Brazil’s Petrobras To Retain Gas Pipeline Following Landmark CADE Reversal
(P&GJ) – In a significant reversal, Brazil’s Administrative Council for Economic Defense (CADE) has annulled previously mandated divestment orders for Petrobras. This decision allows the state-owned oil giant to keep five oil refineries and the Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG) gas pipeline operator, which it had been ordered to sell under a 2019 agreement intended to address its market dominance.
After successful renegotiations, Petrobras secured more favorable terms. The new deal, approved by CADE’s tribunal, includes monitoring Petrobras's oil pricing methods for the next three years and renewable energy pricing for an additional three years.
In the gas sector, while Petrobras retains its investment in TBG, it must cede operational control, with TBG appointing independent board members for impartial governance.
CADE can reopen investigations and impose penalties if Petrobras fails to comply with these terms. Current investigations into price discrimination allegations will be suspended during the monitoring period.
This agreement, the result of extensive negotiations, coincides with a leadership change at Petrobras. Magda Chambriard, newly endorsed for the presidency, is expected to focus on expanding the company’s refining operations, marking a strategic shift amid regulatory easing.
This story was originally reported by Competition Policy International.
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