May 24th, 2010 | Caixin Sinochem Buys Brazilian Offshore Oil Field
China’s Sinochem Corp. announced on May 22 that it has agreed to buy the Norwegian oil and gas producer Statoil’s 40 percent stake in Brazilian offshore oil field, Peregrino.
Sinochem will pay US$ 3.07 billion for the deal, which is the largest overseas acquisition for Sinochem. After the transaction, Statoil will remain as the operator of the oil field with 60 percent interest.
Han Gensheng, general manager of Sinochem, said the deal will expand the company’s oil exploration business and improve Sinochem’s position within the industry. In August last year, Sinochem paid US$ 875 million to buy UK-based energy company, Emerald, as part of its plans for overseas expansion.
The deal is still pending government approval from China and Brazil.
Peregrino oil field is located in the Campos basin of offshore Brazil. Oil production of the field is set to be launched in 2011.
By Chen Zhu