Name: Statoil acquires 25% in the Roncador field from Petrobras for US$2.8 billion
Brand: Wood Mackenzie
SKU: 80639
Price: 1650 USD
Availability: OnlineOnly
Author: Wood Mackenzie

Deal Insight 10 January 2018

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Report summary

Statoil will acquire a non-operated 25% interest in the offshore Roncador field in Brazil for a nominal consideration of US$2.9 billion. US$2.35 billion will be paid on deal closing. In addition, Statoil will carry Petrobras investments in the field for up to US$550 million in IOR applications. We expect these investments to occur in 2019 and 2020, equating to a real consideration of US$2.84 billion. Statoil has also secured access to onshore gas processing capacity for its BM-C-33 operated project in the Cabiunas terminal. Petrobras and Statoil announced remaining recoverable volumes of 1 bnboe, but the two companies expect to increase the recovery factor by 5%, producing additional 500 mmboe, through technical cooperation on IOR and infill drilling. Using the asset phase functionality from our Global Economic Model (GEM) tool, we have valued both the initial volumes, and expected incremental recovery.

Executive summary
Transaction details
Upstream assets
- Roncador
Deal analysis
Upsides and risks
- Recovery factor upside
- Exploration upside
- Widening oil price discount to Brent
- Disappointing productivity
Strategic rationale
- Petrobras has a lot of work to do in 2018 to hit its divestment target
- Transformational deal for Statoil in Brazil
Oil & gas pricing and assumptions