Petrobras transfers assets to Total under strategic alliance
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Petrobras transfers assets to Total under strategic alliance

16 Jan 2018 (Last Updated January 21st, 2018 11:35)

Petrobras has completed transfer of its assets to Total under the first phase of a strategic alliance.

Petrobras has completed transfer of its assets to Total under the first phase of a strategic alliance.

Under the deal, Petrobras transferred 35% of its rights and operatorship in the Lapa field of Block BM-S-9A in the Santos Basin pre-salt, to Total.

Following this deal, Total now holds the rights alongside Shell (30%), Repsol-Sinopec (25%) and Petrobras (10%).

The Lapa field started production in December 2016 through Cidade de Caraguatatuba FPSO, which has a capacity of 100,000bpd.

Petrobras also transferred 22.5% of its rights in the Iara area, which comprises the Sururu, Berbigão and Oeste de Atapu fields in Block BM-S-11A in the Santos Basin pre-salt area.

Prior to the transfer to Total, Iara block was operated by Petrobras (42.5%) alongside Shell (25%) and Petrogal (10%).

Production in Iara is slated to begin this year through the 150,000bpd-capacity P-68 FPSO in Berbigão-Sururu fields. P-68 FPSO will be followed by a second FPSO in 2019 in the Atapu field.

“With this alliance, Total is developing a major position in Brazil, in one of the most prolific basins worldwide.”

Petrobras CEO Pedro Parente said: “These transactions represent a major step in our strategic alliance. As Petrobras is a leader in the pre-salt exploration and Total is a leader in deep offshore West Africa, our partnership has potential to reduce our exploratory risks and make both companies more competitive.

“Working in partnership is strategic for Petrobras. We believe it creates value and we will continue to further our cooperation on all segments of the oil and gas value chain.”

These transfers amount to $1.95bn, including closing adjustments.

Total chairman and CEO Patrick Pouyanné said: “The realisation of our strategic alliance with Petrobras follows the recent decision to launch the wide-scale development of the giant Libra field operated by Petrobras, in partnership with Total.

“With this alliance, Total is developing a major position in Brazil, in one of the most prolific basins worldwide, by taking advantage of our deep offshore expertise, which is one of our main strengths. We are especially pleased to be the first major to operate a pre-salt producing field in Brazil.”