Petrobras and Total Complete the Transfer of Rights in the Lapa And Iara Concessions, as Part of Their Strategic Alliance
January 15 2018 - 5:23AM
Business Wire
Regulatory News:
Petrobras and Total (Paris:FP) (LSE:TTA) (NYSE:TOT) announce
today that they have finalized a decisive milestone in the
realization of their Strategic Alliance, signed in March 2017, with
the completion of the following transactions:
- Transfer from Petrobras to Total of
35% 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.
- Transfer from Petrobras to Total of
22.5% 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 consideration for the above transactions amounts to US$1.95
billion, including closing adjustments. This amount does not
include US$ 400 million that can be triggered by Petrobras to carry
a part of its investment share in the Iara development fields and
contingent payments. All conditions preceding the transfers were
fulfilled, in particular the granting of operation and installation
licenses by the Brazilian Institute of Environment and Renewable
Natural Resources (IBAMA) in order for Total to become the operator
of the Lapa field.
These transactions give shape to the Strategic Alliance between
Petrobras and Total, allowing them to combine their deep-offshore
expertise.
“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.”
* * * * *
About Petrobras and Total
Currently, Petrobras and Total jointly participate in 19
consortiums worldwide in exploration and production. In Brazil, the
companies are partners in the development of the giant Libra field,
which is the first Production Sharing Contract in the Brazilian
pre-salt Santos basin. Outside Brazil, Petrobras and Total are
partners on the Chinook field in the US Gulf of Mexico, on the
deep-water Akpo and Egina fields in Nigeria and on the gas fields
of San Alberto, San Antonio and Itaú in Bolivia, as well as in the
Bolivia-Brazil gas pipeline.
About Petrobras
Petrobras is an integrated energy company focused on oil and
gas, acknowledged as a leader in deep and ultra-deep water
exploration and production, operating mainly in Brazil. We
currently produce 2.8 million barrels of oil equivalent per day.
Our values are driven by respect for life; people and the
environment; ethics and transparency; market driven; overcoming and
confidence; and results.
About Total
Total is a global integrated energy producer and provider, a
leading international oil and gas company, a major player in
low-carbon energies. Our 98,000 employees are committed to better
energy that is safer, cleaner, more efficient, more innovative and
accessible to as many people as possible. As a responsible
corporate citizen, we focus on ensuring that our operations in more
than 130 countries worldwide consistently deliver economic, social
and environmental benefits.
* * * * *
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms “Total” and “Total Group”
are sometimes used for convenience where general references are
made to TOTAL S.A. and/or its subsidiaries. Likewise, the words
“we”, “us” and “our” may also be used to refer to subsidiaries in
general or to those who work for them.
This document may contain forward-looking information and
statements that are based on a number of economic data and
assumptions made in a given economic, competitive and regulatory
environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL S.A. nor any of
its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends
contained in this document whether as a result of new information,
future events or otherwise.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180115005228/en/
PetrobrasMedia Relations:+55 21 3224
1306imprensa@petrobras.com.brorInvestors Relations:+55 21 3224
1510petroinvest@petrobras.com.brorTotalMedia
Relations: +33 1 47 44 46 99presse@total.com@TotalPressorInvestor
Relations: +44 (0)207 719 7962ir@total.com
TOTAL (NYSE:TOT)
Historical Stock Chart
From Aug 2024 to Sep 2024
TOTAL (NYSE:TOT)
Historical Stock Chart
From Sep 2023 to Sep 2024