Statoil reported on November 22, 2016, that the company has completed its $2.5 billion deal to buy 66% of an offshore licence in Brazil’s Santos Basin from Petrobras.
The sale is the largest merger and acquisition carried out between companies operating out of the oil and gas exploration segment in history, and is the second largest deal of this type in Brazil this year.
Statoil and Petrobras have completed their previously announced transaction, whereby Statoil has acquired Petrobras’ 66% operated interest of the BM-S-8 offshore licence in Brazil’s Santos basin.
BM-S-8 contains a substantial part of the Carcará pre-salt oil discovery.
BM-S-8 is currently operated by Petrobras (66%), Petrogal (14%), Queiroz Galvão Exploração e Produção S.A. (10%), and Barra Energia of Brazil Petróleo e Gás Ltda. (10%).
On the completion of the transaction, Statoil has paid Petrobras $1.25 billion, half of the total consideration.
The remainder will be paid at the passage of certain future milestones, mainly relating to the future unitisation of Carcará.
Statoil, which announced the acquisition in July 2016, said it had paid half of the fee and that the rest would be transferred once certain milestones are achieved.
The firm said the purchase included a substantial part of the Carcará oil discovery, one of the largest discoveries in the world in recent years.
In addition to the Carcará discovery, BM-S-8 holds exploration upside that may significantly increase its resource base.
Petrobras reported that in addition to the $2.5 billion announced on November 22, 2016, approximately R$1.9 billion from the sale of 49% of Gaspetro to the Japanese outfit Mitsui, in December 2015, and approximately $900 million for the sale of the control over Petrobras Argentina to Pampa have already entered Petrobras’ cash.
Another $464 million are expected from the sale of Petrobras Chile to the Southern Cross Group, as announced this week.
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