Petrobras Seeking to Divest Its 4500-km Of Pipeline Assets And Focus On Deep Water Investments

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Petrobras Seeking to Divest Its 4500-km Of Pipeline Assets And Focus On Deep Water Investments

Mon, 01/14/2019 - 10:51
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Petrobras Seeking to Divest Its 4500-km Of Pipeline Assets And Focus On Deep Water Investments (Alf Ribeiro / Shutterstock)
Petrobras Seeking to Divest Its 4500-km Of Pipeline Assets And Focus On Deep Water Investments (Alf Ribeiro / Shutterstock)

Brazil’s state-controlled oil company Petróleo Brasileiro, or Petrobras, could introduce a new sale and purchase agreement (SPA) for the sale of the Transportadora Associada de Gás (TAG) pipeline, after a Brazilian Supreme Court injunction this past July stalled the sale.

Petrobras aspires to fetch some $7 billion through the sale of its 4500-km natural gas pipeline infrastructure and invest the proceeds in deep water plays in the Atlantic, which are considered more profitable investments. Before the injunction Petrobras negotiated with a consortium of France’s Engie and Canada’s Caisse de dépôt et placement du Québec (CDPQ).

Earlier last month, Petrobras’ board approved a five-year investment plan comprising proposed investments worth around $84bn by 2023. These mainly focused on deepwater oil and gas exploration and production assets.

The Supreme Court injunction has cost Petrobras an estimated $10 billion. The French-Canadian consortium mentioned above will now have to present a new SPA to the market and allow time for counter offers from any other parties interested in buying TAG from Petrobras, the sources said.

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