Petrobras, Engie in pipeline talks

RIO DE JANEIRO, May 4, 2018 – Brazil’s Petrobras is in exclusive talks with French energy company Engie over the sale of its Transportadora Associada de Gás pipeline network, international media reported on Friday.

Following a May 31 deadline for the talks, Petrobras will present Engie’s offer to the other two interested parties – the UAE’s Mubadala Development Company and Australia’s Macquarie Group – so that they can propose new bids for the pipeline, five anonymous sources told Reuters.

The news follows the NOC’s sale of two petrochemicals subsidiaries to Mexican firm Alpek and the Azulão field to Brazilian company Eneva earlier this week. Petrobras is looking to raise USD 21 billion through asset sales before the end of the year as part of its 2018-2022 business plan.

On Thursday, Reuters also reported that several Brazilian banks and pension funds had joined a collective arbitration action against Petrobras. Parties including Itaú Unibanco, Banco Santander Brasil and Banco do Brasil are seeking compensation for damages incurred during a corruption scandal involving the NOC.

Petrobras was ordered to pay a USD 3-billion settlement to US investors in January in a related case.

Read our latest insights on: