Accession to non-Tax Debt Settlement Program (PRD)

Rio de Janeiro, October 25, 2017 – Petróleo Brasileiro S.A. – Petrobras reports
that its Board of Directors approved today accession to the non-Tax Debt
Settlement Program (Programa de Regularização de Débitos não Tributários,
"PRD"), according to Law no. 13.494, of October 24, 2017. PRD allows the
inclusion of government take debts with the National Agency of Petroleum,
Natural Gas and Biofuels (ANP).

The accession will enable the use of the benefits proposed in this program to
settle legal proceedings in the total amount of R$ 1 billion, which, after the
reductions, will be settled for approximately R$ 700 million, in 2 installments,
R$ 430 million in the act of accession and the remainder in January 2018.

The company will include in this program debts relating to special participation
and royalties on the oil and gas production, whose loss expectations were
classified as probable in the financial statements, due to legal decisions
occurred in July and August 2017.

These amounts will be provisioned in the third quarter of 2017 result, with a
negative net impact of approximately R$ 520 million.

The information pertaining to this lawsuit are incorporated in the financial
statements for the second quarter of 2017, under explanatory note 29.3
(Provisions for legal proceedings – item 29.3 – non-provisioned legal
proceedings).

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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

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,”
“will,” “may,” “should,” “could,” “would,” “likely,” and similar expressions.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made. There is no
assurance that the expected events, trends or results will actually occur. 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.

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, 2016, and
the Company’s other filings with the U.S. Securities and Exchange Commission.