DATA HIDRO is a computerized system Petrobras developed for storing, consolidating, and treating water resource and wastewater data coming from the Company's units. This system enables information management in an efficient, integrated, and decentralized manner and serves as a support tool for planning rational water use.

The system serves as a quantitative and qualitative database for records on the company's units' inbound and outbound water flow, amounts charged for water use, water and wastewater treatment and reuse systems, as well as information on Petrobras' employees serving as company representatives in Water Resources Forums.

As a management tool, DATA HIDRO allows the issuing of reports that subsidize the management's analyses of this topic in the various company facilities, including the water balance, the polluting load released, verification of compliance with the quality standards for wastewater use and discharge standards, as well as the calculation of corporate environmental performance indicators.

By means of the DATA HIDRO database, Petrobras also consolidates its Annual Water Resource and Wastewater Report, which, in 2017, brought together information from 455 water users.

The Company's water balance in 2017 appears in the infographic below:

a) The figures were obtained by measuring the consolidated direct measurements made at the units (2017 Water Resource and Wastewater Inventory).
b) The volume of discharged wastewater featured in the balance comprises the industrial process wastewater and the reclaimed water associated with lifted oil.
c) Rain water volumes are recorded in the "Third-party (Utilities and other sources)" category and added up to 0.05 million m³.
d) The volume of fresh water received from other Petrobras System units is recorded in the "Third-party (Utilities and other sources)" category based on the defined calculation method.
e) The volumes recorded for reuse do not include the condensate recovered in the thermal cycles, recirculated cooling water, and reclaimed water reinjected for secondary and tertiary oil recovery purposes.
f) Fresh water inflow and outflow for open circuit cooling is not included. In 2017, we used 30.9 million m3 of fresh water for this purpose.

Ensuring access to the supply of water necessary for the continuity of our activities is also a priority in our water resource management. We use an important tool to evaluate our facilities' exposure to the risk of scarcity: The "Water Scarcity Risk Index - WSRI," developed in partnership with the Federal University of Rio de Janeiro (UFRJ). The index allows us to identify and prioritize locations and operating units to develop detailed water availability studies and to implement measures to mitigate or monitor these risks.

We also invest in Technological Research and Development (R&D). In 2017, we invested approximately R$14 million in R&D projects related to water resource and wastewater management, in partnership with companies, research institutions, and eight Brazilian universities. The research lines sought to ensure the water supply necessary for Petrobras' units to operate, as well as to optimize the use of this resource by enhancing, for example, cooling system management and control by means of an online resource analysis. Additionally, we have made progress in research on water desalinization for industrial use and in improving the efficiency of the wastewater treatment processes in place at the company.

We constantly improve our operating process management and control for the continuous improvement of the quality of discharged wastewater. As an example, we can mention that in the next couple of years, investments and the development of new technologies are foreseen for reclaimed water treatment.

In addition to the actions taken at our units, we sponsor projects related to water resource management, to protecting springs and forests, preserving biodiversity and aquatic species, to driving rational water use, and to monitoring and promoting water resource quality, through Petrobras Socioenvironmental Program.

An example is the "Sowing Water Project," which aims to reverse the water body degradation processes in the Cantareira System region by changing land use and occupation. The strategy is based on deploying conservation practices in production processes, on native forest recomposition, and on environmental education actions.