Statoil Buys 25% Stake in Brazilian Field for Up to $2.9 Billion
December 18 2017 - 2:39AM
Dow Jones News
By Dominic Chopping
Norway's Statoil ASA (STO) said Monday that it has agreed to buy
a 25% stake in Brazil's Roncador oil field from Petroleo Brasileiro
SA (PBR) for up to $2.9 billion, nearly tripling Statoil's
production in the country.
The Roncador field offshore Brazil has around 10 billion barrels
of oil equivalent, or BOE, in place with over one billion barrels
of remaining recoverable volumes. However, an additional agreement
between the two companies will aim to increase the recoverable
volumes to over 1.5 billion barrels.
"This transaction adds material and attractive long-term
production to our international portfolio, further strengthening
the position of Brazil as a core area for Statoil," said Statoil
Chief Executive Eldar Saetre.
The deal increases Statoil's equity production in Brazil to
around 110,000BOE/D from around 40,000BOE/D. The field produced
around 240,000B/D and around 40,000BOE/D of associated gas in
November 2017.
The total consideration comprises an initial payment of $2.35
billion, plus additional contingent payments of up to $550 million.
Petrobras retains operatorship and a 75% interest, it said.
The two companies have further agreed that Statoil will have the
option to utilize capacity at Petrobras' Cabiunas natural-gas
terminal to allow for the future development of block BM-C-33 in
Brazil's Campos Basin, where both companies are partners.
The effective date for the Roncador transaction is Jan. 1,
2018.
Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
December 18, 2017 02:24 ET (07:24 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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