Petrobras completes sale of assets in Peru

Brazil's state-run oil company Petrobras has completed the sale of 100% of the shares of its wholly-owned subsidiary Petrobras Energia Peru (PEP) to China National Petroleum Corp (CNPC).

The sale price has been US$2.6 billion. The sale was finalized with a cash payment of US$2.2 billion to Petrobras, after the deduction of the due taxes and meeting all of the conditions set down in the contract that was signed on November 13, 2013.

According to sources the previous sale price was U$3 billion.

The transaction included:

• 100% of Lot X, a mature field that produced 13,000 barrels of oil equivalent per day in 2013;
• a 46.16% stake in Lot 57, an operational field producing natural gas and condensate operated by Repsol; and
• 100% of Lot 58, an exploration block close to Lot 57, where significant discoveries of natural gas have recently been made.

Petrobras had operations in Peru for 10 years. According to the firm its exit from Peru is part of a broader plan aimed at divesting billions in foreign assets to focus on massive offshore deposits in Brazil.

PetroChina commented:

The three target blocks are all quality oil properties in Peru with achievable profit potential. The acquisition of the assets will help to expand the scale of PetroChina’s oil and gas cooperation in Latin America, and drive the sustainable development of PetroChina’s overseas business.