In a move within the global energy sector, Norwegian energy giant Equinor ASA has agreed to sell its 60% operated interest in Brazil’s Peregrino oil field to PRIO S.A., a leading Brazilian oil company, for $3.5 billion.
About the Companies
Equinor ASA, formerly known as Statoil, is a Norwegian multinational energy company headquartered in Stavanger, Norway. Primarily focused on petroleum and natural gas, Equinor operates in over 30 countries and has been expanding its investments in renewable energy. The company is majority-owned by the Norwegian government, holding a 67% stake.
PRIO S.A., formerly known as PetroRio, is a Brazilian oil and gas company specializing in the acquisition and revitalization of mature oil fields. The company has been actively expanding its portfolio in the Campos Basin, focusing on operational efficiency and production optimization.
Details of the Transaction
The transaction involves Equinor Brasil Energia, Equinor’s Brazilian subsidiary, selling its 60% operated interest in the Peregrino oil field to Prio Tigris, a subsidiary of PRIO S.A., for $3.5 billion. This deal follows PRIO’s previous acquisition of a 40% stake in the Peregrino field from China’s Sinochem for approximately $1.92 billion in late 2024, making PRIO the sole owner and operator of the field
The Peregrino field, located 85 kilometers off the coast in the Campos Basin, began production in 2011 and is one of Brazil’s largest offshore oil fields. It features infrastructure including the FPSO Peregrino and three fixed platforms, with a current production of approximately 88,000 barrels per day from 26 producing and six injection wells
Impact on the Industry
This acquisition marks a significant shift in Brazil’s offshore oil sector, with PRIO emerging as a major player through the consolidation of the Peregrino field. The deal underscores a trend of local companies acquiring assets from international oil majors, reflecting a broader industry movement towards portfolio optimization and focus on core assets
For Equinor, the divestment aligns with its strategy to streamline operations and reallocate capital towards renewable energy projects and other core areas. For PRIO, the acquisition enhances its production capacity and offers opportunities for operational synergies, particularly in logistics and marketing of the field’s oil.
Overall, this transaction highlights the dynamic nature of the global energy market, with companies adapting their strategies in response to evolving industry trends and economic considerations.