Petrobras sold offshore oilfield assets worth 2.2 billion USD to Total

Petrobras dealThe Brazilian state-owner oil giant Petrobras sold offshore oilfield assets to French energy company Total for 2.2 billion USD. Part from the deal are interests of the debt-plagued and scandal-racked Petrobras in the resource-rich subsalt fields in the Santos basin. According to the acquisition agreement, Total will receive 22.5% share in the BMS-11 block including the Iara fields, where the Brazilian state-owner oil giant will keep 42.5% share and will remain as operator. Also French energy company gets 35% of the BMS-9 block, as well as the operation licence, while Petrobras remains with only 10% share.

Total will pay the first 1.6 billion USD from the deal within two month, while another 0.6 billion USD will be prolonged.

The deal comes less than 2 months after Petrobras and Total signed Memorandum of Understanding, which involve them on undertakings of mutual interest in development and operations of offshore fields in Brazil and Latin America, as well as downstream gas and power sales in Brazil.

The Brazilian state-owner oil company Petrobras is divesting large amount of its assets, in attempt to reduce the debt and improve the liquidity after being seriously hurt by the corruption scandal and low oil prices. The company accumulated debt of 130 billion USD and implemented large-scale restructuring program, which target salling of 15.1 billion USD in assets over a 2-year period.