Equinor has secured the S-M-1617 exploration block in the Santos basin during Brazil's 5th Open Permanent Concession bid round, marking a significant expansion of its portfolio in the region.

The company was awarded the licence on a 100% basis, with a signature bonus of approximately 30.5m reais (around $5.5m).

The S-M-1617 licence is situated in the Santos basin, 400km off the coast, in water depths up to 2,600m.

The newly acquired block is situated 60km from Equinor's existing S-M-1378 block, indicating a strategic consolidation of the company's assets in the area.

Equinor Brazil Country manager and senior vice-president Veronica Coelho said: “The licence is in close proximity to the S-M-1378 block we already own, an area with strong potential that we can leverage to reinforce our position in the Santos basin. This award provides us with longevity options for Brazil and demonstrates our continuous commitment and appetite to grow in the country.”

The company plans to undertake the necessary geological and geophysical assessments to prepare for future exploration activities.

Equinor has been present in Brazil for more than 20 years, and is the operator of the Bacalhau and Raia projects in the Santos and Campos basins, respectively.

Equinor is also the operator of the Peregrino oilfield and has a non-operator position in Petrobras' Roncador project.

Apart from oil and gas, Equinor is extending investments into renewable energy, with onshore assets already in operation and several projects under development via its subsidiary Rio Energy.

Earlier this month, Equinor initiated production at the Halten East project in the Norwegian Sea, just two years after approval from Norway's regulators.