Brazilian oil company Petrobras has begun the binding phase regarding the sale of its remaining 10% interest in its Transportadora Associada de Gas (TAG) pipeline unit.
The deal follows Petrobras’ announcement regarding the start of the non-binding phase for the TAG sale in January.
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In a press statement, Petrobras said: “Potential buyers qualified for this phase will receive a process letter with detailed information on the divestment process, including guidelines for due diligence and submission of binding proposals.
“This disclosure complies with the Petrobras’ divestment guidelines and the special regime of asset divestment by federal mixed capital companies, provided for in Decree 9,188/2017.”
Operating in the natural gas transportation segment, TAG manages and operates 4,500km of gas pipelines located primarily in the North and North-East regions of Brazil.
It has an installed capacity of 75mm³ a day.
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By GlobalDataThe sale is in line with the company’s portfolio optimisation and improved capital allocation plan to maximise value for its shareholders.
In April 2019, a consortium comprising French energy firm Engie and Canadian investment fund Caisse de Depot and Placement du Quebec (CDPQ) made the winning bid to buy a 90% equity stake in the TAG natural gas pipeline unit.
The consortium group acquired 90% of TAG from Petrobras last June.
In January 2019, Petrobras’ executive board decided to resume the bidding process for the 90% interest in TAG, which also includes the sale of the company’s Araucaria fertiliser factory.
