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    Equinor, Galp, Exxon Complete Brazil Deal

Summary

Norwegian Equinor and its partners in the Brazilian Carcara North block, the US major ExxonMobil and Portugal's Galp, have closed their transactions...

by: William Powell

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Equinor, Galp, Exxon Complete Brazil Deal

Norwegian Equinor and its partners in the Brazilian Carcara North block, the US major ExxonMobil and Portugal's Galp, have closed their transactions in neighbouring block BM-S-8 as announced in October and December 2017, Equinor said June 6.

Equinor sold a 36.5% interest in BM-S-8 to ExxonMobil and a 3% interest to Galp. In return Equinor has received payments totalling around $955mn, with further payments of around $595mn contingent on future milestones. Equinor’s operated interest in BM-S-8 is now 36.5%, with ExxonMobil’s interest at 36.5% and Galp’s interest at 17%. The other partner in the block, Barra Energia, holds a 10% interest.

“Carcara is a world class asset and has strengthened our position in Brazil, one of Equinor’s core areas due to its large resource base and excellent fit with our technology and capabilities,” said Equinor's country boss Anders Opedal. “Our focus is to clarify the resource potential for the entire Carcara area and to mature a field development with an ambition to deliver first oil from the unitised field between 2023 and 2024.”

Equinor estimates that BM-S-8 and Carcara North contain more than 2bn recoverable barrels of oil equivalent with a carbon footprint that is below corporate targets for 2030. In addition, there is upside potential including in the Guanxuma prospect in the BM-S-8 block, where drilling operations started late April, it said.

Brazil is a core area for Equinor's long-term growth and the company will establish Brazil as a separate business area, with Margareth Ovrum becoming executive vice president for the new business area in October 2018.