BP pays back billions in Argentina deal

LONDON, Nov. 7 (UPI) -- BP said Monday it was repaying an energy company more than $3 billion received as part a deal to take on a 60 percent stake in Argentina's Pan American Energy.

BP last year agreed to sell its 60 percent stake in Pan American Energy to China National Offshore Oil Corp. and Bridas Corp. As part of the agreement, BP said Bridas would clear regulatory hurdles.

"The closing of this transaction had been delayed because the Argentine anti-trust and Chinese regulatory approvals required to satisfy the conditions precedent to closing of the transaction had not been obtained by Bridas Corp.," BP said in a statement. "Under the terms of the agreement, Bridas Corp. had exclusive responsibility for obtaining these approvals."

As a result of the failure, the British company said, it would repay Bridas $3.5 billion received as payment for the majority interest.

BP said it was "happy" to maintain majority ownership in PAE assets.

CNOOC officials said the termination wouldn't affect its overseas strategies.

"In the future, CNOOC Limited will continue to look for overseas opportunities which could add value to our company both in short term and long run," CNOOC Chief Executive Officer Yang Hua said.

No public statement was available from Bridas.