Exxon Mobil to acquire interest in Carcara oil field block from Statoil
The Carcara field contains an estimated recoverable resource of 2 billion barrels of high-quality oil. The block is located approximately 200 miles offshore Rio de Janeiro.
Statoil currently holds a 66% interest in the block, which contains about half the Carcara field.
The other part of the field is in the adjacent North Carcara block, where ExxonMobil, Statoil and Petrogal Brasil were high bidders in a bid round held. Statoil will continue to operate the Carcara development and hold 33% interest.
Over the last month, through bid rounds and announced farm-in agreements, ExxonMobil has added 14 blocks comprising more than 1.25M net acres offshore Brazil to its portfolio, bringing its total acreage in the country to more than 1.4M net acres.
Separately, ExxonMobil recently added highly prospective acreage to the company’s portfolio after completing a farm-in agreement with Queiroz Galvao Exploracao e Producao.
ExxonMobil will make an upfront cash payment of approximately $800M for the interest in BM-S-8 block, and an additional contingent cash payment for a potential total of approximately $1.3B.
The transaction is subject to government approvals and is expected to close in 2018. Following the close of the transaction, partner interests in the BM-S-8 block will be 33% for Statoil, 33% for ExxonMobil, 14% for Petrogal Brasil, a subsidiary of Galp, and 10%each for QGEP and Barra.
To read timely stories similar to this, along with money making trade ideas, sign up for a membership to Stockwinners.
This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.