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    Petrobras closes sale of Gaspetro for $374mn

Summary

Gaspetro has equity positions in 18 natural gas distribution companies, situated across all regions of Brazil.

by: NGW

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Mergers & Acquisitions, Exploration & Production, News By Country, Brazil

Petrobras closes sale of Gaspetro for $374mn

Brazil's national oil company Petrobras has sold a 51% in its gas distribution subsidiary Gaspetro to another local firm Compass Fas e Energia, for 2.097 reals ($374mn), it said on July 12.

Gaspetro has equity positions in 18 natural gas distribution companies, situated across all regions of Brazil. The overall network spans 10,000 km, serving more than 500,000 customers with around 29mn m3/day.

Petrobras has sold dozens of assets over the past few years, in order to pay off debt and raise capital to fund core deepwater oil projects. The divestment drive is also in line with Brazil's push to liberalise its oil and gas sector by reducing Petrobras' monopoly position.

The other shareholder in Gaspetro is Japan's Mitsui Gas e Energia do Brasil.