BP to team up with Bridas and CNOOC in Argentina

The unified ownership would help align the interests of the new company's shareholders across the upstream and downstream value chains in Argentina, Uruguay and Paraguay, the London-based oil major said in a statement.

To be named Pan American Energy Group, the new company would combine Pan American Energy, which was owned 60% by BP and 40% by Bridas Corporation, and refiner and marketer Axion Energy in a cash free transaction, with BP and Bridas to be equal owners.

Pan American Energy was owned 60% by BP and 40% by Bridas Corporation, while Axion was wholly-owned by Bridas Corp., it self a 50:50 joint-venture between Bridas Energy Holdings of Argentina and China's CNOOC.

There would be no payments for the equity exchange, the two companies said in announcement.

Bob Dudley, BP's group chief executive placed emphasis on the new company's ability to pursue growth across Latin America and Mexico, supported by the combined skills and expertise of BP and Bridas.

"Supported by the combined skills and expertise of BP and Bridas, this new integrated business will be able to pursue growth and development opportunities in Argentina, Uruguay, Paraguay and Mexico", he said.

For his part, Alejandro Bulgheroni, the chairman and President of Bridas saw the move as an opportunity to ratify the company's commitment to investment, employment as well as the efficient development of resources that "our region needs".