For the Norwegian state-owned oil company Statoil, Brazil holds a very important strategic component in its portfolio worldwide. In fact, according to the major, the South American country’s oil and gas activities represent its most valuable business outside Norway and the company’s interests to expand its presence may increase over the next years.
Currently, the Norwegian major, which is the third largest operator in Brazil, carries out E&P activities in 10 offshore fields throughout the country. Peregrino field (BM-C-7), located in the Campos Basin, is the most prolific Statoil field outside Norway. The oil field produces about 80,000 barrels of oil per day (bbl/d) and it is estimated to hold between 300 MMbbl to 600 MMbbl of oil.
Recently, Statoil decided to make another big move, buying 25% interest in Roncador Field (BM-C-33), located in the Campos Basin, from the Brazilian state-owned oil company Petrobras. With the transaction, Statoil expects to triple its oil production in the country.
According to the Norwegian major, Roncador can present an attractive break-evens and potential for additional value creation for both parties through the application of Statoil’s expertise in improved oil recovery (IOR). The negotiation comprises an initial payment of US$ 2.35 billion, plus additional contingent payments of up to US$550 million.
Statoil’s biggest bet in Brazil is the giant Carcará block (BM-S-8), which is divided between Carcará post-salt field, acquired through a transaction with Petrobras in 2016, and Carcará Norte, acquired in the latest Brazil’s pre-salt auction with ExxonMobil (40%) and Petrogal (20%) , in 2017.
According to Statoil latest Capital Markets Update (CMU) report, it is believed that the entire structure (Carcará and Carcará North together) contains around 2 billion recoverable barrels of high quality oil with a carbon footprint that is below our corporate targets for 2030.