Bridas cancels deal to buy BP's stake in Pan American Energy

BP PLC said Bridas Corp. has terminated its plans to buy BP’s 60% interest in Pan American Energy LLC (PAE) for $7 billion because Bridas had not obtained Argentine antitrust approvals and Chinese regulatory approvals for the Argentina-based exploration company (OGJ Online, Nov. 29, 2010).

BP and Bridas are joint venture partners in PAE. Bridas already owns 40% of PAE, which explores, develops, and produces oil and gas in the Southern Cone region of South America. CNOOC Ltd. owns a stake in Bridas, which cited no specific reason for calling off the transaction.

PAE’s main holdings are in Argentina. Argentina President Cristina Fernandez de Kirchner on Oct. 26 ordered oil and gas companies to repatriate all future export revenue. Kirchner said the intent was to strengthen central bank controls on dollar purchases.

As a result of Bridas dropping plans to buy BP’s stake in PAE, BP will repay a $3.53 billion deposit received late last year. BP said it is no longer in discussion with Bridas about PAE.

“PAE is a strong business,” BP said. “BP is happy to return to long-term ownership of these valuable assets, given the considerable improvement in its own financial strength and circumstances, as well as the improved external trading environment.”

Since June 2010, excluding the PAE assets, BP has agreed to asset sales worth more than $19 billion. The sales came as BP paid expenses associated with the April 2010 Macondo well blowout and resulting oil spill in the Gulf of Mexico.

In October, BP announced plans to extend its divestment program to $45 billion by the end of 2013, saying the ongoing divestment program involves the sale of nonstrategic assets and is not driven by a requirement to raise cash.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Kulluk conical drilling unit

USCG: ‘Chain of errors’ led to Shell drilling unit running aground

04/04/2014 A US Coast Guard (USCG) investigation has found that a “chain of errors” led to the Royal Dutch Shell PLC conical drilling unit, the Kulluk, runnin...

Move carefully on crude exports, refiner urges House subcommittee

04/04/2014 Tight oil formations have helped the US increase its crude production dramatically, an independent refiner conceded. But the nation should proceed ...

Escalera Resources to form Albania joint venture

04/03/2014 Escalera International Co. LLC, a subsidiary of Escalera Resources Co. (formerly Double Eagle Petroleum Co.), has signed a memorandum of understand...

EIA: Ethanol spot prices rise on rail congestion, cold weather

04/03/2014 Spot prices for ethanol have increased steadily since early February, driven by logistical problems and harsh weather conditions, according to the ...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected