PetroRecôncavo

PetroRecôncavo S.A. is an independent Brazilian company specializing in the operation, development, and revitalization of mature onshore oil and gas fields. Founded in 1997 following the deregulation of Brazil's oil sector, the company was a pioneer in acquiring and operating fields from Petrobras, the state-owned oil giant. The initial venture was a collaboration between the American company PetroSantander, the Brazilian investment firm Opportunity, and the services company Grupo Perbras.

The company's business model centers on maximizing the productive life of established assets through enhanced recovery techniques and operational efficiency. A key component of its strategy is vertical integration, where PetroRecôncavo internalizes services typically outsourced, such as drilling and well maintenance, using its own fleet of rigs. This approach provides greater control, reduces costs, and increases operational agility. The company's primary operations are located in the Recôncavo and Potiguar basins in northeastern Brazil, managing dozens of concessions. Its revenue is generated from the sale of crude oil and natural gas, with a significant portion of its gas production sold under long-term contracts to local distribution utilities, which mitigates price volatility.

After 15 years under the leadership of CEO Marcelo Magalhães, who oversaw a period of significant growth and the company's IPO in 2021, José Maria de Mello Firmo took over as CEO on January 1, 2024. Firmo brings over three decades of experience in the oil and gas industry, including extensive time at Schlumberger. The company continues to focus on disciplined capital allocation and strong operational cash flow generation to fund growth and provide returns to shareholders.

Keywords: onshore oil and gas, mature fields, oilfield revitalization, independent operator, E&P, Recôncavo basin, Potiguar basin, vertical integration, oil exploration, natural gas production, well workover, drilling services, enhanced oil recovery, Brazilian energy sector, production optimization, asset acquisition, energy exploration, midstream infrastructure, operational efficiency, South American energy