Brookfield purchases a Petrobras unit for US$5.2 billion

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A group of investors led by Brookfield Asset Management Inc. intends to purchase a majority of 90 per cent of Nova Transportadora do Sudeste SA ,a pipeline unit owned by state-run Brazilian energy giant Petrobras, OIlprice.com reports. It is clarified that the group is going to pay US$4.34 billion at once and will ensure other payments of US$850 percent million within five years.

“Petrobras wants to spend less to produce the same,” Chief Executive Officer Pedro Parente said. “In oil and gas we won’t be a smaller company,” he added in remarks mentioned by MercoPress.

Earlier this week Petrobras announced it will be spending US$74.1 billion over the next five years. The five-year budget, which is going to become the company’s lowest one since 2006, is cut by 25 per cent.

Moreover Petrobras’ officials also added that the company still plans to sell US$15.1 billion assets by the end of this year, and accumulate another US$19.5 billion from asset sales and partnerships by 2018. It is expected that total asset sales for the next 10 years will reach approximately US$40 billion.