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October 30, 2017

ExxonMobil seals deal to buy 33% in Brazil’s offshore block for $1.3bn

ExxonMobil has completed a $1.3bn agreement to acquire 33% of Statoil’s interest in the BM-S-8 block located 200 miles offshore Rio de Janeiro, Brazil. 

ExxonMobil has completed a $1.3bn agreement to acquire 33% of Statoil’s interest in the BM-S-8 block located 200 miles offshore Rio de Janeiro, Brazil.

Statoil currently holds a 66% interest in the BM-S-8 block, which contains part of the pre-salt Carcara oil field that has an estimated recoverable resource of two billion barrels of oil.

The other part of the Carcara field is in the adjacent North Carcara block, where ExxonMobil’s subsidiary ExxonMobil Exploracao Brasil, Statoil, and Galp subsidiary Petrogal Brasil were high bidders for a production sharing contract.

Statoil will continue to operate the Carcara development and hold a 33% interest.

ExxonMobil has added 14 blocks comprising more than 1.25 million net acres offshore Brazil to its portfolio over the last month through bid rounds and announced farm-in agreements.

This brought the company’s total acreage in the country to more than 1.4 million net acres.

“ExxonMobil has a long history in the country and we’re confident our deepwater technology can help to further grow the value of Brazil’s energy resources.”

ExxonMobil chairman and CEO Darren Woods said: “These agreements and recent bid round results mark ExxonMobil’s entry into a world-class resource and prospective exploration acreage in Brazil.

“ExxonMobil has a long history in the country and we’re confident our deepwater technology and project expertise can help to further grow the value of Brazil’s energy resources.

“We look forward to working with Petrobras and all our partners to begin to explore and develop this high-quality acreage.”

Separately, the company recently completed a farm-in agreement with Queiroz Galvão Exploração e Produção (QGEP), adding new prospective acreage to its portfolio.

Subject to government approvals, ExxonMobil’s latest transaction is expected to close next year.

Upon closing of the transaction, other partner interests in the BM-S-8 block will be 33% for ExxonMobil, 14% for Petrogal Brasil and 10% each for QGEP and Barra.

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