__

Petrobras

General Overview

STRATEGIC PLAN 2017-2021 BUSINESS AND MANAGEMENT PLAN —

3

FORWARD-LOOKING STATEMENTS:

DISCLAIMER

The presentation may contain forward-looking statements about future events 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 not based on historical facts and are not assurances of future results. Such forward-looking statements merely reflect the Company’s current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are used to identify such forward-looking statements. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by the Company with the SEC, specifically the Company’s most recent Annual Report on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to general economic and business conditions, including crude oil and other commodity prices, refining margins and prevailing exchange rates, uncertainties inherent in making estimates of our oil and gas reserves including recently discovered oil and gas reserves, international and Brazilian political, economic and social developments, receipt of governmental approvals and licenses and our ability to obtain financing.

Disclaimer —

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. Figures for 2016 on are estimates or targets.

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

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

General - February 2017

An integrated energy company

focused on oil and gas that evolves with society, creating high value, with a unique

technical capability

OUR VISION

4

OUR VALUES

Ethics and transparency

Market driven

Results oriented

Overcoming and confidence

5

Respect for life,

people and

environment

Main Metrics of Strategic Plan (SP) and Business and Management Plan (BMP) —

SAFETY FINANCIAL

Reduction of

36% In the Total Recordable Injury

Frequency Rate (TRIFR*)

Reduction in

LEVERAGE Net Debt/EBITDA

* TRIFR = number of reportable injuries per million man-hours

TO

2.5

by 2018

FROM

5.3 in 2015

TO

1.4

in 2018

FROM

2.2 in 2015

6

Highlights of the Plan —

main metrics drive the strategy

Unified Plan

New management system with targets up to supervisory level

Disciplined execution: systematic monitoring of

goals with mid-course corrections

New tools of

cost management Meritocracy

2 (SP and BMP)

7

Engagement of the leadership

EVOLUTION

8

Main variables in the base case scenario —

48

Brent Prices (US$/bbl - base year 2016)

Nominal exchange rate (R$/US$)

56

68 71

0

40

80

120

2016 2017 2018 2019 2020 2021

Source: Petrobras; IHS, PIRA, IEA, Focus report

Range of estimates(IHS, PIRA and IEA)

71

45

9

Petrobras

3.48 3.55 3.71 3.72 3.74 3.78

2,20

2,70

3,20

3,70

4,20

4,70

2016 2017 2018 2019 2020 2021

Intervalo Focus Petrobras

4.70

4.20

3.70

3.20

2.70

2.20

Market forecast Range of estimates (IHS,PIRA and IEA)

Brazilian market for oil products resumes growth —

10

0

500

1000

1500

2000

2500

2017 2021

917 997

529 476

863 956

Brazilian oil products market (Million bpd)

Diesel Others Gasoline

2.3 2.4

+5.2%

Cost reductions —

142

126

2015-2019 BMP

2017-2021 Estimates

2017-2021 BMP

-18%

53% 37%

10%

E&P RGN Demais áreas

Manageable operating costs* (US$ Billion)

11

153

Other segments Refining & Natural Gas (RNG)

* Manageable operating costs: lifting, refining, logistics and distribution costs, overhead and others

Partnerships and divestments —

2015-2016 2017-2018

19.5

15.1

Amount in US$ Billion

12

Benefits of the partnerships

Risk sharing

Capex reduction

Increased capacity to invest along the value chain

Technological exchange

Strengthening of corporate governance

The partnerships and divestments program of Petrobras leverages third parties investments that might surpass US$ 40 Billion* in the next 10 years.

* Does not consider investment of suppliers to increase capacity

Investment spending by Petrobras (Capex) —

13

2017 Capex

US$ 19.2 Billion

0,00

20,00

40,00

60,00

80,00

100,00

PNG 2015-2019

(revisão JAN 2016)

PNG 2017-2021

81% 82%

17%

17%

2%

1%

Comparison of total capex (US$ Billion)

Exploration & Production (E&P) Other segments Refining & Natural Gas (RNG)

98.4

74.1

-25%

2015-2019 BMP (Jan 2016 review)

2017-2021 BMP

72 initiatives

Main themes —

21 strategies

Implantation of

Zero Based

Budgeting

Strengthening of internal

controls

Merit-based performance management

Strengthening of the safety

culture

Streamlining decision making

Improvement of risk

management

14

Reinforcing prevention

against corruption

EXPLORATION & PRODUCTION —

15

Pre-Salt Post-Salt

34% 66%

Production Development + Exploration

Total E&P US$ 60.6 billion

Upstream Capex Breakdown —

Suporte Operacional Exploração

13% 11%

76%

16

Development of production Exploration Operational support

Concession Transfer of Rights Production Sharing (Libra)

17

Greater well productivity in concessions

Experience acquired in well construction

Fewer wells to top capacity

3 times faster

Shorter well construction time in concessions

2016

2010

26

20

2016

2010

6

8

kbpd/well

Until 2016

Until 2010

124

3

2016

2010

89

310

Days construction per well

Efficiency gains: Santos Basin pre-salt case —

+ 30% productivity - 25% wells

204 wells drilled

Lower capex for the same production

Number of wells built (drilled and completed)

Producing wells

Lula field: faster well construction and connection —

2010 2016

60% reduction in well construction and connection times

6 units in Angra dos Reis Paraty Itaguaí Mangaratiba Maricá Saquarema

1 unit in Angra dos Reis

18

Increased share of pre-salt in the portfolio, with lower lifting costs

Gains from contractual renegotiations

Management of drilling rig idleness

Optimization of support vessel logistics

Reduction in labor costs

Reduction in operating costs —

Lifting Cost (US$/boe)

0

2

4

6

8

10

12

14

16

2014 2015 2016 2017-2021*

14.6

12 11

9.6

* Average for the period 19

0

250

500

750

1000

1250

1500

1750

2000

20

01

20

03

20

05

20

07

20

09

20

11

20

13

20

15

20

17

20

19

20

21

Oil production in the Campos

Basin (kbpd)

Stable decline of around 9*%

Opportunities in the Campos Basin —

• Operations with emphasis on strategic partnerships, seeking to increase recovery

• Extension of concessions

• Revitalization of Marlim project

*Below the industry average of 12% for deepwater wells

Bacia de Campos

20

21

0

1

2

3

4

2017 2021

Produção Óleo, LGN e Gás

Oil+ NGL Brazil

Oil + gas International

2.52

3.34

2.07

2.77

Natural gas Brazil 2.62

3.41

Production profile —

Oil , NGL* and Gas production (million boed)

* Natural Gas Liquids

LEGEND

CONCESSION

PSA

TRANSFER OF RIGHTS

22

Start-up of new production units —

2017 2018 2019 2020 2021

TARTARUGA VERDE E MESTIÇA

LULA NORTE

LULA SUL

TLD DE LIBRA

BÚZIOS 2

BÚZIOS 1

BÚZIOS 3

BÚZIOS 4 BÚZIOS 5

PILOTO LIBRA

REVIT. DE MARLIM MÓD. 1

REVIT. DE MARLIM MÓD. 2

LIBRA 2 NW

ITAPU

INTEGRADO PARQUE DAS BALEIAS

BERBIGÃO

LULA EXT. SUL

ATAPU 1

SÉPIA

REFINING & NATURAL GAS

—

23

33%

25%

11%

24%

7%

RTC - Operational continuity RTC - Capital investments

G&E - Operational continuity G&E - Capital investments

Others (Petrobras Distribuidora, PBIO and R&D)

Total RNG U$S 12.4 Billion

24 RTC: Refining, Transportation and Commercialization; G&E: Gas & Energy; PBIO: Petrobras Biocombustível; R&D: Research & Development.

Refining and Natural Gas Capex Breakdown —

2014 2015 2016 2017-2021

0.49

0.37

0.31 0.29

Integration of common and interdependent activities among the refineries

Optimization in the use of support resources

Optimization of the consumption of energy, catalyzers and chemicals

Optimization in maintenance expenditures

Reduction of operating costs —

Refining Cost (US$ thousand/UEDC1)

25 1. Unit of equivalent destilation capacity 2. Average for the period

2

Main Projects —

26 SNOX: emission reduction unit; UTGCA: Monteiro Lobato Gas Treatment Unit .

Seeking partnership

Seeking partnership

In final stages

100 kbpd 130 kbpd

SNOX unit (under procurement)

1st Refining set (Train I)

2nd Refining set (Train II)

Gas Processing Unit

Refinery

RNEST (Abreu e Lima)

COMPERJ

Expansion of UTGCA under study

Route 1

Pre-salt gas flow

Gas pipeline and Gas Processing Unit implementation

Route 3

26

Reduction in personnel expenses —

employees already left of which 2470 in the 2016 Program

9,670 employees expected to leave by mid-

2017 of which 400 in the 2014 Program

9,270

27

Decrease of own employees (Voluntary Severance Incentive Programs 2014-2016)

Decrease of service contractors

114,000 were dismissed since 2014*

* Service contractors of worksite and assembly, administrative, operations, schedule stoppages and abroad.

Due diligence counterparty

Integrity background check for candidates to key positions

Adherence to the Code of Ethics and the Guide to Ethical Conduct for 100% of employees

Board of Directors and Executive Board are selected exclusively by technical criteria

Independent whistleblower channel

Correction Committee

Foreign Corrupt Practices Act

DOJ and SEC

UK Bribery Act

Brazilian Law 12.846/2013 Brazilian Decree-Law 8.420/2015

Brazilian Law 13.303/2016

CORRUPTION PREVENTION

Program

Code of

ETHICS

28

Measures adopted to strengthen compliance —

Review of the decision-making process

Elimination of approvals by single individuals

Creation of statutory technical committees

Statutory Audit Committee

New Advisories Committees for the Board of Directors

Alignment of guidelines for all companies in Petrobras System

Definition of succession process for managerial and executive positions

Reorganization of the structure of the company

29

Measures adopted to strengthen governance —

FINANCE —

30

Sources and Uses —

158

19

2

Sources

74

73

32

Uses

Partnerships and divestments are

essential to enable the planned

capex

179 179

31

Investments

Amortizations

Financial Expenses Operating Cash Flow (after dividends)

Use of Cash

Partnerships and Divestments

Sources and Uses 2017-2021 (US$ billion)

No requirement for new net debt

during the 2017-2021 period

Main risks* —

Material changes to market conditions

Divestments and partnerships below plan

Judicial disputes

Renegotiation of the Transfer of Rights terms

Impact of Local Content on costs and timing of the projects

Delays in the construction of platforms

Higher than expected capex

*These risks are not exhaustive

Risks and mitigating activities managed by accountable people

3Q16 Results —

33

34

Production continues in an upward trend Production increases 2.5% in the period

Production (MMboe/d)

2.14 2.12 1.98 2.13 2.22

0.10 0.10 0.09

0.09 0.08 0.57 0.56

0.55 0.58 0.57

2.80 2.78 2.62

2.80 2.87

3Q15 4Q15 1Q16 2Q16 3Q16

Oil Brazil Oil International Natural Gas

+4% +8% Oil production in Brazil

Oil and gas production

Operated production

Production Records

2.22 MMbbl/d

2.87 MMboe/d

3.17 MMboe/d

Seven of the eight Pre-Salt platforms in Campos Basin have reached full capacity

+2.5%

+2.3%

35

Lifting cost keeps downward trend

12.1 10.4

9M15 9M16

Lifting Cost*

(US$/boe)

Pre-Salt Lifting Cost Below 8 Dollars per barrel

< 8.0 US$ boe

11.0

10.6 10.5

3Q15 2Q16 3Q16

Lifting Cost 3Q15 vs 3Q16 We reduced by 20% the maneageble operating costs in the same period in which production grew by 2,5%

* Lifting Cost in Brazil and abroad

Lifting Cost* (US$/boe)

-14%

36

Lower sales volume* due to reduced oil product demand in the domestic market Demand impacted by the slowdown in the domestic economy

953 811 804

540541 521

789757 763

Diesel

Gasoline

Others

3Q16

2,088

2Q16

2,109

3Q15

2,282 -1.0%

kbbl/day

-6%

928 804

550542

776738

9M16

-8%

2,084

9M15

2,254

* Includes Downstream and BR Distribuidora sales

37

Net balance of oil and oil products exports of 210 kbpd in the quarter

313

122 154

365 341419

218

237 198

145 174

143

-55-63-73

265219

52

352

531

3Q16

210

2Q16

515

3Q15 3Q16 2Q16

359

3Q15

562

510

2Q16

156

3Q15

-21

3Q16

Imports Exports Net Balance

Oil

Oil Products

kbbl/day

38

Positive free cash flow for the sixth quarter in a row

Operating Cash Flow

Free Cash Flow Investments2

Adjusted EBITDA1

3Q15

15.5 21.6

3Q16 2Q16

20.3

3Q15

18.0 11.2

3Q16

10.3

2Q16

3.8

3Q16 3Q15

10.8

2Q16

16.4

3Q16

26.7

2Q16 3Q15

21.9 21.8

1. Adjusted EBITDA is the sum of EBITDA, share of earning in equity-accounted investments and cumulative translation adjustments – CTA. 2. Cash basis

R$ Billion

19 28 33

+11%

63.0

9M16

56.8

9M15

24 30

+8%

9M15

66.0

9M16

61.1

36.3

52.8

9M15

-31%

9M16

+256%

9M16 9M15

8.3

29.6

Adjusted EBITDA Margin (%)

39

Results affected by non-recurring itens

Operating Income

Net Income Net Financial Results

Gross Income

3Q16

-7.1

2Q16

-6.1

3Q15

-11.4

3Q16

-16.5

2Q16

0.4

3Q15

-3.8

3Q16

-10.0

2Q16

7.2

3Q15

6.0

3Q16

23.3

2Q16

22.8

3Q15

23.8

R$ Billion -6%

9M16

67.2

9M15

71.7

-81%

9M16

5.3

9M15

28.5

+5%

9M16

-21.9

9M15

-23.1

-925%

9M16

-17.3

9M15

2.1

40

Main projects and reasons for impairment in 3Q16 R$ 15.7 billion in 3Q16

R$ Billion

7.00

6.00

5.00

4.00

3.00

2.00

mai/15 jul/15 set/15 nov/15 jan/16 mar/16 mai/16 jul/16 set/16 mar/15 jan/15

+23%

4.8

3.9

Country Risk Premium (% p.a.)

2.0

2.5

2.8

5.6 Some fields, which had already been impacted by impairment in 2015, had their cash flows more pressured by the exchange rate and the discount rate.

Uncertainty in the delivery of the hulls of FPSOs P-71, P-72 and P-73

Postponement of 2nd train of RNEST to 2023

Review of business plan’s assumptions, such as the reduction in the market for resins and exchange rate

Oil and Gas Production fields in Brazil

Equipment related to oil and gas production activities

2nd train of Abreu and Lima refinery - RNEST

Suape Petrochemical Complex

Increase in discount rate for every segment

41

In 3Q16, Petrobras did not provision

nor closed settlements related to

the class action and other individual

actions.

The ongoing discussions encompass very complex issues and are subject to substantial uncertainties.

Individual Actions – New York

In October 2016, Petrobras reached

an agreement to settle four

individual actions, with the plaintiffs

below:

• Dodge & Cox Int'l Stock Fund;

• Janus Overseas Fund;

• PIMCO Total Return Fund;

• Al Shams Investments.al.

In 3Q16, Petrobras provisioned for

individual actions under

negotiation, for which settlements

were not yet reached.

Settlement in 3Q16 Provision in 3Q16

Settlement in 3Q16 Provision in 3Q16

Settlement in 3Q16 Provision in 3Q16

Individual actions (negotiated)

Individual actions (under negotiation)

Class action + other individual

actions

Provision of R$ 1.2 billion in 3Q16

42

We announced the new diesel and gasoline pricing policy We will practice competitive prices using as a benchmark Import Parity Prices (IPP) plus a margin

Import price

(market alternative)

Taxes

Margin and risks

IPP

Considers the competitiveness of Petrobras’ products and the risks associated to imports operations, such as exchange rate and oil and oil products price volatility, delays and changes in quality specification.

Competitiveness will be a function of commercial and financial objectives

CIDE, PIS and COFINS, ICMS

Refinery Gate Price

43

Partnerships and Divestments reached 90% of the target of the 2015-16 Plan Transactions signed amount to US$ 13.6 Bi

Partnerships and divestments

with signed contracts

Bacia Austral assets in Argentina, with Compañia General de Combustibles

49% Gaspetro with Mitsui

66.7% PESA with Pampa Energia

Petrobras Chile Distribuición with Southern Cross Group

66% BM-S-8 (Carcará) with Statoil

90% of Nova Transportadora do Sudeste (NTS) with Brookfield

Nansei refinery with Taiyo

Liquigás with Ultrapar

PetroquímicaSuape/Citepe with Alpek

Guarani with Tereos Participations

Master Agreement with Total

Partnerships and divestments

In final stages of negotiation

already announced

Baúna and Tartaruga Verde fields

with Karoon

Strategic Partnerships

already announced

MoU with Statoil – focus on

revitalization of Post-Salt fields

MoU with GALP – focus on

partnerships in regions worldwide in

which the companies have a shared

interest, besides training and

deepwater reservoir research

MoU with TOTAL – focus in the E&P,

Gas, Energy and Refining segments in

Brazil and abroad

Ongoing Divestments

already announced

Partnership in Petrobras Distribuidora

(BR)

Onshore shallow waters fields

LNG Terminals

Thermal power plants

44

We reduced by 10% the Manageable Operating Costs in 2016 Sales, general and administrative expenses decreased, despite the wage readjustment due to the 2016 Collective Bargaining Agreement

-6%

3Q16

19.9

2Q16

21.1

3Q15

25.2

-21%

-10%

9M16

62.7

9M15

69.7

-7%

3Q16

71,152

2Q16

76,613

3Q15

79,113

-10%

Petrobras Workforce Evolution

Manageable Operating Costs R$ Billion

-4%

+9%

9M16

19.3

9M15

17.7 -2%

3Q16

6.4

2Q16

6.5

3Q15

6.6

Sales, General and Administrative Expenses R$ Billion

45

Lower debt in line with 2017-2021 BMP targets

398,2397,8

450,0493,0506,6

325,6332,4369,5

392,1402,3

122,7123,9126,4126,3127,5

100,3103,6103,8100,4101,3Net Debt

(US$ billion)

Total Debt (US$ billion)

Net Debt (R$ billion)

Total Debt (R$ billion)

2Q16 1Q16 4Q15 3Q15 3Q16

3Q15 2Q16 3Q16

Cost of Debt(% a.a.) 6.1 6.3 6.3

Maturity (years) 7.49 7.30 7.33

Leverage (%) 58 55 55

46

DEBT PROFILE – AS OF SEPTEMBER 30, 2016

By Category By Currency

Note: Brazilian State Banks: BNDES, Banco do Brasil and Caixa Econômica Federal

44%

24%

6%

22%

4%

Brazilian State Banks

Other Brazilian Banks

Bond Markets

Foreign Financial Institutions

Foreign Development Banks and ECA

74%

19%

1% 6%

EUR

USD

BRL

Others

Liability Management 3 successful liability management between May 2016 and January 2017

—

US$ Bilhões

47

US$ 14 billion in issuances and US$ 15 billion in tender helped to reduce the cost of debt and to extend maturity

We were awarded “Corporate Liability Management of the Year” by LatinFinance magazine.

Estimated Cost of Debt per Year

Maturity February 9th 1 month ago 1 year ago Max.

5 years 5.5 % 6.1% 13.6% 15.9%

10 years 6.9% 7.4% 12.9% 14.4%

30 years 8.1% 8.2% 12.4% 13.2%

6.8

Issuance

6.3

Tender Bookbuilding

19.0 May 2016

3.0

Issuance

3.0

Tender Bookbuilding

7.0

July 2016

4.0

Issuance

5.9

Tender Bookbuilding

19.0 January 2017

US$ Billion

Source: Bloomberg

Debt maturity between 2017 and 2020 Includes January 2017 tender offer

—

13

23

17

12

14

18

11

8

2019 2018 2017 2020

As of Feb/2015

As of Feb/2017

US$ Billion

48

49

2016 Cash Flow reflects divestments and debt management

US$ Billion

Judicial Guarantees

Borrowings

-9.3 1.8

Roll-overs

11.9

Divestments

6.5

Investment

-14.5

Dividends, Interest

and Amortizations

-22.6

-3.6

Operating Cash Flow

26.5

2016 Initial Cash

Position

25.8 22.5

2016 Final Balance

Financial Expenses and Amortizations

Tender Offer

50

And evolving with a focus on the main metrics of the 2017-21 BMP

Net Debt / EBITDA**

2Q16 2015

4.1

5.3 4.5

3Q16

-9%

2Q16

1.6

2.2

3Q16

-12%

1.8

2015

Total Recordable Injury Frequency Rate*

SAFETY

* TRIFR = Number of reportable injuries per million man-hours

FINANCIAL

-24% -27%

** LTM Adjusted EBITDA

STRATEGIC PLAN 2017-2021 BUSINESS AND MANAGEMENT PLAN —