BP agrees oil in­ter­ests merger

Yorkshire Post - Business - - CAPITAL MARKETS -

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.

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