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.