BP to keep Argentine assets, to repay Bridas’s $3.53bn deposit

07 November 2011 08:31  [Source: ICIS news]

SINGAPORE (ICIS)--UK energy firm BP said on Monday it will return $3.53bn (€2.58bn) to Bridas Corp with the termination of a deal on the sale of its assets in Argentina.

“BP is happy to return to long-term ownership of these valuable assets, given the considerable improvement in its own financial strength and circumstances, as well as the improved external trading environment,” BP said in a statement.

Bridas Corp, a joint venture between China National Offshore Oil Corp (CNOOC) and Argentina’s Bridas Energy, had agreed to acquire 60% of Pan American Energy (PAE) from BP in November last year for $7.06bn.

However, regulatory approvals were not obtained upon the deadline of 1 November, prompting Bridas Corp to terminate the acquisition.

BP described PAE as “a strong business”.

“BP does not currently plan to divest additional assets to offset proceeds which would have been received from the PAE transaction,” BP said, adding that its divestment programme is “not driven by a requirement to raise cash”.

BP had announced in October a plan to extend its divestment programme to $45bn by the end of 2013, as part of its plan to sell non-strategic assets.

($1 = €0.73)

By: Pearl Bantillo
+65 6780 4359

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