By OGJ editors
HOUSTON, Sept. 18 -- Statoil ASA plans to acquire interest in two Gulf of Mexico deepwater discoveries—Big Foot and Caesar—and one prospect from Plains Exploration & Production Co. for $700 million.
The transaction is expected to close in early November. In addition, Plains E&P agreed to give Statoil a right of first negotiation for other deepwater gulf assets.
Statoil is acquiring a 17.5% interest in the Caesar discovery, operated by Shell Exploration & Production Co., and a 12.5% interest in the Big Foot discovery along with a 12.5% interest in Big Foot North prospect, both operated by Chevron Corp.
Caesar is 160 miles south of Houma, La., on Green Canyon Block 683 (OGJ, May 22, 2006, Newsletter). The Caesar well was drilled to 29,721 ft TD in 4,500 ft of water.
The Big Foot discovery, on Walker Ridge Block 29, lies in 5,000 ft of water about 225 miles south of New Orleans (OGJ, Aug. 7, 2006, Newsletter).
The new assets are in the Greater Tahiti area, where Statoil already was positioned.
The Caesar discovery is between the Chevron-operated Tahiti and Tonga discoveries, in both of which Statoil has a 25% interest. Tahiti is under development on Green Canyon Block 640 in 4,000 ft of water 190 miles southwest of New Orleans, and due to come on stream in 2008.
The Big Foot discovery is in the same geological trend as Tahiti and Caesar. Big Foot is in the Walker Ridge area, close to the Jack and St. Malo discoveries operated by Chevron. Statoil holds a 25% interest in Jack and 6.25 % interest in St. Malo (OGJ, Sept. 11, 2006, Newsletter).
