Brazil’s Eneva in Direct Talks for Petrobras’ Urucu Cluster Oilfield

RIO DE JANEIRO, BRAZIL – Publicly traded Brazilian energy firm Eneva SA has entered into direct talks with state-run oil firm Petrobras to purchase a complex of oil and gas fields in the Amazon rainforest known as the Urucu cluster, the companies said in separate securities filings on Monday, February 1st.

The statement, which followed a report earlier in the day in online newspaper Brazil Journal, gave no details on timing or price.

The Brazil Journal article said Eneva competitor 3R Petroleum Oleo e Gas SA had made a higher offer during a bidding round in 2020, but that round was scuttled after Petrobras determined the terms attached to the 3R bid were unacceptable.

Eneva was victorious in a fresh bidding round, Brazil Journal reported, citing people familiar with the matter. While it did not cite a specific price, Eneva’s new offer was 30% to 40% higher than its previous bid for the asset, which was US$600 million, the paper reported.

The two companies will now negotiate the terms of the potential sale contract, which could take months, the article added.

A representative for Petroleo Brasileiro SA declined to elaborate on the securities filing. Eneva did not respond to a request for comment.

Common shares in Eneva closed up 13.51% on Monday, February 1st, while shares in Petrobras gained 3.15%.