Statoil, Total complete acquisition of interest in GOM's North Platte discovery

4/11/2018

STAVANGER -- Statoil and Total have completed their acquisition of Cobalt International Energy’s 60% operated interest in the North Platte discovery in the U.S. Gulf of Mexico (GOM) for an aggregate purchase price of $339 million. The partners had jointly presented the winning bid for the asset in a bankruptcy auction of some of Cobalt’s assets that was held on March 6, 2018.

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Garden Banks licenses. Source: Statoil.

Statoil now owns a 40% non-operated interest in North Platte, while Total has increased its existing 40% interest to 60% and taken over operatorship. The effective date of the transaction is Jan. 1, 2018.

North Platte is a Paleogene oil discovery covering four blocks in the Garden Banks area of the U.S. GOM. It has been fully appraised since its discovery in 2012 with three drilled wells and multiple sidetracks.

“This is a high-quality asset with a low CO2 footprint, and so strongly supports our strategy. It is also an excellent fit with our existing U.S. offshore portfolio, competence in technology development, and knowledge of the Paleogene play in which we are the second largest producer. We look forward to working with Total in developing North Platte for high value creation,” said Torgrim Reitan, Statoil’s executive V.P. for development and production USA.

Statoil already has interests in eight producing fields in the U.S. GOM and two in development. Their production is expected to reach 110,000 boed, making Statoil a top-five producer from the deepwater GOM. The portfolio will by 2020 achieve an average cash margin of at least $45/bbl after tax at an oil price of $70.

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