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.
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.
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
MAIN FIGURES FOR AXION ENERGY