Brava Energia, formerly 3R Petroleum before the merger with Enauta, has concluded a sale of 20% stake in a concession offshore Brazil to the affiliates of Westlawn Americas Offshore (WAO), welcoming the U.S. oil and gas company as partner in the Atlanta and Oliva fields.
The transaction was concluded with the payment of $234 million to Brava Energia, considering adjustments provided for in the contract, which add to the $75 million upfront installment received by the company after signing in March 2024.
The partial stake sold to WAO, a Westlawn Group company, covers the BS-4 Concession.
“Brava Energia believes partnerships are essential for value creation and risk management on offshore major projects development. The transaction closing reinforces Brava Energia’s value creation strategy, supported by an efficient capital allocation, a high-growth, risk-adjusted returns portfolio,” Brava Energia said.
According to Brava Energia, the partnership will add value to the next phases of Atlanta’s development with WAO’s experienced team, whom has a solid track record on value creation on leadership positions in leading companies in oil and gas global industry.
Also, it will boost its balance sheet, allowing to speed up organic and inorganic growth opportunities, shareholders earnings and access to competitive sources of capital.
Additionally, the transaction contributes to improve equity and debt investors company’s valuation. The transaction implied value reinforces the current market value of Brava Energia, considering growth and value associated to offshore and onshore production portfolio and mid and downstream assets as well as relevant peripheric assets, such as long-term receivables from Yinson and fiscal assets.
To remind, Brava Energia recently secured operating license for a floating, production storage, and offloading (FPSO) unit Atlanta, ahead of production of first oil through the new platform from the Atlanta field offshore Brazil.
Chartered by Malaysia’s Yinson Production, the FPSO Atlanta has the capacity to process 50,000 barrels of oil per day, 140,000 barrels of water per day, and store 1.6 million barrels of oil.
It will replace Petrojarl I FPSO at Atlanta field, which has a production capacity of 30,000 barrels of oil per day and a storage capacity of 180,000.