The South American energy market recently welcomed a heavyweight cross-border transaction, as Colombian state-owned oil and gas company Ecopetrol completed the acquisition of controlling equity in Brazilian local oil and gas producer Brava Energia through its wholly-owned subsidiary, officially taking control of this regional energy enterprise. This marks a crucial step in the integration process of the South American oil and gas industry.

$1.2 billion transaction locks in core assets

The total consideration for this transaction is approximately 1.2 billion US dollars, with funds provided by Ecopetrol's capital subsidiary through inter company loans. All regulatory approvals and prerequisites have been completed, and Ecopetrol has successfully acquired approximately 51% of Brava Energia's issued voting share capital, achieving absolute control. After the transaction was completed, Ecopetrol directly added 459 million barrels of oil equivalent 1P proven reserves and 605 million barrels of oil equivalent 2P proven and estimated reserves, significantly expanding its oil and gas asset reserves.

High operational fundamentals support long-term value

Brava Energia's asset portfolio is highly complementary to Ecopetrol's existing business, including stable ongoing projects and ample room for future development. According to the latest operational data, for the past 12 months ending June 2026, this company achieved revenue of approximately $2.34 billion, EBITDA of approximately $1.05 billion, and net profit of approximately $122.2 million; The average daily production in the first half of 2026 reached 78800 barrels of oil equivalent, and the monthly production in June has climbed to 84400 barrels of oil equivalent. The cash flow creation ability and production capacity growth trend remain strong.

It is worth noting that the completion of this acquisition comes just two weeks after Ecopetrol made a significant natural gas discovery at the Sandia-1 exploration well in the deep waters off the coast of Colombia. The continuous actions clearly demonstrate the strategic determination of this Colombian state-owned energy giant to accelerate the diversification of its regional and operational layout. This transaction also allows Ecopetrol to successfully enter Brazil, the most dynamic energy market in South America, laying a solid foundation for its creation of a highly resilient and high cash flow global oil and gas asset portfolio.Editor/Cheng Liting