Petrobras and Total have signed a memorandum of understanding (MoU) for a strategic alliance covering upstream and downstream activities in Brazil and worldwide.
The strategic alliance covers upstream and downstream activities in Brazil, as well as international potential opportunities.
The MoU was signed by Petrobras CEO Pedro Parente and Total chairman and CEO Patrick Pouyanné in Rio de Janeiro.
According to the agreement, both companies will collaborate in some key areas of mutual interest and evaluate opportunities in Brazil, as well as abroad to jointly benefit from their respective experience in all segments of the oil and gas value chain.
In the first phase, the companies will focus on upstream and gas and power.
With this deal, both companies can combine their experience in offshore to boost production efficiency. The partnership will also mitigate risks in projects with high investment and complexity.
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Regarding downstream, Petrobras and Total will work together to develop joint services in the gas and power generation for Brazil.
The memorandum also stated that the cooperation will be extended to a broader cooperation in Brazil focused on all downstream segments in the second phase.
Currently, Petrobras and Total are associated in 15 consortiums working in exploration and production worldwide.
Nine of these projects are located within Brazil that includes development of the giant Libra area in the Brazilian pre-salt in Santos basin.
Outside Brazil, Petrobras and Total work together on the Chinook field in the US Gulf of Mexico, the deepwater Akpo field in Nigeria, as well as Bolivia’s San Alberto and San Antonio gasfields. They are also associated with the Bolivia-Brazil gas pipeline development.