Sinochem buys into Peregrino off Brazil

Sinochem Group is acquiring a 40% stake from Statoil in the Peregrino field in the Campos basin offshore Brazil.

Offshore staff

STAVANGER, Norway -- Sinochem Group is acquiring a 40% stake from Statoil in the Peregrino field in the Campos basin offshore Brazil. Statoil will remain operator, with a 60% interest.

“We are pleased with the transaction and look forward to partner with Sinochem Group in the further development and operations of the large Peregrino field,” said Statoil CEO Helge Lund. “Both companies see many opportunities for value creation through increased recovery and exploration for additional resources in the decades to come. I am pleased that we also have agreed to sign a MoU to jointly investigate further opportunities in Brazil and elsewhere.”

The transaction is subject to government approvals in Brazil and China.

Peregrino field is 85 km (53 mi) offshore Brazil in 100 m (328 ft) water depth in licenses BMC-7 and BMC-47. The field was discovered in 1994. Norsk Hydro (since merged with Statoil)) acquired 50% of the field in 2005, and the remaining 50% and operatorship in 2008. The first phase of the development includes two drilling/wellhead platforms and an FPSO.

Sinochem Group,100% state owned, is China’s fourth largest oil company. Since 2003 it has invested $1.8 billion in overseas acquisitions in the energy sector, its main focus being on Latin America, Africa, and the Middle East.

05/24/2010

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