BP and Bridas to combine PAE and Axion Energy, forming new integrated energy company

Sullivan & Cromwell, Marval, O’Farrell & Mairal, Uría Menéndez, Akin Gump Strauss Hauer & Feld and Squire Patton Boggs advised on the deal

BP has agreed with Bridas Corporation (Bridas) to form a new integrated energy company by combining their interests in the oil and gas producer Pan American Energy (PAE) and the refiner and marketer Axion Energy (Axion) in a cash-free transaction. The new company, Pan American Energy Group (PAEG), will be the largest privately-owned integrated energy company operating in Argentina.

PAEG will be owned equally by BP and Bridas Corporation, itself a 50:50 joint venture of Bridas Energy Holdings of Argentina and CNOOC Limited of China. PAE is currently owned 60% by BP and 40% by Bridas, while Axion is wholly-owned by Bridas. There will be no payments for the equity exchange.

The combination of PAE and Axion under unified ownership will align the PAEG shareholders’ interests across the upstream and downstream value chains in Argentina, Uruguay and Paraguay. PAEG is expected to benefit from BP’s global upstream technical and downstream marketing experience as well as Bridas’ deep operating knowledge. The combination may also offer further integration synergies; the Axion refinery is already the primary customer for PAE’s Argentine crude oil production.

Sullivan & Cromwell advised BP with a team including Richard A. Pollack (Picture), Stewart M. Robertson, S. Eric Wang, Juan Rodriguez, Oderisio de Vito Piscicelli, T. Max O’Neill, Frederic Robles and Umberto Hassan.

Marval, O’Farrell & Mairal advised BP with Santiago Carregal, Héctor A. Mairal, Francisco Macías, María Inés Brandt, María Claudia Paluszkiewicz, Jimena Montoya and Guillermo Pefaur.

Uría Menéndez advised BP with Carlos de Cárdenas and Rafael García Llaneza.

Akin Gump Strauss Hauer & Feld advised Bridas with Daniel G. Walsh, David N. Sewell, Davina Garrod, Jim Langdon, Seth Molay, Jonathan J. Pico, Alex Leitch and Scott Pettifor.

In Spain, Squire Patton Boggs advised Bridas with Marisa Fernández.

Involved fees earner: Santiago Carregal – Marval, O’Farrell & Mairal; Maria Claudia Paluszkiewicz – Marval, O’Farrell & Mairal; Jimena Montoya – Marval, O’Farrell & Mairal; Guillermo Pefaur – Marval, O’Farrell & Mairal; Héctor Mairal – Marval, O’Farrell & Mairal; Francisco Macias – Marval, O’Farrell & Mairal; María Inés Brandt – Marval, O’Farrell & Mairal; Marisa Fernández – Squire Patton Boggs; Daniel Walsh – Akin Gump; David Sewell – Akin Gump; Seth Molay – Akin Gump; Jonathan Joel Pico – Akin Gump; Alex Leitch – Akin Gump; Scott Pettifor – Akin Gump; Davina Garrod – Akin Gump; James Langdon Jr. – Akin Gump; Carlos de Cárdenas Smith – Uría Menéndez; Rafael García Llaneza – Uría Menéndez; Richard Pollack – Sullivan & Cromwell; Stewart Robertson – Sullivan & Cromwell; Oderisio De Vito Piscicelli – Sullivan & Cromwell; Umberto Hassan – Sullivan & Cromwell; Eric Wang – Sullivan & Cromwell; Max O’Neill – Sullivan & Cromwell; Juan Rodriguez – Sullivan & Cromwell; Frederic Robles – Sullivan & Cromwell;

Law Firms: Marval, O’Farrell & Mairal; Squire Patton Boggs; Akin Gump; Uría Menéndez; Sullivan & Cromwell;

Clients: BP; Bridas Corporation;

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