Statoil, Repsol announce series of deals in U.S., UK, Norway, Brazil

STAVANGER, Norway -- Statoil announced a series of transactions with Repsol on Friday as the Stavanger-based company seeks to increase the number of operatorships it holds in priority areas.

• Statoil has farmed down a 15% interest in Gudrun field, on the Norwegian Continental Shelf, to Repsol. Statoil remains the operator and largest equity holder with a 36% interest.
• Pending approval by Repsol’s partners, Statoil will acquire a 31% equity share in the UK license for Alfa Sentral, a field which spans the UK-Norway maritime border.
• Statoil is to acquire, from Repsol, a 13% interest in the Eagle Ford joint venture and become its sole operator.
• In agreement with its license partners, Statoil will also assume operatorship of the BM-C-33 license in Brazil’s Campos basin, pending approval from authorities. 

“We are delighted to be deepening our relationship with Repsol. In the current challenging market environment, these are innovative, value-enhancing transactions, which will help control costs and strengthen Statoil’s portfolio for the long term,” John Knight, Statoil’s executive V.P. for global strategy and business development, said.

Once approved, the agreement on Alfa Sentral will increase Statoil’s holding in the UK license for the field. It follows the transaction between Statoil and First Oil, which was completed in November 2015. Statoil will become the largest equity holder in Alfa Sentral field in both the UK and Norway licenses, thus increasing its share of the resource base and its potential future profitability. The field is a priority project for Statoil and its development, as a tie back to the existing Sleipner infrastructure, will help to prolong and develop further the Sleipner area.

Ambition

“Statoil has ambitious goals for future activity, production and value creation on the Norwegian Continental Shelf and this deal supports our long-term ambition,” Knight continued. “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.”

In the U.S., Statoil will now become sole operator of the Eagle Ford joint venture. This will allow for more optimal field development, efficient operations and cost savings, and thus more resilience to low oil prices.

In Brazil, the operatorship of BM-C-33, once formally approved by the Brazilian authorities, will allow Statoil to use its deep water and gas experience to develop the BM-C-33 discoveries.

“The U.S. and Brazil are focus areas for Statoil’s international strategy. As the sole operator in the Eagle Ford joint venture, we will deliver benefits for both partners. We are looking forward to becoming operator in BM-C-33 and applying our offshore and operating skills on this high impact discovery,” Knight added.

The transactions for Gudrun and Eagle Ford are valued at the same amount and their effective dates are both Jan. 1, 2015. They are expected to close before the end of 2015, pending government approvals. The transfer of operatorship of BM-C-33 will be concluded once approved by the Brazilian authorities.