Petrobras Acquires Total's 40% Stake in 5 Exploration Blocks Off Brazil's Northern Coast
September 28 2020 - 10:13AM
Dow Jones News
By Jeffrey T. Lewis
SAO PAULO--Brazilian oil company Petróleo Brasileiro SA, or
Petrobras, said Monday it had reached an agreement with Total SA's
Brazilian subsidiary to acquire the 40% stake that the unit of the
French company owns in five exploration fields off Brazil's
northern coast.
Petrobras said in a statement that Total "will transfer to
Petrobras the operatorship and working interest" in the five
fields, without providing more details. The company didn't answer
questions about the exact nature of the transaction by the time of
publication.
The fields are located in ultra deep waters 75 miles off the
coast of the state of Amapa. The blocks are in an area with high
potential for exploration, according to the Brazilian company.
A consortium made up of Petrobras, Total E&P do Brasil Ltda.
and BP Plc. unit BP Exploration Operating Company Limited bought
the rights to the blocks in 2013. Petrobras and BP each owned 30%
of the blocks before the agreement with Total, Petrobras said in a
statement.
Petrobras has been selling off assets, including onshore and
shallow water oil fields, several refineries and stakes in non-core
businesses, to concentrate its production and financial resources
on extracting oil from high-potential fields in deep and ultra deep
waters.
Perobras' rich, deep water fields off the coast of São Paulo and
Rio de Janeiro states account for more than half of the company's
total production, according to its most recent quarterly production
report.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
(END) Dow Jones Newswires
September 28, 2020 09:58 ET (13:58 GMT)
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