Petrobras sells assets to French firm Total//php dynamicnews_display_thumbnail_single(); ?>
Petrobras and French company Total inked trade deals connected with the assets in the strategic alliance set out in their Master Agreement, signed last year on December 21.
As part of the moves unveiled Tuesday (Feb. 28), Total is to pay Petrobras a global amount of $2.225 billion, made up of $1.675 billion in cash for assets and services, a credit line that can be resorted to by the Brazilian company at $400 million, which represents part of Petrobras’s investment in the oil fields in the Iara area, and contingent payments amounting to $150 million.
The contracts also include the transfer of rights of 22.5% from Petrobras to Total in the Iara concession area (Sururu, Berbigão, and Oeste de Atapu fields), in the BM-S-11 Block.
Petrobras will remain the operator and is still to hold the biggest interest in the area (42.5%). BG E&P Brasil—a Shell subsidiary—with 25%, and Petrogal Brasil, with 10%, are also part of the consortium.
Another deal sealed includes the 35% transfer of rights from Petrobras to Total plus the operatorship in the concession area of the Lapa field, in the BM-S-9 Block. The Brazilian firm controls 10%. The Lapa field is in its production phase, and was brought into operation in December, 2016. In this consortium, BG E&P Brasil holds 30%, and RepsolSinopec Brasil 25%.
Petrobras also sold Total 50% of its interest in Termobahia, including the Rômulo de Almeida and Celso Furtado cogeneration plants, in Bahia state. The two plants are connected to the regasification terminal, located in São Francisco do Conde, Bahia, where Total is to have access to the regasification capacity for supplying the plants with gas.
For Petrobras, the strategic alliance is key for the 2017-2021 Business and Management Plan as it “intensifies the exchange of information, experiences, and technology, advances the strengthening of corporate governance, in addition to improving the financiability of the firm through the mitigation of risks, cash inflow, and the release of investments.”
According to Total, the new ties with Petrobras consolidate its position in Brazil through the interest in the new fields in the Santos Basin and its entry in the value chain of natural gas.
Translated by Fabrício Ferreira