Sinochem can sell slice at the Pilgrim, in Fields

Singapore/New Delhi/Beijing-the Chinese company Sinochem is studying the sale of your slice of 40% in the Brazilian Peregrino field, in the Campos Basin, reported Reuters four sources with knowledge of the matter, in a deal in which the State-owned conglomerate could leave an asset that has been considered key in the past due to low oil prices.
The oil and chemicals company closed the purchase of your current participation by the Norwegian Statoil for 3.07 billion dollars in 2010-winning a series of Chinese rivals in search of high-quality assets. Statoil holds the other Pilgrim 60%, which is the largest heavy oil field operated by the company outside of Norway.
Two sources with knowledge of the matter said that Sinochem is moving to sell the greater participation in oil and gas it holds abroad – with the capacity to produce 100000 barrels a day – in the midst of a review of its assets to reflect the fall in oil prices over the past two and a half years.
With that in mind, said one of the sources, Sinochem is launching the sales process with a huge discount in relation to the price paid by the company on the purchase of the asset.
"Pilgrim has been a success story for Statoil, not only technically, but also financially. The active offer much value, and has a good operator with Statoil, "said Horacio Cuenca, Director of research of upstream to the Latin America energy consultancy Wood Mackenzie.
Long-term expectations for oil prices and the investment needed in the next two to three years to develop the second phase of production of Pilgrim will determine the value of any possible sale of participation in active, said Cuenca.
The process to sell the brazilian participation is still in an early stage and a final decision will depend on how the talks progress, said the sources familiar with the matter. The sources spoke on condition of anonymity because they weren''t authorized to discuss the subject publicly.
Statoil declined to comment.
In a reply by email, the Press Office of Sinochem said the company "has monitored a large amount of business opportunities in the market and is ready to readjust and optimize your asset structure at the right time". The Sinochem added, however, that does not make comments on specific projects.
Two sources said that Sinochem''s intention to sell the stake was shared with the Indian Oil & Natural Gas Corporation. The ONGC did not respond to requests for comment.
A source said that the slice must also be offered to other international buyers, including some Japanese companies and the Kuwait Foreign Petroleum Exploration Company, which bought anglo-Dutch Shell''s stake in Thai Bongkot gas field by 900 million dollars last month.
SINOCHEM-Asset Manager?
The possible sale of the stake in the Peregrino field-located 85 km from the brazilian coast-occurs at a time when oil prices are around the $50 a barrel, well below the maximum levels of recent years. This trend has also led other competitors in the industry to consider the sale of assets before recovered.
"Sinochem is readjusting your asset structure in power," said an industry veteran in Beijing familiar with the company''s strategy. "As an oil-producing medium to small business, exposure to assets of higher cost, as in deep water, became exceedingly challenging."
"The company sees itself more as an asset manager. That became clearer in the new administration, "said the industry executive, referring to the Chairman of the Board of Ning Gaoning, Sinochem, which took office last year.
The potential sale of the participation in Pilgrim also comes before the second phase of development of the project, which should require approximately 3.5 billion dollars, with the production of this new phase scheduled for the end of the Decade.
The second phase should add about of 250 million barrels of recoverable reserves the Pilgrim, which currently contains a reserve estimated at between 300 million and 600 million barrels of recoverable oil.