Statoil ASA and Queiroz Galvão Exploração e Produção (QGEP) have signed an agreement under which Statoil is set to acquire QGEP’s 10% interest in the BM-S-8 licence in Brazil’s Santos basin. The additional 10% equity will increase Statoil’s operated interest in the licence from 66% to 76%.
BM-S-8 includes a substantial part of the Carcará discovery comprising high-quality oil of approximately 30° API and with associated gas in a thick reservoir with excellent properties. Statoil estimates recoverable volumes within the BM-S-8 licence to be in the range of 700 - 1300 million boe.
“This acquisition is a further expression of our confidence in Brazil, a core area for Statoil. […] The transaction supports our strategy to pursue high value and low carbon opportunities”, says Anders Opedal, Statoil’s Country Manager for Brazil.
This transaction is Statoil’s second in BM-S-8, following an agreement in 2016 with Petróleo Brasileiro S.A. - Petrobras (Petrobras) to acquire its 66% operated interest, and strengthens Statoil’s position for operatorship of the unitised Carcará 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 Carcará.
Closing is subject to customary conditions, including partner and government approval.
Image courtesy of Statoil.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/12072017/statoil-set-to-acquire-licence-interest-in-brazil/