Brazil: Divestment Strategy Petrobras Receives Bids for Natural Gas Pipeline Network
Petrobras has received three bids for a natural gas pipeline network as part of a wider push to raise cash through divestments, said people with knowledge of the matter.
Rio de Janeiro/Brazil (Bloomberg) — Mubadala Development and Sydney-based Macquarie Group each led separate groups that submitted bids on Thursday for Transportadora Associada de Gas, or TAG, the people said. A third bid includes French utility Engie, the people said. No details were given on the size of the bids, but the proposals were expected to go as high $ 8 billion including debt, people familiar with the process said earlier this week.
TAG, a 4,500-km network that spans ten Brazilian states, could be Petrobras’ largest asset sale to date, accounting for more than a third of the state-controlled energy company’s $ 21 billion divestment target. Petroleo Brasileiro, as the state-controlled oil producer is known, declined to comment on the sale. Engie, Mubadala and Macquarie didn’t immediately respond to requests for comment.
In 2016 Petrobras sold Nova Transportadora do Sudeste, a similar but smaller pipeline network in Brazil’s southeast, to a consortium led by Brookfield Asset Management for $ 5.2 billion. The TAG sale would add to growing foreign presence in Brazil’s natural gas industry as Petrobras sheds side businesses to slash debt and focus on its most profitable oil projects in deep waters of the South Atlantic. In March, China’s Shandong Kerui Petroleum signed a deal with Petrobras to invest in a natural gas processing plant in Rio de Janeiro state.