Statoil is expanding in Brazil with a $379mln acquisition

Statoil ASA and Queiroz Galvão Exploração e Produção have signed an agreement for Statoil 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%. The total consideration for the transaction is $379 million.
BM-S-8 includes a substantial part of the Carcará discovery comprising high-quality oil of around 30° API and with associated gas in a thick reservoir with excellent properties. Statoil estimates the recoverable volumes within the BM-S-8 licence to be in the range of 700 to 1,300 million barrels of oil equivalent.
This transaction is Statoil’s second in BM-S-8, following the agreement in 2016 with Petrobras to acquire its 66% operated interest.
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.