French energy and gas group Engie said it is negotiating with Petrobras to buy the gas pipeline network of the oil company, the Transportadora Associada de Gas (TAG).

Confirming a Reuters report, Engie Chief Executive Isabelle Kocher told analysts that the company – which has large investments in Brazil’s electric power sector – wants to diversify its Brazilian activities and made an offer for the state’s unit .

“Apparently, we are presenting the best offer at the binding stage and we are currently negotiating the terms and conditions of a potential transaction,” Isabelle said.

TAG, an important part of the state’s divestment program, has about 4,500 kilometers of gas pipelines in the Northeast of Brazil.

Petrobras has received offers of about $ 8 billion for the asset, sources told Reuters.

Engie’s executive added that the talks are not based on exclusivity yet and should continue in the coming months.

If Engie wins the competition, she will do the acquisition with partners, the CEO said.

Engie is also starting to develop an energy service activity in the country.

Sources told Reuters earlier this month that in order to comply with the rules established by the Brazilian Court of Audit (TCU), Petrobras will invite in June the other two groups that submitted proposals – led by Australian Macquarie and Mubadala Development of the United Arab Emirates United-to offer new bids, based on the contract negotiated with Engie.

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