Petrobras, Total complete transfer of rights in Lapa and Iara concessions

RIO DE JANEIRO -- Petrobras and Total announce that they have finalized a decisive milestone in the realization of their Strategic Alliance, signed in March 2017, with the completion of the following transactions:

Transfer from Petrobras to Total of 35% of the rights, as well as the operatorship, of Lapa field in Block BM-S-9A in the Santos basin pre-salt, alongside Shell (30%), Repsol-Sinopec (25%) and Petrobras (10%). The Lapa field was put in production in December 2016, via the 100,000 bpd capacity Cidade de Caraguatatuba FPSO.

Transfer from Petrobras to Total of 22.5% of the rights of the Iara area, which comprises 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 bpd capacity P-68 FPSO in Berbigão-Sururu fields, which will be followed by a second FPSO in 2019 in Atapu field.

The consideration for the above transactions amounts to $1.95 billion, including closing adjustments. This amount does not include $400 million 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 Lapa field.

These transactions give shape to the Strategic Alliance between Petrobras and Total, allowing them to combine their deep-offshore expertise.