DEAL: Petrobras' $5.2 billion pipeline sale

Author: Edward Price | Published: 11 Oct 2016

Petrobras, the Brazilian state-owned energy company, is selling gas pipeline networks in a landmark deal. Local lawyers who worked on the $5.2 billion transaction see it as a sea-change in the country’s energy market.

The deal, the sale of the Nova Transportadora do Sudeste pipelines and storage units, is the largest ever sale of an asset owed by a Brazilian government entity. Counsel feel it will change the energy landscape, and in particular the gas sector in Brazil, opening the market up to competition.

Petrobras' landmark deal will change the market

The deal is a huge part of Petrobras’ divestiture programme, which has a target of $20 billion in sales by 2018. To date, the company has sold about $9.8 billion, about 50% of their target. The buyers in the deal are a group led by Brookfield Asset Management.

“It is one of the largest, if not...