In return, El Paso will give Cibco its 100% share of Argentine gas processing company Servicios El Paso, which operates a gas processing plant in Neuquen province. Cibco will assume about US$5mn debt related to Servicios El Paso's working capital. The trade "is convenient for both parties," a Capex source told BNamericas. "El Paso wants to consolidate its majority holding in Triunion, because sometimes it's better to have a majority stake in a company if you want to do other things in the future," the source said. Cibco considers it better to own a 100% stake in an operating asset like Servicios El Paso rather than a minority stake in Triunion, the source said.
Servicios El Paso is a more attractive asset for Cibco in the short term because its gas processing plant in Neuquen is already operating, whereas the Gasoducto del Pacifico is a long-term investment that is still maturing, the source said. The pipeline connects Neuquen with Chile's Region VIII, and started operations in late 1999.
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