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Statoil and Petrobras Sign Letter of Intent

06/02/2011

CEO Helge Lund signed the LOI with Petrobras Chief E&P Officer, Guilherme Estrella. (Photo: Arne Reidar Mortensen)

Statoil and Petrobras signed a letter of intent (LOI) today, 25 May, to expand the cooperation between the companies within exploration, and to assess how the two companies can benefit from operational synergies.

The agreement focuses on two key initiatives, including the possible joint acquisition of new exploration acreage in areas of mutual interest (AMI).

This would be acquired through joint participation in public bid rounds. The second initiative will entail a joint screening study to evaluate possible operational synergies.

"For a number of years Statoil has had a technology agreement with Petrobras. A lot of good work has been done in both companies through information sharing and a joint commitment to common technology projects," says Statoil CEO Helge Lund. "I look forward to exploring this cooperation further on the basis of the letter of intent that we signed today."

Statoil in Brazil

The Peregrino field is located 85 kilometres offshore Brazil in the Campos basin at about 100 metres of water depth in licenses BMC-7 and BMC-47.

The first phase of the development includes two drilling and wellhead platforms and a large floating production, storage and offload unit (FPSO). A total of 37 wells are planned, all of them using advanced horizontal well technology to maximise recovery.

The field contains 300 to 600 recoverable million barrels of oil equivalents, with a significant yet-to-find potential. An exploration well is currently being drilled at Peregrino South to explore this potential. Following completion of this well, one additional well will be drilled in the area.

Production started at Peregrino in April this year.

Source: Statoil