BP's $7.06-billion PAE stake sale deal with Cnooc, Bridas collapses
07 November 2011
British oil giant BP's $7.06-billion deal to sell its 60 per cent stake in Argentina's second-largest oil producer Pan American Energy (PAE) to China's Cnooc and Bridas Corp has collapsed over an acrimony involving its joint venture partner and Argentina's recently announced oil and gas policy.
The deal collapsed 10 days after Argentina's leader ordered oil companies to repatriate future export revenue.
London-based BP will repay the $3.5 billion deposit it had received for the proposed sale by 14 November after Bridas, an equal joint venture between China's biggest offshore oil producer Cnooc and the Bulgheroni family, called off the deal, citing ''legal reasons.''
BP had, in November last year, agreed to sell its 60 per cent stake in PAE to Bridas for $7.06 billion in cash. (See: BP to sell Argentinean asset to Bridas for $7.06 billion)
The remaining 40 per cent of PAE is held by Bridas.
BP was selling its stake in PAE as part of its $30-billion assets disposal plan to cover the clean-up and legal costs of last year's Gulf of Mexico oil spill.