Prio Partners with Equinor in $1.91 Billion Oil Deal

Prio has successfully acquired a 40% stake in the Peregrino and Pitangola oil fields for approximately $1.91 billion. This deal places Prio in partnership with Equinor, which retains a 60% operating interest in the Peregrino field.

The acquisition includes an initial payment of $191.5 million, with the remaining balance of around $1.72 billion settled upon completion. Adjustments related to working capital kept the net payment between $1.665 billion and $1.715 billion.

This move is significant for Prio, as it adds about 35,000 barrels per day to its production capacity. The Peregrino field holds recoverable reserves of around 338 million barrels.

Prio’s share of these reserves is estimated at 135 million barrels. Located 85 kilometers offshore, the Peregrino field has been producing oil since 2011 and is undergoing further development.

It features advanced extraction technology through a Floating Production Storage and Offloading (FPSO) unit that can process up to 110,000 barrels per day.

The crude oil extracted from this field is classified as heavy, with an API gravity of 13.5° and a sulfur content of 1.79%. Despite requiring specialized refining processes, it remains economically viable.

Following the announcement, Prio‘s stock rose over 3%, reflecting positive market sentiment. Analysts view this acquisition as a crucial step for Prio to enhance its competitive position in Brazil’s oil sector while focusing on shareholder value.

Overall, this acquisition not only strengthens Prio’s operational capabilities but also positions it favorably within Brazil’s dynamic energy market, emphasizing self-reliance and strategic growth in a competitive landscape.

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