Sinochem in Talks to Sell Stake in Brazil Oil Field, Sources Say

(Bloomberg) -- Sinochem Group Co. is in talks to sell a minority stake in the Peregrino oil and gas field off the coast of Brazil to independent producer Prio SA, according to people familiar to the matter.

The Chinese energy and chemicals group is working with Jefferies Financial Group Inc. on a potential sale of its 40% share of the offshore field near Rio de Janeiro, said the people, who asked not to be identified because the discussions are private. Sinochem paid $3.07 billion for it in 2011.

The two companies haven’t reached an agreement yet and the talks could end without one, the people said, with a potential price unclear. 

Sinochem didn’t respond to an email seeking comment. Representatives for Jefferies and Prio also didn’t respond to requests for comment. 

Peregrino is located east of Rio de Janeiro in the Campos Basin, at a depth of about 100 meters. It’s operated by Equinor ASA, which has a 60% stake. The field has a capacity of 110,000 barrels of oil a day, according to the Norwegian company’s website.

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