PetroChina Agrees To Acquire Petrobras Assets In Peru For $2.6 Bln

(RTTNews) - PetroChina Co. Limited (PTR), owned by China National Petroleum Corp., Wednesday announced an agreement to acquire the entire shares of Petrobras Energia Peru S.A. for a consideration of about $2.6 billion.

Petrobras Energia Peru is an indirect wholly-owned subsidiary of Petróleo Brasileiro S.A. or Petrobras, which is primarily engaged in the exploration and production of oil and gas in Peru.

Its shareholders are Petrobras De Valores Internacional De Espana S.L. or PVIE holding 99.79 percent of the equity interest and Petrobras International Braspetro B.V. or PIB holding 0.21 percent of the equity interest

PetroChina said its indirect subsidiaries CNPC E&D Holdings Cooperatief U.A. and CNODC International Holding Ltd. have entered into an agreement regarding the assets with the sellers - PIB and PVIE.

As at December 31, 2012, Petrobras Energia Peru's total assets amounted to $1.42 billion, with net assets of $660 million. Its revenue from core businesses in 2012 was $600 million, with net profit of $102 million.

The company possesses three blocks of oil and gas fields in Peru, with 100 percent interest in two blocks and a 46.16 percent interest in the third block. On the basis of the equity interests it holds, the three blocks have sizable recoverable reserves, and the current output is around 0.8 million tons oil equivalent output per year.

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

The stock closed down 2.3 percent in Hong Kong at HK$8.51.