February 27, 2021

Petrobras signs an agreement to open the natural gas market in Brazil

State oil company Petrobras has signed an agreement with Brazil's antimonopoly body that will allow the opening of the Brazilian gas sector and the sale of a large part of its assets in the transport and distribution of gas in the country until 2021, the company reported Monday. .

Petrobras signed the agreement with the Administrative Council for Economic Defense (CADE) to put an end to an investigation into alleged anti-competitive practices in the gas market, according to a statement sent to the market.

Based on the document, the company pledged to get rid of control of the Bolivia-Brazil gas pipeline.

It must also sell 10% of the stake it still owns in NTS (New Transportadora do Sudeste) and in TAG (Gas Associated Transportadora).

You must also get rid of the indirect participation in gas distribution companies, either by selling your 51% stake in Gaspetro or by selling your indirect interests in the distribution companies.

Petrobras holds control of Gaspetro, a holding that holds holdings in about 20 of the 27 natural gas distribution companies in the country.

"Petrobras is firmly committed to getting out of transport and gas distribution, and our team is working hard to complete the negotiation in the shortest possible time," Petrobras president Roberto Castello Branco said when announcing the agreement.

According to the top leader of the oil company, "conditions are being created for the Brazilian economy to enter the path of prosperity."

Petrobras, according to the statement, considers that the signing of the so-called Assignment Commitment Term is aligned with the company's strategy of improving the distribution of capital, the reduction of debt and the risk in the regulator.

The document "also allows to consolidate the cooperation efforts with the Cade in the construction of an environment favorable to the entry of new investors in the natural gas sector, contributing to the growth of the country."

. (tagsToTranslate) Petrobras (t) agreement (t) market (t) natural (t) Brazil

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