Prio buys Sinochem’s 40% in Brazil’s Peregrino field

Brazil

RIO DE JANEIRO, September 30, 2024 – Brazilian independent Prio has signed a sales and purchase agreement with SPEP Energy Hong Kong and Sinochem International Oil to acquire Sinochem Petroleum Netherlands, which indirectly holds a 40% interest in the Peregrino and Pitangola fields offshore Brazil, Prio announced on Friday.

Prio will pay USD 1.92 billion for the assets. Based on a long-term oil price of USD 62 per barrel, the fields’ economically recoverable reserves and resources are estimated at approximately 338 million barrels, with an abandonment date forecast for after 2037.

The fields are 85 kilometres off the coast in the Campos Basin, within Blocks BM-C-7 and BM-C-47, and 20 kilometres from the Polvo and Tuarão Martelo clusters. Peregrino yielded first oil in 2011 and is being exploited via the FPSO Peregrino and three fixed platforms with rigs. Current production is approximately 88,000 bopd and is being carried out through 26 producing wells and six injection wells.

Equinor is the majority (60%) interest holder and operator of the field. In addition to the customary approvals and conditions precedent, the transaction is subject to Equinor’s decision not to exercise pre-emption rights in the next 30 days.

Photo of FPSO Peregrino courtesy of Equinor

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