Maha Energy AB signed a binding term sheet regarding a business combination with DBO 2.0 SA to create a diversified portfolio balanced between mature oil and gas onshore and offshore assets. The companies agreed to conclude final documents during a 45-day exclusivity period.
DBO is a private upstream oil and gas company focusing on mature offshore fields in Brazil. Since 2018, the DBO group has invested about $40 million in equity and built a position in the Brazilian exploration and production market. DBO is a 15% shareholder in 3R Petroleum Offshore SA, which holds operated interests in producing oil and gas fields offshore Brazil—the Peroá cluster in the Espírito Santo basin (100% operated working interest) and the Papa Terra heavy oil cluster in the Campos basin (62.5% operated working interest, subject to completion of transaction with Petrobras). 3R Offshore agreed in July 2021 to acquire Petrobras’ working interests (62.5%) in the cluster.
The deal would increase Maha’s net 2P reserves with 18.5 MMboe and is estimated to add around 2,000 boe/d net production in 2023.
The transaction is subject to due diligence, board approvals and, if applicable, regulatory approvals, and a general meeting in Maha approving necessary resolutions. Closing is expected in first-quarter 2023.