Sinochem Becomes Partner in Peregrino Field

May 25, 2010

Photo courtesy Annette Westgård, Statoil
Photo courtesy Annette Westgård, Statoil

Statoil ASA (OSE: STL, NYSE: STO) has agreed to sell 40% of the Peregrino field offshore Brazil to Sinochem Group. Statoil maintains 60% ownership and the operatorship of the field which is set to start production in early 2011.

“The transaction confirms the high quality of the Peregrino asset, reflecting Statoil's value added through the field development. The transaction demonstrates Statoil’s ability to leverage its industrial competence developed at the Norwegian Continental Shelf, and realize value for our shareholders. The divestment is a natural step in our continuous effort to optimize our portfolio”, said Helge Lund, CEO of Statoil.

The transaction is subject to government approvals in Brazil and China. The consideration is based on an effective date of January 1st 2010 and subject to customary adjustments. The divestment of a 40% share of Peregrino will reduce Statoil’s equity production guiding for 2012 by 40,000 boepd to a range of 2,060 000 – 2,160 000 boepd.

Brazil will continue to form a key part of Statoil’s international strategy. The company remains committed to complete the Peregrino development as planned, operate the field efficiently, and to explore further growth opportunities in the region.

The Peregrino field is located 85 km offshore Brazil in the Campos basin at about 100 meters of water depth in BMC-7 and BMC-47. The first phase of the development includes two drilling- and wellhead platforms and a ship-shaped floating production, storage and offload unit (FPSO). The field was discovered in 1994. Statoil (then Norsk Hydro) acquired 50% in the discovery in 2005, and the remaining 50% and its operatorship in 2008.

 

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