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CNPC said near deal to buy Petrobras assets for over $2 billion

BY CRISTIANE LUCCHESI, ZIJING WU & RODRIGO ORIHUELA

BEIJING (Bloomberg) -- China National Petroleum Corporation, the country’s largest oil producer, is nearing an agreement to buy Petroleo Brasileiro’s assets in Peru for more than $2 billion, said three people with knowledge of the matter.

The proposed deal may be announced as soon as next month, said one of the people, who asked not to be identified because the talks are private.

Petrobras, the most indebted publicly traded oil company, has been selling assets to help finance projects in Brazil’s deep waters. The company, controlled by Brazil’s government, agreed to sell oil blocks and pipelines in Colombia to Perenco for $380 million last month. CNPC is the most acquisitive Asian energy company this year, according to data compiled by Bloomberg.

Li Runsheng, a CNPC spokesman in Beijing, didn’t answer calls to his office. A call and an e-mail to Petrobras outside of regular business hours in Rio de Janeiro went unanswered.

Petrobras entered Peru in 1996, according to its website. It produces about 16,000 bpd in the country and holds stakes in exploration assets in the Maranon, Huallaga and Madre de Dios basins, the website shows.

Petrobras, which last week reported a 40% drop in 3Q profit, is seeking to finance plans to spend $237 billion to build refineries and develop deepwater fields in the five years through 2017. The company took a 40% stake in the Libra field, the largest discovery in Brazil’s history, in a government auction on October 21.

CNPC said in March it would spend $4.2 billion to buy a stake in Eni’s natural gas assets in Mozambique. The producer agreed in September to pay about $5 billion to purchase a stake in the Kashagan oil project from KazMunaiGaz National Company in Kazakhstan.

10/28/2013

 

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