Sinopec to divest from Argentina: report

BUENOS AIRES, November 29, 2017 – Sinopec has decided to sell its Argentinian oil and gas assets for USD 500 million-600 million, local and international media reported Tuesday.

According to energy publication EconoJournal, two sources said that a deal would be finalised between the Chinese company and Mexico-based Vista Oil & Gas, which was established by former YPF head Miguel Galuccio earlier this year.

Sources also told the publication that YPF, Pluspetrol and Madalena Energy had been in the running for the assets, but did not meet certain criteria. The sale, managed by Scotia Waterous, could be completed as early as the end of December and as late as Q1 2018.

After the deal closes, Vista will receive 17 fields, which have a combined output of 25,159 barrels of oil and 2.1 mcm (74.2 mcf) of gas per day.

Reuters reported that in 2010, Sinopec had paid Occidental Petroleum USD 2.45 billion for the assets, which are mostly located in the southern area of the Santa Cruz province.

The Chinese heavyweight has reportedly decided to pull out of Argentina due to high local costs and disputes with the provincial labour union.

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