Statoil strengthens position in Brazilian licence BM-S-8
Statoil ASA and Queiroz GalvĂŁo Exploração e Produção (âQGEPâ) have signed an agreement for Statoil to acquire QGEPâs 10% interest in the BM-S-8 licence in Brazilâs Santos basin. The additional 10% equity will increase Statoilâs operated interest in the licence from 66% to 76%. The total consideration for the transaction is USD 379 million.
BM-S-8 includes a substantial part of the Carcarå 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.
âThis 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 opportunitiesâ, says Anders Opedal, Statoilâs Country Manager for Brazil.
This transaction is Statoilâs second in BM-S-8, following the agreement in 2016 with PetrĂłleo Brasileiro S.A. - Petrobras (âPetrobrasâ) to acquire its 66% operated interest, and strengthens Statoilâs position for operatorship of the unitised CarcarĂĄ field.
As with the 2016 transaction, half of the 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 CarcarĂĄ.
Closing is subject to customary conditions, including partner and government approval.
Statoil assets offshore Brazil:
|
Location |
Interest |
Status |
Peregrino |
Campos Basin |
60% (operator) |
Production in June 2017 was 65,365 barrels a day. Reserves of 300-500 million barrels of oil. |
Peregrino Phase II |
Campos Basin |
60% (operator) |
Construction. Production from 2020 at 60,000 barrels a day. Reserves ~255 million barrels of oil. |
Licence BM-C-33 (comprising the Pão de Açúcar, Gavea and Seat discoveries) |
Campos Basin |
35% (operator) |
Evaluation/development. Approximately 1 billion boe in recoverable resources. |
Licence BM-S-8 (comprising the CarcarĂĄ discovery and exploration prospects) |
Santos Basin |
76% (operator) |
Evaluation/development, pre-unitisation. Approximately 700 to 1,300 million boe recoverable resources within the licence from CarcarĂĄ, plus additional exploration upside.
|
Ten exploration blocks |
EspĂrito Santo Basin |
Six operated by Statoil, four by Petrobras |
Exploration. |