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

WOTUS rule implementation uncertain after conflicting court decisions

08/28/2015 The US Environmental Protection Agency and Army Corps of Engineers reportedly began to implement their controversial Waters of the United States (W...

Keystone XL decision isn’t imminent, White House press secretary says

08/28/2015 A presidential decision on TransCanada Corp.’s cross-border permit application for its proposed Keystone XL crude oil pipeline is not imminent, Whi...

Extension sought for Mackenzie Gas Project

08/28/2015 The earliest possible construction start for the Mackenzie Gas Project, which would connect natural gas fields in the Canadian Arctic with northwes...

Tap Oil signs PSC for block offshore Myanmar

08/28/2015 Tap Oil Ltd. reported its entry into Myanmar following the signing of the production-sharing contract for shallow-water Block M-7 in the Moattama b...

EIA: US oil, gas supply less vulnerable to hurricanes in 2015

08/28/2015 A relatively light hurricane season anticipated for 2015 and an overall decline in the Gulf of Mexico’s share of US crude oil and natural gas produ...

Rosneft, Egas sign master LNG supply, purchase deal

08/28/2015

Rosneft Group unit Rosneft Trading SA and Egyptian Natural Gas Holding Co. (Egas) have signed a master LNG supply and purchase agreement.

MARKET WATCH: NYMEX, Brent crude oil prices both surge in one-day rally

08/28/2015 The crude oil price for October delivery settled up nearly $4/bbl on the New York market Aug. 27, marking its biggest single-day gain in more than ...

PetroChina reports first half results

08/27/2015

PetroChina Co. Ltd. reported first-half increases in output of crude, natural gas, and refined products compared with a year earlier.

BLM brings its Master Leasing Plan concept to Utah

08/27/2015 The US Bureau of Land Management’s Moab, Utah, field office began a 90-day comment period on Aug. 21 for a draft proposed Master Leasing Plan for 9...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

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