Equinor buys out Barra in Brazil block

Brazil

RIO DE JANEIRO, July 4, 2018 – Norway’s Equinor has agreed to buy Brazilian independent Barra Energia’s 10% stake in the offshore BM-S-8 block for USD 379 million, the major said in a press statement on Wednesday.

The deal follows other stake changes in BM-S-8 involving partners Petrogal and ExxonMobil. Both sales are part of a larger process to align the stakes in the block with those of Carcará North, an adjacent block.

“Upon closing, Equinor intends to sell down 3.5% to ExxonMobil and 3% to Galp [Petrogal], so fully aligning interests across BM-S-8 and Carcará North,” the statement said. Eventually, the final stake distribution in both licences will see operator Equinor and Exxonmobil each with 40%, and Petrogal with 20%.

The Carcará field, which lies across both BM-S-8 and Carcará North, is estimated to contain 2 billion boe of recoverable reserves. Equinor intends to begin producing from the field in 2023 or 2024.

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