Pacific Rubiales Not Been Approached by Potential Buyer

Pacific Rubiales Energy Corp. (PRE), Latin America’s largest non-state oil producer, hasn’t been approached by a potential buyer, Chief Executive Officer Ronald Pantin said today.

The appointment of a strategic adviser is limited to the future of the company’s midstream assets, Pantin said during an investor event in New York.

“We have not been approached by anyone,” the CEO said. “We have these guys for Pacific Midstream.”

Pacific Rubiales is seeking to raise as much as $1.4 billion in asset sales to trim debt built up through at least 10 acquisitions of other companies and oil-block stakes in the past two years, Pantin said in a Jan. 28 interview. His latest comments come after people familiar with the matter told Bloomberg in March that the Bogota-based company had hired Bank of America Corp. (BAC) to review its strategic options.

The company plans to sell shares in infrastructure assets next year, Pantin said. That’s after it accepted an offer for a 38 percent stake in its Pacific Midstream investment vehicle, which includes pipeline and energy transmission assets, at the start of the year.

Pantin said Mexico probably represents the “best short-term opportunity,” the company has.

“We have been in Mexico for two years now, not only looking at regulations, laws, possible contracts, but also reservoir levels.”

Pacific expects to be among the first companies to sign contracts in Mexico and is open to a joint venture with Petroleos Mexicanos, the state energy company.

Chevron Corp. yesterday became the first major international oil producer to unveil partnership plans with state-run Pemex since Mexico signed landmark legislation to reopen its doors to foreign producers.

To contact the reporter on this story: Andrew Willis in Bogota at awillis21@bloomberg.net

To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net Stephen Cunningham, Carlos Caminada

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