Norway oil company Equinor has completed the acquisition of a 25% non-operated interest in the Roncador oil field in Brazil’s Campos Basin from Petrobras after meeting all conditions, including the regulatory approval.
The deal was announced in December.
Equinor has paid an adjusted cash consideration of $2bn to Brazil’s state-run Petrobas for the interest, with additional contingent payments of up to $550m associated to investments in projects to boost the recovery from the field.
As per the present production, the interest in Roncador, the third largest producing field in Brazil, boosts Equinor’s production in the country by around 150% to around 100,000 boe per day from around 40,000 boe per day.
Following the acquisition, Petrobras retains operatorship of Roncador and a 75% stake.
The purchase is part of Equinor’s strategic partnership with Petrobras to boost technical collaboration.
Equinor will make use of its increased oil recovery (IOR) technology, competence and experience from the Norwegian Continental Shelf (NCS), while Petrobras will use its experience as a deepwater operator and pre-salt developer to boost value creation from the Roncador field.
Equinor plans to develop its presence in the natural gas market in Brazil during the partnership.
The companies aim to boost Roncador’s recovery factor by five percentage points, increasing the total remaining recoverable volumes from 1 billion boe to over 1.5 billion boe.
Equinor Brazil country manager Anders Opedal said: “We look forward to working with Petrobras to maximise the upside potential from the Roncador field.
“The collaboration between the two companies will enable us to extend the productive life of the field, which will result in enhanced ripple effects for local communities and the supplier industry.
“This will also result in increased value and cash flows for the benefit of Brazil and the companies involved.”