Acquisition of Operation Rights in Bolivia Explained

Source: www.gulfoilandgas.com 12/21/2010, Location: South America

Petrobras clarifies the news issued by the Brazilian press regarding the acquisition of a participation interest in Block XX - Tarija Oeste for natural gas exploration and production (Itau Field), in Bolivia.

The Company informs that the acquisition was already approved by the Bolivian legislature but it is still pending the final approval of the law which regulates the transfer of rights. After that, Petrobras Bolivia S.A. (PEB) will be able to take 30% participation in the field, as the operator, and will pay a cash consideration of US$ 13.2 million.

In addition, PEB will reimburse the amount of US$ 50.6 million of investments made by the previous owner, to be paid in some installments starting after the final approval.

Finally, the Company clarifies that this recent approval by the Bolivian legislature refers to a negotiation which began in October, 2008. The investments in natural gas production in Bolivia are mainly aimed at supplying the Brazilian market through the Bolivia – Brazil gas pipeline, considering that the supply contracts are validos until 2019.


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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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