BRAVA Energia has announced the signing of a contract with PetroReconcavo for a partnership involving the sale of 50% of the natural gas distribution and processing infrastructure of the Potiguar Basin, in the state of  Rio Grande do Norte, along with the definition of gas supply commitments between the companies. Operations in the state will remain unchanged and will continue to be managed by BRAVA.

BRAVA Energia’s CEO, Décio Oddone, said that, “The contract with PetroReconcavo is the result of efforts aimed at optimizing performance and maximizing the use of infrastructure assets. The fundamental purpose of this partnership is to achieve greater operational efficiency, while reducing operating costs”.

In the opinion of the executive, this transaction is a way to augment and strengthen the reliability of both the production and distribution of natural gas and its derivatives. He added that, “It is an example of what can be done to optimize onshore operations in Brazil”.

The total transaction value is US$ 65 million, with 10% paid upon signing, 25% paid within 10 business days following approval of the transaction by CADE (Administrative Council for Economic Protection), the competition watchdog, with 50% upon closing the deal, contingent upon the fulfillment of predetermined conditions, and the remaining 15% paid in installments, according to the stages of the real estate transfer process.

The agreement includes 50% of the Natural Gas Processing Units II and III, the Livramento/Guamaré distribution pipeline and the Liquefied Natural Gas storage tanks, all of which assets comprise the natural gas distribution and processing infrastructure located at the Guamaré Industrial Hub.

Pedro Medeiros, the director of New Business, Trading and Downstream, stated that, “The partnership between BRAVA and PetroReconcavo in the natural gas midstream segment of Rio Grande do Norte reflects the company’s dynamic vision of its portfolio, to extract maximum value in the most effective way possible”.

The contract also provides for the creation of operational committees comprising members from both companies, the sharing of the utilities and services of the Guamaré Industrial Hub that support the operations of the gas processing plants and the signing of a five-year natural gas purchase commitment to PetroReconcavo by BRAVA, starting in the second half of 2025. The agreed average volume is 150,000 m³/d over the term of the contract.