China's Sinochem to Invest $3Bln in Brazilian Oil Field

China's Sinochem Corporation agreed to buy a 40 percent stake in a greenfield Brazilian oil field for $3.07 billion in cash.

China's Sinochem Corporation (Sinochem) Saturday agreed to buy a 40 percent stake in a greenfield Brazilian oil field for $3.07 billion in cash, said the company in a statement on its website.

This has been the largest foreign acquisition so far by Sinochem.

The offshore oil field, named Peregrino, is located 85 km away off the Brazilian coast and is expected to start production in 2011. Norwegian oil and gas producer Statoil, the seller, would remain 60 percent stake of the oil field, as well as the operatorship of the field.

"This transaction will significantly increase Sinochem's interests in the exploration and production business and consolidate our position as one of the leading global players in the oil and chemicals business," Sinochem President Han Gensheng said in an announcement.

"We look forward to working closely with Statoil in the development and operations of this substantial field and to building a long-term partnership...with them," he added.

Statoil is the world's largest offshore oil and gas operator in waters deeper than 100 meters and the third largest net seller of crude oil.

Sinochem is currently the fourth largest state-own oil company in China and the country's leading chemical producer.