BP has agreed to merge its interests in two Argentinian oil and gas groups in a new joint venture with Bridas Corporation (Argentina). They will set up together a new integrated energy company by combining their respective interests in the oil and gas producer Pan American Energy (PAE) and the refiner and marketer Axion Energy (Axion). PAE is currently owned by BP with a 60% stake while the remaining 40% belong to Bridas. Axion Energy is wholly-owned by Bridas Corporation. The new company, Pan American Energy Group (PAEG), will be the largest privately-owned integrated energy company operating in Argentina and will be equally owned by BP and Bridas Corporation.
Bridas Corporation is a 50% joint venture of Bridas Energy Holdings (Argentina) and China National Offshore Oil Corporation (CNOOC), which acquired its stake back in 2010.
In 2016, PAE reported a production of 262,000 boe/d, of which 108,000 bbl/d oil and natural gas liquids, as well as 891 mcm/d of gas. It has interests in Argentina’s four main hydrocarbon basins, including operating Cerro Dragon, and also holds interests in the Vaca Muerta shale assets (Neuquen basin, Argentina).
Axion Energy owns and operates the 90,000 bbl/d Campana refinery (75 km north of Buenos Aires region, Argentina). It also owns 580 fuel retail sites and associated distribution terminals in Argentina (15% of Argentina’s fuels retail market). It also has approximately 110 retail sites in Uruguay and 65 in Paraguay.