By Jeffrey T. Lewis

SÃO PAULO -- Brazilian oil company Petróleo Brasileiro SA said Wednesday its strategic alliance agreement with France's Total SA, which will include some asset sales and joint investments, will have a total value of $2.2 billion.

Petrobras said it would sell a 22.5% stake in the Iara concession in the BM-S-11 block off the Brazilian coast to Total, leaving the Brazilian company with 42.5% of the concession. Total will buy a 35% stake in the Lapa field in block BM-S-9, leaving Petrobras with 10% ownership. Petrobras will have the option of buying 20% of block 2 in the Mexican portion of the Perdido Foldbelt area of the Gulf of Mexico, which the French company acquired in partnership with Exxon earlier this year.

The two companies will share the use of a regasification terminal in the Brazilian state of Bahia, share control of two power plants there and cooperate on other projects as well, Petrobras said.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

December 21, 2016 17:19 ET (22:19 GMT)

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