Petrobras to sell gas pipeline

Petrobras has recently announced that it has approved the sale of 90% of the Nova Transportadora do Sudeste (NTS) natural gas pipeline for US$5.19 billion to a consortium led by Brookfield Asset Management.

The divestment is part of the company’s efforts to reduce its debt amist low energy prices. Petrobras is now focusing on the exploration of petroleum and natural gas, selling assets that are no longer of economic interest to the company.

Petrobras has released a statement, commenting: “This transaction is significant for the Petrobras Divestment Plan. It corresponds to roughly 35% of the US$15.1 billion target for the 2015-2016 period.”

According to Rio Times Online, 84% of the value of the sale (US$4.34 billion) will be paid to the company when the contract is signed. The remaining amount will be paid in five years’ time – US$850 million.

“We are very pleased to be significantly expanding our utilities business in a sector and geography that we know well and that we believe will offer opportunities to deploy further capital at attractive risk-adjusted returns,” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure.

According to Energy Business Review: “Petrobras said that the deal promotes new investments to expand gas transportation infrastructure in the country.”

Edited from various sources by Anna Nicklin

Read the article online at: https://www.worldpipelines.com/business-news/27092016/petrobras-to-sell-gas-pipeline/