China National Petroleum Corporation

Repsol Latin America asset bids fail

PUBLISHED : Monday, 17 September, 2007, 12:00am
UPDATED : Monday, 17 September, 2007, 12:00am

The CNPC/PetroChina joint venture made two attempts this year to acquire all the Latin American assets of Repsol YPF, Spain's largest oil company, valued at about US$20 billion, but did not proceed, sources said.

A first attempt stumbled over the structure the joint venture proposed to Repsol for the acquisition, a source said, but declined to give details.

The second try saw the joint venture attempt to bring together a consortium of foreign investors including private equity and hedge funds such as Spinnaker Capital and Ashmore Group. The funds declined to join in the bid because they felt the returns were not as attractive as they could have been.

Repsol owns oil and gas assets in a number of countries in Latin America, including Argentina, Brazil, Mexico and Peru.

CNPC said this month that it would take a 40 per cent stake in a venture with state-owned Petroleos de Venezuela. The one million barrel a day project will see the two companies invest more than US$10 billion.