Approval of Sale of Petrobras Argentina

Instant Max AI

(Petrobras, 13.May.2016) – Petrobras announced that its Board of Directors approved the sale of its entire 67.19 percent interest in Petrobras Argentina (PESA), owned by Petrobras Participaciones S.L. (PPSL), to Pampa Energía.

The transaction base price is $892 million, equivalent to the value of $1,327 million for 100 percent of PESA. The transaction also included an agreement for subsequent transactions to acquire 33.6 percent of the concession of Rio Neuquen, Argentina, and 100 percent of Colpa Caranda asset in Bolivia for a total amount of $52 million.

The Rio Neuquen and Colpa Caranda assets have strategic value for Petrobras since they represent good potential for natural gas production in the Neuquén Basin, where Petrobras estimates to have large unconventional natural gas reserves (tight gas). It is noteworthy that the subsequent transactions relating to these assets are subject to approval by the appropriate deliberating bodies of PESA and the relevant regulatory agencies.

The completion of the transaction is subject to certain typical conditions, including the approval by the relevant regulatory agencies.

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