Total Completes Brazilian Acquisitions
French Total has completed its purchase from state Petrobras of stakes in two Brazilian offshore assets, Lapa and Iara it said January 15, at a total price of $1.95bn. The two agreed a far-ranging co-operation programme in December 2016 that named a number of Brazilian assets for sale.
The French company now has 35% plus 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%). Lapa was put in production in December 2016, with the 100,000 barrel/day Cidade de Caraguatatuba FPSO.
It also has acquired 22.5% of the rights of the Iara area, comprising 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 b/d P-68 FPSO in Berbigão-Sururu fields, to be followed by a second FPSO in 2019 in the Atapu field.
This amount does not include $400mn 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, Total said.
Petrobras CEO Pedro Parente (pictured below, left) said the deals "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." He said the two companies would continue to work "on all segments of the oil and gas value chain.”
His counterpart at Total, Patrick Pouyanne (below right), said with the 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.”
(Credit: Total)