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6 Pages

Statoil acquires Brazilian pre-salt discovery from Petrobras for US$2.5 billion


Statoil acquires Brazilian pre-salt discovery from Petrobras for US$2.5 billion

Report summary

On 29 July 2016 Statoil announced that it will acquire Petrobras' 66% operating interest in the BM-S-8 block offshore Brazil for a nominal consideration of US$2.5 billion. The transaction includes a portion of the Carcará oil discovery, which extends beyond BM-S-8 into open acreage, and the Guanxuma prospect, located in the western portion of the block. This is the Brazilian NOC's largest ever single asset sale, and its first in the highly productive pre-salt area. Petrobras offloads one of the most technically challenging projects in its portfolio, freeing resources to focus on its core, cash-generating assets. The materiality of Carcará demonstrates that the company and Brazilian government are serious about de-leveraging Petrobras' highly indebted balance sheet. For Statoil, the deal substantially strengthens its post-2020 production growth potential.

What's included?

This report includes 1 file(s)

  • Statoil acquires Brazilian pre-salt discovery from Petrobras for US$2.5 billion PDF - 293.67 KB 6 Pages, 7 Tables, 0 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Carcará
    • Guanxuma
  • Deal analysis
  • Upsides and risks
    • Reserves upside
    • Local content
    • Unitisation risks
    • High pressure
    • Gas monetisation
  • Strategic rationale
    • Statoil
    • Petrobras
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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