On November 13, PetroChina Company Limited (PetroChina), China’s biggest oil producer and the listed arm of the state-owned China National Petroleum Corporation (CNPC), announced a deal to acquire Brazil’s state-run oil company Petrobras’s Peruvian oil and gas assets. PetroChina will buy all of the 145 million stock shares of Petrobras Energia Peru S.A., which has three oil and gas fields in Peru, at a premium price of $2.6 billion, considering Energia Peru S.A.’s total asset of $1.42 billion, with a 2012 operating income of $0.6 billion and net income of $102 million.
Petrobras Energia Peru S.A.’s three oil and gas fields currently produce about 800,000 metric tons of oil equivalent per year, according to PetroChina. Experts shared the view that, when compared to Africa and the Middle East, there is less political risk buying assets in South America.
PetroChina’s 2012 domestic and overseas production totaled 278 million metric tons of oil equivalent, or 761,600 metric tons per day. In mid-March this year, PetroChina took over the Mozambique oil and gas lots under the Italian multinational oil and gas company Eni at $4.2 billion, as the company’s largest overseas acquisition. CNPC is also expected to buy U.S. oil and gas company ConocoPhillips’ Kashagan oil field in Kazakhstan at an expected price of $5 billion.
Source: Xinhua, November 14, 2013