Brazil's Brava is moving closer to the sale of Rio Grande do Norte properties

Brava Energia, based in Brazil, is planning to sell 11 oil and natural gas concessions located in the state of Rio Grande do Norte to Azevedo & Travassos infrastructure company and Petro-Victory Energy oil company.

Brava announced in a Tuesday securities filing that the firms had signed an exclusivity agreement for a 30-day period to negotiate the final sale documents.

Why it's important

Brava said that the move was part of its plan to "maximize returns to shareholders" by optimizing its portfolio. Brava's Rio Grande do Norte field produced 250 barrels equivalents per day on average from January through November 2024.

The board of directors of the company also recommended hiring a financial adviser to supervise potential partnerships or the sale of certain assets.

ADDITIONAL CONTEXT

Brava was formed by the merger of Brazil's 3R Petroleum with Enauta. They described it as a "large growth company" that would be able to produce 100,000 barrels equivalents per day in the future.

The merger occurred as smaller Brazilian oil firms sought to consolidate following years of growth, driven by the purchase of assets that were previously owned by Petrobras. (Reporting and editing by ChizuNomiyama; Fabio Teixeira)

(source: Reuters)