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 transaction is the largest foreign acquisition by Sinochem and will transform the 100% state-owned Chinese company into a major global upstream oil and gas producer. Sinochem, which was advised by UBS, is currently the...

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