Petrobras Sells its Austral Basin Assets in Argentina to CGC for $101M

Petroleo Brasileiro S.A. (Petrobras) announced Tuesday that the Board of Directors of Petrobras Argentina (PESA) has approved the disposal of all of its assets located in the Austral Basin, in the Santa Cruz province, for $101 million to Compania General de Combustibles S.A. (CGC).

The PESA assets that are part of the deal include 26 onshore exploration production concessions, with an average production of 15,000 barrels of oil equivalent per day, as well as the entire infrastructure required for distribution, treatment and storage.

This is the first disposal of a Petrobras asset under the 2015-2016 Divestment Plan which expects to sell $13.7 billion, as released to the market March 2.

The payment was made at the moment of the signature of the contract, and therefore this sale will be accounted in the first quarter 2015 results, with an estimated impact of $65 million in net income.

The conclusion of the transaction is subject to the approval of the responsible entities in Argentina.


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