December 21 (Renewables Now) - Brazilian state-run oil and gas company Petrobras (BVMF:PETR4) plans to create a joint venture (JV) with Total Eren SA to develop up to 500 MW of onshore wind and solar projects in Brazil.
The news was shared today by both Petrobras and French oil major Total SA (EPA:FP), which holds a 23% stake in Total Eren. It was accompanied by the announcement that Petrobras is transferring its remaining 10% stake in the Lapa field in Block BM-S-9 to its French peer in exchange for a payment of USD 50 million (EUR 44m).
The JV agreement, a continuation of a memorandum of understanding (MoU) from July, is of a binding nature, meaning that both parties pledge to undertake negotiations to formalise the JV, a press statement says.
The Brazilian oil and gas giant will take a 49% stake in the future renewables company, while Total Eren will hold the remaining 51%. The targeted 500 MW of capacity is expected to be developed in a five-year period and is just an initial goal.
For Petrobras, this deal is another step in its strategy to develop high-value renewable energy projects with global partners as a way to transition itself to a low carbon mix, it said.
(USD 1 = EUR 0.88)