Brazilian engineering company Odebrecht is in advanced negotiations with Canadian energy group Brookfield on the sale of its 55% stake in the Gasoducto Sur Peruano gas pipeline project in southern Peru and expects to close the sale before the end of the year.
Odebrecht, currently involved in a large corruption case in Brazil, has to divest its stake in the project to enable a US$4.1bn syndicated loan for the US$5bn project. In November 2016, US energy group Sempra Energy terminated talks with Odebrecht, claiming that the Peruvian government was unable to provide necessary assurances that the concession would not be cancelled due to alleged legal violations by the seller or its affiliates. Peru plans to organise a new auction for the project in 2017, if Odebrecht fails to sell its stake.
The Gasoducto Sur Peruano gas pipeline will stretch over 1,080 km from Camisea (Cusco) to a new petrochemical complex to be built in Ilo (Moquegua), near the Chilean border. The consortium planned to invest between US$3.6bn and US$4bn in the construction and will charge US$7.3bn for services offered during the 34-year concession.
Source: Press