Total farms into Petrobras Lapa and Iara pre-salt fields in Brazil

On 21 December 2016, Total announced it was acquiring stakes in multiple Petrobras upstream and downstream Brazilian assets for a total deal value of US$2.2 billion. The transaction includes the acquisition of a 35% operating stake in the pre-salt Lapa field and a 22.5% interest in the pre-salt Iara field complex. The deal also includes Total's purchase of a 50% interest in two gas-fired power plants in Bahia State, access to the Bahia LNG re-gasification terminal and acquisition of pipeline capacity between the assets. Outside Brazil, Petrobras gains the option to take a 20% stake in Mexico's Perdido Belt deepwater exploration Block Two. The deal will help shift Total's portfolio to the lower end of the cost curve, in line with the company's strategy. The sale of stakes in key pre-salt projects underlines Petrobras' commitment to repairing its finances and demonstrates that the Carcara sale to Statoil earlier in 2016 was not a one-off.