Brazilian state-owned oil and gas group Petrobras has completed the sale of its 66% operated interest in the exploration block BM-S-8 in the Santos basin of Brazil to Norwegian oil group Statoil.
Block BM-S-8 was operated by Petrobras (66%), in partnership with Petrogal (14%), Queiroz Galvão Exploração e Produção (10%) and Barra Energia do Brasil Petróleo e Gás (10%). A discovery was made in this block, through exploratory drilling in the Carcará area. The licence is in its final exploration phase with one remaining exploration commitment well to be drilled by 2018. The recoverable volumes within the BM-S-8 licence are estimated to be in the range of 700 to 1,300 mboe.
The transaction price is US$2.5bn, including a first instalment of US$1.5bn paid by Statoil on the completion of the transaction. The remaining amount will be paid in instalments contingent upon subsequent events, such as the signing of the Production Individualization Agreement (unitization).