Petrobras faces potential R$3.6 billion clawback on TAG pipeline sale
What happened
Petrobras sold 90% of its gas pipeline company, Transportadora Associada de Gás S/A, to Engie and Caisse de dépôt et placement du Québec in 2019. A clause in the sale contract may require Petrobras to return R$3.6 billion to the buyers. This liability stems from the regulatory asset base of the pipelines, which Brazil’s oil and gas regulator, ANP, is currently reviewing.
From riotimesonline.com
Why it matters
The clause ties part of the original sale price to the value of the pipelines that have not been paid off through tariffs. ANP proposed setting the base of the north-eastern network to zero, which could affect the valuation of the asset sold by Petrobras.
Petrobras is reportedly facing political policy influence, coinciding with Jair Bolsonaro campaigning for office.
From riotimesonline.com
Who's involved
- PetrobrasBrazilian multinational oil and gas corporation that sold 90% of Transportadora Associada de Gás S/A
- EngieFrench multinational energy company that purchased a 90% stake in Transportadora Associada de Gás S/A
- Caisse de dépôt et placement du QuébecCanadian pension fund that purchased a 90% stake in Transportadora Associada de Gás S/A
- Transportadora Associada de Gás S/ABrazilian gas pipeline company whose sale is subject to regulatory review
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The entities involved
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Petrobras
Brazilian multinational oil and gas corporation
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Engie
French multinational energy company
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Caisse de dépôt et placement du Québec
institutional investor that manages several public and parapublic pension plans and insurance programs in Quebec
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