As far as the upstream interests are concerned, Total will receive stakes in two high-quality pre-salt licenses of the Santos basin in the BMS-11 and BMS-9 oilfields.
In BMS-11, where the “lara” fields are being developed, Total will buy a 22.5% stake from Petrobras.
On the other hand, it will acquire a 35% stake and license to operate from the Brazilian company in BMS-9 where the Lapa field has just commenced production.
Total chairman and CEO Patrick Pouyanné said: “These agreements will reinforce Total’s position in Brazil through access to outstanding pre-salt resources while entering the promising gas value chain.
“I’m confident that both companies will be able to create significant value by sharing their technical expertise, leveraging operational excellence and further reducing costs.”
Further, the two companies will club their expertise in deep-water to jointly design solutions for long subsea tie-backs, high CO2 reservoirs and digital geosciences data management.
Petrobras has been offered a 20% interest by Total in the recently awarded Perdido Belt deepwater exploration Block 2 in Mexico.
Total will provide Petrobras its downstream experience by foraying into the Brazilian integrated gas and power market.
The French company will buy some regasification capacity in the Bahia LNG terminal along with a 50% stake in a couple of co-generation plants in the Bahia region. Besides, it will also acquire pipeline transport capacity for supply gas to the two co-generation plants.
The transaction is subject to appropriate regulatory approvals and to the preemption rights of the partners only on the lara deal.
Additionally, it will depend on the final execution of the agreements pertaining to sale and purchase.
