Maha Energy, a Sweden-headquartered oil and gas producer, has acquired a 5% stake in Brazilian oil company 3R Petroleum and proposed a strategic carve-out of the latter’s assets.
Maha paid nearly $69m (Skr720.34m) for the minority stake acquisition.
The proposed carve-out by Maha Energy aims to segregate 3R Petroleum’s onshore oil concessions, midstream and downstream assets, along with its debt and liabilities.
The plan includes a potential combination with another onshore operator, PetroRecôncavo, to create a more robust entity.
Maha said the combined onshore portfolio of the two companies is expected to hold approximately 458 million barrels of 1P reserves and 604 million barrels of 2P reserves.
This could lead to a combined production of around 80,000 barrels of oil equivalent per day in 2024, with the potential to generate approximately $2.1bn (10.3bn reais) in revenues.
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Maha expects operational synergies within the Potiguar and Recôncavo basins in Brazil through the deal.
This synergy is particularly important as PetroRecôncavo needs access to critical infrastructure such as the Guamaré Gas Processing Plant, the export facilities at Terminal de Guamaré and the Clara Camarão refinery.
These assets are part of 3R Petroleum’s Potiguar cluster and are crucial for maximising output, efficiency and operational reliability.
Following the proposed transaction, 3R Petroleum’s shareholders would hold shares in PetroRecôncavo, with the existing PetroRecôncavo team continuing to manage its operations.
The carve-out transaction would leave 3R Petroleum’s offshore assets, including the Papa Terra and Peroá Clusters, under its corporate structure and operated by its current team.
Additionally, 3R Petroleum will maintain its listing on the Brazilian Stock Exchange.
Maha noted that Latin America, and Brazil in particular, is a prime focus area due to the company’s presence and extensive experience in the region.
Maha Energy CEO Kjetil Solbraekke said: “This represents a strategically motivated, long-term investment on our part. The management and the board of directors in Maha have been intimately involved in the founding and early growth of 3R Petroleum.
“Consequently, we possess a profound understanding of the value residing within 3R Petroleum’s assets. Maha’s investment strategy in 3R Petroleum outlines the initiation of a consolidation plan within the Brazilian onshore segment, followed by the separation of 3R Petroleum’s offshore assets.”