Sinochem to become 40% partner of
Statoil in Peregrino Oil Field in Brazil

2010-05-22

Sinochem Corporation has agreed to purchase a 40% interest in the Peregrino field offshore Brazil from Statoil ASA (OSE: STL, NYSE: STO) for a total consideration of USD 3,070 million.

The Peregrino field is located in the Campos basin offshore Brazil and is expected to start production in 2011. The transaction will be the largest foreign acquisition by Sinochem Corporation to date and will significantly increase the company’s exploration and production business. Following completion of the transaction, Statoil will maintain 60% ownership and the operatorship of the field. Statoil is an international energy company headquartered in Norway. The company is among the world’s largest offshore oil and gas operators.

“This transaction will significantly increase Sinochem’s interests in the exploration and production business and consolidate our position as a global player in the oil and chemicals business. We are delighted to have agreed the purchase of a significant interest in an asset of such high quality. And we are also pleased to have a partner with such depth of experience and quality of reputation as Statoil. We look forward to working closely with Statoil in the development and operations of this substantial field and to building a long term partnership relationship with them”, said Mr Han Gensheng, President of Sinochem Corporation.

The transaction is subject to government approvals in Brazil and China. The consideration is based on an effective date of January 1st 2010 and subject to customary adjustments.

Sinochem Corporation