Vinson & Elkins Advises CNPC On $2.6 Billion Acquisition In Peru

Acquired Petrobras assets in Peru including three blocks of oil and gas fields.

The Houston-based firm, Vinson & Elkins, advised China National Petroleum Corp. (CNPC) in its recent acquisition of Petrobras assets in Peru for $2.6 billion.

PetroChina Co. Ltd. (NYSE: PTR) announced on Nov. 13 that CNPC E&D Holdings Cooperatief U.A. and CNODC International Holding Ltd., both indirect subsidiaries of the company, entered in an agreement with Petrobras International Braspetro B.V. and Petrobras De Valores Internacional De Espana S.L. to acquire the entire shares of Petrobras Energia Peru S.A.

Petrobras Energia Peru possesses three blocks of oil and gas fields in Peru, of which it holds 100% interest in two blocks and a 46.16% interest in the third block. On the basis of the equity interests held by the company, the three blocks have sizeable recoverable reserves, and the current output is some 0.8 million tons oil equivalent output per year.

The completion of the acquisition is subject to relevant government approval and the fulfillment of other conditions. The Vinson & Elkins team was led by partner Rob Patterson, with assistance from partner Jay Kolb. The team was supported by Beijing-based associates Tom Calvert, Yin Tingting and Jill Sheng.

Peru is among the countries in Latin America that have a relatively good investment environment. The three target blocks are all quality oil properties in Peru with achievable profit potential. The acquisition of the assets will help to expand the scale of PetroChina’s oil and gas cooperation in Latin America, and drive the sustainable development of PetroChina’s overseas business.