Maersk Oil to buy Brazilian assets for $2.4 billion

Mærsk Olie og Gas A/S has agreed with SK Energy Co., Ltd. to acquire SK do Brasil Ltda. for US$2.4 billion on a cash and debt-free basis. The acquisition is subject to governmental approval. The acquisition gives Maersk Oil access to large pre-salt assets Offshore Brazil, one of the most prolific regions in the world.
Maersk Oil CEO Jakob Thomasen said in a statement “the acquisition is consistent with our strategy as it will transform Brazil into a core producing country for Maersk Oil. Through our partnerships in the three blocks we acquire, we will strengthen our position in Deepwater exploration and production, an area where we have acquired acreage and built strong competencies in recent years”.
The acquisition comprises three blocks: BM-C-008, which includes the Polvo Field (40%, Devon operated); BM-C-030, which includes the Wahoo discovery (20% share, Anadarko operated); and BM-C-032, which includes the Itaipu discovery (27% share, Devon operated). BP has bought Devon’s Brazilian activities and will become operator of these, pending regulatory approval.
The Polvo Field offers a current net production of about 10,000 bopd. The Wahoo and Itaipu discoveries will be appraised in 2011, and first oil may be possible by 2016 and 2018, respectively. Additional prospects have been observed in both these blocks.