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Historic Agreement May Increase Prio Production By Up to 40 Thousand Barrels of Oil Per Day
In a move that promises to make an impact, Prio (formerly PetroRio) is one step away from closing a deal to acquire 40% of the Peregrino field, one of the jewels of the Campos Basin, located in the oil field of Rio de Janeiro. The transaction value may range between US$ 1.6 billion and US$ 1.9 billion (approximately R$ 8.7 billion to R$ 10.3 billion). With this acquisition, Prio takes a monumental step that could boost its oil production by 45% by 2026. Did someone say the sky is the limit?
The negotiation between Prio and Sinochem, a Chinese giant that holds 40% of the Peregrino field, is expected to be concluded this week. The field, located 85 km from Cabo Frio on the coast of Rio de Janeiro, is operated by Equinor, a Norwegian oil company, which holds the other 60% of the area. According to market experts, the purchase could increase Prio’s production by 40 thousand barrels of oil per day, further consolidating the company’s presence in the sector.
Today, Prio Produces About 89.8 Thousand Barrels of Oil Daily
Currently, Prio produces about 89.8 thousand barrels daily, and with the new acquisition, this number could jump to approximately 129.8 thousand barrels per day by 2026. Market expectations, according to BTG Pactual, are that the Peregrino field in the oil field of Rio de Janeiro will reach the impressive mark of 100 thousand barrels daily, which would significantly boost Prio.
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Acquisition By Prio Will Not Bring Immediate Efficiency Gains
Despite the excitement, analysts are keeping their feet on the ground regarding efficiency gains. As Equinor will continue to be the operator of the Peregrino field, it is unlikely that Prio will be able to optimize operations in the short term. However, the long-term potential of the acquisition is evident, as the company has been heavily investing in mergers and acquisitions for growth.
Expansion Strategy Consolidates in the Oil Sector
In recent years, Prio has stood out as one of the main players in the oil and gas sector. Since adopting a mergers and acquisitions strategy, especially with Petrobras’s divestment policy during Jair Bolsonaro’s government, the company saw its shares surge from R$ 3.50 to R$ 46, an extraordinary growth of 1200%. Acquiring fields that have been neglected by Petrobras, such as the Peregrino field, has allowed Prio to significantly increase its production capacity.
Although the company has yet to officially comment on the agreement with Sinochem, the market is watching the potential growth of Prio, which has already proven to be a force to be reckoned with in the oil field of Rio de Janeiro.
With this new move, Prio is positioning itself to become one of the great references in the sector, consolidating its role in oil exploration in Brazilian territory.
With this strategic acquisition in the oil field of Rio de Janeiro, is Prio about to consolidate itself as one of the giants in the oil sector in Brazil? What do you think the future holds for the oil company?
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