Total, Equinor Withdraw from Brazilian Blocks: Update

(Adds Equinor's confirmation of exit)

Norway's Equinor and France's Total are withdrawing from a group of blocks in Brazil's offshore Espirito Santo basin, Brazil's Petrobras reported on June 1, announcing that it was seeking new investment partners.

Equinor currently has a 50% stake in block ES-M-596, 40% interests in blocks ES-M-598 and ES-M-673, and 35% positions in blocks ES-M-671 and ES-M-743. Total, meanwhile, has 25% interests in ES-M-671 and ES-M-743. The five blocks were awarded in a licensing round in 2013.

Petrobras said it was due to receive both majors' interests in the acreage in the second half of 2020. Once this takes place, the Brazilian firm will have 100% interests in ES-M-596, ES-M-671 and ES-M-743, and 80% stakes in ES-M-598 and ES-M-673. The remaining 20% shares in ES-M-598 and ES-M-673 are held by Brazil's Enauta.

Equinor confirmed to NGW it was "in the process of withdrawing from the five blocks," without disclosing its reasons. Total has not responded to a request to comment. In common with nearly all international oil companies, this year both producers have announced upstream investment spending reductions in the wake of the oil price crash.

Petrobras said it was now seeking new investment partners at the blocks, having launched a teaser phase for potential sales. The concessions are located near to the post-salt Parque dos Deuses, Parque dos Doces and Parque dos Cachorros discoveries, and could hold significant volumes of hydrocarbons in both pre- and post-salt layers, the company said.

Petrobras is also seeking a buyer for its 35% stake in Campo de Manati, a gas-producing concession in the offshore Camamu basin.