French supermajor Total announced Monday it has transferred its equity interests in five Brazilian exploration blocks to state-run Petrobras, Kallanish Energy reports.
The confirmation follows an agreement reached with Petrobras on September 24, enabling Total to exit the Foz do Amazonas basin, located 120km offshore Brazil.
Total didn’t provide details on its decision to relinquish its operatorship status in the oil and gas blocks, located in an environmental-sensitive basin. The company and its partners Petrobras and bp have struggled to obtain a permit to drill in the basin, as Brazilian authorities deemed the activities to be unsafe for reefs and local biodiversity.
The financial terms of the agreement with Petrobras were not disclosed. If bp isn’t interested in acquiring a 20% stake of Total’s 40% interest, then Petrobras will own 70% of these five blocks.
Total currently participates in 24 Brazilian O&G blocks, of which 10 as operator. The group’s activities in the country also include gas, renewables, lubricants, chemicals and distribution.
Petrobras said “the transaction is in line with Petrobras’ portfolio management process, which aims to maximize value for its shareholders, prioritizing investments in world-class assets in deep and ultra-deep waters.”
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