Court rule allows Petrobras gas line sale

A June 6 ruling by Brazil’s Supreme Court allows Petrobras to proceed with its $8.6 billion sale of a 90% interest in the Transportadora Associada de Gas SA natural gas pipeline to a combine of Engie and Caisse de Depot et Placement du Quebec.

A June 6 ruling by Brazil’s Supreme Court allows Petroleo Brasileiro SA (Petrobras) to proceed with its $8.6 billion sale of a 90% interest in the Transportadora Associada de Gas SA (TAG) natural gas pipeline to a combine of Engie and Caisse de Depot et Placement du Quebec (OGJ Online, Apr. 26, 2019).

The sale had been suspended by a decision in May by Supreme Court Justice Edson Fachin requiring congressional approval of asset sales by state-owned companies.

The full court ruled against that decision, which Fachin made in a case involving a labor union.

The TAG sale is part of a divestment program from which Petrobras expects to raise $26.9 billion by 2023.

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