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.
Operates 34 Offshore Rigs
Manages 10 Offshore Rigs
- Exxon, Petrobras Form Alliance To Develop Oil, Gas Projects (Dec 14)
- Natural Gas In Petrobras Pipelines Up About 23% In 2017 (Dec 05)
- Petrobras CEO Says To Discuss Refining Partnership With CNPC CEO (Nov 15)
Company: Total S.A. more info
- Total Starts Up Antwerp Refinery And Petrochem Complex After Upgrade (Nov 30)
- Hoegh LNG: Pakistan LNG Import Project Consortium Folds (Nov 16)
- France's Total Buys Engie's LNG Business For $1.5B (Nov 08)