Total-Petrobras alliance bears fruit
French Total and Brazil’s Petrobras have taken new steps forward in the scope of their strategic alliance from March 2017.
To remind, Total and Petrobras in March 2017 signed agreements covering a number of upstream and downstream assets in Brazil, cementing the strategic alliance announced in December 2016.
Total said on Friday that the two companies had achieved significant progress in the scope of their alliance.
According to Total, the companies have seen the first concrete results of jointly implemented R&D projects. Examples of such work are related to artificial intelligence where new automatic techniques to identify geological faults lead to significant efficiency gains, Total said.
Examples of the work also include work related to low permeability reservoirs, new processes and tools to locate the potentially most productive areas, with direct applications on fields like Sururu (Iara concession).
Progress has also been achieved in the transfer of rights of the remaining 10% from Petrobras to Total in the Lapa field for a consideration of $50 million.
Following this transaction, which remains subject to approval by the relevant Brazilian authorities, Total, operator of the field located in the pre-salt Santos Basin, will hold a 45% working interest alongside Shell (30%) and Repsol-Sinopec (25%).
Progress was also achieved with the signing of a binding master agreement between Total Eren and Petrobras for the creation of a joint venture by July 31, 2019, to develop onshore projects in the solar and wind segments in Brazil.
The Joint Venture will look to build up to 500 MW of installed capacity over the next five years.
“We are very pleased to strengthen our presence in the Total-operated Lapa field in the Santos Basin, the first pre-salt producing field operated by an IOC in Brazil, and to extend our Strategic Alliance with Petrobras to renewable developments through Total Eren in Brazil,” said Patrick Pouyanné, Chairman and CEO of Total.
In addition, Total and Petrobras will keep pursuing new business opportunities in the natural gas chain in Brazil.
Total Exploration & Production’s portfolio currently includes 22 assets, located in the Campos, Santos, Barreirinhas, Ceará, Espirito Santo, Foz do Amazonas and Pelotas basins.