Bloomberg News

Statoil Drilled Dry Hole in Brazil After Sale to Gran Tierra

December 15, 2011

Dec. 15 (Bloomberg) -- Statoil ASA, Norway’s largest oil and natural-gas company, drilled a dry hole in deep waters off the coast of northeastern Brazil.

Statoil is evaluating the next steps at the project after failing to find oil in a well in 1,890 meters (6,200 feet) of water at the Camamu-Almada basin, Statoil said today in an e- mailed response to questions.

“It is disappointing with a negative well result but that is the risk with frontier exploration,” Statoil said. “We will now evaluate the result before we decide on next steps.”

Statoil, based in Stavanger, Norway, started drilling the well in October. Petroleo Brasileiro SA, Brazil’s state- controlled producer, is a partner with Statoil at the project.

Gran Tierra Energy Inc., a Canadian oil company operating in South America, agreed to buy a 15 percent stake in the BM- CAL-10 block on Sept. 15 as it expands in Brazil, which plans to double oil production over the next 10 years.

--Editors: Robin Saponar, Jessica Resnick-Ault

To contact the reporter on this story: Peter Millard in Rio de Janeiro at Pmillard1@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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