Trio Seeks Brazil Oil Block Farm-Out

ExxonMobil, along with Hess and Petrobras, is moving forward with the sale of a stake in an offshore block in the Santos Basin, located in the heart of the country’s famed pre-salt oil developments. The farm-out agreement is now moving beyond the data-room stage and partners are set to make a decision this month, an official at Hess confirms. The deal involves offering a new partner as much as a 25% interest in the exploration license of the BM-S-22 block, in exchange for financing a new well drilling. Currently Exxon operates the license and owns a 40% stake, with Hess (40%) and Petrobras (20%) holding the rest. The 25% stake on offer will be taken proportionately from each partner’s share, the official says. The terms have not been made public so far. An Exxon spokesman could not immediately provide additional details, and Petrobras officials could not be reached for additional comment. The BM-S-22 was auctioned by the Brazilian government in round three in 2001.