Petrobras sells Argentina, Chile assets for US$1.38b

[RIO DE JANIERO] Brazil state oil giant Petrobras announced Tuesday it has concluded the sale of US$1.38 billion in assets in Argentina and Chile.

Petrobras sold a 67.2 per cent stake in Petrobras Argentina (PESA) to Argentina's Pampa Energia SA for US$892 million, and all of Petrobras Chile Distribution Ltda to private equity firm Southern Cross Group for US$490 million.

The sale, which still requires final approval from executives and the board of directors, comes as the group reels from Brazil's biggest corruption scandal and US$100.4 billion in debt.

In March, Petrobras announced it had posted record losses of US$9.6 billion last year, up from US$7.2 billion in 2014.

Petrobras estimated last year that it lost about US$2 billion were lost to bribery over a decade.

Executives from Brazil's state-owned oil company allegedly conspired with construction groups to siphon off billions in dollars through inflated contracts.

The scandal has severely tainted President Dilma Rousseff's Workers.

AFP