PetroChina, China’s largest oil and gas producer, will pay $2.6 billion for oil and gas assets in Peru.

The seller is Brazil’s Petrobras.

PetroChina said it will acquire all the shares of Petrobras Energia Peru, which has three oil and gas fields in Peru producing about 800,000 tonnes of oil equivalent per year.

“The three target blocks are of relative good quality, with expected profitability potentials,” PetroChina said in a statement.

“The success of the project will help to expand the scale of cooperation of the group in Latin America oil and gas field and promote the sustainable development in the overseas business of the group,” the company said.

PetroChina plans to invest up to $60 billion on overseas acquisitions before 2020 to raise its production abroad to more than 50% of its total.

The acquisition needs final approval from regulators in Peru and China, PetroChina said.

PetroChina is owned by the government-controlled China National Petroleum Corporation. CNPC currently owns and operates other oil and gas assets in Peru.

“Chinese companies have completed 83 overseas oil and gas purchases worth $100.7 billion in the past five years, according to data compiled by Bloomberg. Cnooc’s $15.1 billion acquisition of Canada-based Nexen early in 2013 was China’s largest overseas acquisition.,” according to the International Business Times.

Over the last five years, Sinopec and CNOOC, the country’s second and third-biggest oil and gas producers, spent $41 billion and $26 billion, respectively, on overseas assets, the IBT said, and CNPC spent more than $9 billion to purchase overseas assets in 2013.


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