Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos

Oil & Gas
Exploration & Development
Return to: EBR Home | Oil & Gas | Exploration & Development

Brazilian court partly blocks Petrobras-Total $2.2bn deal

EBR Staff Writer Published 12 October 2017

Petróleo Brasileiro (Petrobras) $2.2bn sale of stakes in two highly potential oil blocks in Brazil’s pre-salt layer to Total has been partly blocked by a Brazilian federal court ruling.

The judgment in the 3rd Federal Court of Sergipe from Judge Edmilson da Silva Pimenta went in favor of members of a regional oil workers union, as reported by Reuters. The union members had questioned the billion dollar deal signed for the Brazilian pre-salt layer blocks earlier this year.

The contention of the union members was that Petrobras, being a state-controlled company should have gone in for a public tender to divest its stakes in the assets rather than moving ahead with a private negotiation.

The federal judge agreed to their argument and directed National Agency of Petroleum, Natural Gas and Biofuels (ANP), the Brazilian oil and gas regulator to suspend the stake transfer.

Petrobras says that it is yet to get the court injunction relating to its deal with Total.

In a statement, the company said: “Petrobras clarifies that it has not yet received any summons, and that it can only confirm its content and express its opinion after the analysis of the injunction, though the Company shall take all legal measures to guarantee its interests and the interests of its shareholders.”

In March, Petrobras agreed to divest its stake of 22.5% in the lara concession and 35% stake in the Lapa field to Total to form a strategic alliance with the French oil and gas major. The agreement was inclusive of Petrobras’ sale of its 50% stake in Termobahia power station made up of two cogeneration plants.