MercoPress. South Atlantic News Agency

Petrobras acquires natural gas assets in south Argentina

Petrobras increased its share in natural gas exploitation in the south of Argentina acquiring the assets of US ConocoPhillips, announced Thursday the company in Buenos Aires

The Brazilian government managed oil and gas corporation Argentine branch, Petrobras Energia paid 77.8 million US dollars for a 25.67% share in the Sierra Chata deposits and 52.37% of Parva Negra. Petrobras Energia was already operating in both areas. Following the transaction Petrobras Energia now owns 45.5% of Sierra Chata and 100% of Parva Negra. Sierra Chata is an active region rich in natural gas belonging to the Neuquen basin with total proven reserves equivalent of 56 million barrels of oil, plus other unfathomed deposits. Total natural gas production from Sierra Chata reached 2.8 million cubic meters per day. Parva Negra, adjacent to Sierra Chata has two drilled wells with clear signs of natural gas. Seismic surveying of 420 square kilometers and further exploratory wells are planned during 2007. "The purchase is in line with the company's strategic objective of increasing oil and gas production, and represents the participation in two natural gas assets with great potential, for which Petrobras Energia has vast experience and knowledge", said the company in an official release. In related news Petrobras in Rio do Janeiro announced plans to build an ethanol pipeline running from the central Brazilian state of Goias to the Atlantic coast. Petrobras will cooperate with Japan's Mitsui and Brazilian private construction company Camargo Correa. A feasibility study is the first step for the undertaking. Petrobras said that the project is designed to provide the central west and southeast regions of Brazil, which produce most of Brazil's sugarcane-based ethanol, with an efficient export structure. Petrobras also signed a deal with Japan to export ethanol, and the pipeline will be a vital part of that agreement. The pipeline will start in the Goias city of Senador Cando, a receiving point for the ethanol produced in the central-west region. The ethanol will then be piped to the Paulina refinery in Sao Paulo, where the ethanol-blended auto fuel will be pumped to the city of Sao Sebastao on Brazil's Atlantic Coast.