Equinor ASA introduced Friday a deal to divest its 60 % working stake within the producing Peregrino area offshore Brazil to Prio SA for $3.5 billion.
Having acquired Sinochem Holdings Corp. Ltd.’s 40 % possession final 12 months, Prio would change into the only real proprietor. Closing is topic to regulatory approvals. No anticipated date of completion has been given. The settlement was signed between subsidiaries Equinor Brasil Energia Ltda. and Prio Tigris Ltda.
Put onstream 2011, Peregrino’s productive life has been prolonged to 2040 with the startup of section 2 in 2022. The heavy oil area produces about 110,000 barrels a day. Peregrino produced 250 million barrels from start-up to 2024, in line with info on Equinor’s web site.
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Positioned within the Campos Basin, east of Rio de Janeiro, the sector has a floating manufacturing storage and offloading platform.
“Brazil will proceed to be a core nation for Equinor, as we deal with beginning up the Bacalhau area and proceed progressing the Raia gasoline mission”, Philippe Mathieu, Equinor government vp for exploration and manufacturing worldwide, mentioned in a web based assertion. “With these two operated initiatives and our partnership in Roncador [producing field] our fairness manufacturing in Brazil will probably be near 200,000 barrels per day by 2030.
“This deal is a part of Equinor’s ongoing effort to high-grade its worldwide portfolio by way of asset divestments and acquisitions. We proceed to see progress potential and alternatives to increase the longevity of our worldwide oil and gasoline portfolio, additionally in Brazil”.
The Norwegian majority state-owned power main mentioned, “PRIO, Brazil’s largest impartial oil and gasoline firm, pays a consideration of USD 3.35 billion and a most of USD 150 million in curiosity to Equinor for the transaction”.
The transaction will probably be executed in two phases. Prio will initially buy 40 % together with the operatorship for $2.23 billion “with a further cost of USD 166 million which is contingent on the completion of the second a part of 20 %”, Equinor mentioned. The latter acquisition of 20 % is priced $951 million. “The ultimate part is USD 150 million of most curiosity”, Equinor added.
On Wednesday Equinor reported $2.63 billion in internet revenue for the primary quarter, down 2 % year-on-year as manufacturing and oil costs slipped. Internet earnings adjusted for extraordinary objects was $1.79 billion, down 37 %. Adjusted earnings per share got here at $0.66, lacking the Zacks Consensus Estimate of $0.83.
Equinor stored its atypical dividend per share at $0.37. It has accomplished the primary tranche of a $5-billion deliberate share buyback program for 2025, redeeming $1.2 billion value of shares. It’s going to suggest a second tranche of as much as $1.265 billion, which might expire July, at its yearly assembly.
Internet working revenue landed at $8.87 billion, up 16 % from the identical three-month interval final 12 months. Adjusted working earnings was $8.65 billion, up 15 %.
Money stream from operations after tax funds stood at $7.39 billion, whereas internet money stream earlier than capital distribution was $4.55 billion.
Fairness liquids and gasoline manufacturing averaged 2.12 million barrels a day, down 2 %.
Equinor ended the primary quarter with $47.46 billion in present belongings together with $7.37 billion in money and money equivalents. It had $34.72 billion in present liabilities together with $5.78 billion in finance debt.
To contact the creator, electronic mail jov.onsat@rigzone.com
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