French oil and gas giant Total, SA (NYSE: TOT – $48.85) and Brazil’s Petroleo Brasileiro (Petrobras ), have reached an agreement to set up parameters for upstream and downstream activities in Brazil, in addition to other international opportunities. The two companies said the first area of focus will be on upstream (oil and gas exploration and production) businesses. In downstream (refining and marketing), they will be working to develop joint activities in the gas and power generation in Brazil. The two companies currently operate 15 total consortiums, with nine in Brazil and six international. The new partnership will allow both companies to combine their experience and expertise in deep water development to optimize production and jointly develop a strategic area of activity in Brazil and in other high potential oil and gas-rich areas. The two firms will share costs and associated risks in the projects, which often involve high investment and complexity.
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