Further to the decision on September 1, 2016 of the Brazilian Fifth Chamber for Coordination and Review and Anti-corruption ("Fifth Chamber") to refer the Leniency Agreement of July 15, 2016 to a new prosecutor within the Public Prosecutor's Office (Ministério Público Federal - "MPF") for further review, consideration, and next steps, both the General Counsel for the Republic (Advocacia Geral da União - "AGU") and the MPF filed appeals.

The Fifth Chamber convened today to review its decision on the basis of the appeals filed by the AGU and MPF. The Company learned that the Fifth Chamber has confirmed its decision of September 1, 2016 in which the Leniency Agreement as per the current terms was not approved, and referred the matter, including review of the appeals filed by the AGU and the MPF, to the Higher Council of the MPF (Conselho Institutional) for further consideration and decision. The Higher Council is an institutional body within the MPF, in which prosecutors from all seven Chambers of the MPF are represented.

The Company will provide a summary update through appropriate means of the decision of the Fifth Chamber once it has received and reviewed the decision.

The Company remains committed to engage with all relevant authorities until the Leniency Agreement is approved by the Fifth Chamber and the Company has been notified thereof. Such notification will make the Leniency Agreement, duly signed with Brazilian Ministry of Transparency, Oversight and Control (Ministério da Transparência, Fiscalização e Controle - "MTFC"), the MPF, the AGU, and Petrobras, binding upon the parties. Until then, the Company is not under any obligation to make payments under the Leniency Agreement.

The Leniency Agreement further remains subject to review by the Federal Court of Accounts (Tribunal de Contas da União - "TCU"), which is not a condition precedent to the Leniency Agreement.

It is currently not possible to predict the timing or final outcome of these developments, and the Company will update the market accordingly.

For more information the Company refers to the Investor Relations section of the Company's website: http://www.sbmoffshore.com/investor-relations-centre/