Brazil's Petrobras sells stake in Maranhao state gas distributor Gasmar

Brazil's Petrobras completed the sale of its 23.5% stake in Maranhao state gas distribution company Companhia Maranhense de Gas, or Gasmar, in the latest move toward opening the country's natural gas sector to greater competition.

Petrobras sold the stake in Gasmar, which was held by umbrella company Gaspetro, to energy company Termogas for about $11 million, the company said Feb. 15. The deal was completed as part of a settlement between the two companies, and adheres to Petrobras' agreement with antitrust regulators to end its monopoly in Brazil's natural gas sector, the company said.

The end of Petrobras' monopoly in Brazil's natural gas sector included the sale of the company's stakes in natural gas distribution companies as well as most of the country's gas transportation, export and logistics infrastructure.

The sales underpin Brazil's New Gas Market, a more-liberal regulatory regime signed into law in 2021, which aims to expand gas production, increase competition and reduce prices.

"The transaction is part of the strategy to optimize Gaspetro's portfolio and is aligned with the antitrust agreement signed with the Justice Ministry's Antitrust Division, or CADE, in July 2019 to promote competition in this sector in Brazil," Petrobras said.

The deal also consolidates Termogas' stake in Gasmar, which will rise to 74.5%. Maranhao's state government retains the remaining 25.5% share.

The sale of the Gasmar stake won't affect the pending deal between Petrobras and Compass Gas e Energia, Petrobras said. Petrobras agreed to sell its 51% stake in Gaspetro to Compass for about $400 million in July 2021. The deal will end Petrobras' control of Gaspetro, an umbrella company that holds Petrobras' stakes in 19 state natural gas distribution companies.

Gaspetro is considered Brazil's biggest natural gas distribution entity, delivering about 29 million cu m/d of the clean-burning fuel to about 500,000 clients.

Japan's Mitsui & Co. retains the remaining 49% share in Gaspetro but has indicated that it would be interested in accompanying Petrobras' sale. Mitsui purchased its stake for about $501 million in a December 2015 deal.

Compass was created in 2020 as a subsidiary of sugar and ethanol group Cosan. The company delivers gas to 2.1 million clients in 94 cities and towns in Sao Paulo. Compass is also developing the Route 4 offshore natural gas export pipeline, which would link subsalt fields in the Santos Basin to onshore processing facilities and pipelines in Sao Paulo state.

Cosan also is a partner in the Raizen fuels-distribution joint venture with Shell.

Gulf of Mexico stake sale

Petrobras also started the non-binding phase of talks to sell the company's 20% stake in MP Gulf of Mexico, a joint-venture company that holds operating and non-operating stakes in 14 offshore fields in the Gulf of Mexico, the company said in a separate statement Feb. 16. US player Murphy Oil retains the remaining 80% in the company.

MP Gulf of Mexico was created in 2018, when Petrobras and Murphy Oil rolled their Gulf of Mexico production assets into a single business. Petrobras made the move as part of a broader retreat from overseas exploration and production under previous asset-sales programs, which also saw the company shed assets in Africa and South America.

Petrobras' share of output from the fields was about 10,400 b/d of oil equivalent in 2021, Petrobras said.