Court lifts suspension of Petrobras, Total $2.2B deal

Brazilian federal court has suspended the order which prevented Petrobras from selling stakes in two offshore field to French Total in a deal worth $2.2 billion.

Petrobras can now move forward with the sale originally announced in March 2017.

As part of the agreement between the two companies, Total will buy from Petrobras a 22.5% of in the Iara area and 35% in Lapa field in the Santos Basin.

To remind, the 3rd Federal Court of Sergipe in October granted an injunction, in a class action, suspending the deal between the two companies.

The injunction was suspended on Tuesday by the President of the Federal Regional Court for the 5th Region.

As per the original deal announced in February 2017, through this transaction, Total will pay to Petrobras a global amount of $2,225 billion made of $1,675 billion cash for assets and services, $400 million that can be triggered to carry a part of Petrobras’ investment share in the Iara development fields and $150 million as contingent payments.