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Holdings gained in two Brazilian blocks

October 18, 2005, 15:15 CEST

Statoil has been awarded interests in two deepwater blocks off Brazil in the seventh licensing round.

Statoil got a 50 per cent holding in block C-M-539 in the Campos Basin, while Spain's Repsol became operator with a 50 per cent share.

In the other block, ES-M-594 in the Espirito Santo Basin, Statoil was awarded a 40 per cent share. Brazil's Petrobras is operator with 60 per cent.

Both blocks lie at a water depth of about 2,500 metres.

The new holdings are important for Statoil's further commitment in Brazil, notes country manager Jorge Camargo at Statoil's office in Rio de Janeiro.

"We are satisfied with these awards," says Mr Camargo. "We applied for three blocks and won two of them amid stiff competition."

The companies are committed to drilling two exploration wells in the Campos block during a four-year period.

In Brazil, blocks are awarded by auction run by the state directorate Agência Nacional do Petróleo (ANP). Bids are placed in sealed envelopes and the highest bid wins.

Statoil is now participating in seven blocks off Brazil and is operator for three of these.