Petroleo Brasileiro S.A. or Petrobras (PBR), the semi-public Brazilian multinational corporation in the petroleum industry, has announced it has reach an agreement to sell a 90% stake in its natural gas pipeline and storage unit, Nova Transportadora do Sudeste.
The subsidiary of Petrobras is responsible for operating 2,700 kilometers of pipelines in the south of the country.
The stake is being sold to Canadian investment fund, Brookfield Asset Management Inc. (BAM). According to sources, the transaction value will be around US$5.2 billion.
This sale is in line with the company's plan to divest assets worth US$15.1 billion by 2016 to reduce its debt. Under this strategy, Petrobras has already divested assets in Argentina, Chile and Brazil. In July, the company sold its Carcara offshore field to Norway's Statoil ASA for US$2.5 billion, thereby making it one of the biggest sales in the company's history.
Petrobras will have to undertake asset sales of US$6 billion to reach its goal after this sale.