May 2019, Vol. 246, No. 5
Global News
Petrobras Sells Pipeline Unit to Engie for $8.6 Billion
A consortium led by France’s Engie SA submitted the highest offer for a major gas pipeline unit owned by Brazil’s Petroleo Brasileiro SA, the state-run oil firm said in April, as the company’s biggest divestment draws to a close.
In a filing, Petrobras said the Engie consortium, which includes Canada’s Caisse de Dépôt e Placement du Québec, presented an $8.6 billion bid for 90% of the TAG gas pipeline unit in northern and northeastern Brazil.
The divestment represents a victory for the current Petrobras leadership and Chief Executive Roberto Castello Branco, who is pushing to aggressively unload assets in a bid to cut debt and refocus on exploration and production. The sale process began in October 2017 but was interrupted last year by a Supreme Court injunction.
In September 2016, Petrobras sold a larger gas network pipeline, Nova Transportadora do Sudeste, for $5.2 billion to Brookfield Infrastructure Partners LP, which beat out a bid by Engie.
Petrobras said it will continue to distribute natural gas through the TAG system under the terms of long-term contracts.
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