Statoil has agreed to purchase 10% stake of Queiroz Galvão Exploração e Produção (QGEP) in the BM-S-8 licence in Brazil’s Santos basin for around $379m.
The acquired stake will increase Statoil’s operated interest in the BM-S-8 licence from 66% to 76%.
BM-S-8 includes major portion of the Carcará discovery with quality oil of around 30° API and associated gas in a thick reservoir with advanced properties.
According to Statoil, the BM-S-8 licence is expected to include recoverable volumes in the range of 700 to 1,300 million barrels of oil equivalent.
The deal is Statoil’s second in BM-S-8, while its first deal was in 2016 with Petrobras to purchase its 66% operated interest.
The deals allowed Statoil to expand its position for operatorship of the unitised Carcará field.
Similar to the last year transaction, half of the total consideration will be paid upon closing of the deal, while the remaining consideration will be paid based on the fulfillment of certain conditions.
The deal is subject to customary conditions, including partner and government approval.
Statoil Brazil’s country manager Anders Opedal said: “This acquisition is a further expression of our confidence in Brazil, a core area for Statoil. It also reinforces our position in a world-class asset which is a good match with our competence and capacity.
“The transaction supports our strategy to pursue high value and low carbon opportunities.”
Santos Basin is an 352,260 km² offshore pre-salt basin, which is situated in the south Atlantic Ocean. It is around 300km south east of Santos, Brazil.