Brazil’s state-run oil company Petrobras sales Peru subsidiary to Chinese company for $2.6B

RIO DE JANEIRO – Brazil’s state-run oil company says it has sold its Peruvian subsidiary to China National Petroleum Co. for $2.6 billion.

Petrobras says in a Wednesday statement that the deal still must be approved by the Chinese and Peruvian governments.

Included in the deal are the three oil and gas fields that Petrobras has in Peru.

It’s the latest move by Petrobras to shed assets and bring in cash. It said earlier this year it wants to raise $9.9 billion through such sales.

According to the company’s third-quarter earnings statement, Petrobras’ debt has jumped 19 per cent this year, in part because it sells imported gasoline at a loss in Brazil to keep prices low. That’s putting a strain on its ambitious investment plans to develop big offshore reserves discovered near Brazil’s coastline.