Brazilian duo formally becomes one oil & gas player

Brazilian oil and gas firms Enauta and 3R Petroleum Óleo e Gás have disclosed the completion of their merger, which was set in motion in early April.

According to the pair, the conditions precedent for formalizing the merger of shares of a third company, Maha Holding, into 3R Petroleum and Enauta shares under the terms of their respective protocols and justifications for the merger have been fulfilled. Consequently, the transaction is set to formally close on July 31, 2024.

After announcing the merger in April, the duo signed a memorandum of understanding later that month. This was followed by approval from their boards of directors and Brazil’s Administrative Council for Economic Defense (CADE).

Under the terms of the protocols and justifications, 213,623,971 new book-entry common shares with no par value, issued by 3R, will be assigned to Enauta’s shareholders, amounting to 45.98% of 3R’s share capital, while Maha Holding’s sole quota holder will get 10,081,840, representing 2.17% of 3R’s share capital.

Furthermore, 3R’s new board of directors and the amendments to bylaws were confirmed at the firm’s extraordinary general meeting held on June 26, 2024, in addition to verifying that 223,705,811 new book-entry common shares, with no par value, would be issued as a result of the completion of the transaction.

As disclosed, the remaining transaction steps will be implemented according to the indicative schedule based on which trading of the new shares resulting from the merger is anticipated for August 1, while 3R shares are scheduled to be registered to the shareholders of Enauta and Maha Holding four days later. 

Newly converted FPSO inching closer to first oil

Apart from the merger, Enauta confirmed that all subsea systems and line connections for the floating production, storage, and offloading (FPSO) unit Atlanta to produce its first oil have been completed. The vessel, working at the Atlanta field in Brazil’s Santos Basin, is set to replace the FPSO Petrojarl I.

Next on the docket are mandatory adaptations by regulatory agencies, final testing, and commissioning, thus concluding the operational activities required to start production on the new platform. Additionally, an environmental operating license and authorization from Brazil’s National Agency of Petroleum, Natural Gas, and Biofuels (ANP) is pending.

The installation campaign for the second multiphase pumping module and the connection of additional wells are envisaged to start over the next few weeks, with the first oil expected in August, in line with the timeline established when the project was sanctioned in February 2022. 

The FPSO Atlanta arrived in Brazil in May, with subsea equipment installation starting later that month. Earlier this month, Enauta shared that anchoring was concluded in June, and the first producing well and all its service lines connections completed on July 4. 

While the second well connection was expected to be completed over the following weeks, the firm expressed concerns over possible delays due to the announced strike of public officials in Brazil.