Statoil has been keeping an eye on the oil discovery Carcará in Brazil since 2012 and believes that it is strategically smart to make a purchase while oil prices are low.
– It’s a big day for us, executive vice president for exploration at Statoil, Tim Dodson says.
The license, which Statoil has acquired 66 percent of, was awarded in 2000. To delineate the discovery, seismics have been gathered and interpreted , and an exploration well and two additional wells have been drilled . In addition, it a production test has been made and its findings were promising. Statoil will now pay $ 2.5 billion for these investments, ie 02.03 dollars per barrel in costs if the field produces as much oil as expected.
– You have to be very good at searching to find an oil field that costs under $ 4 a barrel,Dodson says .
Statoil gave notice of their acquisition just two days after they delivered very disappointing results for the second quarter and in a period of decreasing oil prices. Dodson is not worried about this:
– Strategically it’s a good purchase . We strongly believe in Brazil and the financial strength necessary to buy countercyclical, while the oil prices are low.
He is not willing to state how high they need the price of oil to be, for the production of oil in that field to pay off .
Source: NTB scanpix / Norway Today