Brazil's Brava moves closer to sale of Rio Grande do Norte assets

Petro-Victory Energy

17/12/2024 16:26

RIO DE JANEIRO, Dec 17 (Reuters) - Brazil's Brava
Energia  BRAV3.SA  is moving towards the sale of 11 oil and gas
concessions in Rio Grande do Norte state to infrastructure firm
Azevedo & Travassos  AZEV3.SA  and oil company Petro-Victory
Energy  VRY.V .
    The firms have signed an exclusivity contract for a period
of 30 days to negotiate the final documents for the sale, Brava
said in a securities filing on Tuesday. 
                    
    WHY IT'S IMPORTANT 
    The move is part of Brava's plan to optimize its portfolio 
to "maximize return to shareholders," said the firm. Brava's Rio
Grande do Norte fields produced an average of 250 barrels of oil
equivalent per day from January to November of 2024.
    The firm's board of directors also recommended that it hire
a financial advisor to oversee potential partnership
transactions or the sale of some of the firm's assets.
        
    ADDITIONAL CONTEXT
    Brava was created from the merger between Brazil's 3R
Petroleum and Enauta, establishing what they then described as a
company with "large growth potential" in the coming years that
could produce about 100,000 barrels of oil equivalent per day.
    The merger happened as smaller Brazilian oil companies look
for opportunities to consolidate after years of growth driven by
purchases of assets previously owned by state-run oil giant
Petrobras  PETR4.SA .        

 (Reporting by Fabio Teixeira; Editing by Chizu Nomiyama)
 ((Fabio.Teixeira@thomsonreuters.com; +55 21 99603-4782;))