Total and Petrobras have signed an assets package agreement, reinforcing the strategic alliance for cooperation between the companies in upstream and downstream interests.
The companies will combine their internationally recognised expertise in deep water to jointly develop solutions for long subsea tie-backs, reservoirs with high CO2 content and digital geosciences data management.
Total will also become partner to Petrobras in two licenses of the prolific Santos basin; Total will also offer to Petrobras the option of taking a 20 per cent stake in the Perdido Belt deepwater exploration Block 2 recently awarded in Mexico.
In the downstream sector, Total will bring to Petrobras its worldwide experience by entering the integrated gas and power market in Brazil.
Total will acquire some regasification capacity in the Bahia LNG terminal and a 50 per cent interest in two co-generation plants located in the Bahia area as well as pipeline transport capacity, enabling Total to supply gas to the two co-generation plants.
“I am delighted today to see the concretisation of our strategic alliance with Petrobras,” Total Chairman and CEO Patrick Pouyanné said.
“These agreements will reinforce Total’s position in Brazil through access to outstanding pre-salt resources while entering the promising gas value chain.
“I’m confident that both companies will be able to create significant value by sharing their technical expertise, leveraging operational excellence and further reducing costs.”
Under the terms of this assets package deal, Total’s acquisition of the upstream and downstream interests in Brazil from Petrobras will represent a global value of around US$2.2 billion dollars, made of cash, carry and contingent payments.
It is subject to the final execution of the sale and purchase agreements, to the relevant regulatory approvals and to partners’ pre-emption rights only on a transaction for the Iara fields.
For more information visit the Total website.
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