PetroChina to buy Petrobras’s Peru assets in $2.6 billion deal

PetroChina Co. Ltd.’s indirect subsidiaries CNPC E&D Holdings Cooperatief UA and CNODC International Holding Ltd. have agreed with Petroleo Brasileiro SA’s wholly owned subsidiaries Petrobras International Braspetro BV and Petrobras De Valores Internacional De Espana SL to buy Petrobras Energia Peru SA for $2.6 billion.

PetroChina stated the purchase will help expand the scale of its oil and gas operations in Latin America and drive the sustainable development of its overseas business.

A wholly owned subsidiary of Petrobras, Petrobras Energia Peru owns assets totaling $1.42 billion with $660 million in net assets, as of yearend 2012. The company’s revenue from core businesses that year was $600 million with $102 million net profit.

Petrobras Energia Peru holds 100% interest in two blocks and 46.16% interest in one block in three of Peru’s oil and gas fields. PetroChina said the blocks combine for an output 800,000 tons/year of oil equivalent, with sizeable recoverable reserves.

CNPC E&D is principally engaged in the exploration, development, production, transmission, and marketing of crude oil and natural gas, with operations in Venezuela, Ecuador, Canada, Algeria, Azerbaijan, Chad, Indonesia, Kazakhstan, Niger, Oman, and China.

PetroChina spoke on its intention to become an international integrated energy company in 2010. Jiang Jiemin, then-chairman of the company, said, “A total investment of not less than $60 billion is needed to form our five regions of global oil and gas cooperation by 2020 (OGJ, April 5, 2010, p. 42).”

China and Venezuela signed several accords in 2008 including an agreement for a joint study with Sinopec regarding the construction of a refinery in Cabruta, northern Venezuela to process heavy crude from the Orinoco heavy crude belt.

The documents also included a contract for the supply of crude and fuel oil between Petroleos de Venezuela SA (PDVSA) and PetroChina along with an agreement for the construction of four oil tankers for CV Shipping, a joint venture between China and Venezuela that formed January of that year.

In May 2008, PetroChina entered into a joint venture agreement with PDVSA to build a 400,000 b/d refinery in Guangdong province, configured to process Venezuelan heavy oil, Chinese state media reported at the time. Venezuelan President Hugo Chavez and Chinese Gen. Sec. Hu Jintao, agreed a year later to move forward the starting date of increased Venezuelan oil exports to the East Asian nation (OGJ Online, April 13, 2009).

PetroChina agreed to buy 3 million bbl/month of oil over a 2-year period from Ecuador’s state-owned Petroecuador that year (OGJ Online, Aug. 10, 2009). Three years later, the company paid $680 million (Can.) for the remaining 40% of Athabasca Oil Sands Corp.’s MacKay River project, making PetroChina 100% owner at a total price of $2.5 billion (OGJ Online, Jan. 16, 2012).

It was the third investment by a Chinese state-owned firm into oil sands projects in Canada at the time. China Petrochemical Corp.’s $4.65 billion paid in 2010 for a 9% stake in Syncrude was the largest. Also in 2010, PetroChina signed a binding agreement to acquire 20% of Royal Dutch Shell PLC's Groundbirch assets in northeastern British Columbia (OGJ Online, Feb. 13, 2012).

Related Articles

EPA approves Magellan’s Corpus Christi splitter project

12/12/2014 The US Environmental Protection Agency has issued a final greenhouse gas prevention of significant deterioration construction permit to Magellan Pr...

Keyera to take majority interest in Alberta gas plant

12/12/2014 Keyera Corp., Calgary, will pay $65 million (Can.) to buy a 70.79% ownership interest in the Ricinus deep-cut gas plant in west-central Alberta.

PBF Energy, PBF Logistics make management changes

12/12/2014 Matthew Lucey, currently executive vice-president of PBF Energy Inc., will succeed Michael Gayda as the company’s president. Todd O’Malley, current...

TAEP: TPI still peaking, but ‘contraction unavoidable’ as oil prices fall

12/12/2014 The Texas Petro Index (TPI), a composite index based on a comprehensive group of upstream economic indicators released by the Texas Alliance of Ene...

MARKET WATCH: NYMEX crude oil price extends slump

12/12/2014 Crude oil prices extended their slump on the New York market with a Dec. 11 settlement of less than $60/bbl for January, and prices continued downw...

US needs more data before ending crude export ban, House panel told

12/11/2014 Much more environmental impact information is needed before the US can reasonably remove crude oil export limits, a witness told a House Energy and...

BOEM raises offshore oil spill liability limit to $134 million

12/11/2014 The US Bureau of Ocean Energy Management increased the liability limit for oil-spill related damages from offshore operations to $134 million from ...

Rosneft, Essar sign terms of oil supply agreement

12/11/2014 OAO Rosneft and Essar Energy PLC have signed key terms of an oil supply agreement in New Delhi. Rosneft said shipments to India may begin in 2015.

Barton introduces bill to remove US crude export limits

12/11/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


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