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BP sells its 60% stake in Pan American Energy to Bridas Corporation for US$7 billion

BP sells its 60% stake in Pan American Energy to Bridas Corporation for US$7 billion

Report summary

BP is to sell its 60% stake in Pan American Energy (PAE) to Bridas Corporation for a cash consideration of $7.1 billion. Bridas Corporation is owned 50% by Bridas Energy Holdings Ltd. and 50% by CNOOC Ltd, the latter having acquired its share in March 2010 for US$3.1 billion. Bridas Corporation already holds the remaining 40% in PAE. We value the assets transferred at US$7.0 billion (NPV10). However, given the fiscal, regulatory and operational uncertainties associated with the ...

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  • BP sells its 60% stake in Pan American Energy to Bridas Corporation for US$7 billion PDF - 405.91 KB 8 Pages, 7 Tables, 0 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Argentina
    • Chile
  • Deal analysis
  • Upsides and risks
    • Domestic crude prices
    • Increases in regulated gas prices
    • Organic upside
      • Improved performance at Cerro Dragón
      • Petróleo Plus programme
      • Exploration opportunities
    • Non-upstream interests
  • Strategic rationale
    • BP
    • CNOOC Ltd
    • Bridas Energy Holdings
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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