News

We have approved agreements with investors to close eleven individual law suits in the US

Our Board of Directors approved, at a meeting held today, the signing of agreements to close eleven individual law suits filed at the Federal Court of New York, USA, by Abbey Life Assurance Company Limited (and others), Aberdeen Emerging Markets Fund (and others), Aberdeen Latin American Income Fund Limited (and others), Danske (and others), Delaware Enhanced Global Dividend and Income Fund (and others), Dimensional Emerging Markets Fund (and others), Manning & Napier Advisors, LLC, (and others), Russell Investment Company (and others), Skagen (and others), State of Alaska Department of Revenue, Treasury Division (and others), State Street Cayman Trust Co., Ltd, and Ohio Public Employees Retirement System.

We have completed the sale of exploratory block BM-S-8

This Tuesday, we completed the sale transaction for our stakes in exploratory block BM-S-8 to Statoil Brazil Oil and Gas LTDA, as announced on July 29, 2016. The transaction was completed with Statoil’s payment, made today, of $1.25 billion, corresponding to half of the total amount of the transaction, after all contract conditions had been met, such as approval by the Administrative Council for Economic Defense (CADE) and the National Petroleum Agency (ANP). The remaining amount will be paid through contingent installments related to subsequent events, such as, for example, the signing of the Production Individualization Agreement (unitization).

Check out the data on our oil and natural gas output in October

Our total oil and natural gas output in October was 2.81 million barrels of oil equivalent per day (boed), of which 2.68 million boed produced in Brazil, while 0.12 million boed abroad. The average oil output in Brazil was 2.19 million barrels per day (bpd), down 2 percent compared to September, when there was record production. This result was due mainly to maintenance shutdowns at FPSOs Cidade de Anchieta and Capixaba, both in Parque das Baleias, and at FPSO Cidade Angra dos Reis, in Lula. Performance so far shows that we are heading towards the annual oil output target set for Brazil, of 2.145 million bpd.

Main financial highlights 3Q-2016 x 2Q-2016

• Net loss of R$ 16,458 million, compared to net income of R$ 370 million in the 2Q-2016, as a result of:  - Impairment of assets and investment in associates of R$ 15,709 million, due to the review of assumptions, such as Brent prices and long term exchange rates, and the portfolio of investments in the context of the 2017-2021 Business and Management Plan, finalized and approved in 3Q-2016 , as well as the appreciation of the real and the increase in discount rates;