Norwegian energy major
) has purchased a 25% participating interest from Brazilian
metals and mining firm
) in BM-ES-22A in the Espirito Santo Basin, offshore Brazil. The
transaction is liable to the consent of Brazilian authorities and
other conditions for closing.
Located in the Outer Espirito Santo Basin and adjacent to the
BM-ES-32 license, BM-ES-22A consists of Blocks ES-M-468 and
ES-M-527. Block BM-ES-22A is operated by
) with equity of 75%, while Vale holds the remaining 25% stake.
The exploration well spud in a water depth of 2,130 meters was
concluded in December 2010 and encountered 70 meters of light oil
in a good quality sandstone reservoir.
Petrobras, is the operator of license BM-ES-32, which holds the
Indra discovery, with an interest of 60% and Statoil is the
partner holding 40%. The Indra discovery overlaps the border
between BM-ES-22A and BM-ES-32.
With the recent acquisition, Statoil will now participate in
the ongoing appraisal of the well on Indra in BM-ES-22A. Another
exploration well is planned for 2013. The purchase is in sync
with the company's exploration strategy of enhancing operations
in the core areas and assists Statoil in enlarging its footing in
a prioritized basin.
PETROBRAS-ADR C (PBR): Free Stock Analysis
STATOIL ASA-ADR (STO): Free Stock Analysis
VALE SA (VALE): Free Stock Analysis Report
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The exploration results over the past decade in the Espirito
Santo Basin provides stimulus for additional scrutiny of the
area. The proposed operations in BM-ES-22A pose various
exploration risks but will help in further examination of this
Currently, Statoil is the largest international operator in
Brazil. The company was involved in the high impact discovery Pão
de Açúcar in February 2012 and also operates the Peregrino field,
which was commissioned in April 2011.
Statoil holds a Zacks #3 Rank, which is equivalent to a Hold
rating for a period of one to three months. Longer term, we
maintain our Neutral recommendation.