Equinor, Partners Align Brazil Interests
Norway's Equinor is buying local Brazilian firm Barra Energia's 10% interest in the BM-S-8 licence in the Santos basin offshore Brazil, for $379mn. This transaction will enable the partners to fully align interests across the two Carcara area licences, Equinor said July 4.
In early June Equinor, ExxonMobil and Galp completed transactions in BM-S-8 to start aligning equity interests with those the three partners hold in the adjacent Carcara North block. BM-S-8 and Carcara North together comprise the Carcara area, which contains about 2bn recoverable barrels of oil equivalent. Equinor operates both blocks and aims to develop the unitised field with the ambition to deliver first oil between 2023 and 2024.
Equinor paid Queiroz Galvao Exploracao e Producao (QGEP) the same sum ($379mn) in July 2017. Closing is subject to customary conditions, including partner and government approval, and price adjustments in consideration of a reference date of July 2016. Upon closing, Equinor intends to sell down 3.5% to ExxonMobil and 3% to Galp, thus fully aligning interests across BM-S-8 and Carcara North.
Shareholdings now and after successive transactions in BM-S-8
|
|
BM-S-8 (before Barra deal) |
BM-S-8 (after Barra deal) |
BM-S-8 (after EM and Galp deals) |
Carcara North |
|
Equinor |
36.5% (operator) |
46.5% (operator) |
40% (operator) |
40% (operator) |
|
ExxonMobil |
36.5% |
36.5% |
40% |
40% |
|
Galp |
17% |
17% |
20% |
20% |
|
Barra Energia |
10% |
- |
- |
- |