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Petrobras, Statoil extend partnership to aging wells
October 06, 2016
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RIO DE JANEIRO: Petroleo Brasileiro (Petrobras) and Norway’s Statoil are expanding a partnership to help the Brazilian state-controlled company arrest declining production at aging wells in the offshore Campos Basin, two people with direct knowledge of the plan said.

The decision underscores steps by Petrobras’ Chief Executive Pedro Parente to rationalise capital spending and cope with low oil prices and a sweeping corruption scandal involving the company.

In late August, Petrobras and Statoil signed a memorandum of understanding that has since evolved to targeting aging wells. Both companies are discussing under which terms Statoil could get stakes in some fields in exchange for fresh investment and technological cooperation, the people said.

Press representatives for Petrobras did not have a comment. The sources asked not to be identified because the talks remain private. In an emailed statement to Reuters, Oslo-based Statoil said that following the signature of the memorandum, both companies moved to set up groups to work on cooperation areas. But it is too early to elaborate on the evolution of the ongoing works, it said.

Preferred shares in Petrobras closed 0.4 per cent higher at 14.02 reais on the S„o Paulo Stock Exchange on Tuesday. Statoil closed up 1.1 per cent at 135.5 Norwegian crowns.

The Campos Basin, which was responsible for about 85 per cent of Brazil’s oil output five years ago, now accounts for 58 per cent. Petrobras produces about 80 per cent of Brazil’s oil and is responsible for developing massive offshore oil finds in a region known as the Subsalt Polygon.

Statoil two months ago agreed to pay $2.5 billion for a 66 per cent stake in Carcar·, one of Petrobras’ largest oil and gas prospects. Recently, the companies signed a deal in which they said would collaborate on existing fields in Brazil’s Campos and Santos Basins.

The Subsalt Polygon is near the coast of Rio de Janeiro, where several of the world’s largest recent oil discoveries have been made.

Reuters

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