Brazil: License Agreement Equinor to Acquire Barra’s 10 % Interest in Carcará Area

Editor: Ahlam Rais

Equinor has plans to buy the stake in the BM-S-8 license in Santos basin, offshore Brazil for 370 million dollars.

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CEO Renato Bertani (left), Barra Energia, and Anders Opedal, Brazil country manager.
CEO Renato Bertani (left), Barra Energia, and Anders Opedal, Brazil country manager.
(Source: Guilherme Botelho / Equinor)

Brazil – Equinor and Barra Energia (Barra) have signed an agreement for Equinor to acquire Barra’s 10 % interest in the BM-S-8 licence in Brazil’s Santos basin. This transaction will enable Equinor and its partners to fully align interests across the two licences for the Carcará area.

In early June Equinor, Exxon Mobil and Galp completed transactions in BM-S-8 to start aligning equity interests. With this, the three partners hold stake in the adjacent Carcará North block. BM-S-8 and Carcará North together comprise the Carcará area, which contains approximately 2 billion recoverable barrels of oil equivalent.

Equinor is the operator of both blocks and aims to develop the unitised field with the ambition to deliver first oil between 2023 and 2024. The total consideration for Barra’s 10 % interest is 379 million dollars, the same as for Equinor’s earlier transaction in BM-S-8 with Queiroz Galvão Exploração e Produção (QGEP) 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 Exxon Mobil and 3 % to Galp, so fully aligning interests across BM-S-8 and Carcará North.