China’s Sinochem Group is reportedly in discussions to divest its 40% stake in the Peregrino oil and gas field off the coast of Brazil, reported Bloomberg.  

Sources told the publication that the potential buyer is Prio, an independent oil and gas company from Brazil. 

The Chinese company, which operates in the energy and chemicals sectors, is being advised by Jefferies Financial Group regarding the sale. 

Sinochem acquired its share in the offshore field near Rio de Janeiro for $3.07bn in 2011.  

Norway’s Equinor is the operator of the field with the remaining 60% stake.  

According to sources, negotiations between Sinochem and Prio have not yet resulted in an agreement and the potential sale price remains unclear. 

The talks may not necessarily result in a sale and both parties have kept the details confidential, they added.  

The Peregrino field in the Campos Basin lies at a depth of approximately 100m and began its production phase in 2011.  

According to GlobalData, the heavy oilfield has extracted 34.92% of its total recoverable reserves, with peak production forecast for 2024.  

The field is expected to maintain production until reaching its economic limit in 2055 and currently contributes around 2% of the country's daily production. 

In October 2022, Equinor initiated production from Phase 2 of the Peregrino heavy oilfield's development.  

This phase includes drilling facilities, living quarters connected to the existing Peregrino floating production storage and offloading (FPSO) unit, and a new gas pipeline for power generation on the platform. 

Earlier in the year, Wood, a consulting and engineering company specialising in the energy sector, extended its contract with Equinor for the maintenance of Peregrino offshore assets.  

Wood will continue to provide maintenance for the Peregrino wellhead platforms and the FPSO unit, including engineering, prefabrication, outfitting, offshore installation, commissioning and turnaround support.