State-run Brazilian oil company Petroleo Brasileiro SA, known as Petrobras, said July 3 it was suspending some asset sales after a Supreme Court justice ruled that privatizations must be approved by Congress.
While considering which legal actions to take, Petrobras said in a securities filing it would suspend the sale of refineries, gas pipeline company Transportadora Associada de Gas (TAG) and the Araucaria fertilizer factory.
Justice Ricardo Lewandowski ruled last week that any sale of publicly held shares in state-controlled companies or their subsidiaries require congressional approval.
Petrobras is working to sell $21 billion in assets over a two-year period to reduce its debt.
Preferred shares of Petrobras rose about 1% on July 3, in line with the benchmark Bovespa stock index.
The sale process of gas pipeline company TAG is in its final stages. Petrobras is discussing contracts with France's Engie SA and was expected to submit the deal for rebids by the other two consortia interested in the acquisition, led by Australia's Macquarie Group Ltd. and EIG Global Energy Partners LLC with United Arab Emirates' sovereign wealth fund Mubadala Development Co.
Efforts to sell the Petrobras refineries were just beginning and had drawn lukewarm investor interest due to potential changes in fuel pricing policies.
Recommended Reading
Keeping it Simple: Antero Stays on Profitable Course in 1Q
2024-04-26 - Bucking trend, Antero Resources posted a slight increase in natural gas production as other companies curtailed production.
Exxon Mobil, Chevron See Profits Fall in 1Q Earnings
2024-04-26 - Chevron and Exxon Mobil are feeling the pinch of weak energy prices, particularly natural gas, and fuels margins that have cooled in the last year.
Marathon Oil Declares 1Q Dividend
2024-04-26 - Marathon Oil’s first quarter 2024 dividend is payable on June 10.
Talos Energy Expands Leadership Team After $1.29B QuarterNorth Deal
2024-04-25 - Talos Energy President and CEO Tim Duncan said the company has expanded its leadership team as the company integrates its QuarterNorth Energy acquisition.
APA Corp. Declares Cash Dividend
2024-02-12 - At a rate of $0.25 per share, APA’s dividend is payable May 22 to stockholders of record by April 22.