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Brazil's Petrobas sells Peru properties to China National Petroleum

UPI
0 Comments| November 14, 2013

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RIO DE JANEIRO, Nov. 14 (UPI) -- Brazilian energy company Petrobras said it sold off stakes in four reserve areas in Peru to China National Petroleum Corp. for $2.6 billion.

The company, known formally as Petroleo Brasileiro, said Wednesday it sold its shares, owned by subsidiary Petrobras Energia Peru, to CNPC.

"The assets that comprise the transaction are: 100 percent stake in Block X, which is a mature field in operation since 1912, with production in 2012 of 16,000 barrels of oil equivalent per day; 46.16 percent interest in Block 57, pre-operational natural gas and condensate field; and 100 percent interest in Block 58, exploratory block neighbor to Block 57 where recent significant discoveries of natural gas and condensate have been made," the company said.

PetroChina (NYSE:PTR, Stock Forum), a division of CNPC, said in a separate statement the remaining stake in Block 57 is owned by Spanish energy company Repsol (OTO:REPYF, Stock Forum).

PetroChina said the three blocks in Peru have "sizable recoverable reserves." It listed the current production rate at 800,000 tons of oil equivalent per year.


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