Brazil's state-run oil company Petroleo Brasileiro SA agreed to sell 90 per cent of its natural gas pipeline unit for US$5.2 billion to a group of investors led by Canada's Brookfield Asset Management Inc , the companies said on Friday.
The Brookfield-led group agreed to pay US$4.34 billion upon closing the deal and the remaining US$850 million in five years, they said. The consortium includes sovereign wealth funds CIC Capital Corp of China and GIC Private Ltd. of Singapore.
Reuters had reported on Sept. 6 details of the accord that the investor group struck with Petrobras, as the oil company is known.
The deal, which is still subject to approval by shareholders and Brazilian regulators, is the largest yet in a plan by the oil company to sell US$15.1 billion of assets in 2015 and 2016 and raise another US$19.5 billion through divestments and partnerships between 2017 and 2018.
Under the accord, Brookfield Infrastructure Partners Ltd will invest at least 20 per cent of value of the deal, while Brookfield Asset Management has an initial investment of about 30 per cent.
The Petrobras pipeline unit, Nova Transportadora do Sudeste SA, transports natural gas in south-central Brazil, providing Rio de Janeiro, SIao Paulo and Minas Gerais with natural gas coming from Bolivia and Brazil's offshore oil and gas fields.