Argentine oil and gas company Bridas Corp. - jointly owned by
) and Argentina's Bulgheroni family - completed the acquisition of
) Campana refinery in Argentina and filling stations in South
The purchase comprises a 90,000 barrels-per-day oil refinery as
well as over 500 gas stations in Argentina and 220 gas stations in
Paraguay and Uruguay. The financial value of the deal, announced in
March 2011, has not been disclosed. However, sources in the oil and
gas industry have estimated the transaction to be worth in the
range of $800 million to $850 million.
The addition of these assets to Bridas' portfolio will help it
emerge as a fully integrated oil and gas producer. Bridas
subsidiary - Axion Energy, formerly known as Esso Company - will
act as the operator of the assets purchased from ExxonMobil. Bridas
also said that they will carry on using the Esso brand at its gas
stations and will be the exclusive distributor of Mobil lubricants.
Bridas plans to invest about $800 million over the next three years
to boost gasoline yield at the Campana refinery by 50% to 650,000
cubic meters a year and diesel production by 60% to 1.2 million of
cubic meters annually.
Bridas also owns a 40% stake in Pan American Energy LLC, which is
). Pan American Energy LLC is Argentina's second-largest oil
producer and the main supplier of crude to Campana, located in
Recently, CNOOC's bid to acquire the Canadian energy producer
) has successfully cleared one barrier with the approval by the
Nexen shareholders. The contract is still subject to the approvals
from Canada's industry ministry and from U.S. and European
The developed world will now be faced with a potent test of
accepting Chinese capital that would also mean relinquishing
control over strategic resources. Bridas' purchase of ExxonMobil's
assets is another effort by the Chinese company to capture its hold
in foreign energy assets.
CNOOC Ltd. carries a Zacks #4 Rank (short-term Sell rating). Longer
term, we maintain our Neutral recommendation.
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