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Petrobras

Meeting with Investors

July 11th, 2016

2

DISCLAIMER

FORWARD-LOOKING STATEMENTS:

DISCLAIMER

The presentation may contain forward-looking statements about future eventswithin the meaning of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended, that are not basedon historical facts and are not assurances of future results. Such forward-lookingstatements merely reflect the Company’s current views and estimates of futureeconomic circumstances, industry conditions, company performance and financialresults. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan","project", "seek", "should", along with similar or analogous expressions, are used toidentify such forward-looking statements. Readers are cautioned that thesestatements are only projections and may differ materially from actual future resultsor events. Readers are referred to the documents filed by the Company with theSEC, specifically the Company’s most recent Annual Report on Form 20-F, whichidentify important risk factors that could cause actual results to differ from thosecontained in the forward-looking statements, including, among other things, risksrelating to general economic and business conditions, including crude oil and othercommodity prices, refining margins and prevailing exchange rates, uncertaintiesinherent in making estimates of our oil and gas reserves including recentlydiscovered oil and gas reserves, international and Brazilian political, economic andsocial developments, receipt of governmental approvals and licenses and our abilityto obtain financing.

We undertake no obligation to publicly update or revise any forward-lookingstatements, whether as a result of new information or future events or for any otherreason. Figures for 2016 on are estimates or targets.

All forward-looking statements are expressly qualified in their entirety by thiscautionary statement, and you should not place reliance on any forward-lookingstatement contained in this presentation.

In addition, this presentation also contains certain financial measures that are notrecognized under Brazilian GAAP or IFRS. These measures do not have standardizedmeanings and may not be comparable to similarly-titled measures provided by othercompanies. We are providing these measures because we use them as a measure ofcompany performance; they should not be considered in isolation or as a substitutefor other financial measures that have been disclosed in accordance with BrazilianGAAP 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 weare not permitted to present in documents filed with the United States Securitiesand Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K becausesuch terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X.

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Agenda

Executive Directors Presentation4

Q&A3

Financiability Initiatives

CEO Message2

Production Growth and E&P Investments Optimization

Introduction1

Compliance, Control and Environment Improvements

CEO Message

Production Growth and E&P Investments Optimization

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2.00 2.00 1.94 2.03 2.16 2.20

0.09 0.08 0.09 0.090,08 0.100.56 0.57 0.52 0.560.59 0.60

2.65 2.65 2.552.69

2.83 2.90

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Oil - Brazil Oil- Abroad Natural Gas Total Óleo

Oil production in Brazil increases 8% in the 2Q16New units, 39 new wells and less maintenance stoppages throughout the second half of the year will allow production to reach its target

Oil and Gas Production in 2016 (MMboe/d)

+8%

Two new FPSOs in Pre-Salt+ 4 units ramping-up (20 new wells)

FPSO Cidade de Ilhabela 2 production 2 injectorsFPSO Cidade de Itaguaí 1 production 2 injectorsFPSO Cidade de Mangaratiba 1 production 1 injectorFPSO Cidade de Maricá 2 production 1 injectorFPSO Cidade de Saquarema 3 production 2 injectorsFPSO Cidade de Caraguatatuba 2 production 1 injector

Annual maintenance stoppages as planned

39 new wells connected

2,145Mbbl/d

In the 2H16:1Q16

1,980 Mbbl/d2Q16

2,134 Mbbl/d

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Production predictability in Campos BasinControl of the decline rate and investment optimization ensure the profitability of the basin

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Campos Basin Oil Production (kbpd)

• Reservoirs’ management and the implementation of complementary projects enable (i) mitigation of the decline rate and (ii) production predictability.

Production decline rate lower than 5% p.a

• Maintenance stoppages in 1Q16, mainly P-58 (Pq. das Baleias, 180 kbpd), P-25 (Albacora, 120 kbpd) and P-53 (Marlim Leste, 180 kbpd).

• Reduction in production in the 1Q16 was expected by theannual schedule and it has already returned to the previouscourse.

Temporary reduction of production in 1Q16

• In 2015, 16% decrease in the average well drilling time in Campos Basin (from 92 to 77 days).

Investment optimization

Deepwater AverageIndustry: 11,2%*

* Source: IHS Cera

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10th large system in the Pre-Salt in Start-up ProcessFPSO Cidade de Saquarema in first oil process and Cidade de Caraguatatuba in interconnection process

FPSO CIDADE DE SAQUAREMA (LULA FIELD)

Capacity 150 thousand barrels of oil and 6 MM m³ of natural gas per day

Water Depth 2,120 meters

Wells 18 wells (9 production and 9 injectors)

FPSO CIDADE DE CARAGUATATUBALAPA FIELD

100 Mbbl/d oil, 5 MMm³/d natural gas

3Q16

3Q16

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Investments OptimizationThe knowledge of the pre-salt reservoirs and its high productivity allowed a 26% reduction in E&P investments

108.6

80.0

-26%

BMP 15-19(Jun/15)

BMP Revision(Jan/16)

2.8 2.7

-4%

BMP 15-19(jun/15)

BMP Revision(jan/16)

E&P Investments 2015-2019 (US$ billion)

Brazil’s oil productionin 2020 (Mbbl/d)

*Lifting Cost disclosed on the 1Q16

Installation

Connection

Reduction

Reached

Reduction

SINCE 2010:

10 PRODUCTION UNITS(5 with topped capacity ; 5 still ramping up)

55 PRODUCTION WELLS

Well construction time from 310 to 89 days for each well

Production of 1 MILLION BARRELS of oil per day (Petrobras + partners)

Lifting cost reduced from US$ 10.4/boe to US$ 7.6/boe*

• 43% of Brazilian production• 70% = Petrobras stake

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Production Curve1 Phase of Wells

Production Curve2 Phases of Wells

Pre-salt high productivity allowed CAPEX dilution Ramp-up in two phases ensures the maintenance of a stable production peak

Prod

ucti

on

2nd phase between 3 and 4 years after production start up

0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12

Prod

ucti

on

yearsyears

Financiability Initiatives

12

Capex ReductionIn 2015, we reached positive free cash flow for the first time after 7 years

Business and Management Plan Updates(US$ billion)

-1.3

5.7

3.8

7.3

2.4

1Q164Q151Q15

206.8

130.398.4

-52%

BMP 2015-2019 with adjustments

BMP 2015-2019BMP 2014-2018

3Q152Q15

Four consecutive quarters of positive free cash flow

Free Cash flow(R$ billion)

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Divestment Plan2015-2016 plan of $ 15.1 billion, focusing on the deleveraging the Company

2015 • Austral Basin assets in Argentina to CGG (Compañia General de Combustibles S.A.): US$ 101 million.

• 49% of Gaspetro to Mitsui: R$ 1.9 billion (US$ 540 million).

• Price adjustment on the sale of Innova and assets in Colombia: US$ 92 million.

Transactions completed - cash inflow of $ 0.73 billion

2016

• Sale of 67.19% holding in PESA, to Pampa Energía: US$ 892 million with closing expected on Aug/16.

1 transaction approved – Expected cash inflow of US$ 0.89 billion

• Negotiations concluded with Southern Cross Group of the main conditions for the sale of 100% of Petrobras Distribution Chile Ltda. The final value of the operation is estimated at approximately $ 490 million.

• Conduction of negotiations with Brookfield approved, on an exclusive basis, for partnership on Nova Transportadora do Sudeste (NTS).

• Competitive process for partnership in BR Distribuidora in progress.

• Competitive process for the sale of LNG terminals and associated thermal plants in progress.

• Competitive process for the sale of land and shallow water fields in progress.

• Competitive process for the sale of Liquigás in progress.

Transactions in negotiation phase - subject to deliberation and approval by the competent bodies and instances

The divestment portfolio is dynamic and can be changed, either by internal factors (revaluation of portfolio and prioritization of projects), or by external factors (expression of interest and market response to divestment projects).

Competitive process for the sale of other assets in progress

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� Petrobras successfully issued bonds in the international market:

� US$ 5 billion, with 5 years maturity and 8.625% yield

� US$ 1.75 billion, with 10 years maturity and 9.0% yield

� Demand reached over US$ 20 billion, composed of approximately 850orders;

� The proceeds were used for Liability Management. After the pricing of theNew Issue, the tender cap was increased to USD 6 billion;

� Holders of bonds equivalent to US$7.5 billion and €1.9 billion tenderedtheir Notes;

� The Company also announced an any-and-all offer with the intention toremove certain covenants from the “8.375% 2018 Notes”. This offerremained open until July 8th.

Highlights

3.5

2.5

0.1

2016 2017 2018 2019 2020

Impact on the debt maturity schedule(US$ Billion)

12.811.2

22.6

16.115.3

Liability ManagementBond issuance with offer to purchase allow a maturity extension of our debt

Amortization decrease due to the tender offers

Amortization after the tender offers

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Sep/15 Oct/15 Nov/15Jul/15

Procedures to reduce costs• Extra time labor • Training• Communication• Consulting• Travel and Transportation

Conclusion of 1st phase of critical contracts renegotiation• Drilling rigs• Vessels• PLSVs• Helicopters

Real State demobilization • 3 building in downtown RJ• Between Dec/15 and May/16

Organizational restructuring• Reduction of 43% in

managerial position in non-

operating areas

Decrease of third part contracted personnel • Reduction of 30% in

costs related to administrative support

• Demobilization of 6 thousand positions until May/16

Collective Bargain AgreementMore restrictive agreement• No additional bonus• Inflation readjustment

Mar/16 Apr/16

New Voluntary Severance Incentive Plan

• Targeting up to 12 thousand employees

Other initiatives under planning:• Ships’ fleet optimization• 2nd phase of contracts renegotiation: drilling rigs, vessels and aircrafts• Optimization of expenses related to tankage conservation• Reduction of 1 supply vessel of LNG• New procedures to reduce administrative expenses

OPEX reductionInitiatives to reduce Manageable Operating Costs

Compliance Program and Control Improvement

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Petrobras Compliance Program

FCPA GUIDE – DOJ and SEC

UKBA GUIDANCE

12.846/13 ACTDecree 8.420/15

• Tone of the Top

• Conduct Guide

• Risk Assessment

• Policies and Procedures

• Communication and Training

• Disciplinary Regime

• Integrity Due Diligence of Third

Parties

• Reporting Channels

• Internal Investigation

• Continuous Improvement

COMPLIANCE

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Improvements on Control framework

• New Governance, Risk and Compliance Office

• Chief GRC Officer hired from the market

• Special Committee (“reporting line”)

• Independent Investigation

• Sanctions Committee

• New Board Profile

• Integrity Background Check on key-positions candidates

• Compliance Goal: 100% of the employees

• Alignment of GRC activities with System's Subsidiaries

• Review of Approval Authority Limits / Collegiate Decisions

Thank You

Investor Relations

+55 21 3224-1510

investors@petrobras.com