3R Petroleum Óleo e Gás SA and Enauta Participações SA will create a new entity with production that exceeds 100,000 boe/d and compete head-to-head with Brazilian producer Prio, according to Wood Mackenzie. (Source: Shutterstock.com)
A merger agreement between 3R Petroleum Óleo e Gás SA and Enauta Participações SA aims to create a diversified Rio de Janeiro-based independent competing head-to-head with Prio, currently the largest independent operator in Brazil, according to Wood Mackenzie.
Operations under the combined businesses could surpass the 100,000 boe/d production mark, Wood Mackenzie Upstream Research Analyst Amanda Bandeira said in a May 21 research report.
“This is a complementary merger between the two companies. Enauta adds expertise in offshore operations, while 3R Petroleum, with a more diversified portfolio, brings to the table heavy onshore operations experience,” Bandeira said.
Wood Mackenzie sees the newly combined operation focusing first on integration, but constantly looking for new inorganic growth opportunities in Brazil or even internationally.
“Mid-term, stronger cash generation and the combined expertise of both companies can also open space for the new company to be exposed to riskier activities such as exploration. Both companies have exploration acreage that hasn't seen activities due to other capital investment priorities,” Wood Mackenzie Upstream Research Analyst Vinicius Diniz Moraes said in the report.
Recommended Reading
Halliburton Secures Drilling Contract from Petrobras Offshore Brazil
2025-01-30 - Halliburton Co. said the contract expands its drilling services footprint in the presalt and post-salt areas for both development and exploration wells.
SLB Launches Electric Well Control Tech to Replace Hydraulics
2025-03-04 - SLB says the new systems reduce costs and provide real-time data for operators.
Halliburton, Sekal Partner on World’s First Automated On-Bottom Drilling System
2025-02-26 - Halliburton Co. and Sekal AS delivered the well for Equinor on the Norwegian Continental Shelf.
E&P Highlights: March 3, 2025
2025-03-03 - Here’s a roundup of the latest E&P headlines, from planned Kolibri wells in Oklahoma to a discovery in the Barents Sea.
Inside Prairie’s 11-Well Program in the D-J
2025-04-08 - Prairie Operating Co.’s 11-well program in the Denver-Julesburg Basin is drilling horizontal 2-milers with a Precision Drilling rig.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.