Dutch oil and gas company Shell is set to divest its interest in Brazilian gas distributor Companhia de Gas de São Paulo (Comgás) to Cosan SA Indústria e Comércio for around $380m.
Deciding to execute an existing put option agreement, Shell Gas, Shell Brazil Holding and Integral Investments have signed an agreement in connection with the sale of all of Shell’s 16.8% interest in Comgás.
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Under the agreement, Cosan will receive around 21.8 million common shares in Comgás in exchange for its shares plus cash.
Shell Integrated Gas and New Energies director Maarten Wetselaar said: “This transaction allows us to focus our efforts in Brazil on areas where we see the most strategic value for Shell longer-term.
“Brazil is an important country to Shell, and our portfolio of high-quality assets and development opportunities positions us well for the future.”
Cosan already holds a 63.4% interest in Comgás, which serves power, commercial, industrial and residential users in the state of São Paulo, with a natural gas pipeline network of more than 14,000km.
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By GlobalDataNotwithstanding the proposed sale, Shell will continue to operate in Brazil through diverse operations, including its deepwater portfolio and downstream business.
The company has interest in biofuel producer Raízen through a joint venture with Cosan.
