By OGJ editors
HOUSTON, July 1 -- El Paso Production Co., a subsidiary of the Houston-based El Paso Corp., agreed to buy a Unocal Corp. affiliate that indirectly holds a 50% interest in UnoPaso, a Brazilian joint venture.
The purchase price is $61 million in addition to as much as $19 million in additional payments contingent on natural gas price and volume thresholds.
The deal is expected to close by July 31, and El Paso then will own 100% of UnoPaso. The acquisition will add 71 bcfe of proved reserves to El Paso's reserve base and will increase production by 27-30 MMcfed.
UnoPaso owns six exploration and development concessions off northeast Brazil. Additionally, El Paso is acquiring Unocal's 30% interest in an adjacent exploration block. UnoPaso owns a 35% interest in certain producing concessions associated with Pescada-Arabaiana field, operated by Petroleo Brasileiro SA.
