Petrobras Sells Colombian Oil Assets to Perenco for $380 Million

Petroleo Brasileiro SA (PETR3), the most indebted publicly traded oil company, agreed to sell oil blocks and pipelines in Colombia to Perenco UK Ltd. for $380 million.

“The Petrobras Colombia assets that are part of the transaction include 11 onshore exploration and production blocks with an average production of 6,530 barrels of oil equivalent per day, as well as the Colombia and Alto Magdalena oil pipelines,” Petrobras, as Brazil’s state-run producer is known, said in a regulatory filing today. The sale is pending approval from Colombia’s oil regulator.

Petrobras is selling overseas assets to help finance development of its so-called pre-salt oil reserves below the Brazilian seabed. The Rio de Janeiro-based company sold 50 percent stakes in African assets to Grupo BTG Pactual for $1.5 billion last month. Petrobras is spending more than 60 percent of its $237 billion five-year business plan on exploration and production, mostly in the pre-salt area.

Petrobras said in the filing it will hold on to its offshore oil blocks, one onshore block and gasoline stations in Colombia. Perenco, the oil producer that scrapped an initial public offering of its Brazilian unit in 2011, is an operator and non-operator of Colombian oil-fields.

HSBC Holdings Plc advised Petrobras on the sale.

China National Petroleum Corp., the country’s largest oil producer, was considering buying Petrobras assets in Colombia and Peru, people familiar with the sale said July 18.

To contact the reporter on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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