Petrobras sells Argentina, Chile assets for $1.38 bn

Brazil state oil giant Petrobras announced it has concluded the sale of $1.38 billion in assets in Argentina and Chile.

Petrobras sold a 67.2 percent stake in Petrobras Argentina (PESA) to Argentina's Pampa Energia SA for $892 million, and all of Petrobras Chile Distribution Ltda to private equity firm Southern Cross Group for $490 million.

The sale, which still requires final approval from executives and the board of directors, comes as the group reels from Brazil's biggest corruption scandal and $100.4 billion in debt.

In March, Petrobras announced it had posted record losses of $9.6 billion last year, up from $7.2 billion in 2014.

Petrobras estimated last year that it lost about $2 billion were lost to bribery over a decade.

Executives from Brazil's state-owned oil company allegedly conspired with construction groups to siphon off billions in dollars through inflated contracts.

The scandal has severely tainted President Dilma Rousseff's Workers.