Equinor Offloads Brazil's Peregrino Oil Field to PRIO for $3.5B

Equinor ASA EQNR, the Norwegian energy major, has signed a significant agreement to sell its 60% operated interest in Brazil's Peregrino oil field to PRIO Tigris Ltda., a subsidiary of Brazilian oil firm PRIO SA. The transaction, valued at up to $3.5 billion, marks a strategic move for Equinor as it repositions its portfolio in Brazil.

Under the deal, PRIO will pay $3.35 billion to Equinor, along with a potential interest payment of up to $150 million. The final amount will be adjusted to reflect changes since the effective date of Jan. 1, 2024, and finalized at closing. The transaction will take place in two phases — the first involves a $2.23 billion payment for 40% of the stake and operatorship, while the second covers the remaining 20% for $951 million — contingent upon completion.

EQNR to Transfer Operatorship After 15 Years of Stewardship

Equinor, through its subsidiary Equinor Brasil Energia Ltda., has operated the Peregrino field since production began in 2009. Located in Brazil’s Campos Basin, east of Rio de Janeiro, Peregrino is a heavy oil asset comprising an FPSO and three fixed platforms. Over the years, it has produced approximately 300 million barrels of oil. In the first quarter of 2025, Equinor’s share of output from the field was around 55,000 barrels per day.

Equinor will continue to operate the field until the deal closes, after which PRIO will take over. The Brazilian company had already acquired the remaining 40% interest in the field from Sinochem last year, making it the sole owner post-closing.

Brazil Remains Core to EQNR’s Growth Ambitions

While parting ways with Peregrino, Equinor emphasized that Brazil remains central to its global strategy. Philippe Mathieu, executive vice president for international exploration and production at Equinor, indicated that the company views this transaction as a way to unlock value from a long-held asset. He noted that Equinor's presence in Brazil is far from over, with attention now shifting to the startup of the Bacalhau field and the advancement of the Raia gas project. Combined with its stake in the Roncador field, Equinor expects its net production in Brazil to approach 200,000 barrels per day by 2030.

Mathieu also pointed out that the divestment aligns with Equinor’s broader strategy of optimizing its international portfolio through targeted sales and acquisitions. He stressed that there are still opportunities for long-term growth in Brazil's energy sector.

EQNR’s Brazil Chief Reflects on Peregrino’s Legacy

Veronica Coelho, Equinor’s country manager in Brazil, acknowledged the importance of Peregrino to Equinor’s journey in the country, describing it as a cornerstone asset. She noted that the team takes pride in the work done over the past two decades and expressed confidence in PRIO’s ability to take the field forward. Coelho also reiterated Equinor’s commitment to Brazil, highlighting the upcoming Bacalhau operations, the Serra da Babilonia renewable hybrid project through subsidiary Rio Energy and continued progress on the Raia gas development.

The deal is subject to customary legal and regulatory approvals. Payments will be made in two tranches — one upon signing and another prior to the closing date — with standard post-closing adjustments.

While the sale of Peregrino marks the end of an era for Equinor in Brazil, it also denotes the beginning of a new chapter. As EQNR steps away from a mature asset, it is doubling down on its newer, higher-growth projects in the region. The transaction underlines EQNR’s evolving global strategy, which is focused on balancing value creation with long-term resource potential.

EQNR’s Zacks Rank & Key Picks

EQNR currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Kinder Morgan, Inc. KMI and RPC Inc. RES. While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.

Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.

Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. KMI operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030. 

Kinder Morgan’s earnings missed estimates in three of the trailing four quarters and met once, delivering an average negative surprise of 3.33%.

RPC derives strong and stable revenues via diverse oilfield services, which include pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield stands higher than the composite stocks belonging to the industry. Its new Tier IV dual-fuel fleet boosted profits, with plans for more high-efficiency equipment expansion to enhance operational capabilities. 

RES’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 8.66%.

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