Total, Petrobras Seal Strategic Alliance with 'Definitive Contracts'

Total, Petrobras Seal Strategic Alliance with 'Definitive Contracts'
Total and Petrobras sign 'definitive contracts', sealing a strategic alliance between the 2 companies and creating new partnerships in the upstream and downstream sectors.

Total and Petrobras have signed ‘definitive contracts’, sealing a strategic alliance between the two companies and creating new partnerships in the upstream and downstream sectors.

Under the new contracts Petrobras will transfer 22.5 percent of rights to Total in the concession area named Iara (comprising the Sururu, Berbigão and Oeste de Atapu fields which are under unitization with the Entorno de Iara, a transfer of rights area in which Petrobras holds 100 percent interest) in the Block BM-S-11. Petrobras will continue to be operator with a majority interest of 42.5 percent.

The partnership with Total will allow Petrobras to reduce its investment and benefit from technological solutions that will be jointly studied between Petrobras and Total, maximizing profitability and the volume of oil to be recovered.

Petrobras will also transfer 35 percent of rights to Total in the Lapa field concession area, in Block BM-S-9. As a result, the operatorship will transfer to Total and Petrobras will remain in the license with 10 percent.

Through the deal, Petrobras will also transfer a 50 percent interest to Total in Termobahia, composed of 2 cogeneration plants, Rômulo de Almeida and Celso Furtado, located in Bahia area. The two plants are connected to the regasification terminal located in São Francisco do Conde, also in Bahia where Total will take regasification capacity to supply gas to the power plants.

These contracts are in addition to the ones already executed Dec. 21, 2016, which include the option for Petrobras to purchase a 20 percent interest in block 2 of the Perdido Foldbelt area in the Mexican sector of the Gulf of Mexico; joint exploration studies in the exploratory areas of the Equatorial Margin and in the Santos Basin; and a technological partnership agreement in the areas of digital petrophysics, geological processing and subsea production systems.

“We are delighted today to see our strategic alliance becoming reality,” Pedro Parente, CEO of Petrobras and Patrick Pouyanné, chairman and CEO of Total, said in a joint statement.

“These new partnerships together with a reinforced technological cooperation should create significant synergies and values, mutualizing our operational excellence and further reducing costs on our joint projects for the benefit of both companies,” they added.

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