Sempra-Techint Offer Best Bid on Odebrecht pipeline, Peru

A consortium formed by Sempra Energy (SRE) and Techint Group offered the best bid to Odebrecht for acquiring its majority stake in a $5 billion natural gas pipeline project in Peru, a source with knowledge of the negotiations said Friday.

Brazilian engineering group Odebrecht SA is ensnared in a corruption scandal in Brazil and is pulling out of Peru, including natural gas pipeline operator Gasoducto Sur Peruano GSP SA, to raise cash and repay debts.

The source, who spoke on condition of anonymity, said that a proposal by the Sempra-Techint consortium to buy Odebrecht's 55 percent stake in GSP was the only one still being considered in the final stage of talks.

Last month, the group of about 20 banks working on a syndicated $4.1 billion loan to GSP rejected three bids for Odebrecht's stake, extending the deadline for the sale through this month, according to sources.

Gasoducto Sur Peruano, a 34-year concession to build and operate more than 1,134 kilometers (700 miles) of natural gas pipelines across Peru's southern region, needs $5 billion in investments in coming years.

Sempra and Techint did not immediately respond to requests for comment. Odebrecht declined to comment.

(Reporting by Marco Aquino; Editing by Bernard Orr)