The Strategist

French Engie, Canadian Caisse de Depot to buy part of Petrobras

04/08/2019 - 16:03

The Brazilian state-owned oil and gas company Petroleo Brasileiro SA (Petrobras) has agreed to sell its division Transportadora Associada de Gas (TAG), a domestic gas pipeline network operator, to the French energy company Engie SA and Canadian pension fund Caisse de Depot et Placement du Quebec.

Bruno Covas
Bruno Covas
The transaction’s amount, which will be the largest sale of an asset to Petrobras, will reach about $ 9 billion, reports Bloomberg, citing an informed source.

The deal involves sale of 90% of the gas pipeline network with a length of 4.5 thousand kilometers, laid on the territory of 10 states in the north of Brazil.

Engie and Caisse were the winners in the final bidding round for TAG purchases, the source said.

In March, Head of Petrobras, Roberto Castello Branco, announced that the company planned to sell assets totaling about $ 27 billion to raise funds for debt reduction, as well as to direct more resources to develop key offshore oil extraction operations.