China's Sinochem could be selling its 40% stake in the Peregrino Field on the Campos Basin shelf to Australian operator Karoon and if the deal is completed it would be Karoon's first production anywhere in the world. The two companies are said to have been in talks over the deal since 2017. Negotiations are being conducted directly by Karoon's board of directors in Australia and Sinochem in China, with support from both company's local Brazilian offices. In February 2017, Sinochem said it was looking to sell its 40% in the Peregrino and Pitangola blocks including Peregrino and Peregrino South fields, according to Brazilian sources. The interest was purchased from Norway's Statoil for US$ 3.07 billion in 2010 beating several Chinese rivals. Equinor owns the remaining 60% of the heavy oil Peregrino Field. Sinochem is selling its largest overseas upstream interest with a capacity to produce 100,000 bo/d to reshape its portfolio. The Sinochem sale price for its Peregrino interest was not disclosed but said to be at a big discount to its purchase price. For Equinor, Peregrino has been a technical and financial success. The field is located in 100m water depth. The possible sale of Peregrino also comes ahead of the second phase of the project's development, expected to cost about US$ 3.5 billion with production from the new phase set to start in 2021. The second phase will add about 250 MMbo in recoverable reserves to Peregrino, which currently has a reserve estimate between 300 to and 600 MMbo. The ANP board of directors on 8 September 2016 approved for Statoil a phase two development plan for Peregrino Field with a deadline for the start of production of December 2020. Phase two calls for the installation of a third wellhead platform in the Peregrino field. The Peregrino phase two project calls for drilling 22 wells including 15 oil producers and 7 water injection wells. Statoil will also conduct a pilot project using polymer injection to reduce water production. The water cut for the field have increased to about 50%. Production of the field started in April 2011 and passed 100 MMbo in 2015. On 30 January 2015, Statoil submitted the phase two plan of development for Peregrino Field to the ANP calling for the installation of a new fixed platform (Peregrino C) in a 120m water depth, enabling access to an undeveloped portion of the field (Peregrino Southwest) inaccessible from the existing A and B platforms. At 14o API the oil from Peregrino is the second heaviest oil ever produced in Brazil. 
China's Sinochem could be selling its 40% stake in the Peregrino Field on the Campos Basin shelf to Australian operator Karoon and if the deal is completed it would be Karoon's first production anywhere in the world.