Brazil's Brava Energia has signed an agreement with PetroReconcavo to sell 50% of its natural gas processing infrastructure in the Potiguar basin for $65 million.
As part of the partnership agreement with Brava Energia, PetroReconcavo will buy 50% of the natural gas flow and processing infrastructure in the Potiguar Basin, state of Rio Grande do Norte, and gas supply commitments between the companies.
The agreement has an exclusivity period of 60 days for the precedent conditions to be met for the execution of the definitive contract.
The value of the transaction is $65 million, with 35% to be paid upon signing and the remainder upon closing.
The scope of the agreement includes the Natural Gas Processing Units II and III (NGPUs) and the LPG Spheres, located in the Guamaré Industrial Asset (AIG), in addition to the gas pipeline that connects the Brava and PetroReconcavo producing fields to the AIG.
“The partnership between Brava and PetroReconcavo in the natural gas midstream of Rio Grande do Norte aims to improve efficiency and maximize the use of infrastructure assets, reducing operating costs and increasing the reliability of the production and flow of natural gas and derivatives in the region,” Brava Energia said.