PBR.A Petroleo Brasileiro ADR

Approval of Interest Sale in Nova Transportadora do Sudeste

Rio de Janeiro, September 23, 2016 – Petróleo Brasileiro S.A. – Petrobras announces that its Board of Directors approved, in a meeting held yesterday, the sale of 90% of the shares of Nova Transportadora do Sudeste (NTS) to Brookfield Infrastructure Partners (BIP) and its affiliates, through a Private Equity Investment Fund (FIP) that has as other shareholders British Columbia Investment Management Corporation (BCIMC), CIC Capital Corporation (wholly-owned subsidiary of China Investment Corporation - CIC) and GIC Private Limited (GIC).

NTS was created in accordance with the Statement of Commitment signed with the National Agency of Petroleum, Natural Gas and Biofuels - ANP, in which Petrobras committed to restructure its wholly-owned subsidiary Transportadora Associada de Gás (TAG) in order to create one gas transportation company in the Southeast of Brazil (NTS) and another in the North and Northeast (TAG).

Brookfield is one of the world's largest asset managers, with more than US$200 billion under management, extensive experience in energy and infrastructure assets and a portfolio that includes companies with over 14,000 kilometers of pipelines in the US, Canada and Australia.

This transaction opens opportunities for partnerships with other companies that have extensive experience and investment conditions, contributing to strengthen the natural gas industry in Brazil. It also fosters new investments to expand gas transportation infrastructure , aiming to create a model of deverticalization of the natural gas chain, desirable by the regulatory body (ANP), stimulating the development of a competitive environment, favorable to the entrance of new players and to the sharing of infrastructure costs.

The sale of 90% of NTS totaled US$5.19 billion. The first installment, corresponding to 84% of the total (US$4.34 billion), will be paid at the closing of the transaction, and the remaining amount (US$850 million), in five years.

The sale of NTS was carried out through a competitive process and the transaction price was appraised by four financial institutions, through three fairness opinions and one valuation report .

This transaction is very important for the Petrobras’ Divestment Plan, corresponding to roughly 35% of the US$15.1 billion target for the period 2015 - 2016.

The completion of the transaction is subject to the approval at Petrobras General Shareholder´s Meeting and to certain usual precedent conditions, including approval by the regulatory entities.

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 – 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, 2015, and the Company’s other filings with the U.S. Securities and Exchange Commission.