PBR.A Petroleo Brasileiro ADR

Liquigás sale process


Rio de Janeiro, June 30, 2017 - Petróleo Brasileiro S.A. – Petrobras, pursuant
to the material facts of 11/17/2016 and 1/31/2017, concerning the sale process
of Liquigás Distribuidora S.A., a wholly-owned Petrobras subsidiary, to
Companhia Ultragaz S.A., a subsidiary of Ultrapar Participações S.A., informs
that the General Superintendence of the Administrative Council for Economic
Defense (CADE) published a dispatch today declaring the Act of Concentration to
be complex and ordering the execution of a few diligences.

The declaration of complexity is procedural act defined in article 56 of Law No.
12,529/2011 and in article 160 of CADE Internal Rules, which enables the
Superintendence to order the execution of complementary instruction, specifying
the diligences to be carried out, and furthermore granting the competition
authority the ability to request the extension of the deadline by up to 90 days,
thus altering the deadline for transaction analysis from 240 to 330 days.

The main diligences ordered were: (i) await for miscellaneous information
already requested that will ground the analysis by the General Superintendence
and by the CADE’s Department of Economic Studies (DEE) in the preparation of a
quantitative study on the impacts to competition arising from the transaction;
(ii) request data from cylinder manufacturers; (iii) request data from
competitors and clients on LPG as the propellant in aerosols; (iv) request the
parties to demonstrate the measures to be adopted so the alleged economic
efficiencies generated by the transaction are shared with consumers.

Petrobras will continue to collaborate with CADE in order to obtain the approval
of the transaction within the legal deadline, and keep the market informed of
any relevant decision.

In addition to the approval by CADE, the completion of the transaction is still
subject to compliance with other usual preceding conditions.
_______________________________________________________________
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.