Brazilian state-run oil company Petrobras on Wednesday completed the sale of certain key offshore and onshore assets to France’s Total. The deal was part of a strategic alliance between the two companies first announced in December. Under the deal closed Wednesday, Petrobras will cede a 22.5 percent stake in the Iara offshore oil site and a 35 percent stake in the Lapa offshore site to Total. Both sites are located in the so-called pre-salt offshore region. The region, centered in the Santos Basin off the coast of São Paulo, features ultra-deep deposits of high quality oil. Petrobras will also cede a 50 percent stake in its Termobahia subsidiary, a thermoelectric generating company in the state of Bahia. Total will pay $2.225 billion for the various assets. The sale is part of a Petrobras effort to pull down high levels of indebtedness via asset sales. Total, meanwhile, has expressed a desire to increase in presence in the Brazilian market.
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