Today, Bridas and BP announced an agreement that consolidates their participation in PAE and Axion energy in a new integrated energy company. Both companies –which have been working together in the country for decades—thus take a new step forward to ratify their commitment to continue growing and investing in Argentina.

The new integrated company, Pan American Energy Group (PAEG), will bring together the strengths, knowledge and tradition of investment of both partners, to consolidate the company as a world-class operator. PAEG will be owned equally by BP and Bridas Corporation.

The implementation of the agreement, subject to complying with certain conditions, is planned for early 2018. Once the agreement is finalized, PAEG will become the main privately-owned producer, employer and investor of the energy sector in Argentina, with a footprint also in Bolivia, Mexico, Uruguay and Paraguay. At present, PAE and Axion energy provide direct and indirect employment to 23,000 people. Between 2001 and 2016, both companies invested over 15 billion dollars in Argentina.

On the upstream side, PAEG will continue to focus its efforts and investment on the development of conventional, unconventional, onshore and offshore reservoirs in the country and the region.

Regarding downstream projects, the company will continue with the expansion and modernization of its refinery in Campana, in the province of Buenos Aires, with an estimated investment of 1.5 billion dollars. This is the most important project ever undertaken in the refining sector in the country in the last 30 years. At fuel retail sites, the company will boost the recognition of the Axion brand, which is already present in more than 300 of the 751 fuel retail sites the company has in Argentina, Uruguay and Paraguay.

This agreement consolidates the shareholders' commitment to investment and job creation in the region, based on efficiency and operational safety, technological innovation, environmental protection and the sustainable development of the communities where the company operates.

About Bridas

Bridas is an Argentine company established 69 years ago, which started as an importer and provider of strategic oil services and later developed in a systematic and sustainable way to grow its business and have an international footprint. In 1997, the merger of the upstream activities developed by Bridas and Amoco (today, BP) in Argentina and Bolivia gave way to the creation of Pan American Energy, the exploration and production company with the highest growth production rate and the best reserve replacement ratio in the country between 2001 and 2016. In 2010, CNOOC (China National Offshore Oil Corporation Limited) acquired a stake in Bridas with a 50% interest. In 2012, Bridas acquired ExxonMobil's assets in Argentina, Uruguay and Paraguay, giving birth to Axion energy.

About BP

BP is a leading global energy company, with operations in over 70 countries and with almost 75,000 employees. BP has almost 18 billion barrels of oil equivalent (boe) of proved oil and gas reserves, and its daily production of oil and gas totals 3.5 million boe. Around the world, BP has interests in 11 refineries, 16 petrochemical plants and 18,000 fuel retail sites. Continuing Amoco's business in Argentina, BP has had a presence in the country since 1958.

About CNOOC Limited

CNOOC Limited holding group is the largest off-shore natural gas and oil producer in China and one of the major hydrocarbon exploration and production companies in the world. Its main areas of operation include Bohai, the South China Sea, the Southeast China Sea, and the East China Sea along the coasts of China. Abroad, the group has oil and gas assets in Asia, Africa, North America, Latin America, Oceania and Europe.

MAIN FIGURES FOR PAN AMERICAN ENERGY

• PAE is the largest hydrocarbon producing company in the private sector in Argentina:
• Between 2001 and 2016, PAE invested more than 14 billion dollars in hydrocarbon exploration and production in the country.
• During that same period, PAE increased its gas production by 76% and its oil production by 27%, and today accounts for 18% of the consolidated market in the country.
• PAE is the hydrocarbon company with the highest reserve replacement ratio in Argentina: 150% between 2001 and 2015. It has one of the largest proven oil and gas reserves in the country: 983 MMBOE as of 2015.
• At present, PAE employs more than 12,000 people either directly or indirectly. 
• PAE operates in the main hydrocarbon producing basins in Argentina:
• In Golfo San Jorge, through the operation in Cerro Dragón, the largest oilfield in the country.
• In Neuquina, the largest gas basin in the country and the hub for the development of unconventional reservoirs.
• In the Noroeste (province of Salta) and Austral basins (located offshore Tierra del Fuego), with significant production of gas, the country's main source of energy.
• PAE is the first private company to perform shallow-water drilling operations in the Mexican Gulf of Mexico, after the Energy Reform undertaken by the Mexican administration. 
   
• Besides, PAE actively supports and contributes to the development of the communities where it operates:
• It has implemented 75 CSR program that reached 300,000 people during the last year.
• For the past 12 years, PAE has implemented the SMEs Program, which seeks to strengthen more than 500 companies in the region. Just in 2016, the program provided support and offered training to more than 2,800 entrepreneurs and representatives from local companies.

MAIN FIGURES FOR AXION ENERGY

• Axion energy has a stake in the oil refinery sector and the fuel and lubricant market, after Bridas acquired ExxonMobil's assets in Argentina, Paraguay and Uruguay in 2012, thus joining a company with more than 100 years in the sector.
• Axion energy refines fuels using the latest technology available and manufactures retail lubricants, as well as fuels for the aviation, maritime and agricultural industries, cargo and passenger transportation, and other industries. It also manufactures and markets products for the petrochemical industry.
• Since 2012, Axion energy has invested more than 1 billion dollars in the country.
• The company employs more than 11,000 people directly or indirectly.
• Axion energy is developing an ambitious expansion and modernization plan of its refinery in Campana, in the province of Buenos Aires:
• This is the most important project ever undertaken in the refining sector in the country in the last 30 years, with an estimated investment of 1.5 billion dollars.
• Since 2012, the refinery has increased its fuel production by 20%; with estimates of reaching an incremental target of 60% by project completion.
• The project has created employment for 700 people, and will employ more than 2,000 people during the expansion's peak.
   
• The refinery in Campana complies with the highest international standards and with quality standard ISO 9001:2008.
• Axion energy has a 15% stake in the fuel market in Argentina, 20% in Uruguay and 6% in Paraguay.
• Axion energy continues maximizing its brand identity in fuel retail sites which operated under the ESSO brand.  More than 300 of the 751 retail fuel sites in Argentina, Paraguay and Uruguay are already operating under the AXION brand.  
• The company also has a lubricant manufacturing plant, three fuel distribution terminals and four airport terminals.