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Petrobras and Total partnership to focus on upstream, gas and power

The heads of Brazil’s state-owned Petrobras (ticker: PBR) and French oil major Total (ticker: TOT) announced today that the two companies signed a memorandum of understanding (MOU) to cooperate with one another on upstream and downstream projects. The first phase of implementation will focus on upstream and on gas and power, according to a press release put out by the companies Monday.

The MOU sets the groundwork for the two companies to work together in areas of mutual interest in Brazil and abroad. Petrobras and Total said that the partnership would “allow both companies to combine their … experience and expertise in deep water development to optimize the production” in Brazil and elsewhere.

Petrobras and Total indicated that downstream cooperation would focus on gas and power generation in Brazil. The MOU will be extended in a second phase to incorporate broader cooperation on all downstream segments.

Currently, Petrobras and Total are jointly participating in 15 consortiums worldwide in exploration and production, nine of which are in Brazil and six abroad. In Brazil, the companies are partners in the development of the giant Libra area which is the first production sharing contract in the Brazilian pre-salt in Santos basin. Outside Brazil, Petrobras and Total are partners on the Chinook field in the U.S. Gulf of Mexico, on the deep-water Akpo field in Nigeria and on the gas fields of San Alberto and San Antonio/Itau in Bolivia, as well as in the Bolivia-Brazil gas pipeline.

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