Petrobras and Total have signed a $2.2 billion deal relating to the sale of interests in the Iara and Lapa concession areas as well as the Termobahia cogeneration plants, according to a news release.

As announced in 2016, the agreement involves Petrobras transferring 22.5% of its interest in the Iara concession, which contains the Sururu, Berbigão and Oeste de Atapu fields, to Total. Petrobras will stay on as operator, holding a majority 42.5% interest. The deal allows Petrobras to benefit from Total’s technological solutions, the release said.

Also as part of the deal, Petrobras is transferring 35% of its interest and operatorship in the Lapa Field concession, where production started in December, to Total.

The downstream part of the agreement includes Petrobras transferring 50% of its stake in Termobahia, which is comprised of the Rômulo de Almeida and Celso Furtado cogeneration plants.

“For Petrobras, the execution of the strategic alliance is an important part of the Petrobras 2017-2021 Business and Management Plan, to enhance the sharing of information, experiences, and technologies, to advance corporate governance strengthening, and to improve the company’s financiability through mitigation of risks, cash inflow, and release of investments,” the release said.

“For Total, these new partnerships with Petrobras reinforce Total’s position in Brazil through access to new fields in the Santos Basin while entering the promising gas value chain.”

The transaction is still subject to approvals by relevant regulatory entities, potential exercise of preemptive rights by current Iara partners and other conditions.