Ecopetrol takes Brava Energia under its wing in $1.2 billion Brazil expansion move

Aug. 18 (offshore-energy.biz) Ecopetrol Investimentos do Brasil, a wholly owned subsidiary of Colombia’s state-owned oil and gas company Ecopetrol, has broadened its presence in Brazil’s energy sector by acquiring a controlling stake in local oil and gas producer Brava Energia.

In a step that strengthens its growth platform in Brazil, Ecopetrol has completed the acquisition of a controlling interest equivalent to approximately 51% of the outstanding voting share capital of Brava Energia, following the satisfaction of all applicable regulatory approvals and other required conditions.

The company claims that this acquisition expands its oil and gas footprint in one of the most dynamic energy markets in the South American energy region, adding a substantial reserve and production base intended to enhance its capacity to generate long-term value for its shareholders.

The aggregate consideration paid in connection with the transaction was approximately $1.2 billion, which was funded through an intercompany loan extended by Ecopetrol Capital, another subsidiary of the Colombian company.

Brava contributes a complementary asset base to the Ecopetrol Group, consisting of producing assets and development opportunities that the firm believes will enhance the geographic and operational diversification of its hydrocarbons business.

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