BP agrees oil interests merger
BRITISH OIL giant BP has agreed to merge its interests in South American oil company Pan American Energy (PAE) with refiner and fuel retailer Axion Energy in a new joint venture with Axion’s owner and PAE partner Bridas Corporation.
BP and Bridas, an Argentine energy company 50 per cent owned by China’s CNOOC, will hold equal stakes in the newly merged Pan American Energy Group after a cash-free deal that is expected to close early next year, the companies said.
The two companies will be represented by four board directors each, sharing nomination rights for senior executives.
The joint venture will include PAE’s production of 262,000 barrels of oil equivalent per day and its interests in the Vaca Muerta shale region. It will also contain Axion’s 90,000 barrel per day Campana refinery in Argentina.