Prio, a Brazilian oil company, is in discussions to purchase the remaining 60% stake in the offshore Peregrino oilfield from Norway’s Equinor, reported Reuters, citing Brazilian newspaper Folha de S. Paulo.
The Peregrino field, discovered in 1994, began production in 2011.
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Located 85km off the coast in the Campos Basin, it spans blocks BM-C-7 and BM-C-47, 28km from the Polvo and Tubarão Martelo Cluster.
Production is managed through the floating production storage and offloading (FPSO) Peregrino, which can process 110,000 barrels of per day (bpd) of oil and 300,000bpd of water.
The field consists of three fixed platforms (Peregrino A, B and C) where wells are connected and completed. These platforms are equipped with rigs for drilling and well intervention.
Last year, in September, Prio agreed to acquire a 40% stake in the Peregrino and Pitangola fields, collectively called Peregrino.
It signed the agreement with SPEP Energy Hong Kong and Sinochem International Oil (Hong Kong) (Sinochem) to acquire Sinochem Petroleum Netherlands Coöperatief U.A., which indirectly held the 40% interest in the Peregrino field.
The deal involved an initial payment of $191.5m (11.03m reais), with the remaining $1.72bn due at closing.
The transaction completed on 5 December 2024.
Following the completion of the deal, Prio stated that it expects to increase production by around 35,000bpd.
Folha de S. Paulo did not disclose Prio’s possible payment for Equinor’s 60% stake.
According to the reserve certification report by DeGolyer and MacNaughton (D&M), prepared at Prio’s request during the time of the 40% stake acquisition, the Peregrino field is estimated to have economically recoverable reserves and resources (1P+1C) of nearly 338 million barrels as of 1 January 2024, with abandonment expected after 2037.
