Petrobras Approves Procedure for Execution of Suspension Cessation Agreement Arising from Administrative Accountability Process

Petrobras has announced the approval of a procedure for the execution of a Suspension Cessation Agreement (Termo de Cessação de Suspensão - "TCS") arising from an Administrative Accountability Process (Processo Administrativo de Responsabilização - "PAR").

This agreement was agreed to by companies sanctioned under PAR, with the aim of mitigating the effects of the temporary suspension from participating in bidding processes and the prohibition on contracting with Petrobras.

The TCS arising from a PAR applies to companies with active sanctions involving suspension from bidding and contracting, as well as prohibition from registration in the Registry of Ineligible and Suspended Companies (Cadastro de Empresas Inidôneas e Suspensas - "CEIS").

In such cases, in order to comply to the TCS, the company must, among other requirements:

• Submit to an Integrity Due Diligence (IDD) assessment;
• Obtain a low or medium Integrity Risk Rating (Grau de Risco de Integridade - "GRI");
• Acknowledge the validity of the fine imposed in the PAR and pay it in full;
• Commit to reimbursing damages caused and benefits improperly obtained;
• Implement or enhance its Integrity Program; and
• Withdraw any lawsuits related to the PAR.

Companies with a high GRI are ineligible.

The request must be submitted to the Petrobras Office of the Inspector General at termocessacao-pb@petrobras.com.br by an authorized legal representative, together with the required documentation.

Following the execution and fulfillment of the requirements, the TCS is published in the Official Gazette, the sanctions are removed from CEIS, and, where applicable, from the Registry of Penalized Companies (Cadastro de Empresas Punidas - "CNEP").

In the event of non-compliance with the TCS, these sanctions are reinstated and the records in the CEIS and CNEP registries are restored.

*This content was produced with the participation of law clerk Rafael Pierotti.