Petrobras and Total have signed definitive contracts for a strategic alliance that will create new partnerships in the upstream and downstream sectors, together with a reinforced technical cooperation covering operations, research and technology.
Through the contracts, Petrobras will transfer 22.5 percent of rights to Total in the concession area of the Iara oil field, a large ultra-deepwater oil field located in the Santos Basin, 230 kilometers (140 miles) off the coast of Rio de Janeiro, Brazil. 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 to maximize profitability and the volume of oil to be recovered.
Petrobras will transfer 35 percent of rights to Total, in the Lapa field concession area, a deepwater project in the Santos Basin. Total will become operator while Petrobras remains in the license with 10 percent. The Lapa field commenced production in December 2016. Total, as new operator of this field, will bring to the consortium its valuable 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, said the companies.
Petrobras will transfer a 50 percent interest to Total in Termobahia composed of two cogeneration plants, Rômulo de Almeida and Celso Furtado, located in the Bahia area. The two plants are connected to the regasification terminal located in São Francisco do Conde.
Total will pay Petrobras $ 2.25 billion as a result of the alliance agreement. Petrobras will receive $1.6 billion in cash and have the option to access a $400 million credit facility from Total
The contracts follow others already executed in December including an 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 Equatorial Margin and in Santos Basin; and technological partnership agreement in the areas of digital petrophysics, geological processing and subsea production systems
The alliance is part of the Petrobras’ 2017- 2021 business plan to improve finances through mitigation of risks, cash inflow and release of investments.