Legal proceeding on deductibility of expenses related to Petros Plan
renegotiation

Rio de Janeiro, June 30, 2017 – Petróleo Brasileiro S.A. – Petrobras, pursuant
to the market disclosure  of June 1, 2017, informs that the sentence by the
court of first instance published on May 19, 2017 was confirmed in its entirety
on June 20, 2017, through  a decision in a motion for clarification. This
sentence recognizes the deductibility of expenses related to the renegotiation
of the Petros Plan pension fund in the assessment of Income Tax for Legal
Entities (Imposto de Renda da Pessoa Jurídica, IRPJ) and Social Contribution on
Net Profits (Contribuição Social sobre Lucro Líquido, CSLL). However, such
deductibility is limited to 20% of the employee payroll and the remuneration of
officers associated to the Plan.

After the examination of the grounds for the decisions, the company decided that
the expectation of loss in this lawsuit should be changed to probable.

The company is evaluating the option to settle the debt within the framework of
the Special Program for Tax Regularization (Programa Especial de Regularização
Tributária - PERT), established by Provisional Measure no. 783, of May 31, 2017,
whose deadline for enrollment is August 31, 2017. The analysis will be submitted
for approval to the competent authorities.

The current estimate of negative impact on the consolidated gross profit for the
second quarter of 2017 is to the order of R$ 6.5 billion.

The information in connection with this process is incorporated into the
financial statements for the first quarter of 2017, in explanatory note No. 28
(Provisions for legal proceedings – item 28.3 – Contingent liabilities).
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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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following: (i) failure to comply with laws or regulations, including fraudulent
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Company’s Annual Report on Form 20-F for the year ended December 31, 2016, and
the Company’s other filings with the U.S. Securities and Exchange Commission.