Exxon Corporation Expands Presence in Brazil with Deepwater Block Acquisition

Strategic Insights -

Exxon Corporation, through its affiliate Esso, has been awarded a 25% interest in the deepwater block BMFZA-1 in the Foz do Amazonas Basin, off the States of Amapa and Para, Brazil. The block, which covers an area of approximately 3.5 million acres, is located in water depths ranging from 260 to 6,200 feet. This is Esso's second deepwater block acquisition in Brazil, following the previously awarded BMES-1 block, and demonstrates the company's commitment to expanding its presence in the country.

Key Takeaways:

  • Exxon Corporation's affiliate Esso has been awarded a 25% interest in the deepwater block BMFZA-1 in Brazil.
  • The block covers an area of approximately 3.5 million acres and is located in water depths ranging from 260 to 6,200 feet.
  • Esso's working interest in the block is 25%, with other co-venturers including BP Exploration Operating Company (operator, 30%), Shell Brasil (12.5%), British-Borneo Oil and Gas (12.5%), and Petrobras (20%).
  • The total bonus bid for the block by the co-venturers was US$7.3 million (13.06 million reals).
  • This is Esso's second deepwater block acquisition in Brazil, following the previously awarded BMES-1 block.
  • Esso is also finalizing five additional agreements with Petrobras for deepwater exploration acreage in the Campos, Santos, Pelotas, and Amazon Mouth basins.

Statistics:

  • Block BMFZA-1 covers an area of approximately 3.5 million acres.
  • The block is located in water depths ranging from 260 to 6,200 feet.
  • Esso's working interest in the block is 25%.
  • The total bonus bid for the block by the co-venturers was US$7.3 million (13.06 million reals).

Sources:

  • Exxon Corporation press release, June 16, 2002, PRNewswire
  • Exxon Corporation, BRAZIL BLOCK BMFZA-1 FACT SHEET
  • ANP (Agencia Nacional de Petroleo) First Brazil Exploration License Round
  • Esso Brasiliana de Petroleo Limitada (Esso) press release, June 2002 (no date specified)