Total and Petrobras form strategic alliance
As part of the alliance, Petrobras will receive $2.25 billion from Total, $1.6 billion of which will be paid in cash. It will also be able to have access to $400 million credit facility from Total.
In return, Petrobras will transfer 35% of its rights in the Lapa field concession area, a deepwater project in the Santos Basin, to Total. Petrobras will still be licensed with 10% while Total will become the operator of the project.
Petrobras will also transfer a 50% interest of Termobahia, which consists of two cogeneration plants, Romulo de Almeida and Celso Furtado located in Bahia, to Total.
The alliance is part of Petrobras’ plans to improve its finances. The partnership will also enable the company to reduce investment, get advantage of the technological solutions that will be jointly studied between the two companies, maximize profitability and the volume of oil to be produced.
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