Total, Petrobras Seal Strategic Alliance with 'Definitive Contracts'
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.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension