Brazil’s Petrobras sold all of its assets in Argentina’s Austral Basin on Tuesday to Argentina-based Compania General de Combustibles S.A. (CGC) for $101 million.
The deal was approved by the board of directors at Petrobras Argentina (PESA).
The PESA assets include 26 onshore exploration production concessions, with an average production of 15,000 barrels of oil equivalent per day, as well as all of the infrastructure required for distribution, treatment and storage.
This is the first sale under the company’s recently announced divestment plan that is expected to dispose of $13.7 billion in assets from 2015 to 2016.
The purchase was paid for when the contract was signed and the sale will be accounted for in the company’s first quarter 2015 results, with an estimated impact of $65 million in net income.
The deal is still subject to approval from Argentinian regulators.
Petrobras has been embroiled in an ongoing corruption scandal that has already landed three former executives in jail.
Former Petrobras CEO Maria das Graças Foster has said the company could face write downs of up to $31 billion for alleged bribery and kickback schemes tied to company contracts, a figure recently appointed CEO Aldemir Bendine disputes.