Statoil Buys into Santos Pre-Salt Basin

Published at 09:08AM - 29/07/16

Statoil has agreed to buy Petrobras’ 66% operated interest in the BM-S-8 offshore licence, located in Brazil’s Santos basin.

The acquisition includes a significant share of the Carcará oil discovery, one of the largest oil findings in the world in recent years.

“Through this acquisition we are accessing a world class asset and we strengthen our position in Brazil, one of Statoil’s core areas due to its large resource base and excellent fit with our technology and capabilities,” Statoil President and Chief Executive Officer (CEO) Eldar Sætre, said.

Statoil Buys into Santos Pre-Salt Basin

Following this transaction, Statoil will gain a good positioning to become the operator of a unitised Carcará field, as an incoming licence round will provide the Norwegian company with an opportunity to scale up its position in the field.

“The Carcará field will significantly enhance our international production volumes in the 2020s and beyond. We are developing a strong Brazilian business with a broad portfolio, material production, high impact exploration opportunities and excellent potential for long-term value creation and cash flow,” Statoil CEO stated further.

According to estimates by Statoil, the licence could contain between 700 and 1,300 million barrels of oil equivalent (boe) in recoverable resources.

Statoil Pays $2.5bn for Pre-Salt Interest

As well as the Carcará discovery, BM-S-8 holds exploration upside that could increase its resource base, Statoil explained in a statement.

The licence is currently in its final exploration phase and the last well is scheduled for drilling by the end of 2018.
Statoil paid US$2.5 billion (£1.89 billion) and will pay up half of this amount upon closing of the transaction, while the remaining will be paid with the achievement of determined milestones.

The two companies are currently discussing a long-term strategic cooperation focused on the Campos and Espírito Santo basins, as well as within gas and technology projects in the Santos basin.