MercoPress. South Atlantic News Agency

Chinese company buys 40% stake in Brazil offshore field

Norway’s largest oil and natural gas company Statoil ASA, agreed to sell a 40% stake in the Brazilian offshore Peregrino field to China’s Sinochem Group for 3.07 billion US dollars in cash according to a joint release this week.

The companies also agreed to jointly seek more opportunities in Brazil and elsewhere, Statoil Chief Executive Officer Helge Lund said. “Both companies see many opportunities for value creation through increased recovery and exploration for additional resources in the decades to come.”

The Norwegian company said last year it was considering cutting its stake in Peregrino to reduce risk and raise funds to develop other projects. Chinese state-owned companies, including PetroChina Co., last year spent a record 32 billion US dollars on energy and mining acquisitions to meet rising resources demand from its economy.

Sinochem, China’s biggest chemicals trader, last year agreed to buy Emerald Energy Plc to boost revenue from oil and gas operations by tapping wells in Syria and Colombia.

“This transaction will significantly increase Sinochem’s interests in the exploration and production business and consolidate our position as one of the leading global players in the oil and chemicals business,” Han Gensheng, president of Sinochem Corp., said in a statement.

The company made its first oil and gas investment in 2003 and operates 12 such projects in the Middle East, Latin American and Asia, according to the statement.

The Norwegian company, which has operations in 40 countries, took control of the field in March 2008 after buying the remaining 50% from Anadarko Petroleum Corp. The field, 85 kilometers offshore Rio de Janeiro, has an estimated 460 million barrels of recoverable oil, spokeswoman Mari Dotterud said last October.

Statoil will keep 60% ownership and remain the operator of the field, which is set to start production in early 2011. Brazil will continue to form a “key part” of the company’s international strategy, and Statoil will explore further opportunities in the region, it said.