Equinor Brasil Energia Ltda., a subsidiary of Equinor ASA, has officially announced the sale of its 60% operated interest in the Peregrino field, located off the coast of Brazil, to Brazilian company Prio Tigris Ltda., a subsidiary of PRIO SA. The deal, valued at USD 3.35 billion, along with a maximum of USD 150 million in additional interest, marks a significant shift in Equinor's operations in Brazil, a country that has been a key player in its international portfolio.
The transaction, which was finalized on May 2, 2025, will see PRIO taking over the operatorship of the Peregrino field once the deal closes. Equinor will continue to manage the field until that time, ensuring a smooth transition. Philippe Mathieu, Executive Vice President for Exploration and Production International at Equinor, stated, "With this transaction, we realize value from a long-standing asset in our Brazil portfolio. Brazil will continue to be a core country for Equinor, as we focus on starting up the Bacalhau field and continue progressing the Raia gas project." He highlighted that these projects, along with their partnership in Roncador, will bring Equinor's equity production in Brazil close to 200,000 barrels per day by 2030.
Equinor has operated the Peregrino field since 2009, during which time approximately 300 million barrels of oil have been produced. The field, known for its heavy oil, features a floating production storage and offloading (FPSO) platform supported by three fixed platforms. As of the first quarter of 2025, Equinor's share of production from Peregrino was around 55,000 barrels per day, showcasing the field's continued productivity.
Last year, PRIO made headlines by acquiring Sinochem’s 40% interest in the Peregrino field, which positioned them as a significant player in this oil-rich area. Veronica Coelho, Senior Vice President and Country Manager for Equinor Brazil, expressed her optimism about the partnership, saying, "PRIO has been a valued partner since joining the Peregrino license last year and we look forward to a smooth hand-over with them." She further emphasized the importance of the Peregrino field in Equinor's history in Brazil, stating, "This asset has been the cornerstone of Equinor’s history in Brazil. Our journey in Brazil continues with full momentum, building on the legacy of those that have worked on Peregrino."
The financial details of the transaction are structured in two parts. The first part involves the acquisition of the 40% interest and operatorship of Peregrino, for which PRIO will pay USD 2.233 billion, along with an additional USD 166 million contingent on the completion of the second part of the deal, which is the acquisition of the remaining 20% interest valued at USD 951 million. The total consideration for the transaction could reach USD 3.5 billion when including the maximum interest payment.
Equinor's exit from the Peregrino field is part of a broader strategy to optimize its international portfolio through asset divestments and acquisitions. Mathieu noted, "We continue to see growth potential and opportunities to extend the longevity of our international oil and gas portfolio, also in Brazil." This strategic move aligns with Equinor's focus on enhancing its operational efficiency and maximizing value from its assets.
In addition to this major transaction, Equinor recently reported its financial results for the first quarter of 2025, showcasing a robust performance with adjusted operating income of USD 8.65 billion and a net income of USD 2.63 billion. This strong financial footing allows Equinor to pursue further investments and strategic initiatives.
Looking ahead, Equinor is set to commence the second tranche of its share buy-back program for 2025, amounting to up to USD 1.265 billion, following its annual general meeting scheduled for May 14, 2025. This buy-back program is part of Equinor's strategy to return value to its shareholders while continuing to invest in growth opportunities.
The sale of the Peregrino field is subject to regulatory and legal approvals, and the payment will occur in two tranches—one at the signing of the agreement and another closer to the closing date. The final cash payment will reflect the closing date and any deductions generated by the asset since the effective date of January 1, 2024.
As Equinor moves forward with its plans in Brazil, the company remains committed to maintaining a strong presence in the region, with projects like Bacalhau and the Raia gas project potentially shaping its future in the Brazilian energy landscape.
