(Adds that other groups will have the chance to offer new bids after discussions with Engie)
By Carolina Mandl and Tatiana Bautzer
SAO PAULO, May 3 (Reuters) - Brazilian state-controlled oil company Petroleo Brasileiro SA has chosen to enter exclusive talks with France's Engie SA for the sale of Petrobras' gas pipeline network Transportadora Associada de Gás, five people with knowledge of the matter said on Thursday.
According to the people, who asked for anonymity because talks are still private, the exclusivity period to discuss the sale contract would go through May 31.
Petrobras and Engie did not immediately respond to requests for comment.
Petrobras will take the full month to discuss the contract with Engie, according to two of the sources.
To comply with rules established by a federal audit court, in June, Petrobras will invite the other two groups that presented bids, led by Australia's Macquarie Group and UAE's Mubadala Development Co, to offer new bids for the pipeline, based on the sale contract negotiated with Engie. (Reporting by Carolina Mandl and Tatiana Bautzer; Editing by Cynthia Osterman)