Brazilian state-owned oil and gas group Petrobras is extending negotiations with a consortium headed by Brookfield for the sale of its equity interest in Nova Transportadora do Sudeste, its subsidiary in charge of gas transmission in southern Brazil. The sale was announced in May 2016. Exclusive negotiations will be carried out with Brookfield over 60 days, which may be extended for another 30 days. This transaction is still subject to the approval of its final terms and conditions by the Executive Board and by the Board of Directors of Petrobras, as well as by the relevant regulatory agencies.
Petrobras is facing a stagnating production and suffering low oil prices and is involved in a large corruption scandal. The company's debt is nearing US$130bn and Petrobras has committed to sell US$14bn of assets in 2016. In May 2016, the group announced the sale of its activities in Argentina and Chile, for a total consideration of nearly US$1.4bn and the sale of its two LNG terminals in Rio de Janeiro and Ceará (Brazil) in May 2016. The group also plans to sell its rights in 104 onshore oil and gas concessions in an attempt to raise cash and focus on more profitable offshore assets.