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Equinor takes stake in Roncador oil field
Equinor is to acquire a 25% interest in Brazil’s Roncador oil field, in the Campos Basin, for an initial payment of $2.35bn, plus additional contingent payments of up to $550mn. The deal will nearly triple the Norwegian company’s production in Brazil, with attractive break-evens and potential for additional value creation for both parties through the application of its expertise in improved oil recovery (IOR) on the Norwegian Continental Shelf.
Roncador was the largest discovery offshore Brazil in the 1990s. It is currently the third largest producing field in state-owned Petrobras’ portfolio, with around 10bn boe in place and an expected remaining recoverable volume of more than 1bn boe. The company plans to increase the recovery factor by at least 5 percentage points, bringing the total remaining recoverable volumes to more than 1,500mn boe.
The field has been in production since 1999 with output, during November 2017, of around 240,000 b/d of oil plus around 40,000 boe/d of associated gas. Petrobras will retain operatorship and a 75% interest in the field.
Photo: Eldar Sætre, President and CEO of Equinor (left), with Petrobras CEO Pedro Parente
Equinor/Ole Jørgen Bratland
News Item details
Journal title: Petroleum Review
Region: Latin America
Countries: Brazil -
Subjects: Banking, finance and investment, Economics, business and commerce, Oil, Exploration and production, Enhanced oil recovery (EOR)
