Brazil’s Petrobras gets Supreme Court approval for asset sales

The Brazilian Supreme Court has revoked an injunction that conditioned the sale of some major divestments by state-run oil firm Petroleo Brasileiro (Petrobras).

In May, the Supreme Court suspended the sale of Petrobras’s TAG pipeline unit and eight refineries. The suspension also included the sale of its Araucaria Nitrogenous fertiliser business.

Supreme Court Justice Edson Fachin revoked the injunction granted in Complaint 33292, which allows the conclusion of the operation. Last month, Fachin had ruled to suspend the $8.6bn sale of Petrobras’s TAG pipeline unit to French company Engie.

In April, Petrobras agreed to sell TAG to a consortium led by French energy firm Engie for $8.6bn and also secured regulatory approval.

In response to a lawsuit filed by the employees union against planned sale of refineries, the ruling earlier stated the sale will have to be undertaken in an auction format with Congressional approval.

Petrobras said in a statement: “Petrobras continues with its divestments, fundamental for reducing its level of indebtedness and for generating value through active portfolio management, in line with its 2019-2023 Business Plan and Management and Resilience Plan, respecting the competitiveness and the constitutional principles applicable to the company.

“Regarding the sale of Petrobras’ 90% stake in the Transportadora Associada de Gás (TAG), the company informs that Minister Edson Fachin revoked the injunction granted in Complaint 33292, which allows the conclusion of the operation.”

Furthermore, with regard to the sale of 100% of its stake in Araucária Nitrogenados, the company clarified that it will continue to defend its interests, considering the Plenary of the Federal Supreme Court’s decision.