By Jeffrey T. Lewis


SAO PAULO--Brazilian oil company Petróleo Brasileiro SA, or Petrobras, said Monday it had reached an agreement with Total SA's Brazilian subsidiary to acquire the 40% stake that the unit of the French company owns in five exploration fields off Brazil's northern coast.

Petrobras said in a statement that Total "will transfer to Petrobras the operatorship and working interest" in the five fields, without providing more details. The company didn't answer questions about the exact nature of the transaction by the time of publication.

The fields are located in ultra deep waters 75 miles off the coast of the state of Amapa. The blocks are in an area with high potential for exploration, according to the Brazilian company.

A consortium made up of Petrobras, Total E&P do Brasil Ltda. and BP Plc. unit BP Exploration Operating Company Limited bought the rights to the blocks in 2013. Petrobras and BP each owned 30% of the blocks before the agreement with Total, Petrobras said in a statement.

Petrobras has been selling off assets, including onshore and shallow water oil fields, several refineries and stakes in non-core businesses, to concentrate its production and financial resources on extracting oil from high-potential fields in deep and ultra deep waters.

Perobras' rich, deep water fields off the coast of São Paulo and Rio de Janeiro states account for more than half of the company's total production, according to its most recent quarterly production report.


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(END) Dow Jones Newswires

September 28, 2020 09:58 ET (13:58 GMT)

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