11.

Investments

11.1.

Information on direct subsidiaries, joint arrangements and associates


	Main business segment	% Petrobras’ ownership		% Petrobras’ voting rights		Share-holders’ equity (deficit)			Net income (loss) for the year			Country
Subsidiaries
Petrobras Netherlands B.V. - PNBV (i)	E&P		100.00		100.00		29,529			2,489		Netherlands
Petrobras Distribuidora S.A. - BR	Distribution		71.25		71.25		2,500			874		Brazil
Petrobras International Braspetro - PIB BV (i)	Several (ii)		100.00		100.00		7,197			(2,022	)	Netherlands
Petrobras Transporte S.A. - Transpetro	RT&M		100.00		100.00		886			(221	)	Brazil
Petrobras Logística de Exploração e Produção S.A. - PB-LOG	E&P		100.00		100.00		944			240		Brazil
Transportadora Associada de Gás S.A. - TAG	Gas & Power		100.00		100.00		3,468			678		Brazil
Petrobras Gás S.A. - Gaspetro	Gas & Power		51.00		51.00		519			74		Brazil
Petrobras Biocombustível S.A.	Biofuels		100.00		100.00		430			49		Brazil
Petrobras Logística de Gás - Logigás	Gas & Power		100.00		100.00		186			92		Brazil
Liquigás Distribuidora S.A.	RT&M		100.00		100.00		257			40		Brazil
Araucária Nitrogenados S.A.	Gas & Power		100.00		100.00		23			(90	)	Brazil
Termomacaé Ltda.	Gas & Power		100.00		100.00		68			20		Brazil
Braspetro Oil Services Company - Brasoil (i)	Corporate		100.00		100.00		108			2		Cayman Islands
Breitener Energética S.A.	Gas & Power		93.66		93.66		201			34		Brazil
Termobahia S.A.	Gas & Power		98.85		98.85		149			4		Brazil
Baixada Santista Energia S.A.	Gas & Power		100.00		100.00		77			3		Brazil
Petrobras Comercializadora de Energia Ltda. - PBEN	Gas & Power		100.00		100.00		23			2		Brazil
Fundo de Investimento Imobiliário RB Logística - FII	E&P		99.20		99.20		13			(26	)	Brazil
Petrobras Negócios Eletrônicos S.A. - E-Petro	Corporate		100.00		100.00		10			2		Brazil
Termomacaé Comercializadora de Energia Ltda	Gas & Power		100.00		100.00		3			—		Brazil
5283 Participações Ltda.	Corporate		100.00		100.00		1			—		Brazil

Joint operations
Fábrica Carioca de Catalizadores S.A. - FCC	RT&M		50.00		50.00		65			17		Brazil
Ibiritermo S.A.	Gas & Power		50.00		50.00		41			10		Brazil

Joint ventures
Logum Logística S.A.	RT&M		30.00		30.00		270			(31	)	Brazil
Cia Energética Manauara S.A.	Gas & Power		40.00		40.00		54			31		Brazil
Petrocoque S.A. Indústria e Comércio	RT&M		50.00		50.00		63			28		Brazil
Refinaria de Petróleo Riograndense S.A.	RT&M		33.20		33.20		(21	)		2		Brazil
Brasympe Energia S.A.	Gas & Power		20.00		20.00		23			1		Brazil
Brentech Energia S.A.	Gas & Power		30.00		30.00		25			3		Brazil
Metanol do Nordeste S.A. - Metanor	RT&M		34.54		34.54		8			1		Brazil
Eólica Mangue Seco 1 - Geradora e Comercializadora de Energia Elétrica S.A.	Gas & Power		49.00		49.00		10			1		Brazil
Eólica Mangue Seco 2 - Geradora e Comercializadora de Energia Elétrica S.A.	Gas & Power		51.00		51.00		10			—		Brazil
Eólica Mangue Seco 3 - Geradora e Comercializadora de Energia Elétrica S.A.	Gas & Power		49.00		49.00		11			1		Brazil
Eólica Mangue Seco 4 - Geradora e Comercializadora de Energia Elétrica S.A.	Gas & Power		49.00		49.00		11			1		Brazil
Companhia de Coque Calcinado de Petróleo S.A. - Coquepar	RT&M		45.00		45.00		(1	)		5		Brazil
Participações em Complexos Bioenergéticos S.A. - PCBIOS	Biofuels		50.00		50.00		—			—		Brazil

Associates
Sete Brasil Participações S.A. (iii)	E&P		5.00		5.00		(5,937	)		(40	)	Brazil
Fundo de Investimento em Participações de Sondas - FIP Sondas	E&P		4.59		4.59		—			—		Brazil
Braskem S.A. (iv)	RT&M		36.20		47.03		1,851			806		Brazil
UEG Araucária Ltda.	Gas & Power		20.00		20.00		94			(23	)	Brazil
Deten Química S.A.	RT&M		27.88		27.88		113			23		Brazil
Energética SUAPE II	Gas & Power		20.00		20.00		93			35		Brazil
Termoelétrica Potiguar S.A. - TEP	Gas & Power		20.00		20.00		49			22		Brazil
Nitroclor Ltda.	RT&M		38.80		38.80		—			—		Brazil
Bioenergética Britarumã S.A.	Gas & Power		30.00		30.00		—			—		Brazil
Nova Transportadora do Sudeste - NTS	Gas & Power		10.00		10.00		828			529		Brazil

(i)	Companies abroad with financial statements prepared in foreign currencies.

(ii)	Cover segments abroad in E&P, RTM, Gas & Power and Distribution segments.

(iii)

Despite the negative amount of net assets, allowance for losses was not recognized as the Company’s obligations with Sete Brasil are limited to the investments made in this associate.

(iv)	Equity and net income at September 30, 2018, most current public information.

The main investees of PNBV are: Tupi BV (65%), Guará BV (45%), Agri Development BV (90%), Libra (40%), Papa Terra BV (62.5%), Roncador BV (75%), Iara BV (42,5%) and Lapa BV (10%). They are dedicated to construction and lease of equipment and platforms for Brazilian E&P consortia and are incorporated under the law of the Netherlands. PNBV’s interests in these entities comprise the voting rights.

The main investees of PIB BV are the wholly-owned subsidiaries Petrobras Global Trading B.V. – PGT, Petrobras Global Finance B.V. – PGF; Petrobras America Inc. – PAI. PGT is incorporated under the law of The Netherlands and is dedicated to the trade of oil, oil products, biofuels and LNG (liquefied natural gas), as well as to the funding of its activities in light of Petrobras Group. PGF also is incorporated under the law of The Netherlands and is the finance subsidiary of Petrobras Group, raising funds through bonds issued in the international market. PAI is incorporated under the law of United Sates and is dedicated to E&P (MP Gulf of Mexico, LLC) and refining activities (Pasadena).

Gaspetro holds interests in several natural gas distributors in Brazil that carry out, by means of concessions, public service of distribution of piped natural gas.

11.2.

Investments in associates and joint ventures


	Balance at 12.31.2017		Investments		Transfer to assets held for sale			Restructuring, capital decrease and others			Results in equity- accounted investments			CTA			OCI			Dividends			Balance at 12.31.2018
Joint Ventures
Petrobras Oil & Gas B.V. - PO&G		1,410		—		(1,207	)		—			66			(15	)		—			(254	)		—
MP Gulf of Mexico, LLC (*)		—		8		—			604			9			1			—			—			622
State-controlled natural gas distributors		345		—		—			—			75			(53	)		—			(59	)		308
Compañia Mega S.A. - MEGA		49		—		—			—			2			36			—			(9	)		78
Petrochemical joint ventures		29		—		—			(1	)		16			(4	)		—			(6	)		34
Other joint ventures		104		28		—			18			11			(17	)		—			(16	)		128
Associates
Nova Transportadora do Sudeste		331		—		—			(18	)		53			(49	)		—			(54	)		263
Petrochemical associates		1,461		—		—			—			288			(129	)		(135	)		(217	)		1,268
Other associates		48		8		—			(11	)		4			(6	)		—			(1	)		42
Other investments		18		—		—			(1	)		(1	)		—			—			—			16

Total		3,795		44		(1,207	)		591			523			(236	)		(135	)		(616	)		2,759

(*)	As set out note 10.1.

11.3.

Investments in non- consolidated listed companies


	Thousand-share lot						Quoted stock exchange prices (US$ per share)				Market value
	12.31.2018		12.31.2017		Type		12.31.2018		12.31.2017		12.31.2018		12.31.2017
Associate
Braskem S.A.		212,427		212,427		Common		11.75		13.15		2,495		2,794
Braskem S.A.		75,762		75,762		Preferred A		12.23		12.96		926		982

												3,421		3,776

The market value of these shares does not necessarily reflect the realizable value upon sale of a large block of shares.

On June 15, 2018, the Company was informed by Odebrecht S.A that it had initiated negotiations with LyondellBasell for a potential transaction involving the transfer of Odebrecht’s entire interest in Braskem. This transaction is subject, among other conditions, to due diligence, negotiation of definitive agreements and all necessary approvals. There is no binding obligation between the parties to assure the conclusion of the transaction.

Depending on the outcome of this transaction, the Company will assess the terms and conditions of LyondellBasell’s offer in the context of exercising its tag-along right as set forth in Braskem S.A. Shareholder’s Agreement.

According to an amendment to Braskem S.A. Shareholder’s Agreement on September 25, 2018, preferred shares owned by the Company became also subject to tag-along rights as already set forth for the ordinary shares.

Information on the main estimates used in the cash flow projections to determine the value in use of Braskem is set out in Note 14.

11.4.

Non-controlling interest

The total amount of non-controlling interest at December 31, 2018 is US$ 1,631 (US$ 1,700 in 2017) primarily comprising US$ 719 of Petrobras Distribuidora (US$ 792 in 2017), US$ 255 of Gaspetro (US$ 289 in 2017), US$ 65 of Transportadora Brasileira Gasoduto Brasil-Bolívia – TBG (US$ 76 in 2017), and US$ 206 refer to Consolidated Structured Entities (US$ 284 in 2017).

Condensed financial information is set out as follows:


	Gaspetro					Consolidated Structured entities					TBG				BR Distribuidora
	2018			2017		2018			2017		2018		2017		2018		2017
Current assets		79			80		826			728		174		140		3,304		3,235
Long-term receivables		58			74		781			1,106		1		1		1,609		2,042
Investments		360			406		—			—		—		—		9		11
Property, plant and equipment		1			1		—			—		463		594		1,496		1,758
Other non-current assets		76			89		—			—		2		2		123		137

		574			650		1,607			1,834		640		737		6,541		7,183

Current liabilities		26			24		75			226		173		248		1,177		1,334
Non-current liabilities		29			36		1,326			1,322		334		335		2,864		3,181
Shareholders’ equity		519			590		206			286		133		154		2,500		2,668

		574			650		1,607			1,834		640		737		6,541		7,183

Sales revenues		114			111		—			—		425		462		26,753		26,483
Net income		74			75		(142	)		106		160		265		874		330
Increase (decrease) in cash and cash equivalents		(7	)		15		128			57		7		204		704		(49	)

Petrobras Distribuidora (BR) is a company that operates in distribution, transportation, trade and industrialization of oil products and other fuels. It is controlled by Petrobras parent company, which holds a 71.25% interest.

Gaspetro, a Petrobras’ subsidiary, holds interests in several state distributors of natural gas in Brazil. The Company holds 51% of interests in this indirect subsidiary.

TBG is an indirect subsidiary which operates in natural gas transmission activities mainly through Bolivia-Brazil Gas Pipeline. The Company holds 51% of interests in this indirect subsidiary.

Structured entities include Charter Development LLC – CDC, dedicated to construct, acquirer and charter FPSOs, and Companhia de Desenvolvimento e Modernização de Plantas Industriais – CDMPI, which is dedicated to coking and hydrotreating of coke naptha from Henquique Lage refinery (REVAP).

11.5.

Summarized information on joint ventures and associates

The Company invests in joint ventures and associates in Brazil and abroad, whose activities are related to petrochemical companies, gas distributors, biofuels, thermoelectric power plants, refineries and other activities. Condensed financial information is set out below:


	2018												2017
	Joint ventures									Associates			Joint ventures									Associates
	In Brazil			MP Gulf of Mexico, LLC			Other companies abroad			Other companies in Brazil			In Brazil			*PO&G^()**			Other companies abroad			Other companies in Brazil
Current assets		1,162			151			158			6,314			938			625			72			5,729
Non-current assets		520			—			10			1,388			502			71			1			1,454
Property, plant and equipment		866			3,643			45			12,932			897			3,706			8			9,342
Other non-current assets		633			—			1			863			725			—			—			980

		3,181			3,794			214			21,497			3,062			4,402			81			17,505

Current liabilities		1,163			86			72			6,159			1,005			276			29			5,973
Non-current liabilities		673			599			23			17,566			639			2,197			1			16,172
Shareholders’ equity		1,354			2,487			79			(2,168	)		1,418			1,929			51			(4,390	)
Non-controlling interest		(9	)		622			40			(60	)		—			—			—			(250	)

		3,181			3,794			214			21,497			3,062			4,402			81			17,505

Sales revenues		3,975			92			136			18,954			3,208			557			145			15,790
Net Income (loss) for the year		92			48			17			1,888			160			272			26			1,338
Ownership interest - %		20 to 83	%		20	%		34 to 50	%		5 to 49	%		20 to 83	%		50	%		34 to 50	%		5 to 49	%

(*)	In the fourth quarter of 2018, PO&G’s assets and liabilities were classified as held for sale, as set out in note 10.