Maha Energy expects PetroReconcavo, 3R to reach tie-up deal in Q2 (updated)
18/01/2024 15:30
(Adds details, context)
By Fabio Teixeira
RIO DE JANEIRO, Jan 18 (Reuters) -
Sweden's Maha Energy MAHAa.ST expects Brazilian oil firm
3R Petroleum RRRP3.SA to reach an agreement to combine onshore
oil assets with PetroReconcavo RECV3.SA during the second
quarter, Chairman Paulo Thiago Mendonca said on Thursday.
Maha Energy proposed the deal on Wednesday after acquiring a
5% stake in 3R Petroleum. Maha is convinced it will have strong
support from shareholders of both companies, Mendonca said.
Once combined, the two firms will have a production of
80,000 barrels of oil equivalent per day in 2024.
Before synergies, they would have the potential to
generate $2.1 billion in revenue and $1.1 billion in adjusted
earnings before interest, taxes, depreciation and amortization
(EBITDA), according to the Maha presentation.
"We are strongly convinced this is the natural path to
create shareholder value," Mendonca said.
The merger will create the second largest independent
player in Brazil, said Mendonca.
(Reporting by Fabio Teixeira; Editing by Steven Grattan)
((Fabio.Teixeira@thomsonreuters.com; +55 21 99603-4782;))