Petrobras announces Tender Results and Settlement of Tender Offer and Consent Solicitation
Rio de Janeiro, Brazil – July 11, 2016 – Petróleo Brasileiro S.A. – Petrobras (“Petrobras”) (NYSE: PBR) hereby announces that holders of US$299,159,000.00, or approximately 51.87%, of the outstanding 8.375% Global Notes due 2018 (the “2018 Notes”), issued by Petrobras’s wholly-owned subsidiary Petrobras Global Finance B.V. (“PGF”), tendered their 2018 Notes at or prior to 11:59 p.m., New York City time, on July 8, 2016 (the “Expiration Date”), pursuant to PGF’s previously announced offer to purchase and consent solicitation (the “Offer to Purchase and Consent Solicitation”) made pursuant to the offer to purchase and consent solicitation statement dated May 17, 2016 (as amended or supplemented, the “Statement”), and the related consent and letter of transmittal dated May 17, 2016 (as amended or supplemented, the “Consent and Letter of Transmittal”).
The following table summarizes the final tender results as of the Expiration Date and the principal amount of 2018 Notes that PGF has accepted for purchase:
| Title of Security | CUSIP / ISIN | Principal Amount Outstanding | Total Consideration(1) | Principal Amount Tendered | Principal Amount Accepted for Purchase |
| 8.375% Global Notes due December 2018 | 71645WAH4 / US71645WAH43 | US$576,780,000 | US$1,115.00 | US$299,159,000 | US$299,159,000 |
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(1) Per US$1,000.
As a result of PGF’s acceptance for purchase of all US$299,159,000.00 of the 2018 Notes tendered prior to the Expiration Date, at least a majority of the outstanding principal amount of the 2018 Notes have provided consents to eliminate certain covenants and related provisions in the indenture pursuant to which the 2018 Notes were issued (the “2018 Notes Indenture”) and the related guaranty by Petrobras (the “2018 Notes Guaranty”) as described in the Statement, and to the execution and delivery of a supplement to the 2018 Notes Indenture and an amendment to the 2018 Notes Guaranty in order to effect such amendments.
The settlement date on which (i) PGF will make the payment for the 2018 Notes accepted in the Offer to Purchase and Consent Solicitation, and (ii) PGF, Petrobras and the trustee under the 2018 Notes Indenture (the “Trustee”) will execute the supplement to the 2018 Notes Indenture and Petrobras and the Trustee will execute the amendment to the 2018 Notes Guaranty, in order to effect the approved amendments, is expected to be July 13, 2016 (the “Settlement Date”).
Holders of 2018 Notes that validly tendered prior to the Expiration Date and whose 2018 Notes have been accepted for purchase are entitled to receive the total consideration set forth in the table above, and to receive accrued and unpaid interest on their accepted 2018 Notes from the last interest payment date to, but not including, the Settlement Date. The total cash payment to purchase the accepted 2018 Notes will be approximately US$335,858,953.23, including accrued and unpaid interest.
The Offer to Purchase and Consent Solicitation has now expired. No 2018 Notes tendered after the Expiration Date will be accepted for purchase pursuant to the Offer to Purchase and Consent Solicitation.
The Offer to Purchase and Consent Solicitation was made pursuant to the Statement and the related Consent and Letter of Transmittal, which set forth in more detail the terms and conditions of the Offer to Purchase and Consent Solicitation.
PGF engaged BB Securities Limited, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Santander Investment Securities Inc. to act as dealer managers and solicitation agents in connection with the Offer to Purchase and Consent Solicitation. Global Bondholder Services Corporation is acting as the depositary and information agent for the Offer to Purchase and Consent Solicitation.
Petrobras Oil and natural gas production in June
Rio de Janeiro, July 11, 2016 – Petróleo Brasileiro S.A. (Petrobras) announces that its total oil and natural gas production in June was 2.90 million barrels of oil equivalent per day (boed), a new monthly record for the company, beating its previous record of 2.88 million boed, set in August 2015. June’s output was up 2% from the amount produced in May (2.83 million boed). Of the total amount, 2.70 million boed were produced in Brazil and 0.2 million boed were produced abroad.
Petrobras’ total oil and gas output in Brazil in June, 2.70 million boed, is also a monthly record, up from 2.69 million boed in August 2015.
Average oil production was 2.30 million barrels per day (bpd) in June, up 2% from 2.24 million bpd the previous month. Of this total, 2.20 million bpd were produced in Brazil and 0.1 million bpd were produced abroad.
This volume of oil produced in June in Brazil is the third highest average monthly output recorded by Petrobras. The growth in this amount from the previous month was mainly due to the startup of new wells connected to the Cidade de Maricá and Cidade de Itaguaí FPSOs, in Lula field, in the Lula Alto and Iracema areas, respectively.
Pre-salt production rises 8% from May, setting a new record
In June, oil and natural gas production operated by Petrobras in the pre-salt layer increased 8% from the previous month, setting a new monthly record of 1.24 million boed.
Oil production operated by Petrobras (both its own and its partners’ shares) in this province in June was also a monthly record, reaching an average of 999,000 bpd, up 8% from the previous month. Petrobras set a new daily record on June 30, producing 1.087 million barrels.
Natural gas production
Output of natural gas in Brazil, not including liquefied gas, was 78.8 million m³ per day, up 3% from 76.4 million m³ per day the previous month.
Average natural gas production abroad was 17.2 million m³ per day, down 4% from 17.9 million m³ per day the previous month.
