Company: PBR
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001292814-25-001352
Chunk: 207

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-04-03
Form: 20-F
Item: Item 17
Chunk 207
---
 will be liable for damages to the environment resulting from our operations, including costs related to any remediation measures.
 Brazilian content:
 The Production Sharing Contracts specify certain equipment, goods and services, as well as different levels of required local content, in accordance with the different phases under the Production Sharing Contracts. If we fail to comply with the Brazilian content obligations, we may be subject to fines imposed by the ANP.
 Royalties and expenses with research and development:
 Once we begin production in each field, members of the consortia (other than PPSA) will be required to pay monthly royalties of 15% of the oil and natural gas production, to be recovered from a portion of the production of oil and gas in the block. All members of the consortia (other than PPSA) will also be required to invest 1.0% of their annual Gross Revenues from crude oil and natural gas production under the Production Sharing Contracts in research and development activities related to the oil, gas and biofuel sectors.
 Miscellaneous provisions:
 Under the Brazilian production-sharing regime, we can assign our rights and obligations inherent to our participation above 30% in the areas in which we exercised our preemptive right to be the operator.
 All members of the consortia (other than PPSA) have a right of first refusal with respect to an assignment of rights and obligations by any other member of the consortium (other than PPSA).
 The Production Sharing Contracts shall be terminated in the following circumstances: (i) the expiration of their terms; (ii) if the minimum work program has not been completed by the end of the exploration phase; (iii) if there has not been any commercial discovery by the end of the exploration phase; (iv) if the consortium members (other than PPSA) exercise their withdrawal rights during the exploration phase; (v) if the consortium refuses to execute a unitization agreement after the ANP makes such determination (which termination may be complete or partial) and (vi) any other basis for termination described in the Production Sharing Contracts.
 Any breach of the Production Sharing Contracts or of any regulations issued by the ANP may result in sanctions and fines imposed by the ANP on the relevant party, in accordance with applicable legislation and the terms of the Production Sharing Contracts. If any breach of the Production Sharing Contracts is considered by the Brazilian federal government not to be significant, intentional, or a result of negligence, imprudence or recklessness, or it is proved that the consortium has worked diligently to cure such breach, the