China National Petroleum Corp., China’s largest integrated oil producer, will pay US$2.6 billion for oil and gas assets in Peru, in the latest foray by China’s state-owned oil firms into Latin America. CNPC and its unit PetroChina Co. have reached a deal with Brazil’s state-owned Petrobras to buy Petrobras Energia Peru S.A., which owns three oil and gas blocks in Peru, the Chinese firm said today.
According to the Wall Street Journal, China has looked to Latin America and Africa in recent years to meet its energy needs, with domestic oil output slowing in the past decade as its fields mature. PetroChina has said it aims for overseas production to account for half of its business by 2015.
PetroChina produced a total 67.5 million barrels of oil equivalent overseas in the first half of 2013, up 8% on year and accounting for 9.7% of total oil and gas output, according to its earnings report. The completion of the acquisition is subject to China and Peru government approval, the statement said.
- PetroChina Co. to buy Petroleo Brasileiro SA assets in Peru for $2.6 billion – @bloombergnews (bloomberg.com)
- PetroChina buys Petrobras’ oil, gas assets in Peru for $2.6 billion (news.yahoo.com)