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Petrobras Sells Peru Unit to PetroChina

Brazilian oil major Petrobras (NYSE: PBR  ) is set to be a bit less sprawling following a deal it's struck to divest of one of its South American assets. The company has agreed to sell 100% of its subsidiary Petrobras Energia Peru to units of PetroChina (NYSE: PTR  ) , both companies announced in separate press releases. The price is roughly $2.6 billion.

The assets under the wing of Petrobras Energia Peru comprise stakes in three blocks. The first is a 100% holding in a mature play that saw production of 16,000 barrels of oil equivalent per day in 2012. The second is a 46% interest in a pre-operational natural gas and condensate field, and the last in a 100% stake in an exploratory block. According to Petrobras, "significant" natural gas and condensate discoveries have been made there.

The consummation of the sale is subject to certain conditions, as well as approvals from the relevant regulatory bodies.

For Petrobras, the deal is part of a broader attempt at rationalizing its operations. So far this year, it is estimated that the company has sold around $7.4 billion worth of assets.

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9/27/2016 2:42 PM
PBR $8.97 Down -0.05 -0.50%
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