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.
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...