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Petrobras, Total complete transfer of rights in Lapa And Iara block for USD 1.95 billion

Gasoil News - Published on Wed, 17 Jan 2018

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Brazil-based Petrobras and French Total SA announced transfer of rights of Lapa field and Iara block from Petrobras to Total, a deal pegged at around USD 1.95 billion. “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 Mr Patrick Pouyanne, Chairman and Chief Executive Officer (CEO) of Total.

The transaction is part of the strategic alliance formed and announced between Total S.A and Petrobras in March last year.

According to the release issued by the company, all conditions preceding the transfers have been fulfilled, including granting of operation and installation licenses by Brazilian Institute of Environment and Renewable Natural Resources (IBAMA).

Petrobras has transferred 35 per cent of its rights as well as operatorship of the Lapa field in Block BM-S-9A in the Santos Basin pre-salt, alongside Shell (30 per cent), Repsol-Sinopec (25 per cent) and Petrobras (10 percent). The lapa field commenced production in December 2016.

The USD 1.95 billion transaction also included transfer of 22.5 per cent rights of Petrobras from the Iara block to Total which comprises Sururu, Berbiagao and Oeste de Atapu fields in Block BM-S-11A in the Santos Basin pre-salt. The block is operated by Petrobras (42.5 per cent) alongside Shell (25 percent) and Petrogal (10 per cent).

Mr Pedro Parente, CEO of Petrobras, said that “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.”

According to the company, production in Iara block is expected to start in 2018 through the 150,000 barrel per day capacity P-68 Floating Production Storage and Offloading (FPSO) unit in Berbigao-Sururu fields, which will be followed by a second FPSO in 2019 in the Atapu field.

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.

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Posted By : Rabi Wangkhem on Wed, 17 Jan 2018
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