Norsk Hydro to buy EnCana's Chinook interest

Nov. 22, 2005
Norsk Hydro ASA agreed to pay $350 million for a 50% interest in the Chinook heavy oil discovery off Brazil from EnCana Corp., Calgary.

By OGJ editors
HOUSTON, Nov. 22 -- Norsk Hydro ASA agreed to pay $350 million for a 50% interest in the Chinook heavy oil discovery off Brazil from EnCana Corp., Calgary.

Norsk Hydro will buy all shares of an EnCana subsidiary holding the stake in Block BM-C-7 in the Campos basin. The sale, subject to normal closing conditions and regulatory approvals, is expected to close in the first quarter of 2006.

EnCana, operator of the 133,000-acre block, has tested oil in two appraisal wells in the field (OGJ, Nov. 7, 2005, Newsletter). Kerr-McGee Oil & Gas Corp. holds the other 50% interest.

Randy Eresman, EnCana's chief operating officer, said EnCana will continue to hold interests in eight deepwater exploration blocks off Brazil and is committed to evaluating those blocks.

EnCana and partners are being awarded two additional blocks in the Potiguar basin, Eresman said.