Sinochem to Buy Stake in Brazil Oil, Gas Blocks

China’s state run Sinochem is expected to acquire 10% stake in Perenco’s five offshore gas and oil blocks in the Espirito Santo Basin.

Sinochem will fund Perenco in certain exploration wells in exchange for acquiring 10% working interest in the five concessions, subject to conditions, Perenco said in a statement.

Perenco will retain a 40% interest and remain as the operator.  OGX Petróleo e Gás will maintain its 50% share. 

The blocks cover 3,625 square kilometres in total.  Perenco, together with OGX was awarded the blocks in the 9th Brazilian Licensing Round.