The transaction with respect to Hydro's acquistion of a 50 percent interest in the Block BM-C-7 Concession in Brazil is now closed.
Last November, Hydro entered into an agreement with Canadian EnCana Corporation to purchase all of the shares of an EnCana subsidiary holding a 50 percent interest in the BM-C-7 Concession offshore Brazil, containing the promising Chinook field.
This transaction was approved by the relevant Brazilian authorities and is now closed. A subsidiary of the former Kerr-McGee Corporation, which was recently acquired by Anadarko Petroleum Corporation, is the holder of the other 50 percent interest in the BM-C-7 Concession.
Hydro is the operator in the concept development phase of the Chinook field, and Hydro expects that its experience in other heavy oil fields will contribute to additional value.
The field is located 75 kilometers offshore Brazil in about 100 meters of water. In place resources are estimated to be two billion barrels of heavy oil. Recoverable reserves are 250-450 million barrels of oil.
Hydro and KerrMcGee have significant complementary skills and an integrated project team has been formed. A development plan is now being prepared.