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Statoil and ExxonMobil team up on Carcara in pre-salt round

Statoil and ExxonMobil team up on Carcara in pre-salt round

Oct 29, 2017
3 min read
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Norway's Statoil and U.S. ExxonMobil have jointly won the production sharing contract for the Carcará North block in Brazil’s second pre-salt offshore licensing round.

A consortium comprising Statoil (operator, 40 per cent), ExxonMobil (40 per cent) and Galp (20 per cent) was the highest bid (67.12 per cent of profit oil) for the block in the Santos basin.

The Carcara field contains an estimated recoverable resource of 2 billion barrels of high-quality oil. The block is located approximately 200 miles offshore Rio de Janeiro.

The pre-determined signature bonus to be paid by the consortium is US$910 million.

Statoil, ExxonMobil and Galp have also agreed a number of subsequent transactions in the adjacent BM-S-8 block to align equity interests across the two blocks that together comprise the Carcará oil discovery.

As part of the deal, ExxonMobil has agreed to purchase half of Statoil’s interest in the BM-S-8 block offshore Brazil for around US$1.3 billion, comprising an upfront cash payment of around US$800 million and a contingent cash payment of around US$500 million. Statoil will continue to operate the Carcara development and hold 33 percent interest. ExxonMobil will enter with a 33 per cent, 14 per cent for Petrogal Brasil, a subsidiary of Galp, and 10 per cent each for QGEP and Barra.

“This further strengthens Statoil’s presence in the prolific Brazilian pre-salt area and these transactions help build a strong and aligned partnership across the two Carcará blocks. Together they significantly advance our strategy in Brazil, a core area for Statoil. Developing a world-class asset like Carcará as operator is a good match with our competence and capacity,” said Statoil CEO Eldar Sætre.

“These agreements and recent bid round results mark ExxonMobil’s entry into a world-class resource and prospective exploration acreage in Brazil,” said Darren Woods, chairman and chief executive officer of ExxonMobil.

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