GRI 2.9

For this Report QGEP has adopted Global Reporting Initiative (GRI) guidelines and continued its alignment with the Global Compact to provide transparent information to its stakeholders

For the second consecutive year QGEP is publishing its Annual Sustainability Report, following the guidelines and indicators of the Global Reporting Initiative (GRIG-3.1). The Company adopted these guidelines in order to provide accurate information to our stakeholders and facilitate comparisons with previous years. QGEP’s application level of the GRI guidelines is now at the ‘B’ level and includes oil and gas sector indicators as well as rigorous checks from the. GRI 3.2 | 3.3 | 3.13

In 2011 QGEP became a signatory to the Global Compact, a United Nations initiative that brings together companies seeking to align their operations and strategies with ten universally accepted principles in the areas of human rights, labor practices, and the environment and anti-corruption measures. Our actions related to these principles as well as improvements and new initiatives implemented in 2012 are outlined throughout the report. The correlation between the GRI and the Global Compact is also presented in the Cross-Reference table, for comparison purposes.

The information reported herein describes the Company’s projects, challenges and results for 2012. The economic and financial data covers the entire Company, while the environmental data refers only to those Blocks where QGEP acts as the operator. Significant variations in the quantitative data are mostly due to changes in the company operatorship of different assets. For example, in 2011, QGEP operated Block BM-J-2, but ceased operations that year. In 2012 the Manati Field, which is operated by Petrobras, was QGEP’s only producing asset. When information pertains to only part of the operations, the limit of the scope is indicated. GRI 3.1 | 3.6 | 3.7 | 3.8 | 3.10 | 3.11

The financial statements which accompany this Report, as well as the accounting data presented throughout the text, are in accordance with International Financial Reporting Standards (IFRS) and have been audited by Deloitte Touche Tohmatsu Independent Auditors. The selection of topics covered in the report was based on the materiality material developed in 2011. GRI 3.9

In this Report the acronym QGEP refers to QGEP Participações S.A. and its subsidiary Queiroz Galvão Exploração e Produção S.A.

MaterialITY matrix

GRI 3.5 | 4.14 | 4.15 | 4.17

In order to be transparently accountable to its stakeholders (including local communities, civil society,
customers, shareholders, capital providers, suppliers, employees, labor unions and government agencies) Queiroz Galvão Exploração e Produção S.A. met with representatives from these relevant groups to determine the subjects to be covered in this publication.

Various stakeholders were consulted during the preparation of this Report

The materiality matrix undertaken in 2011 (which appears in the 2011 report at www.qgep.com.br) defined the materiality of information incorporated into that year's report and subsequently used to improve the management of the company. Changes in the management of these criteria are highlighted in this year’s report, including the addition of new GRI indicators. With respect to the clarity and timeliness of this information, this report focuses on initiatives in 2012 and provides context for those readers who are not  familiar with the oil and gas sector.