Neuquen Province Governor, Jorge Sapag, told the press that Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is selling its stake in an Argentina unit. The oil company has been facing tremendous pressure from different sections. As a result, the company has already reduced its capital expenditure for the next five year. The company appears to be having no option but to sell its stake to meet its funds requirements.
Buyers
Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) will be selling its stake to Taceptrol SA, Pluspetrol Sa, Pan American Energy, and YPF SA. They were the joint buyers of the 70% in Argentina firm. The oil and gas producer declined to comment on the asset sale negotiations.
The oil firm intends to raise about $15.1 billion from the sale in the current, as well as, the next year. Its most attractive assets were situated in Neuquen province. The worldwide drop in oil prices have forced the company to resort to selling of assets. It came as an additional headache since it was already facing the biggest corruption scandal that led to the reshuffle in the management.
Surprised
Sapang disclosed that he was surprised when Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) disclosed the sale to him. He hoped that the group had the financial powers to enable all investment commitment that the company has with the province, as well as, Argentina. The company struggled to sell in three previous attempts during a refiner, electricity companies besides the drilling rights of oil and gas fields.
Sapand indicated that a foreign firm and small Argentina firms might join the group’s buying activities. However, the company refused to name them. While YPF might face anti-trust restrictions in case the company opts to acquire by itself, the team up will enable the buyers to avoid such regulatory processes in different jurisdictions.
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