Petroleo Brasileiro S.A, Petrobras, in continuation to the material facts disclosed on 12/8/2016 and 12/20/2016, reports that the decision by the Federal Accounting Court (TCU) issued, repealed the preventive order preventing the company from initiating new divestment projects and concluding those in progress and, as for the merit, ordered Petrobras to adopt its reviewed divestment process methodology for the divestment projects of the company.
The decision also allows Petrobras to conclude two of its projects – sale of interest in the Bauna and Tartaruga Verde fields and sale of interest in Saint Malo field in the U.S. Gulf of Mexico – which were already included in the list of five projects authorized by TCU in the 12/7/2016 preventive order, using the reviewed divestment process methodology, as of the currently stage, and to apply the reviewed divestment process methodology to other projects from the beginning.
Petrobras also informs that the divestment process methodology is subject to continuous improvement, always observing the best market practices in acquisition and divestment transactions. In order to improve its competitive process, based on the recommendations suggested by the TCU, the divestment process methodology was then reviewed and presented to the Court, culminating with the decision issued.
Such decision is crucial for the company to move forward with its Divestment Plan, which is considered one of the main pillars to achieve the goal of reducing leverage.
Petrobras reaffirms the maintenance of its partnership and divestment target established in the Strategic Plan of US$ 21 billion for the 2017/2018 biennium.