Norwegian oil major Statoil has completed the acquisition of a ten percent stake in the BM-S-8 block, located in the Santos basin offshore Brazil, from Queiroz Galvão Exploração e Produção (QGEP).
Statoil said on Wednesday that QGEP’s 10% interest in the block was bought through a transaction announced in July for a total consideration of $379 million.
BM-S-8 includes a substantial part of the Carcará discovery comprising high-quality oil of around 30° API and with associated gas in a thick reservoir with excellent properties. Statoil estimates the recoverable volumes within the BM-S-8 license to be in the range of 700 to 1,300 million barrels of oil equivalent.
The Norwegian company added that, following the completion of this transaction, Statoil and its partners in the Carcará North block, ExxonMobil and Galp, would undertake two further transactions announced in late October.
Namely, Statoil agreed in October to divest 33% out of its current 66% interest in BM-S-8 to ExxonMobil for a total potential consideration of around $1.3 billion, comprising an upfront cash payment of around $800 million and a contingent cash payment of around $500 million.
Furthermore, upon the closing of its acquisition of the 10% interest in BM-S-8 held by QGEP, Statoil agreed to divest a further 3.5% to ExxonMobil and 3% to Galp for a total consideration of around $250 million, comprising an upfront cash payment of around $155 million and a contingent cash payment of around $95 million.
As a result, both Statoil and ExxonMobil will have a 36.5% interest in BM-S-8 and a 40% interest in Carcará North. Galp will have 17% in BM-S-8 and 20% in Carcará North.
Statoil noted on Wednesday that the closing of these further transactions is subject to certain conditions, including government approvals.