OREANDA-NEWS. A Brazilian federal court has issued an injunction blocking state-controlled Petrobras? R1.93mn ($478mn) sale of a 49pc stake in natural gas midstream subsidiary Gaspetro to Japanese firm Mitsui.

The injunction issued by the court in the northeastern state of Bahia suspends the transaction and prevents Mitsui from assuming control of the assets. Gaspetro owns around 9,000km (5,592mi) of gas pipelines in Brazil.

Petrobras and Mitsui have five days upon notice of the decision to present the court with all documents related to the sale.

The deal, which Petrobras said had closed on 28 December, accounted for the lion's share of the $700mn in assets the company said it sold in 2015. Petrobras plans to sell another $14bn in assets this year. The court decision highlights investor concerns over the execution risk of the divestiture plan.

Judge Joa?o Paulo Piro?po de Abreu said the Gaspetro sales price lacked transparency and could harm the public coffers.

He also said the transaction could dilute Bahia state's control of gas distributor Bahiagas, in which it holds 51pc. Mitsui and Gaspetro each hold 24.5pc in Bahiagas.

Last month, a state court in Bahia granted an injunction blocking Petrobras? deal with Mitsui, but the decision was later withdrawn.

Petrobras said it has not received notice of the federal court's decision, but maintains the deal was carried out legally and said it will present its defense in due course. Mitsui?s Rio de Janeiro office declined to comment.

In his decision, the judge questioned if Petrobras was using the same illicit practices that has entangled the firm in a major corruption investigation, specifically "sales without public tenders, secret negotiations, price-fixing with a strong suspicion of illegality."

Petrobras has said it is the victim of an illegal cartel of contractors. The company is facing multiple investigations in Brazil and the US that are likely to result in hefty fines.

Earlier this month, the firm said it planned to sell fertilizer units and a minority stake in its oil and gas transport subsidiary Transpetro. The deals have sparked labor opposition.

Petrobras is also looking for strategic partners to take a minority stake in its fuel distribution subsidiary BR Distribuidora. Last night, the company appointed Ivan de Sa Pereira Junior as interim chief executive of BR Distribuidora.

The company is accelerating its plan to shed upstream, midstream and downstream assets in an effort to reduce almost $130bn in debt.