Business tycoon and Corporación América head Eduardo Eurnekian has closed a US$101 million deal with Petrobras Argentina to purchase its assets in the Austral basin in Santa Cruz province, an area that produces about 15,000 barrels of oil per day.
The transaction was carried out through local oil producer Compañia General de Combustibles (CGC), of which Corporación América owns a majority stake. The deal includes the 26 oil rigs formerly owned by Petrobras and the necessary infrastructure to exploit and store the hydrocarbons extracted from the areas.
The concessions on the areas granted by the provincial government will come to an end between 2017 and 2037.
“The agreement was closed after a call to tender process organized by the investment bank Scotia Waterous, hired by Petrobras. The operational control is set to be transferred by April 1,” Corporación América said in a press release.
Eurnekian had told the Herald three weeks ago that he was interested in snapping up Petrobras assets in Argentina after the Brazil’s state-run oil company said it would get rid of as much as US$13.7 billion in assets this year and next to reduce debt and protect cash.
Petrobras’ divestment in exploration and production locally and overseas are expected to account for 30 percent of asset sales. Gas and energy assets could account for 40 percent of that amount, with the remaining coming from assets related to distribution.
Eurnekian’s net worth is estimated at US$1.9 billion according to the recently published Forbes Rich List for 2015, in which he ranked as the second wealthiest man in Argentina after the Bulgheroni brothers
. Herald with Télam