Petrobras has announced that its Board of Directors have approved the sale of its entire 67.19% stake in Petrobras Argentina (PESA), owned by Petrobras Participaciones S.L. (PPSL), to Pampa Energía.
The transaction base price is USD 892 million, equivalent to the value of USD 1,327 billion for 100% of PESA. The transaction also included an agreement for subsequent transactions to acquire 33.6% of the concession of Rio Neuquen, Argentina, and 100% of Colpa Caranda asset in Bolivia for a total amount of USD 52 million.
The Rio Neuquen and Colpa Caranda assets have strategic value for Petrobras, because they represent a great potential for natural gas production in the Neuquén Basin, where Petrobras estimates to have large unconventional natural gas reserves (tight gas). It is noteworthy that the subsequent transactions relating to these assets are subject to approval by the appropriate deliberating bodies of PESA and the relevant regulatory agencies.
The completion of the transaction is subject to certain typical conditions, including the approval by the relevant regulatory agencies.