PETRÓLEO BRASILEIRO S.A. – PETROBRAS



Early termination of natural gas supply contract to UTE Cuiabá


Rio de Janeiro, June 8, 2017 - Petróleo Brasileiro S.A. – Petrobras informs that
it notified the company Âmbar, which belongs to the J&F economic group, of the
early termination of the natural gas supply contract to the thermal power plant
UTE Mário Covas (UTE Cuiabá), due to the breach of the contractual clause
addressing anti-corruption legislation.
The contract with Âmbar was executed on April 13, 2017 and sets forth a clause
in which the aforementioned company stated that there was no payment or offering
of any undue advantage to any public authority. However, Petrobras has become
aware of recordings from the plea bargain agreements by J&F group executives,
that acts in violation of the anti-corruption legislation in force have been
committed.
Petrobras shall also exercise the prerogative to collect indemnity for the
breach of contractual terms, in the amount of R$ 70 million, considering the
remaining contractual term between the effective date of termination, which
occurs 10 days after the notification, and its original termination, which would
be on December  31, 2017.
It should be clarified that during contract negotiations, Petrobras did not
accept the demand made by Âmbar to ground contractual price on import prices of
gas from Bolivia, for such prices are below the conditions set forth in the
company’s current pricing policy. As such, the price conditions agreed upon were
based on market criteria that reflect contracts signed by Petrobras with other
clients. In the contract under termination, the current price is US$ 6.07/MMBtu,
whereas the value of Bolivian imports is US$ 4.29/MMBtu.


_______________________________________________________________________________________
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.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		PETRÓLEO BRASILEIRO S.A. – PETROBRAS

Date: June 8, 2017.	By:	/s/ Ivan de Souza Monteiro
	Name:	Ivan de Souza Monteiro
	Title:	Chief Financial Officer and Investor Relations Officer

PETRÓLEO BRASILEIRO S.A. – PETROBRAS ———————————————————————————————————
(Translation of registrant’s name into English)

Avenida República do Chile, 65 20031-912 – Rio de Janeiro, RJ Federative Republic of Brazil
——————————————————————————————————— (Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: [x] Form 20-F [ ] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: [ ] Yes [x] No