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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2725719, ~/Articles/ArticleHandler.aspx, 11/28/2014 1:15:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement