Brazil’s antitrust authority approves new terms of the Petrobras deal

Brazilian state oil giant Petrobras announced Wednesday that the country’s antitrust authority Cade has approved new terms of a deal that will exempt the company from selling certain oil refining and natural gas assets. The update was disclosed by Petrobras in a securities filing, Reuters reported.

The agreement, originally reached in 2019, was part of a broader initiative by the government of then-President Jair Bolsonaro. The aim was to reduce Petrobras’ dominance in the Brazilian oil and gas sector, thereby creating a more competitive market environment and attracting new investments.

Under the revised terms, Petrobras will retain control of Transportadora Brasileira Gasoduto Bolivia-Brasil (TBG), which operates the critical gas pipeline connecting Bolivia with southern Brazil. Additionally, Petrobras will retain control of five of its refineries. This is a significant change compared to the current conditions under which Petrobras has already sold its shares in three refineries.

Cade’s board approval marks a key shift in Petrobras’ strategic direction, enabling the company to consolidate its position in key areas while continuing to support market diversification and competition in the Brazilian energy sector.

Source: Reuters