The Executive Board of Petrobras has given green light to the management team in order to negotiate with Pampa Energia on an exclusive basis the sale of the company’s stake in Petrobras Argentina.
The Brazilian energy company will negotiate with Pampa Energía during a maximum 30 days term, with a possible 30 days additional extension.
The final terms and conditions of the transaction will be submitted for approval to the Petrobras Executive Board and Board of Directors, as well as the competent regulatory agencies.
The Board of Directors of Petrobras Argentina (PESA) approved the sale of all of its assets in the Austral Basin (province of Santa Cruz) to Compañia General de Combustibles S.A. (CGC) for $101 million on March 2015.
Last week Petrobras released another good news for the company in order to get financing. The Brazilian multinational signed a Term Sheet with the China Development Bank (CDB), under which the Chinese bank will provide for $10 Bn financing to the Brazilian multinational.
This new contract is a result of the Cooperation Agreement signed by Petrobras and CBD in 2015, when the Prime Minister of China visited Brazil, Mr. Li Keqiang, aimed at developing partnerships between the institutions during 2015 and 2016.
The sale of Austral basin assets
PESA assets involved in the deal include 26 onshore exploration and production concessions, with average oil and gas output of 15,000 barrels of oil equivalent per day, as well as all the distribution, treatment and storage infrastructure required.
This is the first sale of Petrobras assets under the 2015-2016 Divestment Plan released on March 2. The plan is expected to raise $13.7Bn.
The payment was made when the contract was signed, and this sale will therefore be accounted in the first quarter 2015 results, with an estimated impact of $ 65 million in net income.
Completion of the deal is subject to the approval of the competent Argentine authorities.
The financing agreement with CDB
Alongside the signing of the term sheet, the drafts of the financing contracts are already being negotiated, and include the implementation of a trade agreement to supply oil to Chinese companies, in similar terms to the contracts signed by the two parties in 2009.
The term document contains the main terms and conditions for the operation and was signed by the President of Petrobras, Aldemir Bendine, and the President of CDB, Zheng Zhijie, during a ceremony held at the Company’s headquarters.
Image over the headline.- President of Petrobras, Aldemir Bendine, and the President of CDB, Zheng Zhijie at the signing ceremony. © Petrobras News Agency.
