Norwegian resources giant Statoil, has confirmed it's purchase of a 25% stake in the Roncador oil field owned by Petrobas. The deal brings a huge boost to Statoil’s south American output and forms part of Statoil’s long-term strategic planning.
Statoil shares trade in the US and closed 1.37% lower at $20.15 on Friday. Petrobas shares also ended lower Friday.
Significant deal for Statoil
Statoil announced the agreement on its website Monday. The Norwegian firm said it would make an initial payment to Petrobas of $2.35 billion, to be followed by “additional contingent payments of up to $550 million.”
“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 Statoil President and CEO, Eldar Sætre.
“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,” he added.
Petrobas was equally positive on this latest tie up.
“Strategic partnerships are an important part of our business plan,” said Petrobas CEO, Pedro Parente.
“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,” he added.
Deal confirms Statoil as major Brazilian oil producer
The Roncador oil field was first discovered in 1990 and is the third largest oil producing field in the Petrobas portfolio. After producing some 10 billion barrels of oil so far since 1999, a further 1 billion or more barrels of oil are still recoverable from the location.
The Statoil investment is, in part, designed to increase the recoverable oil from Roncador. It also means Statoil’s Brazilian oil production levels are boosted to 110,000 barrels per day from the current 40,000 per day.