Petrobras, in continuation of the Material Fact disclosed on May 22, 2024, informs that it has signed with the Administrative Council for Economic Defense (“CADE”) an addendum to the Refining Cessation Commitment Term (“TCC”) signed in 2019, through which new obligations were agreed upon involving Petrobras’ activities in the supply of oil and oil derivatives to third parties in the national territory.
The new obligations preserve the original objective of the TCC of maintaining competitiveness in the refining market. The addendum also contemplates the investigations initiated by CADE after the execution of the 2019 TCC and suspends such administrative inquiries involving Petrobras.
Due to an obligation assumed with CADE, Petrobras makes available to the market, through this Notice, its Guidelines for the Marketing of Oil (crude oil) to third parties for deliveries by sea, as follows:
Guidelines for the Marketing of Oil for sea deliveries
- Petrobras must preserve and prioritize its economic result, seeking to maximize its value generation;
- Petrobras must seek to maximize value generation by always practicing competitive prices, aligned with the international market;
- The authority competent for approving each transaction, seeking to maximize value generation for the Company, must base its decision on market references at the time of negotiation, such as: (a) the counterparty's supply alternatives, and (b) the opportunity cost for Petrobras. The counterparty's alternative cost includes the main supply alternatives, while the opportunity cost for Petrobras is based on the company's alternatives.
Among other agreed obligations, it is worth highlighting that Petrobras undertakes to offer, to any independent refinery in Brazilian territory, the possibility of entering into a Frame Contract through which, observing the conditions established in the TCC, independent refineries will have a guarantee of availability of a minimum volume of oil for delivery by sea, during monthly negotiation periods, without any purchase commitment with Petrobras.
Furthermore, Petrobras undertakes to submit to CADE information, as defined in the Work Plan attached to the TCC, that allows verification of the non-discriminatory nature of the sale of oil (crude oil) to third parties and of Petrobras' commercial strategy for the sale of oil derivatives, demonstrating its adherence to the terms of the TCC and the precepts of the Brazilian Competition Defense Law (Law No. 12,529/2011).
As already reported to the market, the term of validity of the obligations agreed upon in the Amendment to the Refining TCC is 3 years, which may be extended for the same period, and the amendment releases Petrobras from the obligation to continue with the refinery divestments provided for in the original agreement and which had not yet been concluded, despite the company's best efforts.
Petrobras believes that the signing of the addendum to the TCC consolidates the cooperation efforts between CADE and the company and is in line with the current transition period in the configuration of the Brazilian refining system.
