Petrobras says the antitrust authority has agreed to exempt the company from selling assets

UPDATE 1 – Petrobras says the antitrust authority has agreed to exempt the company from selling assets

Adds context in paragraphs 3–5

SAO PAULO, May 22 (Reuters) –Brazilian state oil company Petrobras PETR4.SA said on Wednesday, the national antitrust authority Cade has approved new terms of the agreement that will exempt the company from selling part of its assets related to oil refining and natural gas.

New terms of the contract, originally signed in 2019, To havehas been approved by the regulator’s board, Petrobras said in a securities filing.

The government of then-President Jair Bolsonaro set the terms as part of a broad initiative to reduce Petrobras’ share of Brazil’s oil and gas sector, opening the market to new companies with prospects for greater investment.

The change will allow Petrobras to retain control of Transportadora Brasileira Gasoduto Bolivia-Brasil (TBG), the operator of the gas pipeline connecting Bolivia with southern Brazil.

It will also be able to retain control of five refineries. Petrobras sold its shares in three refineries under the existing conditions.

Reporting by Peter Frontini in Sao Paulo and Fabio Teixeira in Rio de Janeiro; Editing by Richard Chang