RESULTS ANNOUNCEMENT2nd Quarter 2015

Conference Call / Webcast

August, 7th 2015

2

DISCLAIMER

FORWARD-LOOKING STATEMENTS:

DISCLAIMER

The presentation may contain forward-looking statements about future eventswithin the meaning of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended, that are not basedon historical facts and are not assurances of future results. Such forward-lookingstatements merely reflect the Company’s current views and estimates of futureeconomic circumstances, industry conditions, company performance and financialresults. Such terms as "anticipate", "believe", "expect", "forecast", "intend", "plan","project", "seek", "should", along with similar or analogous expressions, are used toidentify such forward-looking statements. Readers are cautioned that thesestatements are only projections and may differ materially from actual future resultsor events. Readers are referred to the documents filed by the Company with theSEC, specifically the Company’s most recent Annual Report on Form 20-F, whichidentify important risk factors that could cause actual results to differ from thosecontained in the forward-looking statements, including, among other things, risksrelating to general economic and business conditions, including crude oil and othercommodity prices, refining margins and prevailing exchange rates, uncertaintiesinherent in making estimates of our oil and gas reserves including recentlydiscovered oil and gas reserves, international and Brazilian political, economic andsocial developments, receipt of governmental approvals and licenses and our abilityto obtain financing.

We undertake no obligation to publicly update or revise any forward-lookingstatements, whether as a result of new information or future events or for any otherreason. Figures for 2015 on are estimates or targets.

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

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 weare not permitted to present in documents filed with the United States Securitiesand Exchange Commission (SEC) under new Subpart 1200 to Regulation S-K becausesuch terms do not qualify as proved, probable or possible reserves under Rule 4-10(a) of Regulation S-X.

3

1H14 FX Rate – End of PeriodR$ 2.20

Exchange Rate

FX (R$/US$) 1Q4 2Q14 3Q14 4Q14 1Q15 2Q15

Average 2.37 2.23 2.27 2.54 2.87 3.07

End of Period 2.26 2.20 2.45 2.66 3.21 3.10

R$ / US$

Source: Bloomberg – PTAX Exchange Rate

1H15 FX Rate - End of PeriodR$ 3.10

41%

2,00

2,20

2,40

2,60

2,80

3,00

3,20

3,40

3,60

-3%

3.60

3.40

3.20

3.00

2.80

2.60

2.40

2.20

2.00

4

1H15 Average BrentUS$ 57.95

1H14 Average BrentUS$ 108.93

40

50

60

70

80

90

100

110

120

130

140

Oil Prices - Brent

Average Brent 1Q4 2Q14 3Q14 4Q14 1Q15 2Q15

R$ 256.48 244.47 231.20 193.73 154.89 190.09

US$ 108.22 109.63 101.85 76.27 53.97 61.92

US$ / bbl

Source: Platts

-47%

+15%

5

1H15 Net Result: R$ 5.9 Billion

R$ Billion 1H15 1H14 ∆%Sales Revenues 154.3 163.8Cost of Sales -106.3 -125.9Gross Profit 48.0 38.0 26Operational Expenses -25.2 -21.6Operating Income 22.8 16.4 39Financial Results -11.7 -1.1Share of earning in equity-accounted investments 0.3 0.8Profit-sharing -0.4 -0.6Net income before income taxes 11.1 15.5 -28Income Taxes -5.7 -4.5Non-controlling interest -0.4 0.6Net Income 5.9 10.4 -43

Adjusted EBITDA 41.3 30.6 35

Investments 36.2 41.5 -13

Free Cash Flow* 4.5 -15.8 128

� Higher exchange rate variation expenses

� Higher interest expenses

� Interest on tax expenses – IOF (R$ 1.3 Bn)

� Lower prices, especially of exports

� Decrease of oil products sales volume

� Lower import costs

� Lower government take

� IOF Tax liability - tax on intercompany financial operations (R$ 3.1 Bn)

� Impairment (R$ 1.3 Bn)

* Free Cash Flow = Operating Cash Flow minus Invest ing Cash Flow

� Income tax provision on foreign profits (R$ 1.1 Bn)

� Interest on IOF tax expenses (R$ 1.3 Bn)

6

2Q15 Net Result: R$ 0.5 Billion

R$ Billion 2T15 1T15 ∆%Sales Revenues 79.9 74.4Cost of Sales -54.4 -51.9Gross Profit 25.6 22.4 14Operational Expenses -16.1 -9.1Operating Income 9.5 13.3 -29Financial Results -6.0 -5.6Share of earning in equity-accounted investments 0.2 0.2Profit-sharing 0.0 -0.3Net income before income taxes 3.6 7.6 -53Income Taxes -2.7 -3.0Non-controlling interest 0.4 -0.8Net Income 0.5 5.3 -90

Adjusted EBITDA 19.8 21.5 -8

Investments 18.3 17.8 3

Free Cash Flow* 5.7 -1.3 558

� Interest on tax expenses – IOF (R$ 1.3 Bn)

� Higher interest expenses

� Decrease of exchange rate variation expenses

� Higher export volumes at higher prices

� Higher sales volumes of oil products

� Government take increase

� Tax liability of IOF – tax on financial operations (R$ 3.1 Bn)

� Impairment of assets (R$ 1.3 Bn)

� Higher exploratory costs

� 1Q15: reversal of provision for losses in the electricity sector (R$ 1.3 Bn)

*Free Cash Flow = Operating Cash Flow minus Investi ng Cash Flow

� IOF Tax liability - tax on intercompany financial operations (R$ 3.1 Bn)

� Impairment (R$ 1.3 Bn)

� Interest on IOF tax expenses (R$ 1.3 Bn)

7

Highlights

� Higher oil, NGL and natural gas production (9%, 218 kboed)

� Operation start-up of Búzios extended well test

� Higher volumes of oil exports (107%, 178 kbpd)

� Lower costs of imports and government take

� Reversal of provision for losses in the electricity sector (R$ 1.3 Bn)

� Free cash flow of R$ 4.5 Bn

1H15 Highlights

2Q15 Highlights

� Pre-salt oil and gas production was 926 kboed in June, above 900 kboed for the first time

� Increase of oil products production in Brazil (7%, 134 kbpd)

� Receipt of funds repatriated from “Lava Jato” Operation (R$ 157 Million)

� Reimbursement related to insurance of accident in Chinook field, USA in 2011 (R$ 259 Million)

� Provision of IOF tax liability (R$ 3.1 Bn)

� Impairments on Gas and Power, Downstream and Exploration and Production (R$ 1.3 Bn)

8

Impairment

Others 551.4

585.0

Transfer and Export Offshore Unit (UOTE) 198.3

Fertilizer Plant - UFN V

Oil and Gas Fields in Brazil and Asset Sales 245.1

R$ 1,580 million

R$ million

Allocated on operational expenses: R$ 1,283 million

Allocated on equity-accounted investments: R$ 294 million

9

1H14 Average2,566

1H15 Average2,784

Exploration and Production

400 411441 453 467 463

Natural Gas Abroad

2Q15

Natural Gas Brazil

2015Target

2,125

3Q14

87

2,150

10690

4Q14

2,799

12295

1,972

2,600

2,090

2Q14

2,74696

1192,531

1Q14

1,922

11891

2,111

102

Oil and NGL Abroad

2,80389

1Q15

2,765

2,149

-1%

2,796

Oil and NGL Brazil TargetOil and NGL Brazil

100

Oil and Gas Production - Brazil and Abroad

kboed

+9%

10

Exploration and Production

Connection of New Wells in Brazil

30 34

61

28

1217

26

1133

2H151H15

39

2014

87

2013

51

2012

42

Producers

Injectors

72

11

1H14 Average2,152

1H15 Average2.031

Downstream

kbpd

822 857 865 867 796 870

483 496 507 490423

437

819 827 832 814

745790

2,171

3Q14

2,204

2Q14

2,180

1Q14

2,124

+7%

Diesel

Gasoline

Others

2Q15

2,098

1Q15

1,964

4Q14

-6%

Oil Products Output in Brazil

12

Downstream

Sales Volume in Brazil

kbpd

947 999 907 923

601 619 616 644573 537

823825

868 833

750 790

2Q14

2,443

1Q15

2,230

4Q14

2,487

1,010

+1%

Diesel

Gasoline

Others

2Q15

2,250

3Q14

2,533

1,049

1Q14

2,371

1H14 Average2,407

1H15 Average2,239

-7%

13

Downstream

Balance: Oil and Oil Products(kbpd)

170 152

415330

-178

166344

447

291

-281

-245

1H15

-125

53

1H14

-526

1H15

621

1H14

862

1H15

496

1H14

336

Oil Products

Oil

Exports Imports Balance

Balance Evolution(kbpd)

-27

-225

-390

-222

-633

-417

2Q151Q154Q143Q142Q141Q14

14

Operating Income Evolution per Segment 1H14 x 1H15

R$ Billion

Corporate

+39%

-0.9

1H15Operating

Income

Others*

22.8-4.1

Elimination

-0.3

Gas and Power

0.3

Exploration and

Production

-19.2

Downstream

30.7

1H14Operating

Income

16.4

*Others: Distribution, Biofuels and International A ctivities.

15

Operating Income Evolution 1H14 x 1H15

-43%

1H15Net Income

5.9

Others

0.9

Tax

-1.2

Financial Results

-10.6

Operating Expenses

-3.6

COGS

19.5

Sales Revenues

-9.5

1H14Net Income

10.4

R$ Billion

16

Operating Income Evolution per Segment 1Q15 x 2Q15

R$ Billion

-1.4

3.7

-29%

2Q15Operating

Income

Corporate

9.5

EliminationOthers*

-0.2

Gas and Power

-2.8

Exploration and

Production

-1.7

Downstream1Q15Operating

Income

13.3-1.5

*Others: Distribution, Biofuels and International A ctivities.

17

Operating Income Evolution 1Q15 x 2Q15

R$ Billion

2Q15Net Income

0.5

Others

-0.9

Tax

-90%

0.4

Financial Results

-0.4

Operating Expenses

-7.0

COGS

-2.4

Sales Revenues

5.6

1Q15Net Income

5.3

18

Costs Evolution

Refining Cost

Lifting Cost*

* Does not include government take

+17%

1H15

38.31

12.99

1H14

32.71

14.36

+24%

1H15

8.07

2.74

1H14

6.52

2.85

14.57

+1%

2Q15

38.49

12.71

1Q15

38.13

13.27

2Q14

32.30

R$/boeUS$/boe

-2%

2Q15

7.98

2.64

1Q15

8.16

2.84

2Q14

6.56

2.94

Real devaluation and higher expenses with well intervention

and subsea maintenance

Lower throughput due to maintenance stoppages and

higher personnel costs

19

Indebtedness

Indebtedness

Indebtedness (R$ Billion) 06/30/2015 12/31/2014

Short-term Debt 44,7 31.6

Long-term Debt 370.9 319.5

Total Indebtedness 415.5 351.0

(-) Cash and Cash Equivalents¹ 91.6 68.9

= Net Debt 324.0 282.1

Indebtedness (US$ Billion)

Net Debt 104.4 106.2

1) Includes government securities and time deposits (maturity longer than 90 days)

Note: Short-term debt in Dec/15 considers the debt position due in 2016 informed on the 2Q15.

20

Financial Ratios - Indebtedness

4,1

4,8 4,85,0

4,6

40%43%

48%

52% 51%

0%

10%

20%

30%

40%

50%

60%

2,0

3,0

4,0

5,0

6,0

7,0

8,0

2Q14 3Q14 4Q14 1Q15 2Q15

Net Debt / LTM Adjusted EBITDA¹ Net Debt / EBITDA²

1) As of the 2Q15, the adjusted EBITDA used to calculate the ratio is the sum of the last 12 months2) Net Debt / (Net Debt + Shareholders Equity)

21

2015 Cash Flow

US$ Billion

11

13

26

3

13

2

Rollovers

2

Divestments

3

2015 FinalCash Flow

20

Funding Needs

12

Investments

-28

-12

-16

Interests, Amortizations

and Others

-22

-10

-12

OperatingCash Flow

26

2015 Initial Cash Position

*

*

**

*

* Realized in 1H15

0.2 *

*

RESULTS ANNOUNCEMENT1ST Quarter 2015