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Statoil buys $2.5-billion stake in Santos basin license from Petrobras

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STAVANGER, Norway — Statoil is to acquire Petrobras’ 66% operated interest in the BM-S-8 offshore license in Brazil’s Santos basin. The acquisition includes a substantial part of the Carcará oil discovery, one of the largest discoveries in the world in recent years.

Carcará was discovered in 2012, on the geological trend of the nearby Lula field and Libra area. It is a world-class discovery of high-quality oil, around 30° API, with associated gas in a thick reservoir with excellent properties. It straddles both BM-S-8 and open acreage to the north, which is expected to be part of a licensing round in 2017.

According to a statement announcing the deal, Statoil is now well positioned for operatorship of a unitized Carcará field and next years licensing round will provide an opportunity for the company to scale up its position in the field. Statoil estimates the recoverable volumes within the BM-S-8 license to be in the range of 700 MMboe to 1,300 MMboe.

In addition to the Carcará discovery, BM-S-8 holds exploration upside that may significantly increase its resource base, Statoil said. The license is in its final exploration phase with one remaining exploration commitment well to be drilled by 2018.

“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,” Eldar Sætre, president and CEO of Statoil, said. “The Carcará field will significantly enhance our international production volumes in the 2020s and beyond.”

The total consideration for the acquisition is $2.5 billion. Half of the consideration will be paid upon closing of the transaction, with the remainder being paid when certain milestones have been met. These are partly related to the license award, but mainly to the future unitization of Carcará. The effective date for the transaction is July 1, 2016.

Statoil and Petrobras are also in discussions about long-term strategic cooperation. The focus will be in the Campos and Espírito Santo basins, as well as new cooperation within gas and technology projects in the Santos basin.

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