HOUSTON, TEXAS (Editors at Energy Analytics Institute, 10.Feb.2025) — Brava Energia S.A. and the consortium formed by Azevedo e Travassos Petróleo S.A. (A&T) and Petro-Victory Energy Corp. (PVE) signed a contract on 7 Feb. 2025 for the sale of 11 onshore oil and gas concessions located in the Potiguar Basin, in the state of Rio Grande do Norte.
The concessions that form the perimeter of the transaction recorded average daily production of 250 barrels per day of oil equivalent (boe/d) in 2024, Brava said 10 Feb. 2025 in an official stmt.
The total value of the transaction is $15mn, comprising: (i) $600,000 paid upon signing of the contract; (ii) $2.9mn to be paid upon closing; (iii) $8mn to be paid in 2 installments deferred in 12 and 24 months after closing of the transaction; and (iv) $3.5mn to be paid over 8 years, as a percentage of the fields’ production, with a firm payment commitment.
The contract provides: (i) that all oil produced during the transition period will be sold to the Brava Energia refinery and its cash generation will be deducted from the transaction value; and (ii) that the purchasing consortium will assume responsibility for abandoning the asset, estimated at $21mn by the company.
Brava said completion of the transaction is subject to precedent conditions, particularly the approval of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), among others.
The transaction is in line with Brava’s portfolio optimization strategy and improved capital allocation, focusing efforts on higher priority assets in terms of risk-adjusted return, growth and optionality.
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