Petrobras in talks to sell Argentine unit to Pampa Energia

Brazil-based oil producer Petroleo Brasileiro (Petrobras) is holding discussions to sell its unit Petrobras Argentina to Pampa Energia.

Petrobras said its executive board approved the conduct of negotiations with Pampa Energia on an exclusive basis for 30 days, with an option to be extended for the same period.

The company said in a statement: “This transaction is still subject to approval of its final terms and conditions by the executive board and the board of directors of Petrobras, as well as the appropriate regulatory agencies.”

Pampa Energía agreed to the exclusivity period to continue negotiations to acquire 67.2% of the capital and voting stock of Petrobras Argentina.

The Argentine unit has assets, including gasoline stations, a refinery and interests in electricity companies and drilling rights for several oil and gas fields, Bloomberg reported.

Established in 1993, the unit expanded into 700 service stations in 2001 with the acquisition of Eg3 from Sociedad Comercial del Plata.

Petrobras, which is reducing its spending and selling assets, aims to raise $15bn from the sale of its assets in 2016.

Reuters quoted Petrobras CEO Aldemir Bendine saying the sale of assets aims to support its troubled finances.

Separately, Petrobras announced the transfer of rights of oil, natural gas exploitation, development and production in certain onshore fields, as well as the sale of associated assets.

The initiative is part of the company’s divestment plan and is planned to be conducted through a competitive bid.