Equinor’s $3.5 Billion Sale of Peregrino Stake Signals Strategic Shifting in Brazil
14min read Norwegian energy giant equinor has taken a decisive step in reshaping its global portfolio with the sale of its 60% operated interest in Brazil’s Peregrino oil field to PRIO SA for $3.5 billion. The transaction, which includes a contingent performance-linked payment, underscores Equinor’s strategy of divesting mature assets to fund high-potential projects, while positioning PRIO as a dominant player in Brazil’s oil and gas sector.
The deal, announced amid Equinor’s broader “high-grading” initiative, reflects a deliberate move to prioritize growth opportunities over legacy operations. The Peregrino field, a heavy oil asset in Brazil’s Campos Basin, has produced 300 million barrels since Equinor began operating it in 2009. In Q1 2025, the field contributed an average of 55,000 barrels per day (bpd) to Equinor’s output, but its declining production profile made it a prime candidate for divestment.
Deal Structure and Strategic Rationale
The $3.5 billion price tag is split into two tranches: $2.233 billion for 40% of the field and operatorship, plus a contingent $166 million tied to the completion of a second phase of development, and $951 million for the remaining 20% stake. The transaction also includes a performance-linked component of up to $150 million based on asset performance from January 1, 2024. This structure incentivizes PRIO to optimize operations post-acquisition, aligning with Equinor’s goal of securing maximum value.
For Equinor, the sale is part of a broader shift. The company aims to reduce debt, fund emerging projects like the Bacalhau field (projected to add 100,000 bpd by 2026), and expand its renewable energy presence in Brazil through ventures like the Serra da Babilonia hybrid project. Philippe Mathieu, Equinor’s executive vice president, emphasized Brazil’s enduring importance, noting that by 2030, its equity production there could reach nearly 200,000 bpd.
Win-Win for PRIO and Equinor
PRIO, Brazil’s largest independent oil and gas firm, gains a strategic foothold in one of the country’s most established basins. The acquisition builds on its 2024 purchase of Sinochem’s 40% stake in Peregrino, enabling full operatorship post-closure. PRIO’s focus on mature but still productive assets aligns with its low-cost, high-margin strategy. The company’s CEO, Leopoldo de la Vega, has long prioritized consolidating Brazil’s oil fields, and this deal positions it to capitalize on domestic demand growth.
Equinor, meanwhile, secures liquidity to invest in higher-return ventures. The $3.5 billion infusion comes at a critical time: the company faces rising capital expenditures for its offshore wind projects and the Bacalhau development. Analysts estimate that the proceeds could reduce Equinor’s net debt by approximately 10%, improving its financial flexibility.
Broader Industry Implications
The sale reflects a sector-wide trend of asset rationalization. As oil majors prioritize capital discipline, divestitures of mature fields are becoming routine. For Brazil, the deal highlights the growing role of local operators in managing its prolific pre-salt and offshore reserves. PRIO’s ascent also signals confidence in Brazil’s energy future, with government forecasts predicting domestic crude production to rise to 4.5 million bpd by 2030.
However, risks remain. Regulatory approvals in Brazil and Norway, along with oil price volatility, could impact the transaction’s final terms. Yet the strategic logic is clear: Equinor’s exit from Peregrino allows it to focus on newer, higher-margin opportunities, while PRIO secures a key asset to fuel its growth.
Conclusion
Equinor’s sale of Peregrino marks a pivotal step in its evolution from a traditional oil producer to a diversified energy leader. The $3.5 billion transaction not only de-risks its balance sheet but also funds projects—such as Bacalhau and renewables—that promise stronger returns. For PRIO, the deal cements its position as Brazil’s energy powerhouse, leveraging local expertise to maximize value from established assets.
With Brazil’s oil output set to surge and Equinor’s renewables pipeline expanding, this deal exemplifies how strategic divestments can fuel sustainable growth. As the energy transition accelerates, the Peregrino sale serves as a model for how companies can reinvent themselves by letting go of the past—and investing boldly in the future.
Data points underscore the move’s wisdom: Equinor’s 2030 Brazil production target of 200,000 bpd would represent a 267% increase over its 2023 average of 55,000 bpd from Peregrino alone. Meanwhile, PRIO’s total stake in Peregrino now reaches 100%, positioning it to capture over 200 million barrels of remaining reserves. In a sector where legacy assets often drag down innovation, this transaction proves that sometimes, the best path forward begins with letting go.
