Total strengthens strategic alliance with Petrobras

Total strengthens strategic alliance with Petrobras

11:44 AM, 23rd December 2016
Total logo

PARIS, FRANCE: Total SA and Petrobras has signed an assets package agreement in the framework of their strategic alliance. This agreement reinforces the joint partnership and cooperation between the two companies, in the upstream and downstream sectors, covering operations, research and technology.

In the upstream, the technical cooperation will be strongly reinforced by the two companies including joint assessment of the exploration potential in key prospective areas in Brazil and the development of new technologies.

Total will also become a partner to Petrobras in two high-quality pre-salt licenses of the prolific Santos basin: the BMS-11 with the “Iara” fields currently under development where Total will acquire a 22.5 percent interest from Petrobras. And in the BMS-9 with the Lapa field which just entered into production and where Total will become the Operator of the license with the acquisition of a 35 percent interest from Petrobras.

The two 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 offer to Petrobras the option of taking a 20 percent stake in the Perdido Belt deepwater exploration Block 2 recently awarded in Mexico.

In the downstream, Total will bring to Petrobras its worldwide experience by entering the integrated gas and power market in Brazil. Total will acquire from Petrobras some regasification capacity in the Bahia LNG terminal and a 50 percent 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.

Under the terms of this assets package deal, the acquisition of the upstream and downstream interests in Brazil from Petrobras will represent a global value of around 2.2 billion dollars, made of cash, carry and contingent payments.

“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,” said Patrick Pouyanne, chairman and CEO, Total.

© Worldofchemicals News



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Colours: hues & shades take a shiny turn

All around us we see cars with glossier metallic finish; wall paints which are also weather durable; and regular plastic chairs which dorn a regal loo ...

Read more
Saudi Aramco, Pertamina to upgrade Cilacap Refinery

DHAHRAN, SAUDI ARABIA: Saudi Aramco and PT Pertamina, Indonesia’s state oil and gas company have signed a joint venture development agreement (J ...

Read more
Digitalization of supply chains

Digital supply chains in chemical logistics Modern IT systems help to master the complexity of supply chains in the chemical industry. They manage th ...

Read more
Shell completes sale of Shell Refining Company in Malaysia

THE HAGUE, NETHERLANDS: Shell has completed the sale of its 51 percent shareholding in the Shell Refining Company (Federation of Malaya) Berhad (SRC) ...

Read more
SNC-Lavalin bags revamp contract by Bagfas

MONTREAL, CANADA: SNC-Lavalin Group Inc said that it has recently been awarded a contract by Bagfas Bandirma Gubre Fabrikalari AS (Bagfas) for the rev ...

Read more
IMCD acquires speciality chemical distributor in Turkey

ROTTERDAM, THE NETHERLANDS: IMCD NV said that it has acquired 100 percent of Feza Kimya ic ve Dis Ticaret Anonim Sirketi (Feza Kimya), based in Istanb ...

Read more uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X