Assignment of the interest is subject to the prior approval of Brazilian authorities. The blocks, awarded to Repsol-YPF in Brazil's 2005 licensing round, are about 180km southeast of Sao Paulo in water depths of 150 meters to nearly 1000 meters and cover 2060 square kilometers.
Under the agreement, Repsol-YPF will operate the blocks – S-M-506, S-M-616, S-M-617, S-M- 670, S-M-673, S-M-674, S-M-675, S-M-728 and S-M-789. Woodside's commitment in the first exploration term of four years covers its share of three-dimensional seismic acquisition and one exploration well. A one-year extension of the exploration term is possible.
The agreement is consistent with Woodside's strategy to have several exploration opportunities cycling through the business with significant potential upside, attractive fiscal terms and competitive entry cost.
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