Total and Petrobras today finalised their strategic alliance.
The move creates a new partnerships in the upstream and downstream sectors.
The deal includes Total paying a Petrobras a global amount of $2.2billion made of $1.6billion cash for assets and services, $400million that can be triggered to carry a part of Petrobras’s investment share in the Iara development fields and $150million as contingent payments.
Under the terms, Petrobras will transfer 22.5% of rights to Total in the concession area named Iara, including the Sururu, Berbigão and Oeste de Atapu fields. Petrobras will transfer 35% of rights to Total, in the Lapa field concession area, in Block BM-S-9 and will also transfer the operatorship to Total whereas Petrobras will remain in the license with 10%.
Petrobras will transfer 50% interest to Total in Termobahia composed of 2 cogeneration plants, Rômulo de Almeida and Celso Furtado, located in Bahia area. The two plants are connected to the regasification terminal located in São Francisco do Conde, also in Bahia where Total will take regasification capacity to supply gas to the power plants.
Pedro Parente, CEO of Petrobras and Patrick Pouyanné,chairman and CEO of Total, issued a joint statement saying: “We are delighted today to see our Strategic Alliance becoming reality. These new partnerships together with a reinforced technological cooperation should create significant synergies and values, mutualizing our operational excellence and further reducing costs on our joint projects for the benefit of both companies”.