Petroleo Brasileiro SA Petrobras (NYSE:PBR) Moves North On The Chart

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In the last trading session, the stock price of Petroleo Brasileiro SA Petrobras (NYSE:PBR) gained more than 1% to close the day at $9.86. As per a Bloomberg article, Blackstone Group has associated with its Brazilian associate to compete for Petroleo’s natural gas pipeline network in the nation’s northeast.

The details

Patria Investimentos Ltd and Blackstone comes in the list of three groups that have presented non-binding offers to buy the asset. EIG Global Energy Partners and Mubadala Development also made a preliminary offer for the 90% stake in Transportadora Associada de Gas SA, and a consortium directed by French Energy firm Engie SA. Banco Bradesco SA (ADR) (NYSE:BBD) is advising Petrobras on the agreement and it should complete before the close of the first half of 2018.

The improving economy in Brazil has spurred increased competition for the pipelines versus the sale of Nova Transportadoras do Sudeste in 2016. NTS was purchased for $5.2 billion by a consortium directed by Brookfield Asset Management.

Blackstone, Patria, EIG and Petrobras declined to comment. Also, Mubadala didn’t reply to phone calls and e-mails seeking comment. Engie focus is on organic growth and deals that adhere to its plan to progress in Brazil’s gas industry, focusing on the regulatory framework and value chain. All assets available in the segment are being considered and assessed carefully.

Pedro Parente, the CEO of Petrobras, expressed that they have established an aggressive agenda to strengthen the state-controlled firm’s finances after the challenges of a corruption scandal and the oil rout took it a near-death experience. He is planning to finish his plans before an unplanned presidential campaign in 2018 makes it tougher to sell assets. Parente predicts signing asset sales worth $21 billion in the imminent eight months, as expressed by him in an interview at Bloomberg’s office, earlier in November.

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