Petrobras to sell Pecom unit Transener, invest $150 million in Argentina

Petróleo Brasilero SA (Petrobras) has confirmed that it will sell Transener SA, the energy transportation subsidiary of Argentine oil company Perez Companc SA (Pecom).
May 27, 2003

Peter Howard Wertheim
OGJ Correspondent


RIO DE JANEIRO, May 27 -- Petróleo Brasilero SA (Petrobras) has confirmed that it will sell Transener SA, the energy transportation subsidiary of Argentine oil company Perez Companc SA (Pecom).

Petrobras was recently permitted to move ahead with its acquisition of Pecom, so long as Transener is first divested. Last year, Petrobras reported an agreement in principle to acquire a controlling interest in Pecom from the Perez Companc family and its foundation, for $1.18 billion (OGJ Online, July 24, 2002).

According to Petrobras Pres. José Dutra, Transener is not a core asset within Pecom and Transener will be divested following the restructuring of its $400 million debt.

Separately, Dutra said the company intends to invest some $150 million in its Argentine operations this year. Dutra expressed confidence about Argentina's recovery despite his conservative 3% gross domestic product growth forecast for 2003, compared to 4-5% by the Argentine government.

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