Petrobras to Sell Pipeline Unit for $9 Bln

Friday, April 5, 2019

Brazilian state-run oil company Petroleo Brasileiro SA has agreed to sell its TAG natural gas pipeline unit to a consortium led by France's Engie SA for roughly $9 billion, Bloomberg News reported on Friday, citing a source.

The Engie consortium, which also includes Canada's Caisse de Dépôt e Placement du Québec, beat out two competing consortia, led by Itausa Investimentos Itau SA and EIG Global Energy Partners with Mubadala Investment Co, respectively, Bloomberg said, citing a source with knowledge of the matter.

Petrobras, as the company is widely known, and Engie declined to comment.

Sources told Reuters last month that Petrobras was accepting the final round of bids for its TAG gas pipeline unit on April 2, which was expected to bring in several billion dollars and will likely be the company's largest divestiture in Petrobras' asset sales program.

The oil company had been targeting a sale of a 90 percent stake in TAG, which operates about 2,800 miles (4,500 kilometers) of gas pipelines. 


(Reporting by Gram Slattery and Geert De Clercq Editing by Marguerita Choy)

Categories: Pipelines South America Natural Gas

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