Statoil to buy 66% operated interest in license off Brazil for $2.5 billion

Statoil ASA has agreed to buy the 66% operated interest in the BM-S-8 offshore license in Brazil’s Santos basin held by Petroleo Brasileiro SA (Petrobras) for $2.5 billion.

The license includes a substantial portion of the 2012 Carcara presalt oil discovery (OGJ Online, May 29, 2015).

Statoil said it is on the geological trend of the nearby Lula field and Libra area. It has 30° API oil and associated gas “in a thick reservoir with excellent properties.”

Carcara straddles BM-S-8 and open acreage to the north, which Statoil said is expected to be part of a license round in 2017.

In addition to Carcara, the license “holds exploration upside.” The license is in its final exploration phase with one remaining exploration commitment well to be drilled by 2018. Statoil estimates the license has recoverable volumes up to 1.3 billion boe.

Statoil said half of the purchase price will be paid after closing and the remainder paid when “certain milestones” have been met, including future unitization of Carcara.

Closing is subject to partners’ and government approval.

Statoil and Petrobras are also in discussions focusing on long-term cooperation in the Campos and Espirito Santo basins, and new cooperation within gas and technology projects in the Santos basin.

Statoil said it has been in Brazil since 2001. The Statoil-operated Peregrino field marks 5 years of production this year (OGJ Online, June 28, 2016).