Equinor completes acquisition of 25% interest in Brazil’s Roncador oil field

Equinor completes acquisition of 25% interest in Brazil’s Roncador oil field

Equinor completes acquisition of 25% interest in Brazil’s Roncador oil field

The FINANCIAL -- Reflecting equity volumes produced since the effective date of 1 January 2018 and the deposit paid upon the signing of the transaction, Equinor has paid Petrobras an adjusted cash consideration of USD 2.0 billion.

There remain additional contingent payments of up to USD 550 million related to investments in projects to increase the recovery from the field, according to Equinor.

Based on current production the interest in Roncador, the third largest producing field in Brazil, increases Equinor’s equity production in Brazil by around 150% to around 100,000 boe per day from around 40,000 boe per day. Petrobras retains operatorship of Roncador and a 75% interest.

The acquisition is part of Equinor’s strategic partnership with Petrobras to expand technical collaboration. Equinor will leverage its Increased Oil Recovery (IOR) technology, competence and experience from the Norwegian Continental Shelf (NCS), while Petrobras will use its experience as the world’s largest deepwater operator and pre-salt developer to maximise value creation from and the longevity of the Roncador field. Equinor is also using the partnership with Petrobras to develop its presence in the natural gas market in Brazil, according to Equinor.

The ambition is to increase Roncador’s recovery factor by five percentage points, increasing the total remaining recoverable volumes from 1 billion boe to more than 1.5 billion boe.