PetroChina Buying Peru Oil and Gas Assets for 26 Billion

PetroChina Buying Peru Oil and Gas Assets for $2.6 Billion

China is seeking oil, natural gas and other raw materials to keep the world's second largest economy moving.

SHANGHAI -- In China's latest move to secure crucial energy supplies, PetroChina will pay $2.6 billion to acquire oil and gas interests in Peru, the company said Wednesday.

PetroChina, the listed unit of China's biggest energy firm China National Petroleum Corp (CNPC), will acquire a Peruvian subsidiary of Brazilian state-owned giant Petrobras.

The target company fully owns two oil and gas blocks in Peru and a 46% stake in a third, PetroChina said, adding the deal would expand its operations in Latin America and promote development of its overseas business.

China is seeking oil, natural gas and other raw materials to keep the world's second largest economy moving.

Beijing is also encouraging companies to make overseas acquisitions to gain market access and international experience.

PetroChina's parent CNPC and another Chinese energy giant, China National Offshore Oil Corp., last month each took a 10% stake in Brazil's "Libra" field, alongside three other firms.

Petrobras confirmed the deal from its Rio de Janeiro headquarters, saying it involves 100% of Lot X, a mature field in production since 1912 which last year produced 16,000 barrels of oil.

Also included is 46.16% of Lot 57, a natural and condensed gas field where production has yet to begin, and also all of adjacent Lot 58 where "natural and condenses gas was recently discovered."

"This operation is an important stage in Petrobras' divestment program as laid down in its 2013-2017 business plan."

The plan, unveiled last March, foresees divestment of holdings worth $9.9 billion, including some exploration assets in Africa.

Copyright Agence France-Presse, 2013

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