Brazil's Petroreconcavo buys Maha Energy subsidiary in the country (updated)
28/12/2022 11:25
(Recasts with details, context)
SAO PAULO, Dec 28 (Reuters) - Brazilian oil company
Petroreconcavo SA RECV3.SA has agreed to buy Maha Energy's
MAHAa.ST subsidiary in the Latin American country, the
companies said on Wednesday, marking another step in the
Brazilian firm's ongoing expansion.
According to a securities filing, Petroreconcavo will pay
$138 million for 100% of Maha Brasil, which operates oilfields
in the country's northeastern region, plus a potential earnout
of up to $36.1 million.
The move comes just days after Petroreconcavo's chief
executive told Reuters the company
had not ruled out fresh acquisitions
while planning to boost investments to develop onshore
fields in the region.
The Brazilian firm has grown significantly in recent
years after buying assets from state-run oil giant Petrobras
PETR4.SA , going public last year in a 1.2 billion-real
($226.72 million)
initial public offering
and raising an additional 1.03 billion reais in a
follow-on
offering this year.
It said the northeastern Brazilian location of the Maha
Energy assets would "enable future integration" with
Petroreconcavo's own onshore assets in the states of Rio Grande
do Norte and Bahia.
The fresh deal will provide it with another asset in
Bahia, as Maha Brasil operates the Tie oilfield in the state. It
will also allow it expand to shallow-waters in the neighboring
state of Sergipe, where Maha operates the Tartaruga field,
holding a 75% stake in the asset alongside Petrobras.
In a separate statement, Maha Energy said its board of
directors considered the deal "advantageous and aligned with the
company's new portfolio management strategy," which included a
recent
business combination with DBO
, a firm focused on mature offshore fields in Brazil.
The assets had an average total production of 2,928
barrels of oil equivalent per day in 2022, Petroreconcavo said,
adding that Maha Brasil reported net revenue of $62 million in
the first nine months of the year.
($1 = 5.2928 reais)
(Reporting by Gabriel Araujo in Sao Paulo and Gdansk Newsroom;
Editing by Christian Plumb)
((gdansk.newsroom@thomsonreuters.com; +48 58 7696600;))