Petrobras starts negotiations with EIG to sell its Bolivia-Brazil pipeline

RIO DE JANEIRO, BRAZIL – On March 15, Petrobras said it had received a binding proposal from EIG Global Energy Partners regarding the sale of its entire 51% stake in Transportadora Brasileira Gasoduto Bolivia-Brasil (TBG) and 25% in Transportadora Sulbrasileira de Gas (TSB).

Petrobras’ note confirmed a Reuters report published the day before on Petrobras’ negotiation with EIG but clarifies that a process still must be approved.

“EIG Global Energy Partners submitted a binding proposal, which must be considered by Petrobras’ Executive Board to, in case of approval, the negotiation stage starts,” the Brazilian state-owned company said in a statement.

The company, however, did not confirm the amounts published in the media and clarified that the conclusion of the transaction will depend on the necessary corporate approvals.

According to the Reuters report, EIG is expected to pay between US$500 million and US$1 billion for Petrobras’ stake in TBG, according to sources who requested anonymity.