Sign up USA
Proactive Investors - Run By Investors For Investors

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."

View full STO profile View Profile

Statoil ASA Timeline

Related Articles

rig
January 29 2018
The oiler posted its 2017 year-end reserves evaluation and guidance for this year's capital budget and guidance
picture of Canada
September 28 2017
Hillcrest Petroleum Ltd eyes big footprint in Saskatchewan and Alberta

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use