PacRu Enters Peru Block

Colombia’s Pacific Rubiales has agreed to buy 49% of a Peruvian offshore oil block from BPZ, it says. In the deal, Pacific Rubiales is to pay $150m cash, and is subject to a commitment of $185m for BPZ’s share of capital and exploratory expenditures in the block, known as Z-1. Once Pacific Rubiales has satisfied its commitment to BPZ in connection with the capital and exploratory expenditures, the partners will share costs at their respective ownership interest basis. Bank of America Merrill Lynch and GMP Securities advised Pacific Rubiales. Credit Suisse and Tudor, Pickering, Holt acted as financial advisors to BPZ.