Company: PBR
Filing Date: 2025-02-27
Form Type: 6-K
Source: 0001292814-25-000670
Chunk: 7

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-02-27
Form: 6-K
Chunk 7
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 company's assets is no longer presented as revenue related to the construction of assets for use and the  
 portion used in liabilities for decommissioning areas is no longer presented as inputs acquired from third parties. Thus, depreciation,  
 depletion and amortization now represent the amounts recognized in the statement of income for the period and normally used to reconcile 
 the cash flow from operating activities and the net income.                                                                              |

| 2.2. | Functional currency |

The functional currency of Petrobras and all of its Brazilian
subsidiaries is the Brazilian Real, which is the currency of its primary economic environment of operation. The functional currency of
the direct controlled entities that operate in the international economic environment is the U.S. dollar.

The statements of income and cash flow of investees, with
a functional currency other than the Parent Company, are converted into reais at the average monthly exchange rate, assets and liabilities
are translated at the final rate and other items of shareholders' equity are converted at the historical rate.

Exchange variations on investments in subsidiaries and affiliates,
with a functional currency different from the Parent Company, are recorded in shareholders' equity, as a cumulative translation adjustment,
and are transferred to the statement of income when investments are sold.

| 3. | Material accounting policies |

For a better understanding of the recognition and measurement
basis applied in the preparation of the financial statements, the accounting practices are presented in the respective notes that deal
with the topics of their applications.

| 4. | Key estimates and judgements |

The preparation of the consolidated financial information
requires the use of estimates and judgments for certain transactions. Next is presented: (i) key judgments; and (ii) the main sources
of uncertainty with a significant risk of causing material adjustments to the company's accounting estimates over the next fiscal year.

| 14 |

| NOTES TO THE FINANCIAL STATEMENTSPETROBRAS(In millions of reais, unless otherwise indicated) |

| 4.1. | Recognition of exploration costs and oil and natural gas reserves estimates |

After obtaining the legal rights to explore a specific
area, the Company uses the successful efforts method to recognize costs incurred in connection with the exploration and evaluation of
mineral resources, before demonstrating technical and commercial feasibility of extracting those resources. This method requires a direct
relationship between costs incurred and mineral resources for these costs to be characterized as assets. The types of exploration costs
and their respective recognition are presented in note 26.

The moment in which the technical and commercial
feasibility