* Acquisition to triple Statoil's output in Brazil
* Aims to increase field's recovery rate
* Statoil sees Brazil as its core exploration area
(Adds Petrobras CEO, details)
OSLO, Dec 18 (Reuters) - Norway's Statoil will
triple its output off the coast of Brazil after agreeing to buy
a 25 percent stake in Roncador, one of the country's largest
oilfields, from national oil company Petrobras for up
to $2.9 billion.
The deal announced on Monday fits Statoil's strategy of
bolstering its presence in Brazil as it seeks to add new barrels
which are becoming more difficult to obtain closer to home on
the Norwegian continental shelf.
"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 Chief
Executive Eldar Saetre.
In exchange, Petrobras will get access to Statoil's unique
knowledge of how to pump more barrels from mature fields,
Petrobras CEO Pedro Parente said, noting skills perfected in the
Norwegian offshore sector.
The agreement consists of an initial payment of $2.35
billion plus "additional contingent payments" of up to $550
million, Statoil said in a statement.
The additional payment related to Statoil's investments into
specific increased oil recovery (IOR) projects to be agreed
later, Saetre told a news conference.
The deal's structure showed Statoil was betting on increased
recovery from the mature field, Sparebank 1 Markets analyst
Teodor Sveen-Nilsen said in a note.
"With Statoil's very strong track record on the Norwegian
continental shelf for increasing recovery rates, we believe the
outlook for increasing recovery rate for Roncador is good," he
Roncador, Petrobras' third-largest producing field in the
Campos basin offshore Brazil, is estimated to contain around 10
billion barrels of oil (boe) equivalent in place and more than 1
billion boe in expected remaining recoverable volumes, Statoil
The Norwegian company said its ambition was to increase the
recovery factor by at least 5 percentage points, bringing the
field's total remaining recoverable volumes to more than 1.5
billion barrels of oil equivalent (boe).
The production from the field, which started in 1999, stood
at around 240,000 barrels of oil per day in November.
After the transaction, Statoil's output off Brazil will
increase to 110,000 barrels of oil equivalent per day from
around 40,000 boe per day, the company said.
Petrobras will continue to operate the field and will hold a
Parente said he expected a Brazilian court to scrutinise the
deal, as with previous assets sales which were not put up for
open bidding, but said he was confident that the deal would be
"This is a strategic partnership... It makes no sense to
have a competitive process because what we want only Statoil
has," he added, referring to the sharing of knowhow.
(Reporting by Gwladys Fouche, Ole Petter Skonnord and Nerijus
Adomaitis; Editing by Keith Weir)
First Published: 2017-12-18 12:26:56
Updated 2017-12-18 16:36:20
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