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Petrobras to sell pipeline unit

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World Pipelines,

Brazil's state-run oil company Petroleo Brasileiro SA (Petrobras) is reported to be selling 90% of its natural gas pipeline segment to Brookfield Asset Management-led group of investors for US$5.2 billion.

According to Reuters, the deal will be the largest divestment in the heavily indebted oil company's US$15 billion asset sale plan as of yet. The sale will contribute to Petrobras’ downsizing efforts, which has seen the sale of US$3.9 billion in assets so far this year.

The preliminary agreement will be submitted to the Petrobras board before the transaction, which is expected to close in late September.

The Brookfield-led group includes British Columbia's pension fund and the Chinese and Singaporean sovereign wealth funds, CIC and GIC.

Petrobras has declined to comment to Reuters and Brookfield has not yet commented.

Edited from various sources by Anna Nicklin

Sources: Reuters, St Louis Today, The Street

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