PetroChina to Buy Petrobras Assets in Peru for $2.6 Billion

Petrochina Co. Signage
PetroChina shares fell 2.4 percent to HK$8.50 at the close in Hong Kong today, taking its decline this year to 23 percent. Photographer: Jerome Favre/Bloomberg

Nov. 13 (Bloomberg) -- PetroChina Co., the country’s biggest oil and natural gas producer, will buy Petroleo Brasileiro SA’s assets in Peru for $2.6 billion, expanding its portfolio in the region.

The Beijing-based company will take over three blocks of oil and gas fields in Peru from the seller, known as Petrobras, it said in a statement to the Hong Kong stock exchange. Petrobras owns two blocks entirely and has a 46 percent stake in the third, according to the statement.

Petrobras, the most indebted publicly traded oil company, has been selling assets to help finance projects in Brazil’s deep waters. China National Petroleum Corp., PetroChina’s state-owned parent, already owns oil and gas assets in Peru as well as in Venezuela.

“In terms of strategy this will help PetroChina diversify it’s assets internationally,” Gordon Kwan, a Hong Kong-based analyst at Nomura Holdings Inc., said in a phone interview today. “This will help them learn operating lessons from their partners that they can apply elsewhere.”

Petrobras, controlled by Brazil’s government, agreed to sell oil blocks and pipelines in Colombia to Perenco UK Ltd. for $380 million last month.

PetroChina shares fell 2.4 percent to HK$8.50 at the close in Hong Kong today, taking its decline this year to 23 percent. The city’s benchmark Hang Seng Index dropped 1.9 percent.

To contact the reporters on this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net; Benjamin Haas in Hong Kong at bhaas7@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net