Initially, the companies will intend to focus on exploration projects and on gas and power.
In upstream projects, Petrobras will propose Total to partner in projects in Brazil and Total will propose Petrobras to partner in opportunities outside Brazil.
Petrobras said in a statement: “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.”
The new partnership is aimed at integrating their experience and expertise in deep water development to optimize the production.
The companies will also jointly develop the strategic area of activity in Brazil and in other high potential oil and gas provinces.
Besides, the strategic alliance is intended to share costs and risks in projects with high investment and complexity.
In downstream area, the companies will work together to develop joint activities in the gas and power generation in Brazil.
Petrobras said: “The memorandum also states that the cooperation will be extended, in a second phase, to a broader cooperation in Brazil focused on all downstream segments.”
Currently, Petrobras and Total are among the partners in 15 global consortiums in exploration and production. Out of them, nine are in Brazil and six abroad.
In Brazil, the companies are partners in the development of the giant Libra area. Outside Brazil, they are also partners on the Chinook field in the US Gulf of Mexico.
Operating mainly in Brazil, Petrobras currently produces 2.88 million barrels of oil equivalent per day.
In September, it signed an MOU with Norwegian state-owned company Statoil to advance proposals for joint participation in future bids in the exploration area.
