Petrobras Finalizes Purchase of Perez Companc

Petrobras has finalized the deal to buy a controlling stake in Argentina's Perez Companc SA. Petrobras will pay $689.2 million in cash and $338.4 million in securities issued by Petrobras International Finance Company for a 58.6% interest in Perez Companc. The total sum is slightly below the $1.13 billion announced in July as part of a preliminary agreement, which Petrobras attributed to the results of due diligence.

Petrobras will acquire more than 1 billion barrels of crude reserves, adding them to its existing 10.6 billion barrels in reserves, increase its daily production of oil and oil equivalent by 181,000 barrels per day (bpd) to 1.8 million bpd, and expand its service station chain across Argentina. The acquisition will also extend Petrobras' reach across the region. Perez Companc has oil, gas and petrochemical operations in Argentina, Brazil, Venezuela, Bolivia, Peru and Ecuador.