Brazil: Business Partnership Total and Petrobras Progress with Strategic Alliance
With the joint collaboration, both the firms have explored potential investment opportunities as well as developed technological cooperation. The companies have also entered into a joint venture to develop onshore projects in the solar and wind segments in Brazil.
Paris – Total and Petrobras have recently announced that they have achieved significant progress in the scope of their strategic alliance, signed in March 2017:
• The first concrete results of jointly implemented R&D projects. Examples of such work include in particular:
- With regard to artificial intelligence: new automatic techniques to identify geological faults, leading to significant efficiency gains.
- With regard to low permeability reservoirs: new processes and tools to locate the potentially most productive areas, with direct applications on fields like Sururu (Iara concession).
• The transfer of rights of the remaining 10 % from Petrobras to Total in the Lapa field for a consideration of 50 million dollars.
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 %).
• 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.
In addition, Total and Petrobras will keep pursuing new business opportunities in the natural gas chain in Brazil.