Monday 24 October 2016

Petrobras and Total have penned a new agreement to collaborate on upstream projects as well as gas and power endeavours in Brazil and globally, the companies said.

The state-led Brazilian company saw its chief executive, Pedro Parente, sign onto the strategic alliance with Patrick Pouyanne, his counterpart at the French major, in Rio de Janeiro, with the agreement made public as delegates convened at the Rio Oil & Gas conference.

"The companies are committed to jointly evaluate opportunities in Brazil and abroad in key areas of mutual interest, taking advantage of its recognized experience in all segments of the oil and gas chain," Petrobras said in a statement.

The agreement would see Petrobras propose projects within the Brazilian market, while Total would suggest potential undertakings elsewhere.

"This new partnership will allow both companies to combine their world class experience and expertise in deep water development to optimize the production and jointly develop this strategic area of activity in Brazil and in other high potential oil and gas provinces, as well as sharing costs and risks in projects with high investment and complexity," Total said in a statement.

Future phases of the alliance could also branch out to include refining and electricity, Petrobras said.

Total and Petrobras are already partners in 15 projects worldwide, nine in Brazil and six outside the country. They include the Libra pre-salt venture, Cascade-Chinook in the US Gulf and various gas projects in Bolivia.