Petrobras to resume sale of interest in TAG pipeline

Brazilian oil company Petrobras’ executive board has decided to resume the bidding process for a 90% interest in its Transportadora Associada de Gas (TAG) pipeline unit.

The sale will also include the company’s Araucaria fertiliser factory.

Petrobras will also continue to look for potential refining partnerships.

The company had been looking to divest its interest in the pipeline operator TAG. However, the sale process was suspended following an injunction issued by a Brazilian court.

A superior court overturned the injunction earlier this week. Based on a Supreme Court ruling last week, Petrobras can temporarily continue the sale of the TAG.

The full court will hear the broader legal battle over the sale of state oil assets next month.

TAG operates 4,500km of gas pipelines in the country. The divestiture is the largest in Petrobras’ asset sales programme, which aims to reduce the company’s debt.

Before the court troubles, French firm Engie offered to acquire the pipeline business in a bid valued at more than $7bn.

Petrobras had targeted $21bn worth of divestments for 2017 and 2018. In a strategic outlook released last month, the company announced that it is planning to pursue asset sales of $26.9bn over the next five years.

As part of the divestment plans, the company sold interests in the Lapa, Sururu, Berbigão, Oeste de Atapu and Roncador fields.

The firm also formed a joint venture with Murphy Exploration and Production in the Gulf of Mexico.