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Engie reaffirms its interest in TAG after STF injunction

Written by Paulo Nogueira
Published 29/05/2019 às 07:58

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Engie remains interested in TAG after the STF injunction, the company led the purchase of TAG from Petrobras for US$ 8,6 billion.

In an injunction granted last Friday, May 24, after a request from unions, Edson Fachin, minister of the Federal Supreme Court (STF) revoked last January's decision of the Superior Court of Justice (STJ) that had overturned an injunction against the sale by Petrobras of the TAG gas pipeline unit.

Engie led the purchase of TAG from Petrobras for US$8,6 billion, in a deal announced last month. Fachin's decision complied with the request of oil workers' unions.

"It's a pity, as it creates unnecessary uncertainty, everyone knows that the process was extremely competitive with approval and monitoring by the TCU (Federal Court of Auditors)", said a company source, on condition of anonymity.

Engie keeping an eye on Petrobras employees at TAG

Despite Minister Edson Fachin's decision to suspend the sale of TAG to the consortium led by Engie, the French company maintains its schedule of meetings with Petrobras employees who work at TAG, at the company's headquarters in Rio de Janeiro.

The idea is to propose to a good part of them (the majority of which have been awarded) that they ask to leave Petrobras so that they can be hired by Engie.

STF decides on Thursday whether privatization of state-owned companies needs congressional approval

Toffoli, included in the agenda for Thursday's plenary session the trial of a process that discusses whether privatization of state-owned companies needs prior approval from the National Congress or going through a bidding process.

Toffoli decided on Monday night to take the issue to the STF plenary on Thursday, according to the Supreme Court system.

On the same day, the plenary of the court must also consider an injunction granted by Minister Edson Fachin that suspended the sale by Petrobras of 90% of TAG to a group led by the French electric company Engie for US$8,6 billion. This decision by Fachin was made public this Monday.

Supreme ministers must confirm or reject the injunctions granted by Lewandowski and Fachin.

In both cases, the discussion should revolve around whether it is necessary to carry out a bidding procedure and prior legislative authorization for the transfer of share control of state-owned companies, as is the case of Petrobras subsidiaries.

Petrobras is close to reaching 1 billion dollars with the sale of two offshore fields

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Paulo Nogueira

With a technical background, I worked in the offshore oil and gas market for a few years. Today, my team and I are dedicated to bringing information from the Brazilian energy sector and the world, always with credible and up-to-date sources.

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