Company: PBR
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001292814-25-001352
Chunk: 208

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-04-03
Form: 20-F
Item: Item 17
Chunk 208
---
 Brazilian federal government may, instead of terminating the Production Sharing Contracts, propose that the ANP apply designated sanctions on the relevant parties.
  
Annual Report and Form 20-F 2024 |

We and other consortium members will use our best efforts to settle any disputes. If we are unable to do so, any consortium member may submit such dispute or controversy to an ad hoc arbitration following the rules established by the United Nations Commission On International Trade Law (UNCITRAL), or by the consent of the parties in interest, to the International Chamber of Commerce (the “ICC”), or any other well-regarded arbitration chamber. If a dispute involves only public administration entities, it may be submitted to conciliation service of the Câmara de Conciliação e Arbitragem da Administração Federal, under the Brazilian Attorney General's Office (Advocacia-Geral da União). In the event of a dispute involving non-negotiable rights, the parties shall submit the dispute to the federal courts in Brasília, Brazil.
 The Production Sharing Contracts are governed by Brazilian law.
 
1st cycle of the Permanent Offer under the Production Sharing Regime 
 On December 16, 2022, in the 1st cycle of the Permanent Offer under the Production Sharing Regime, we acquired, together with other international companies, the exploration and production rights in the Água Marinha and Sudoeste de Sagitário blocks. We also acquired 100% of the rights in the Norte de Brava block. The resulting production-sharing contracts were all signed on May 31, 2023 and we will be the operator of these blocks. The only criteria adopted by the ANP to define the winning bidder was the amount of profit oil to the Brazilian federal government.
 
Amendment to the Transfer of Rights Agreement
 The Transfer of Rights Agreement was executed in 2010. Its amendment was approved in 2019 by the TCU and the CNPE and our governing bodies.
 The parties involved discussed several scenarios about the revision of the original agreement, as both of them could be simultaneously creditor and/or debtor. The amendment consolidates one such scenario, resulting in a credit of US$9,058 billion in our favor, which was fully paid in December 2019.
 In addition to such credit, the main changes as a result of the amendment to the Transfer of Rights Agreement were (i) the local content clauses that lowered the local content requirements for the production phase (development and production stages) and (ii) the dispute resolution provisions that became similar