Norway's Statoil acquired a 25 percent share of the large Roncador oil field in the Campos Basin in Brazil from Petrobras, Statoil announced on Monday.
The transaction nearly triples Statoil’s production in Brazil, with attractive break-evens and potential for additional value creation for both parties through the application of Statoil’s expertise in improved oil recovery, Statoil's statement read.
The total consideration comprises an initial payment of $2.35 billion, plus additional contingent payments of up to $550 million.
'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. We are also pleased to advance our strategic partnership with Petrobras by expanding our technical collaboration, sharing technology, competence and experience to increase oil and gas recovery,' said Eldar Saetre, president and chief executive officer of Statoil.
The Roncsador field has been in production since 1999 with output during November 2017 of around 240,000 barrels of oil per day plus around 40,000 barrels of oil equivalent per day of associated gas.
The transaction increases Statoil’s equity production in Brazil by around 175 percent to around 110,000 barrels of oil equivalent per day from around 40,000 barrels of oil equivalent per day.
Petrobras retains operatorship and a 75 percent interest.
By Murat Temizer