French Total steps up investment in Brazil

Total has announced that will increase investments in the energy sector in Brazil.  According to the Brazilian press, the French oil company will invest US$ 1 bi annually in Brazil and they are negotiating  gas and power assets of Petrobras, Brazil’s oil giant.

A press release on Total website states that Pedro Parente, CEO of Petrobras, and Patrick Pouyanné, Chairman and CEO of Total, have signed a Memorandum of Understanding which sets the general framework for a Strategic Alliance covering Upstream and Downstream activities in Brazil as well as international potential opportunities.

“Through this agreement, the companies undertake to join forces in some key areas of mutual interest and to evaluate opportunities in Brazil and abroad to jointly benefit from their internationally recognized expertise on all segments of the oil and gas value chain.

As a first phase of implementation, the companies intend to focus on Upstream and on Gas and Power.

In Upstream, Petrobras will propose Total to partner in projects in Brazil and Total will propose Petrobras to partner in opportunities outside Brazil. 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. In Downstream, the companies will be working to develop joint activities in the gas and power generation in Brazil”, says the press release.

The article says that Total is interested in a partnership with Petrobras in the terminals of liquefied natural gas and in thermals.

The new Total investments are announced on the light of Brazil’s government decision in opening the oil sector for international companies. At the beginning of October, the Brazilian lower congress has voted to open the pre-salt (deep water deposits) explorations to foreign capital as Brazilian legislation established that Petrobras had to have at least 30% of all the projects.

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