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Statoil ups Brazil ante by $379million

Statoil has strengthened its position in Brazil.

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The Norwegian operator today confirmed it had signed a $379million deal with Queiroz Galvão Exploração e Produção (QGEP) acquire QGEP’s 10% interest in the BM-S-8 licence in Brazil’s Santos basin. The additional 10% equity will increase Statoil’s operated interest in the licence from 66% to 76%.

“This acquisition is a further expression of our confidence in Brazil, a core area for Statoil. It also reinforces our position in a world-class asset which is a good match with our competence and capacity. The transaction supports our strategy to pursue high value and low carbon opportunities”, said Anders Opedal, Statoil’s country manager for Brazil.

BM-S-8 includes a substantial part of the Carcará discovery comprising high-quality oil of around 30° API and with associated gas in a thick reservoir with excellent properties. Statoil estimates the recoverable volumes within the BM-S-8 licence to be in the range of 700 to 1,300 million barrels of oil equivalent.

This transaction is Statoil’s second in BM-S-8, following the agreement in 2016 with Petróleo Brasileiro S.A. – Petrobras (“Petrobras”) to acquire its 66% operated interest, and strengthens Statoil’s position for operatorship of the unitised Carcará field.

Half of today’s deal total consideration will be paid upon closing of the transaction, with the remainder being paid when certain conditions have been met. These are partly related to the licence award, but mainly to the future unitisation of Carcará.

Statoil is one of the biggest oil producers in Brazil, operating the Peregrino field and block BM-C-33, both in the Campos Basin, and block BM-S-8 in the Santos Basin. With the capacity to produce 90,000 barrels per day, Peregrino is its largest operated heavy oil field outside Norway.