TOTAL ACQUIRES PETROBRAS ASSETS FOR $2.225 BILLION

March 01, 2017

Petrobras and Total inform that they have signed definitive contracts in relation to the package of assets contemplated in the Strategic Alliance, as defined in the 21st of December, 2016 Agreement. The contracts signed seal the Strategic Alliance between the two companies creating new partnerships in the Upstream and Downstream sectors, together with a reinforced technical cooperation covering operations, research and technology – Petrobras will transfer 22.5% of rights to Total in the concession area named Iara (comprising the Sururu, Berbigão and Oeste de Atapu fields which are under unitization with the Entorno de Iara, a transfer of rights area in which Petrobras holds 100% interest) in the Block BM-S-11. Petrobras will continue to be operator with a majority interest of 42.5% – Petrobras will transfer 35% of rights to Total, in the Lapa field concession area, in Block BM-S-9 and will also transfer the operatorship to Total whereas Petrobras will remain in the license with 10%. The Lapa field has been put in production in december 2016 – Petrobras will transfer 50% interest to Total in Termobahia composed of 2 cogeneration plants, Rômulo de Almeida and Celso Furtado, located in Bahia area. The two plants are connected to the regasification terminal located in São Francisco do Conde, also in Bahia where Total will take regasification capacity to supply gas to the power plants. Through this transaction, Total will pay to Petrobras a global amount of US$ 2.225 billion made of US$ 1.675 billion cash for assets and services, US$ 400 million that can be triggered to carry a part of Petrobras’s investment share in the Iara development fields and US$ 150 million as contingent payments.  (Source: Total)

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