Total to buy $2.2 billion in Petrobras upstream, downstream assets

Total SA has agreed to acquire $2.2-billion in upstream and downstream assets from Petroleo Brasileiro SA (Petrobras) as part of the firms’ strategic alliance announced in October.

Total will partner with Petrobras in two presalt licenses in the Santos basin, taking 22.5% interest in the BMS-11 license, which includes the Iara fields that are currently under development; and 35% interest and operatorship of the BMS-9 license, which includes Lapa field that recently started production.

The firms say they will jointly develop solutions for long subsea tie-backs, reservoirs with high carbon dioxide content, and digital geosciences data management. Total also will offer Petrobras the option of taking 20% stake in the Perdido Belt deepwater exploration Block 2 recently awarded off Mexico (OGJ Online, Dec. 5, 2016).

Total also will acquire some regasification capacity in the Bahia LNG terminal and 50% interest in two cogeneration plants in the Bahia area. The deal includes pipeline transport capacity that will allow Total to supply gas to the plants. 

Total and Petrobras jointly participate in 19 consortiums worldwide in exploration and production. In Brazil, the firms are partners in development of the giant Libra field, which is the first production sharing contract in the Brazilian presalt Santos basin.

Outside Brazil, Petrobras and Total are partners on Chinook field in the US Gulf of Mexico, the deepwater Akpo field in Nigeria, and the gas fields of San Alberto and San Antonio-Itau in Bolivia, as well as in the Bolivia-Brazil gas pipeline. 

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