Brazilian oil and gas company PRIO has signed a sale and purchase agreement with SPEP Energy Hong Kong Limited and Sinochem International Oil for the acquisition of 40% interest in the Peregrino and Pitangola fields in the Campos Basin, offshore Brazil.

PRIO signed the deal for the acquisition of Sinochem Petroleum Netherlands Coöperatief U.A., which indirectly holds a 40% interest in the Peregrino and Pitangola field.

Following the conclusion of the transaction, the new consortium will be formed by Equinor, the operator of the field with a 60% interest, and PRIO, with a 40% interest.

The transaction's completion is subject to the usual conditions precedent for this type of transaction, such as CADE approval and the waiver or lapse of Equinor’s pre-emption rights within 30 days.

The acquisition value is $1.92 billion, with $191.5 million paid upon signing the contract, plus $1.72 billion to be paid on closing, in addition to the net working capital and other usual price adjustments for this type of transaction.

According to the reserve certification report by DeGolyer and MacNaughton (D&M), prepared at PRIO's request, and considering a long-term oil price of $62 per barrel, it is estimated that economically recoverable reserves and resources (1P+1C) for the Peregrino Field is close to 338 million barrels from January 1, 2024, with a net volume of 135 million barrels for PRIO, with an abandonment date forecast for after 2037.

After the acquisition's conclusion, the company's production will increase by approximately 35 thousand barrels per day. Additionally, PRIO sees synergies in marketing the field’s oil, as each offtake from Peregrino of approximately 650 thousand barrels can be combined with cargo loads from other fields operated by the Company to optimize logistics.

Discovered in 1994, the Peregrino Field had its first oil in 2011. Peregrino is located 85 kilometers off the coast, in the Campos Basin, within blocks BM-C-7 and BM-C-47, and 28 kilometers from the Polvo and Tubarão Martelo Cluster.

The Field's production is carried out through the FPSO Peregrino, which has an oil processing capacity of 110 kbbl/d and 300 kbbl/d of water.

Additionally, the Field has three fixed platforms (Peregrino A, B, and C) where wells are connected and completed, and which have rigs that drill and intervene in the wells. The field's infrastructure is operated by Equinor and owned by the consortium.

The Field is currently in its second development phase, which included the installation of the fixed platform Peregrino C and the drilling of new wells connected to platforms A and C.

Currently, it produces approximately 88 kbbl/d, through its 26 producing wells and six injection wells.