wholly-owned subsidiary Petrobras Biocombustível S.A. (PBIO) celebrated
on this date with Tereos Participations SAS, a company under French group
Tereos, the Agreement for Purchase and Sale of Shares (“Contrato de Compra e
Venda de Ações e Outras Avenças”), to sell the whole of its interest in Guarani
S.A., corresponding to 45.97% of the company capital, for the amount of US$ 202
million.

Guarani is one of the leading companies in the Brazilian sugar and ethanol
market, occupying the third position among the largest sugar producers in
Brazil. The company holds eight industrial plants, seven of which in Brazil, in
São Paulo state (Andrade, Cruz Alta, São José, Severínia, Mandu, Tanabi, and
Vertente plants, the latter in shared control with Humus Group, which holds
50%), and one in Africa, in Mozambique (Sena plant).

Tereos, which is a partner of PBIO in Guarani, with 54.03% stake, is the third
largest sugar producer in the world. The group is specialized in transforming
raw material in sugar, ethanol, alcohol, and starch, and holds 42 industrial
units in Europe, South America, Indian Ocean, Africa, and Asia, with 24 thousand
associates.

This transaction is part of the partnership and divestment program and will be
recorded in the 2015-2016 biennium target. The sale is aligned to the Petrobras
Strategic Plan, which foresees the business portfolio optimization, withdrawing
entirely from biofuel production activities.

The project is one of the five transactions which the contracts may be signed
pursuant to the preventive order of the Brazilian Federal Accounting Court
(TCU), as disclosed in the material fact announced on 12.20.2016, and its
conclusion is subject to the approval of the Administrative Council for Economic
Defense (CADE).



_________________________________________________________________________________
www.petrobras.com.br/ir
Contacts:
PETRÓLEO BRASILEIRO S.A. – PETROBRAS | Investor Relations Department | 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,”
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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.