BP has announced a joint venture with a firm in Argentina to form a new energy company.

Its agreement with Bridas Corporation will combine their interests in oil and gas producer Pan American Energy (PAE) – the second largest in the country – and refiner Axion Energy.

BP said the new company, Pan American Energy Group (PAEG), will be the largest privately-owned integrated energy firm in Argentina.

The 50:50 joint venture will pursue growth and development opportunities in Argentina, Uruguay, Paraguay and Mexico.

The deal, which is subject to regulatory approval, is expected in early 2018.