Brazil’s Petrobras confirms pipeline sale to Brookfield-led group

Brazilian oil company Petróleo Brasileiro SA (Petrobras) has agreed to sell its natural gas pipeline unit, Nova Transportadora do Sudeste (NTS), to a consortium led by Brookfield Asset Management. The deal, reported earlier this week by Reuters, is said to be valued at US$5.2 billion. Petrobras said it will disclose the final terms and conditions after the disinvestment process has been completed and the transaction is approved by statutory authorities. Reuters reported Toronto-based Brookfield is partnering in the acquisition with a Canadian pension fund and Asian sovereign wealth funds CIC and GIC.

PRESS RELEASE

Conclusion of the negotiations on the sale of Nova Transportadora do Sudeste

Rio de Janeiro, September 8, 2016 – Petróleo Brasileiro S.A. – Petrobras, concerning the news on the sale of Nova Transportadora do Sudeste (NTS), and giving continuity to the material facts disclosed on May 12 and July 12, 2016, informs that it has concluded the negotiations with the consortium led by Brookfield for the sale of this asset.

Once the steps provided for under Petrobras’ disinvestment process are completed, the final terms and conditions of the transaction will be submitted for deliberation by the Company´s statutory bodies and, if approved, will be timely disclosed to the market.

Source: Petróleo Brasileiro S.A.

Photo courtesy of Reuters/Sergio Moraes