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Petrobras expects $1.6 billion in cash from Total deal

Staff Writer |
Brazilian state-run Petrobras said its strategic alliance with France's Total SA would bring $1.6 billion in cash in the next two months.

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Petrobras said it would sell stakes in two of Brazil's deep water "pre-salt" oil concessions to Total and that the companies would go into partnership on a pair of power plants and re-gasification terminal.

The deal with Total is estimated to generate about $2.2 billion for Petrobras, the companies said. Petrobras said it expects to receive an immediate $1.6 billion in cash when the agreement is completed in the next 60 days.

"This alliance will offer a bright future for both companies," Total CEO Patrick Pouyanné said at a press conference in Rio, citing Petrobras's experience in deep water projects.

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