Wednesday, May 5, 2010

Petrobras to Sell Argentine Assets for $110 Million

By Peter Millard and Lucia Kassai

May 5 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-controlled oil producer, said it will sell part of its assets in Argentina to Oil Combustibles SA for $110 million, including a refinery, gasoline stations and inventories.

The sale by the company’s Petrobras Energia unit includes inventories of crude oil and other products for about $74 million, according to a Brazilian regulatory filing today.

Petrobras’s Argentine unit needs to focus on boosting oil production and reserves after output declined, while profit margins for refining narrowed, Banco Santander SA analyst Eugenia Fernandez Pouchan said.

“The idea is to focus on exploration and production and this will add value to the company because they have declining production and reserves,” Pouchan said in a telephone interview from Buenos Aires. “Refining margins have been low or negative.”

--Editors: Carlos Caminada, Dale Crofts.

To contact the reporters on this story: Lucia Kassai in Sao Paulo at; Peter Millard in Rio de Janeiro at

To contact the editor responsible for this story: Dale Crofts at

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