Race on for Odebrecht’s Peruvian pipeline contract
03 January 2017
Canada’s Brookfield Asset Management and China National Petroleum Corp (CNPC) are said to be competing for a US$ 4 billion stake in a Peruvian natural gas pipeline project.
Recently, it appeared Brookfield had beaten off its rivals and was set to acquire the 55% share of the project from Brazilian firm Odebrecht.
However, the interest from CNPC – China’s largest petroleum producer – seems to have thrown the deal into confusion.
Another bidder on the project, US-based Sempra Energy, withdrew from talks over a clause in the contract, which allows the Peruvian government to cancel contracts if wrongdoing is proven against Odebrecht.
Odebrecht has been embroiled in a corruption investigation in Brazil, which recently culminated in the US Department of Justice ordering the firm to pay around $2.6 billion over the bribing of government officials, both in Brazil and internationally.
According to a Bloomberg source, the Peruvian government could cancel the pipeline project’s licence if financing is not approved by January 23.
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