Pacific Rubiales closes $1.6B acquisition of Petrominerales
First announced in late September, deal gives Pacific Rubiales stronger focus in Colombia, Peru
TORONTO—Pacific Rubiales Energy Corp. has closed the $1.6-billion acquisition of Calgary-based Petrominerales Ltd., the company announced.
Petrominerales shareholders will get $11 per share plus one share of a new Brazil-focused exploration and production company known as ResourceCo.
The deal values Petrominerales at approximately $1.6-billion.
“This acquisition is an excellent fit with our strategy of integrating light oil with our heavy oil business to secure additional components of the value chain, provide immediate capture of additional value through asset synergies, grow production, reserves and cash flow at attractive metrics, and provide significant exploration upside,” CEO Ronald Pantin said in a statement.
“The Petrominerales light oil and pipeline assets in Colombia provide a strategic hedge for our future supply, cost and security of diluent volumes and pipeline transportation, based on our expectation of the company’s growing heavy oil production.”
Petrominerales has been operating in Latin America since 2002.
Based in Canada, Pacific Rubiales said it is the largest oil and gas exploration and production company in Colombia.