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Statoil unveils US$2.85mln Petrobras deal to triple Brazil production

"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”
offshore oil platform
Statoil will now be producing some 110,000 boepd from Brazil

Statoil ASA (NYSE:STO) has struck a deal with Petrobras (NYSE:PBR) to acquire a 25% stake in the Roncador field, in Brazil’s Campos basin, for up to US$2.85mln.

The Norwegian group nearly triples its production base as a result of the transaction.

Brazil's largest discovery

Roncador was Brazil’s largest discovery when it was made in the 1990s and it is presently Petrobras' third largest producing field, host to some 10bn barrels of oil in place.

It is hoped that Statoil can play a role in improving Roncador’s recovery factors, by a margin of 5 percentage points, so that total remaining recoverable barrels can amount to 1.5bn barrels (from 1bn).

Most recent production stats have Roncador producing around 240,000 bopd, plus 40,000 barrels oil equivalent of associated gas.

It means Statoil will be producing some 110,000 boepd from Brazil, up from 40,000 boepd previously.

Attractive long-term production

"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,” said Eldar Sætre, Statoil chief executive officer.

“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."

Petrobras chief executive Pedro Parente added: “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."

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