Brazilian Oil Firm Prio Secures Full Control of Peregrino Field

According to a regulatory filing with Brazil’s Securities Commission (CVM), Prio has agreed to purchase Equinor’s 60% stake in the Peregrino oil field for $3.5 billion.

The Brazilian independent oil company now controls the entire field after acquiring Sinochem’s 40% share for $1.9 billion last September. Prio will pay Equinor $3.35 billion plus up to $150 million in interest for the stake.

The deal establishes January 1, 2024, as the effective date, with final payment adjustments based on the actual closing date. Equinor will maintain operations until regulatory approvals finalize the transaction.

The Peregrino field sits in the Campos Basin off Rio de Janeiro’s coast. It produces heavy crude oil with 13° API gravity, the heaviest in Brazil’s production portfolio.

Despite this challenge, the field delivers approximately 94,000 barrels daily and has yielded 300 million barrels since operations began in 2009.

Prio estimates the field contains reserves and recoverable resources of 338 million barrels. Production will likely continue beyond 2037, offering long-term value to the Brazilian company controlled by entrepreneur Nelson Tanure.

Prio Emerges as Brazil’s Top Independent Oil Producer

The acquisition transforms Prio into Brazil’s largest independent oil producer. Analysts project significant operational benefits through integration with Prio’s existing assets. The company can potentially improve oil monetization by optimizing logistics and marketing strategies.

For Equinor, formerly known as Statoil, this sale aligns with its portfolio refinement strategy. The Norwegian energy giant faces industry headwinds including fluctuating oil prices and renewable energy setbacks in the United States.

“Brazil will continue to be a core country for Equinor,” stated Philippe Mathieu, Executive Vice President for Exploration and Production International. The company now focuses on developing the Bacalhau field and Raia gas project in Brazil.

In short, these ventures combined with its Roncador partnership, should boost Equinor’s Brazilian production to nearly 200,000 barrels daily by 2030.

The transaction highlights Brazil’s evolving energy landscape. Local companies gain prominence as international majors strategically realign their global asset portfolios.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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