Petrobras, Total finalize $1.95B offshore Brazil asset transfer

Petrobras has completed the previously announced sale of shares in several Brazilian fields to France’s  Total for $1.95 billion.

The deal was announced as part of the two companies’ Strategic Alliance, signed in March 2017.

As part of the deal, Petrobras has now transferred to Total 35 percent of the rights, as well as the operatorship, of the Lapa field in Block BM-S-9A in the Santos Basin pre-salt, alongside Shell (30%), Repsol-Sinopec (25%) and Petrobras (10%). The Lapa field was put in production in December 2016, via the 100,000 barrel per day capacity Cidade de Caraguatatuba FPSO.

Furthermore, Petrobras has sold to Total a 22.5 percent of the rights of the Iara area, which comprises the Sururu, Berbigão and Oeste de Atapu fields in Block BM-S-11A in the Santos Basin pre-salt, operated by Petrobras (42.5%) alongside Shell (25%) and Petrogal (10%). Production in Iara is expected to start in 2018 through the 150,000 barrel per day capacity P-68 FPSO in Berbigão-Sururu fields, which will be followed by a second FPSO in 2019 in the Atapu field.

The sale price of $1.95 billion does not include $400 million that can be triggered by Petrobras to carry a part of its investment share in the Iara development fields and contingent payments.

“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,” said Pedro Parente, CEO of Petrobras.

“The realization 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,” said Patrick Pouyanné, Chairman and CEO of Total.

“We intend to keep strengthening our Strategic Alliance with Petrobras thanks to our commitment to extend our technical cooperation in operations, research and technology, and to develop new synergies between both of our companies.”