popular articles

Brazil: Prio and Sinochem negotiate 40% stake in Peregrino

Prio is in advanced discussions with Sinochem to acquire a 40% stake in the Peregrino oil field. The deal, valued at $1.9 billion, could significantly boost Prio's production.

Please share:

Negotiations between Prio and Sinochem are progressing for the acquisition of a 40% stake in the offshore Peregrino field, located in the Campos Basin, offshore Rio de Janeiro.
This stake could enable Prio to increase its production by 40,000 barrels of oil per day, in addition to the 80,000 barrels produced daily by the company.
The Peregrino field, which currently produces around 110,000 barrels a day, is operated by Equinor, which holds the remaining 60% stake.
The acquisition aims to integrate this strategic asset into Prio’s portfolio, with significant operational and geographic synergies.

Sinochem seeks to rationalize its portfolio

Since 2017, Sinochem has been looking to sell this stake, acquired in 2010 for $3.07 billion from Equinor (formerly Statoil).
The sale is part of a broader strategy by the Chinese company, which is seeking to refocus its investments on more profitable projects.
Sinochem’s disengagement extends beyond the Brazilian field, as the company has also initiated the sale of its 40% stake in a shale joint venture with ExxonMobil in the USA, valued at over $2 billion.
Sinochem is thus adjusting its portfolio in response to the dynamics of the global oil market and the Group’s new strategic priorities.

Benefits for Prio and consolidation of the Brazilian market

For Prio, this acquisition represents an opportunity to strengthen its presence in the Brazilian offshore sector, particularly in the Campos Basin.
By increasing its production capacity by a further 40,000 barrels per day, the company consolidates its position as one of Brazil’s leading independent hydrocarbon producers.
The acquisition also complements Prio’s expansion strategy, which has seen the company make several acquisitions in recent years to add to its portfolio of offshore assets.
The Brazilian oil sector is undergoing a major restructuring, with companies seeking to maximize the exploitation of offshore fields.
The Campos Basin, home to several of the country’s largest oil fields, remains a key focus for oil investments.
If the agreement goes ahead, it will mark a new stage in the consolidation of the sector, with a refocusing of Sinochem’s assets and a strengthening of Prio’s production capacities.

Outlook and challenges for the sector

The outcome of the negotiations remains uncertain, although both parties are optimistic that an agreement can be reached in the coming weeks.
Discussions are focusing on the financial and operational terms of the transaction, with particular attention to asset transfer conditions and regulatory obligations.
If finalized, the deal will mark one of the largest transactions in the Brazilian oil sector in recent years, with implications for both the local market and the international strategy of both companies.
The conclusion of this agreement would also strengthen Prio’s position in the face of growing competition in the Brazilian offshore sector, while offering Sinochem the opportunity to reorganize its investment priorities.
With global demand for oil in constant evolution, this transaction could provide Prio with long-term growth opportunities, notably by increasing its production volumes in a context of rising demand for crude oil.

Register free of charge for uninterrupted access.

Publicite

Recently published in

New Mexico Oil Auctions Generate $5.5 Million: A Mixed Success
Despite pressure on refining margins, Africa is accelerating refinery projects to meet growing demand and enhance energy security, while facing competition from global giants.
Despite pressure on refining margins, Africa is accelerating refinery projects to meet growing demand and enhance energy security, while facing competition from global giants.
India's oil product consumption grew by 3% in October, marking a recovery after the monsoon season, driven by diesel demand and robust vehicle sales during the festive season.
India's oil product consumption grew by 3% in October, marking a recovery after the monsoon season, driven by diesel demand and robust vehicle sales during the festive season.
Aramco, Sinopec, and Fujian Petrochemical break ground on an integrated refining and petrochemical complex in China, aiming for an annual production of 16 million tons to meet the rising global demand for chemicals.
Aramco, Sinopec, and Fujian Petrochemical break ground on an integrated refining and petrochemical complex in China, aiming for an annual production of 16 million tons to meet the rising global demand for chemicals.
O.K. Lim, a former oil tycoon in Singapore, has been sentenced to 17 and a half years in prison for a massive financial fraud that defrauded HSBC of $100 million, tarnishing the city-state's commercial reputation.
TechnipFMC and Saipem secure contracts exceeding one billion dollars each for TotalEnergies’ offshore oil project, GranMorgu, aimed at exploiting fields off the Suriname coast.
TechnipFMC and Saipem secure contracts exceeding one billion dollars each for TotalEnergies’ offshore oil project, GranMorgu, aimed at exploiting fields off the Suriname coast.
Sinopec's Tianjin Nangang complex, developed with INEOS, enhances China's petrochemical capabilities with integrated production of 1.2 million tons annually. This project marks a turning point in strategic partnerships and industrial self-sufficiency.
Sinopec's Tianjin Nangang complex, developed with INEOS, enhances China's petrochemical capabilities with integrated production of 1.2 million tons annually. This project marks a turning point in strategic partnerships and industrial self-sufficiency.
ENEOS, Japan's leading refiner, intensifies spot market oil purchases, including Canadian crude, leveraging the Trans Mountain pipeline expansion. This shift reduces Japan's energy dependence on the Middle East.
ENEOS, Japan's leading refiner, intensifies spot market oil purchases, including Canadian crude, leveraging the Trans Mountain pipeline expansion. This shift reduces Japan's energy dependence on the Middle East.
Despite growing calls to reduce hydrocarbon production, a report by the NGO Urgewald reveals that the oil and gas industry has invested an average of $61.1 billion annually in exploration over the past three years.
The Mexican government is set to unveil a long-term strategy for Pemex as the state-owned company faces structural challenges. Experts and investors discuss the necessary solutions, including opening up to private capital.
The Mexican government is set to unveil a long-term strategy for Pemex as the state-owned company faces structural challenges. Experts and investors discuss the necessary solutions, including opening up to private capital.
Despite high expectations, Dangote refinery faces difficulties selling gasoline domestically and begins exporting to ease stock and diversify its markets.
Despite high expectations, Dangote refinery faces difficulties selling gasoline domestically and begins exporting to ease stock and diversify its markets.
OPEC+ recorded an increase of 30,000 barrels per day in October, marked by Libya’s production surge and Kazakhstan’s reduction. Compliance remains a key challenge for the group.
OPEC+ recorded an increase of 30,000 barrels per day in October, marked by Libya’s production surge and Kazakhstan’s reduction. Compliance remains a key challenge for the group.
The Hague's Court of Appeal overturned a historic decision obliging Shell to reduce its CO2 emissions, rejecting the environmental NGOs' appeal, which denounced the multinational's inaction on climate.
A year after its strategic acquisitions in the Permian Basin, Civitas Resources records a strong increase in productivity and strengthens its positions, notably through innovations in simultaneous fracturing and a production record in Colorado.
A year after its strategic acquisitions in the Permian Basin, Civitas Resources records a strong increase in productivity and strengthens its positions, notably through innovations in simultaneous fracturing and a production record in Colorado.
Facing growing domestic demand, Vietnam's Nghi Son refinery seeks government approval to increase its Kuwaiti oil imports, thereby exceeding its annual tax-free quota.
Facing growing domestic demand, Vietnam's Nghi Son refinery seeks government approval to increase its Kuwaiti oil imports, thereby exceeding its annual tax-free quota.
As Russian and Kazakh refineries resume operations following maintenance periods, the energy market anticipates potential effects on fuel supply. Uncertainty remains around gasoline exports in Russia.
As Russian and Kazakh refineries resume operations following maintenance periods, the energy market anticipates potential effects on fuel supply. Uncertainty remains around gasoline exports in Russia.
CNOOC Group has announced the start of production for its Long Lake NW project in Canada, which is expected to reach a peak of 8,200 barrels per day in 2025, utilizing SAGD technology.
A report by Reclaim Finance accuses 20 European banks of promoting oil and gas expansion through significant financing, hindering energy transition goals.
A report by Reclaim Finance accuses 20 European banks of promoting oil and gas expansion through significant financing, hindering energy transition goals.
Saudi Aramco reduces its December official selling prices for crude oil bound for Asia, a move in line with market expectations. Adjustments vary by crude type, with larger cuts for lighter grades.
Saudi Aramco reduces its December official selling prices for crude oil bound for Asia, a move in line with market expectations. Adjustments vary by crude type, with larger cuts for lighter grades.
Marathon Petroleum exceeded financial forecasts by increasing its refinery throughput and maximizing utilization rates. This strategy leverages fluctuations in the oil market to enhance profitability.
Marathon Petroleum exceeded financial forecasts by increasing its refinery throughput and maximizing utilization rates. This strategy leverages fluctuations in the oil market to enhance profitability.
Saudi oil giant Aramco reports a 15% drop in net profit in the third quarter, driven by falling oil prices and reduced production, adding uncertainty to the global energy market outlook.
The American group ExxonMobil has finalized the sale of the Fos-sur-Mer refinery to Rhône Energies, a consortium led by Trafigura, marking a step in its strategy to reduce activities in France.
The American group ExxonMobil has finalized the sale of the Fos-sur-Mer refinery to Rhône Energies, a consortium led by Trafigura, marking a step in its strategy to reduce activities in France.
Italian energy giant Eni has finalized the sale of its Alaskan oil fields to American firm Hilcorp for $1 billion, advancing its strategy of refocusing on strategic assets.
Italian energy giant Eni has finalized the sale of its Alaskan oil fields to American firm Hilcorp for $1 billion, advancing its strategy of refocusing on strategic assets.
Saudi Arabia, Russia, and six other OPEC+ countries extend their production cuts by 2.2 million barrels per day until the end of December to support oil prices weakened by uncertain demand.
Saudi Arabia, Russia, and six other OPEC+ countries extend their production cuts by 2.2 million barrels per day until the end of December to support oil prices weakened by uncertain demand.

Advertising