Statoil Brazilian Acquisition

News on Friday regarding further investment in offshore resources where the vendor is in somewhat of a fire-sale environment.

http://www.bloomberg.com/news/artic...bras-gets-2-5-billion-from-statoil-field-sale


Interesting points from the article:

1).  Production estimated to start in the mid 20's
2).  Cost of acquisition stated around USD $2 to USD $3 per barrel.
3).  An analyst at DNB ASA estimates the deal is estimated to be neutral to Statoil at an oil price of USD $60.

Takeaways

1).  Despite the low oil price environment, majors continue to invest.
2).  Statoil is prepared to pay up to USD $3 for a project with an estimated breakeven of USD $60 - makes the WPL acquisition price look even better value particularly as first oil many years after estimated first SNE oil.
3).  For the right opportunity (e.g. operatorship, access to a world class asset) deals will continue to occur and majors continue to be willing to fund.

Interesting few weeks indeed.