April 2, 2019 / 7:49 PM / 22 days ago

Brazil's Petrobras receives three final bids for gas pipeline unit: sources

FILE PHOTO: A man walks in front of the Brazil's state-run Petrobras oil company headquarters in Rio de Janeiro, Brazil December 5, 2018. REUTERS/Sergio Moraes

SAO PAULO (Reuters) - Brazil’s state-controlled oil company Petroleo Brasileiro SA received three bids for gas pipeline network TAG, four sources with knowledge of the matter said on Tuesday.

Groups led by France’s Engie SA , Itausa Investimentos Itau SA, and EIG Global Energy Partners with Mubadala Investment Co delivered their final bids to the oil company known as Petrobras on Tuesday.

The sale of TAG, which operates about 2,800 miles (4,500 kilometres) of gas pipelines, is expected to be the largest divestment in Petrobras’ asset sale program. The oil company expects to fetch more than $8 billion with this sale.

The investment banking unit of Banco Santander Brasil SA is advising Petrobras on the sale.

Petrobras, Engie, Itausa and EIG did not immediately comment. Mubadala declined to comment on the matter.

On Monday, Reuters reported that some investors were dropping out of Itausa and EIG/Mubadala’s groups in a move that could leave the group led by Engie in a stronger position. The French company was the winner of the first round and spent months discussing a sale contract with Petrobras.

The pipeline unit sale began in 2017, but was interrupted by a Supreme Court injunction and by the review of the divestment process by Brazil’s audit court.

Reporting by Carolina Mandl, Tatiana Bautzer and Gram Slattery; Editing by Christian Plumb, Susan Thomas and James Dalgleish

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