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Brazil’s Antitrust Regulator Approves New Terms for Petrobras Agreement

By  |  May 22, 2024

Brazilian oil giant Petrobras announced on Wednesday that the country’s antitrust regulator, CADE, has approved new terms for an agreement that will relieve the company from selling certain oil refining and natural gas assets. This update was disclosed by Petrobras in a securities filing, as reported by Reuters.

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    The agreement, initially established in 2019, was part of a broader initiative by the government of then-President Jair Bolsonaro to reduce Petrobras’ dominance in Brazil’s oil and gas sector, thereby fostering a more competitive market environment and attracting new investments.

    Under the revised terms, Petrobras will maintain control over Transportadora Brasileira Gasoduto Bolivia-Brasil (TBG), which operates a critical natural gas pipeline connecting Bolivia and southern Brazil. Additionally, Petrobras will retain control of five of its refineries. This is a significant change from the previous terms, under which Petrobras had already divested its stakes in three refineries.

    The approval by CADE’s board marks a shift in Petrobras’ strategic direction, allowing the company to consolidate its position in key areas within Brazil’s energy sector.

    Source: Reuters