chinas sinochem may sell 40 stake in brazils peregrino oilfield
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

China's Sinochem may sell 40% stake in Brazil's Peregrino oilfield

Arab Today, arab today

Arab Today, arab today China's Sinochem may sell 40% stake in Brazil's Peregrino oilfield

China's Sinochem
Singapore - Arab Today

China's Sinochem is exploring the sale of its 40 per cent stake in Brazil's Peregrino offshore oilfield, four people familiar with the matter told Reuters, a deal that could see the state-owned conglomerate walk away what was once touted as a key overseas asset because of historically low oil prices.

The oil and chemicals firm agreed to buy the stake from Norway's Statoil for $3.07 billion in 2010 — beating out a raft of Chinese rivals chasing high-quality assets. The Norwegian giant owns the other 60 per cent of Peregrino, the largest heavy oilfield it operates outside its home patch. 

But two of the people with knowledge of the matter said Sinochem is moving to sell its largest overseas upstream stake — with capacity to pump 100,000 barrels a day — as it reshapes its assets to reflect oil prices having halved in the last two and a half years. With that in mind, one person said, Sinochem was pitching the sale at a big discount to its purchase price.

Earlier this month, Reuters reported Sinochem was in early talks to buy a stake in Singapore-listed commodity trader Noble Group, a move that would further its ambitions to become more active in global energy trade and also develop China's gas industry.

The process to sell the Brazilian stake is still at an early stage and a final decision would depend on how the negotiations progress, the people familiar with the matter said. They spoke on condition of anonymity because they were not authorised to discuss it publicly.

Statoil declined to comment and Sinochem did not respond to requests for comment from Reuters.

Two sources said Sinochem's intent to sell the stake has been shared with India's Oil and Natural Gas Corporation. ONGC did not respond to requests for comments.

One person said the stake is also likely to be pitched to other international buyers, including some Japanese firms and Kuwait Foreign Petroleum Exploration Company, which snapped up Royal Dutch Shell's stake in Thailand's Bongkot gas field for $900 million last month.

Sinochem — asset manager?

The potential sale of the stake in Peregrino — located 85km off Brazil in the Campos basin below about 100 metres of water — comes as oil prices hover in a mid-$50s per barrel range, well below the highs of recent years. That trend has also prompted other industry players to consider selling once-prized assets.

Earlier this week, Reuters reported Malaysian state-owned oil and gas firm Petronas is aiming to sell a large minority stake in a local gas project for up to $1 billion as it seeks to raise cash and cut development costs.

For its part, Sinochem has seen growth in its key oil trading business stagnate, with increasing domestic competition from the likes of state oil traders Unipec and Chinaoil, while overseas oil and gas assets have struggled amid the prolonged low oil prices.

"Sinochem is readjusting its energy asset structure," said a Beijing-based industry veteran familiar with the company's strategy. "As a medium- to small-sized oil producer, exposure to higher cost assets like deep water has become over-challenging."

"The company sees itself more as an asset manager. This becomes a clearer direction under the new management," the industry executive said, referring to Sinochem chairman Ning Gaoning who took over the helm last year.

The potential sale of the Peregrino stake also comes ahead of the second phase of the project's development, expected to cost about $3.5 billion with production from the new phase set to start by the end of the decade.

The second phase is designed to add about 250 million barrels in recoverable reserves to Peregrino, which currently contains an estimated reserve of between 300 million and 600 million barrels of recoverable oil.

Source :Times Of Oman

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

chinas sinochem may sell 40 stake in brazils peregrino oilfield chinas sinochem may sell 40 stake in brazils peregrino oilfield

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

chinas sinochem may sell 40 stake in brazils peregrino oilfield chinas sinochem may sell 40 stake in brazils peregrino oilfield

 



GMT 05:50 2017 Tuesday ,15 August

20 killed in Takhar funeral attack

GMT 04:51 2017 Thursday ,13 April

Huda Kattan among top 10 beauty influencers

GMT 09:44 2018 Saturday ,06 January

Aoun to deliver speech in Rome this afternoon

GMT 09:14 2017 Saturday ,30 December

London stocks end year on record high

GMT 11:47 2017 Monday ,11 December

France's rightwing shifts after Macron victory

GMT 04:49 2013 Monday ,27 May

Feng Shui living room concepts

GMT 19:45 2017 Wednesday ,18 January

The UAE Releases Global State of the Future Report

GMT 23:40 2017 Wednesday ,18 October

OIC condemns terrorist attack in Jeddah

GMT 16:41 2017 Saturday ,18 February

FBMA International Show Jumping Cup 2017 competition

GMT 17:43 2017 Tuesday ,14 February

Spanish activists taken to court over BDS activism

GMT 21:37 2017 Sunday ,02 July

Religious tourism lottery to be held on Monday

GMT 15:27 2017 Saturday ,24 June

US imposes ban on fresh Brazil beef imports

GMT 06:07 2017 Tuesday ,24 October

Air Force set to create new ISR unit with Global Hawk

GMT 03:49 2017 Thursday ,22 June

Dalai Lama says will visit Trump

GMT 03:52 2017 Sunday ,15 January

Drydocks World and GDRFA sign MoU partnership
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday