Petrobras pauses major asset sales

Brazil

SãO PAULO, July 4, 2018 – Following last week’s ruling by a Supreme Court judge that privatisation deals must be authorised by Congress, Brazilian NOC Petrobras said it would suspend major asset sales, international media reported Tuesday.

Because the ruling applies to assets in which the government owns stakes, divestments will be deferred for Petrobras’ Araucaria fertiliser plant, some refineries and pipeline operator Transportadora Associada de Gas. The latter was expected to be sold for around USD 7 billion.

All the sales were slated to be completed before the end of 2018; however, given the upcoming Supreme Court recess, an appeal to the new ruling could take months.

Petrobras aims to raise USD 21 billion from asset sales before the end of the year to free up cash to pay down debts.

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