Blackstone Group has teamed up with its Brazilian partner to compete for Petroleo Brasileiro SA’s natural gas pipeline network in the country’s northeast, said people with knowledge of the issue.
Blackstone and Patria Investimentos Ltda are just one of three or more groups that have made non-binding offers around $6-billion to obtain the asset, the people said, asking not to be named because the talks are private. Mubadala Development and EIG Global Energy Partners also made a first offer for the 90 percent stake in Transportadora Associada de Gas SA, in addition to a consortium led by French Energy firm Engie SA, as stated by the people.
Banco Santander SA is advising Rio de Janeiro-based Petrobras on the deal and it must close before the end of the first half of 2018, according to the people.
Brazil’s improving economy has spurred more competition for those pipelines in comparison to the 2016 divestment of Nova Transportadoras do Sudeste, a similar pipeline network in the southeast, the people said. NTS was purchased for $5.2-billion with a consortium led by Brookfield Asset Management that included Itausa — Investimentos Itau SA.
Petrobras, Blackstone, Patria and EIG declined to comment. Mubadala did not reply to e-mails and telephone calls seeking comment. Engie is focusing on organic growth and acquisitions that adhere to its own strategy to grow in Brazil’s gas economy, focusing on the value chain and regulatory framework, a company spokeswoman said in an e-mailed response to queries. All resources available in the industry are being contemplated and looked at carefully, ” she said.
Petrobras Chief Executive Officer Pedro Parente has set an aggressive schedule to solidify the state-controlled firm’s finances following the twin challenges of this petroleum rout and a corruption scandal dealt it a near-death experience. He’s rushing to complete his job before an erratic presidential campaign next year makes it more difficult to sell assets.
Parente foresees signing $21-billion in asset sales in the next eight months, ” he stated in a interview at Bloomberg’s office in New York earlier in November.
Peter Grauer, chairman of Bloomberg LP, is a non-executive manager at Blackstone.