Sinochem to invest $3.07 billion in Brazilian oil field

The state-owned Chinese company agrees to buy a 40% stake in the Peregrino oil field from Norway's Statoil, continuing a trend of Chinese firms seeking to meet the country's demand for energy and commodity resources through overseas acquisitions.

Sinochem Corporation on Friday agreed to buy a 40% stake in a greenfield Brazilian oil field for $3.07 billion in cash, according to a brief announcement on its website. The seller is Norwegian oil and gas producer Statoil, which will retain the remaining 60%.

The offshore oil field, named Peregrino, is located at a depth of about 100 metres, approximately 85 kilometres from Rio de Janeiro in the Campos basin and is expected to start production in early 2011. The...

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