Norway's Statoil ASA (STO) said Monday that it has agreed to buy a 25% stake in Brazil's Roncador oil field from Petroleo Brasileiro SA (PBR) for up to $2.9 billion, nearly tripling Statoil's production in the country.
The Roncador field offshore Brazil has around 10 billion barrels of oil equivalent, or BOE, in place with over one billion barrels of remaining recoverable volumes. However, an additional agreement between the two companies will aim to increase the recoverable volumes to over 1.5 billion barrels.
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"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 Chief Executive Eldar Saetre.
The deal increases Statoil's equity production in Brazil to around 110,000BOE/D from around 40,000BOE/D. The field produced around 240,000B/D and around 40,000BOE/D of associated gas in November 2017.
The total consideration comprises an initial payment of $2.35 billion, plus additional contingent payments of up to $550 million. Petrobras retains operatorship and a 75% interest, it said.
The two companies have further agreed that Statoil will have the option to utilize capacity at Petrobras' Cabiunas natural-gas terminal to allow for the future development of block BM-C-33 in Brazil's Campos Basin, where both companies are partners.
The effective date for the Roncador transaction is Jan. 1, 2018.
Write to Dominic Chopping at email@example.com; Twitter: @domchopping @WSJNordics
(END) Dow Jones Newswires
December 18, 2017 02:24 ET (07:24 GMT)