Argie Energy Co Plans Spinoff

Andes Energia, an energy company based in Argentina, is planning to break off its exploration and production unit from its electricity business, creating two separate entities. The plan is to separate the electricity unit which belongs to a highly regulated market, from the E&P business which has different levels of risk and return, Luis Alvarez Poli, Andes’ CEO tells LatinFinance. He declined to offer specifics on the time table, strategy or the logistics of this move. Alvarez Poli notes, however, that the decision comes at a time when the company has seen advances in its exploratory campaign and has managed to build up a portfolio of reserves to develop. The company owns power distribution and hydroelectricity generation assets and holds interests in several oil and gas blocks in Argentina.