Gaspetro has equity stakes in local gas distribution companies (LDCs) in 19 Brazilian states. Mitsui Gas has an equity interest in eight of these LDCs.
The deal, however, is subject to meeting necessary conditions, including the approval by competent authorities and is planned to be completed by December.
The sale is a part of Petrobras’ effort to reduce its debt by divesting over $13.7bn worth of non-core assets by the end-2017.
The company’s exploration and production assets in Brazil and overseas are expected to account for 30% of asset sales targeted in its 2015/2016 divestment plan.
Petrobras earlier said in a statement: "This plan is part of Petrobras’s financial planning aimed at reducing leverage, preserving cash and focusing on priority investments, mainly oil and gas production in Brazil in areas of high productivity and return."
Reuters cited Petrobras CEO Aldemir Bendine as saying that the company is shifting its focus on developing offshore oil discoveries known as subsalt by partially divesting assets in gas and fuel distribution, biofuels and transport equipment.
Mitsui expects the acquisition to increase the amount of gas supplied to 30 million cubic meters per day within Brazil.
Image: Petrobras headquarters in Rio de Janeiro, Brazil. Photo: Courtesy of gali, modified by Fulviusbsas/Wikipedia.
