Equinor Transitions with Sale of the Peregrino Field
Equinor Brasil Energia Ltda., affiliated with Equinor (OSE: EQNR, NYSE: EQNR), has inked a notable agreement with Prio Tigris Ltda., a subsidiary of PRIO SA, to divest its 60% operated interest in Brazil's Peregrino field for an impressive sum of USD 3.35 billion, with additional potential interest of up to USD 150 million.
Details of the Transaction
The deal is structured such that the consideration reflects both the closing date and deductions associated with the asset since the effective date, set for January 1, 2024. Equinor will maintain operational control of the Peregrino field until the transaction closes, at which point PRIO will assume responsibility as the new operator.
Equinor's Vision for Brazil
In discussing this major transaction, Philippe Mathieu, Executive Vice President for Exploration and Production International at Equinor, explained, "Realizing value from long-term assets such as Peregrino is key to our strategy. Brazil remains a strategic market for us, particularly as we advance the Bacalhau field and the Raia gas project. With these initiatives, our production in Brazil is projected to approach 200,000 barrels per day by 2030.”
This strategic move to sell a significant asset continues Equinor's efforts to refine its international portfolio, prioritizing both asset sales and acquisitions that align with their growth targets.
The Peregrino Field's Legacy
Equinor has been the operator of the Peregrino field since its inception in 2009, during which it has produced approximately 300 million barrels of heavy oil. The field incorporates a floating production storage and offloading (FPSO) platform, complemented by three fixed platforms located in the Campos Basin, east of Rio de Janeiro. As of the first quarter of 2025, Equinor's production from Peregrino was estimated at 55,000 barrels per day.
Future Endeavors in Brazil
Notably, PRIO had previously acquired a 40% stake in the Peregrino field, demonstrating a collaborative effort and partnership that Equinor values highly. Veronica Coelho, Senior Vice President and Country Manager for Equinor Brazil, expressed her gratitude for the collaboration with PRIO. “We anticipate a seamless transition with our valued partner,” she stated.
Looking ahead, Veronica underscored the significance of Peregrino in Equinor's history in Brazil, saying, “Peregrino has been fundamental to our narrative here. Our commitment to Brazil is unwavering, bolstered by forthcoming initiatives like Bacalhau and the Serra da Babilonia renewable hybrid project through our subsidiary, Rio Energy.”
The transaction requires regulatory and legal approvals and will involve payments distributed in two tranches: a portion upon signing and another closer to the deal's closure, with customary adjustments applied.
Frequently Asked Questions
What is the main focus of Equinor's recent sale?
Equinor's sale of the Peregrino field emphasizes its strategy to streamline its international portfolio while maintaining focus on growth opportunities in Brazil.
What will be the financial impact of this transaction?
The sale is valued at USD 3.35 billion, with potential additional interest that could total up to USD 3.5 billion.
When will PRIO assume control of the Peregrino field?
PRIO is set to take over operations after the transaction closes, which will follow the receipt of necessary regulatory approvals.
How has the Peregrino field contributed to Equinor's production?
Sine its start of operations, the Peregrino field has been responsible for producing around 300 million barrels of oil, significantly contributing to Equinor's output in Brazil.
What future projects is Equinor focusing on in Brazil?
Equinor is concentrating on progressing the Bacalhau field and the Raia gas project while also launching the renewable hybrid project, Serra da Babilonia.
