Court ruling clears Petrobras’ sale of stakes in Brazilian assets

Brazilian state-owned firm Petrobras is set to sell a portion of its stakes in the Iara area and the Lapa field to French oil and gas company Total, after a federal court revoked a previously ordered injunction on the sale.

The latest court order is expected to clear the legal obstacles related to the divestment of Petrobras’ 22.5% stake in the Iara area and 35% stake in the Lapa field.

In March this year, the companies signed definitive contracts in relation to the strategic alliance, which was previously announced in December last year.

The partnership is aimed at forging new collaborations in the upstream and downstream sectors, as well as technical cooperation in the areas of operations, research and technology.

Through the partnership, the companies intend to leverage their expertise on all segments of the oil and gas value chain in Brazil and internationally.

Even after the sale is completed, Petrobras will continue to be the operator of the Iara area’s Block BM-S-11 with a majority interest of 42.5%.

The company will also retain a 10% interest in the Lapa field concession area, in Block BM-S-9, where Total will assume operatorship.

Furthermore, the agreement also included the transfer of the company’s 50% interest in Termobahia to Total.

The Termobahia package contains two cogeneration plants, Rômulo de Almeida and Celso Furtado, located in the Bahia area.

The total value of the overall transaction was said to be around $2.225bn.