Petrobras Selling Argentina Assets

At a meeting of 30th March 2015, the Board of Directors of Petrobras Argentina (PESA) approved the sale of all of its assets in the Austral Basin (province of Santa Cruz) to Compañia General de Combustibles S.A. (CGC) for US$101 million.

PESA assets involved in the deal include 26 onshore exploration and production concessions, with average oil and gas output of 15,000 barrels of oil equivalent per day, as well as all the distribution, treatment and storage infrastructure required.

This is the first sale of Petrobras assets under the 2015-2016 Divestment Plan released on March 2. The plan is expected to raise US$13.7 billion.

The payment was made when the contract was signed, and this sale will therefore be accounted in the first quarter 2015 results, with an estimated impact of US$ 65 million in net income.

Completion of the deal is subject to the approval of the competent Argentine authorities.