Petrobras sells stakes in offshore oilfields to Total

Petrobras sells stakes in offshore oilfields to Total December 4, 2017Leave a comment

RIO DE JANEIRO (Brazil): Brazil’s state-controlled oil company Petrobras is selling stakes in just two big offshore oilfields as well as power plants to France’s Total within a deal worth US$2.2 billion, both companies announced Wednesday.

The agreement comes within previously announced Petrobras asset sale targeted at raising billions of dollars for any indebted group.

The transaction will see Total get pumping rights to significant parts of two deepwater, pre-salt oilfields off Brazil’s southeastern coast whose discovery in 2007 was seen resource bonanza.

Total will pick-up 22.5% in the Iara field and 35% within the Lapa field, which started operation .

The French company may also become 50% person who owns two thermal energy plants, Romulo de Almeida and Celso Furtado, during the northeastern state of Bahia.

The transaction comes during a period of relatively discounts for oil – and amid a tremendous corruption scandal involving Petrobras that saw the company’s rating downgraded as well as debt pile of more than US$120 billion become worrisome.

Total’s CEO, Patrick Pouyanne, said in Paris that “these deals will considerably reinforce Total’s presence in Brazil by us accessibility to remarkable pre-salt resources and allowing us to integrate into the promising integrated gas chain in the country.”

He later told AFP that Brazil can be a “land of opportunity” for Total.

“I often declare that it is best to try to look for coal and oil where (we all know) there\’re. There are lots in Brazil, as well as moment allows us, because in truth these are a country experiencing difficulties,” he said.

“There\’re interested in partners. They made a decision to open to foreign investment (in oil), knowning that provides for us a chance to speak with Petrobras and find out what common ground we\’re able to find.”

Petrobras chief Pedro Parente said in Rio de Janeiro the deals should offer some strategic advantages and savings.

“They usually should assist us to to minimize our debts,” he stressed.

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