China National Petroleum Corp. negotiates acquisition of Brazilian oil company for US$2 billion

13 May 2013

The China National Petroleum Corp. Is negotiating to acquire Barra Energia do Brasil Petróleo e Gás Ltda. (Barra Energia), a recently created Brazilian oil company, for US$2 billion, according to financial news agency Bloomberg.

Citing sources close to the process, the agency said that negotiations could be concluded this month.

Barra Energia, which ahs its headquarters in Rio de Janeiro, is focused on exploration, development and production of oil and gas in the three most important Brazilian sea basins – Santos, Campos and Espírito Santo – and currently has investment capacity of US$1.2 billion.

According to the company’s website, that amount is the sum of capital applied by private investment fund First Reserve Corporation and private equity fund Riverstone Holdings LLC, each with US$500 million, and other private investment funds have provided US$200 million.

These talks, which are evidence of the interest of the main Asian players in Brazil’s oil reserves, are happening at the same time as Petroliam Nasional Bhd. (Petronas) of Malaysia has announced that it will pay US$850 million for a 40 percent stake in a field owned by Brazil’s OGX Petróleo e Gás Participações in the Campos basin. (macauhub)

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