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Amoco in LatAm venture
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September 5, 1997: 12:14 p.m. ET
U.S. firm, Bridas of Argentina plan gas and oil exploration, production
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NEW YORK (CNNfn) - Amoco Corp. said its Amoco Argentina Oil Co. subsidiary has signed a letter of intent to form a strategic alliance with Bridas Corp. of Buenos Aires to explore and produce oil and gas in South America's southern region.
Amoco will have a 60 percent stake in the new venture and Bridas 40 percent, the companies said in a joint press statement.
The venture, which is subject to the execution of a definitive agreement, will focus on Argentina, Bolivia, Brazil, Chile, Paraguay, Peru and Uruguay. The newly formed company will be the second-largest oil and gas producer in Argentina, behind YPF SA.
As part of the deal, Bridas will buy a minority stake in Amoco Bolivia Oil and Gas, which owns 50 percent of Empresa Petrolera Chaco SA.
Financial terms of the agreement weren't disclosed.
"We are combining two highly successful energy companies in the area to create an even stronger entity that will aggressively compete for growth opportunities in the Southern region, one of the most attractive energy emerging markets," Amoco Executive Vice President Richard Flury said in the statement.
Alejandro Bulgheroni will be chairman of the new company. Amoco will name a chief executive later.
Morgan Stanley represented Amoco in the transaction. Bridas was advised by Chase Securities.
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