Total and Petrobras seal strategic alliance

Total and Petrobras seal strategic alliance

Petrobras and Total have cemented a previously announced Strategic Alliance through the signing of ‘definitive contracts’.

The contracts seal deals between the two companies creating a new partnership in the Upstream and Downstream sectors, together with a reinforced technical cooperation covering operations, research and technology. This alliance should allow both companies to combine their internationally recognised expertise on all segments of the oil and gas value chain in Brazil and internationally.

Through these contracts:

  • Petrobras will transfer 22.5% of rights to Total in the Iara concession (comprising the Sururu, Berbigão and Oeste de Atapu fields which are under unitisation with the Entorno de Iara, a transfer of rights area in which Petrobras holds 100% interest) in the Block BM-S-11. Petrobras will continue to be operator with a majority interest of 42.5%. 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, maximising profitability and the volume of oil to be recovered. BG E&P Brasil, a Royal Dutch Shell subsidiary, with 25% and Petrogal Brasil, with 10%, also take part in the consortium.
  • Petrobras will transfer 35% of rights to Total, in the Lapa field concession area, in Block BM-S-9 and will also transfer the operatorship to Total whereas Petrobras will remain in the license with 10%. The Lapa field was put into production in December 2016. Total, as new operator of this field, will bring to the consortium its experience in deep-offshore projects to manage the next phases of the challenging development of the Lapa field as it presents distinct characteristics from other pre-salt fields. The other partners are BG E&P Brasil, a Royal Dutch Shell subsidiary, with 30% and Repsol-Sinopec Brasil, with 25%.
  • Petrobras will transfer 50% interest to Total in Termobahia composed of two 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. This integrated G&P joint venture will represent an innovative partnership in the Brazilian G&P market.

Following the signing of the contracts, CEO of Petrobras, Pedro Parente, and Chairman and CEO of Total, Patrick Pouyanné said: “We are delighted today to see our Strategic Alliance becoming reality. 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”.

For more information visit www.petrobras.com.br and www.total.com

20th March 2017