MercoPress. South Atlantic News Agency

Petrobras leaving Argentina to seek more profitable investments

Petrobras wants to shift toward deepwater hydrocarbon exploitation

Brazilian oil company Petrobras Friday announced its intention to leave Argentina and has therefore launched the sale of its stake in Posa, its local subsidiary, which holds a 33.6 % of the Río Neuquén Field.

The move to quit natural gas operations comes after Petrobras has already left its fuel retail activity in the country.

The Río Neuquén field is one of the largest unconventional gas reserves in Latin America, where output is based on massive hydraulic fracturing known as “tight gas” and is operated by Argentina's state-owned YPF, which holds a 33.3% stake on the field in the provinces of Neuquén and Río Negro. Pampa Energía, another Argentine company, owns the remaining 33.1%.

By September of this year, Posa's production was 1.52 million cubic meters per day of natural gas and 70,000 barrels per day of oil, condensate, and gasoline, the Brazilian company said in a statement. Petrobras' stake in Posa is held through Petrobras International Braspetro, which holds 95%, and Petrobras Valores Internacionales de España, which holds the remaining 5%.

UBS Securities LLC will be the exclusive financial advisor for the liquidation process. Interested parties will have until November 4 to make a bid. YPF and Pampa Energía have preemptive rights to buy Petrobras' shares.

The sale of Petrobras' subsidiary in Argentina is part of the company's divestment plan to reduce debt, improve its financial profile and focus on more profitable assets such as deepwater hydrocarbon exploitation.

Although controlled by the Brazilian State, Petrobras shares are traded on the São Paulo, New York, and Madrid stock exchanges.