Equinor Sells Stake in Peregrino Field to Brazilian Company PRIO Tigris for $3.5bn

Norwegian energy major Equinor has announced the sale of its stake in the Peregrino field to Brazilian company Prio Tigris, a subsidiary of PRIO, for $3.5 billion. This transaction marks a significant development in the energy industry and reflects Equinor’s strategic shift in its asset portfolio.

Equinor has divested its 60% operated interest in the Peregrino field to PRIO, Brazil’s largest independent oil and gas company, for a total consideration of $3.35 billion, with an additional maximum of $150 million in interest. The effective date of the transaction is set for January 1, 2024.

The payment for the stake will be made in two tranches, with one at signing and the remaining amount closer to the closing date. The payment is subject to customary adjustments as per the terms of the agreement.

PRIO has been a partner in the Peregrino field since last year when it acquired Sinochem’s 40% interest, further solidifying its position in the Brazilian energy market.

Equinor has been the operator of the Peregrino field since 2009, overseeing the production of approximately 300 million barrels of oil from the asset. Peregrino is known for its heavy oil reserves and comprises an FPSO (Floating Production, Storage, and Offloading) vessel, supported by three fixed platforms.

Until the completion of the transaction, Equinor will continue to manage the operations of the field, after which PRIO will take over as the operator.

Philippe Mathieu, EVP for international exploration and production at Equinor, expressed the company’s commitment to Brazil, highlighting the upcoming projects in the region. He stated, “Brazil will continue to be a core country for Equinor, as we focus on starting up the Bacalhau field and continue progressing the Raia gas project. With these two operated projects and our partnership in Roncador, our equity production in Brazil will be close to 200,000 barrels per day by 2030.”