Brazil M&A: operator landscape grows

Get this report


You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

15 June 2021

Brazil M&A: operator landscape grows

Report summary

Petrobras continues to dominate Brazil’s upstream sector. But its divestments have begun to change the operator landscape, building the stage for small to medium-sized E&Ps. Most of the entrants have yet to release details on their redevelopment plans, but we have taken a view on the potential. Upside on our 10 selected deals is significant – US$3 billion of NPV10. Still, investment opportunities won’t come without challenges. We analyzed the most impactful risks, strengths and key support factors.

Table of contents

  • Executive summary
    • Opportunity pipeline: Petrobras’ divestment plan
    • Buyer playbook: challenges and strengths
    • Methodology: quantifying the upside
    • Upside potential: beyond our base case valuation
    • Support factors: reduced royalties
    • Access to capital: surprisingly well-funded for now
    • Capex commitments: quick paybacks despite sizable investments
    • Decommissioning: framework remains murky
    • Finding a market: reliance on Petrobras
    • Environmental regulation: state-by-state approach for onshore
    • Private equity: nothing is everlasting
    • The Brazil model: learning from overseas
  • Annex: quantifying the upside potential

Tables and charts

This report includes 6 images and tables including:

  • Among the 10 assets we selected for this analysis, Albacora and Papa-Terra stand out
  • We ran upside scenarios for the 10 assets below based on water depth, basin, maturity and size
  • Recent upstream asset sales highlighting case studies
  • Remaining NPV10 comparison for the selected assets under different Brent scenarios
  • Gearing evolution for key E&Ps
  • Payback time for selected assets before and after deal considerations

What's included

This report contains:

  • Document

    Remaining NPV10 And Reserves Summary.xlsx

    XLSX 97.00 KB

  • Document

    Upside Potential Scenarios Details.xlsx

    XLSX 6.56 MB

  • Document

    Brazil M&A: operator landscape grows

    PDF 1.59 MB