offshore brazil-web.jpg

Statoil signs US$2.9 bln deal with Petrobras that triples its oil production in Brazil

Dec 18, 2017
3 min read
Print this page

Statoil and Brazil’s national oil company Petrobras have signed a deal that sees Norway’s oil giant buy a 25 per cent interest in Roncador, a large oil field in the Campos Basin in Brazil, for US$2.9 bln.

The deal, which includes an initial payment of US$2.35 billion, plus additional contingent payments of up to USD 550 million, will nearly triple Statoil’s production in Brazil.

The date for the Roncador transaction has been set as 1 January 2018 but it is still subject to government approval.

Roncador was the largest discovery offshore Brazil in the 1990s and is currently the third largest producing field in Petrobras’ portfolio with around 10 billion barrels of oil equivalent (boe) in place and an expected remaining recoverable volume of more than 1 billion boe.

“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 Sætre, president and chief executive officer of Statoil.

The deal aims is to increase the recovery factor by at least 5 percentage points, bringing the total remaining recoverable volumes to more than 1,500 million boe.

The 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 boe per day of associated gas. The transaction increases Statoil’s equity production in Brazil by around 175 per cent to around 110,000 boe per day from around 40,000 boe per day. Petrobras retains operatorship and a 75 per cent interest.

In conjunction with the transaction, the two companies are entering into an agreement with the aim of maximising value creation and the longevity of the Roncador field. Statoil will leverage its IOR technology, competence and experience from the Norwegian Continental Shelf (NCS) and elsewhere, and Petrobras its experience as the largest deep-water operator and pre-salt developer in the world. Several specific opportunities for increased recovery and value creation have already been identified.

"Strategic partnerships are an important part of our business plan and Statoil's knowledge and experience in increasing the level of oil recovery in mature fields will add value not only to our joint operations in Roncador, but to other mature fields in the Campos Basin, with huge potential to positively impact future production in the area," said Pedro Parente, chief executive officer of Petrobras.


dmg events Global Energy Exhibitions & Conferences