Brava Energy’S Oil And Gas Output Drops In October

(MENAFN- The Rio Times) Brava Energy, the newly formed entity from the merger of 3R Petroleum and Enauta, reported a production level of 45,000 barrels of oil equivalent per day in October 2024.

This figure indicates an 11.4% decrease compared to September and a 12.8% decline from the average production in the third quarter.

The compan detailed that its oil production stood at 34,300 barrels per day, while natural gas production reached 10,700 barrels per day.

The operational adjustments stemmed from the cessation of production on the FPSO Petrojarl at the Atlanta field, as preparations began for the new system's launch.

In the Papa Terra field, Brava has increased maintenance efforts and integrity recovery activities following approval from the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) regarding crew levels on platforms.



This proactive approach aims to ensure safety and compliance with regulatory standards. Looking ahead, Brava anticipates resuming production at the Manati field only in the first quarter of 2025.
Brava Energy's Operational Challenges
This timeline contrasts with earlier expectations for a return by late 2024, reflecting ongoing operational challenges. Brava Energy operates several key fields including the Potiguar Complex, Recôncavo Complex, Peroá, Papa Terra, and Atlanta.

Additionally, it holds non-operated stakes of 35% in the Pescada Polo and 45% in the Manati field, both managed by Petrobras. The merger that created Brava Energy was designed to enhance operational efficiency and scale within Brazil's competitive oil sector.

The company aims to deliver approximately $1.5 billion in operational efficiencies over time. However, analysts have provided more conservative estimates ranging from $800 million to $1.2 billion.

Despite these challenges, Brava's leadership remains focused on long-term growth and profitability. CEO Décio Oddone emphasized that increasing production volume is crucial for securing competitive financing in a capital-intensive industry.

He noted that without producing around 75,000 barrels per day, companies struggle to gain recognition from credit rating agencies. The current market environment poses additional hurdles for Brava Energy.

Global oil prices have faced downward pressure due to reduced demand from major consumers like China and the United States.

The Brent crude price has dropped nearly 20% this year after peaking at $90 per barrel. Forecasts suggest it may stabilize around $70 per barrel in the coming months.

Oddone asserts that short-term price volatility will not significantly impact Brava's operations or investment levels. He believes that maintaining a long-term perspective is essential for navigating market fluctuations effectively.

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