Abu Dhabi investment vehicle Mubadala is close to a deal to buy Queiroz Galvao Energia, the renewable energy arm of Brazilian oil and gas company Queiroz Galvao Participacoes, according to a local media report.

The report says the purchase would be valued at around $1.2bn. Mubadala has partnered with Castlerock Asset Management, it added.

Rio de Janeiro-based Queiroz Galvao Participacoes had previously attempted to negotiate a deal for its renewable energy unit with other groups, including China Three Gorges Corp, but the talks had collapsed, according to the report.

Mubadala is also reportedly looking to make a bid, along with US investments firm EIG Global Energy Partners, for Brazil’s state-owned oil major Petrobras’ natural gas pipeline network in the country’s northeast.

Goldman Sachs is reported to be arranging the financing for Mubadala’s bid, and the offer may go as high as $8bn for the enterprise value, which includes debt.