Statoil, Repsol to exchange certain global stakes

Statoil ASA has agreed to several deals with Repsol SA that will affect both companies’ stakes in fields offshore UK and Norway, in the Campos basin offshore Brazil, and in the Eagle Ford shale of South Texas. Prices were not disclosed.

Statoil will farm down to Repsol 15% interest in Gudrun field on the Norwegian Continental Shelf. Statoil remains the operator and largest equity holder with 36% interest.

Production from the field started in 2014 (OGJ Online, Apr. 7, 2014), and during 2015 has averaged 75,000 boe/d. Gudrun holds 130 million boe remaining and is a high-pressure, high-temperature reservoir.

Pending Repsol partner approval, Statoil will acquire 31% equity share in the UK license for Alfa Sentral, a 60 million-boe natural gas and condensate field spanning the UK-Norway maritime border. Statoil in October reported the acquisition of 24% interest in the field from First Oil Expro Ltd. for $15 million (OGJ Online, Oct. 5, 2015).

The field is a priority project for Statoil and its development, a tie back to the existing Sleipner infrastructure, will help prolong and develop further the Sleipner area, the company says. Statoil is operator of PL046 with 62% interest.

“We are bringing a strong partner into Gudrun, an important NCS asset, and our increased interest in the Alfa Sentral development will strengthen our efforts to develop the important Sleipner area towards 2030,” explained John Knight, Statoil executive vice-president for global strategy and business development.

Statoil will acquire from Repsol 13% interest in the Eagle Ford joint venture and become its sole operator. Statoil says this will allow for more optimal field development, efficient operations, and cost savings, and thus more resilience to low oil prices.

Statoil has been active in US shale since 2008, and entered the Eagle Ford in 2010 through a 50-50 joint venture with Talisman Energy USA Inc. (OGJ Online, Oct. 11, 2010). Talisman, now owned by Repsol, initially acted as operator for the jointly owned acreage. Under the terms of the 2010 agreement, Statoil took over operations in the eastern half of the asset in July 2013.

In an agreement with its license partners, Statoil will assume operatorship of the Pao de Acucar Exploration License BM-C-33, comprising the Pao de Acucar, Gavea, and Seat discoveries in Brazil’s Campos basin, pending approval from authorities.

The discovery in the Pao de Acucar prospect was made in in 2012 (OGJ Online, Feb. 27, 2012). The partners have since completed two successful appraisal wells to further infer the size of the discovery.

The partnership in 2012 reported total estimated block resources of around 700 million bbl of light crude and 3 tcf of gas. Statoil says the ongoing appraisal campaign will clarify the discovered potential.

Statoil in Brazil is operator of Peregrino field and has an active exploration portfolio (OGJ Online, Sept. 21, 2015).

The Gudrun and Eagle Ford deals are both effective Jan. 1, 2015, and are expected to close before yearend 2015, pending government approvals.

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