• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 7 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 7 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 7 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Oil Survives Bearish Backlash

Oil Survives Bearish Backlash

Crude benchmarks posted steep losses…

The IEA Is Grossly Overestimating Shale Growth

The IEA Is Grossly Overestimating Shale Growth

The IEA’s forecast that U.S.…

Brookfield Buys Stake In Petrobras Unit For US$5.2 Billion

Pipeline maintenance

A group of investors led by Brookfield Asset Management Inc. will pay US$5.2 billion to purchase 90 percent of a pipeline unit owned by beleaguered state-run Brazilian energy giant Petrobras.

The group, led by the Canadian-based Brookfield, will pay Petrobras US$4.34 billion up front for majority control of Nova Transportadora do Sudeste SA, followed by the remaining US$850 million within five years.

As part of the deal, which awaits final approval by shareholders and Brazilian regulators, Brookfield Infrastructure Partners Ltd will spend a minimum of 20 percent of the value of the transaction. Meanwhile, Brookfield Asset Management has an initial investment of about 30 percent. Brookfield’s partners in the purchase include two sovereign wealth funds: CIC Capital Corp of China and GIC Private Ltd. of Singapore.

The pact was initially announced last February, and, according to Petrobras, negotiations were finalized earlier this month.

The Nova pipeline system transports natural gas from offshore oil and gas fields in Brazil and Bolivia to the southeastern Brazilian states of Rio de Janeiro, São Paulo, Minas Gerais and Espírito Santo. Approximately 1.7 billion cubic feet of natural gas per day was transported via the Nova pipelines in 2014, based on Brazilian government data cited by Argus Media.

Related: Russia And Saudi Arabia Playing A Risky Game Ahead Of OPEC’s Meeting

The Nova deal represents the latest part of Petrobras’ plans to divest some of its assets, including the firm’s biofuel operations. The aim is to slash its budget by 25 percent over the next five years to focus mainly on its core assets in traditional energy.

“Petrobras wants to spend less to produce the same,” Chief Executive Officer Pedro Parente said. “In oil and gas we won’t be a smaller company,” he added in remarks mentioned by MercoPress.

Petrobras has been hit hard by the low price of oil as well as its involvement in the Lava Jato corruption scandal that has led to a political upheaval and economic slowdown in Brazil. In one of the latest developments in the probe, the former finance minister under ex-Presidents Luiz Inacio Lula da Silva and Dilma Rousseff, Guido Mantega, was detained for several hours on Thursday.

By Erwin Cifuentes for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News