PetroRecôncavo is an independent oil and gas operator company and one of the segment leaders in Brazil. With a trajectory of more than twenty years, we are specialized in the operation, development and revitalization of mature fields in onshore oil and gas basins and we believe we have a history and scale unparalleled in this industry segment in the country. We were one of the first private companies focused on onshore to operate in Brazil after the break of the state monopoly and the enactment of the Petroleum Law in 1997 and we were pioneers in acquiring onshore oil fields from the recent Petrobras divestment program with the acquisition of the Petrobras Pole Riacho da Forquilha completed in December 2019.
Our business model is based on the purchase (or operating services contracts) of concessions from mature onshore fields, where we believe we operate more efficiently and revitalize and extend your reserves, if possible, for decades. We believe that our vertical business model allows us to differentiate ourselves from our competitors.
We have as a pillar of our business model the development of new proven reserves in fields already in production, producing at low operating cost and obtaining the optimization of the field recovery factor. In general, we seek to be the operator of our fields, in order to guarantee the replication of this model, applying our know-how in an agile and efficient way.
Throughout our trajectory, we have demonstrated the ability to increase our production and reserves in a consistent and scalable way. In the Potiguar Basin, in a pioneering way, in 2019 we acquired the first and largest onshore production hub inserted in the first stage of Petrobras’ divestment program, called Riacho da Forquilha, with 34 concessions. In the first 12 months of operation, we were able to increase oil production by 38.4% in the fields operated.
In addition, we were able to present strong cash flow generation in the assets we operate, even during cycles of lower oil and natural gas prices, which we believe demonstrates the success of our operating model.
The security, robustness, resilience, and scalability of our business model are the result of countless factors such as the capacity, experience and commitment of our executive team, our technical and managerial teams, the processes and systems developed and improved along our trajectory, our strategy of verticalization of field services, and our financial and capital allocation discipline.
We believe that this set of capabilities makes us one of the most complete platforms to capture the recent opportunities arising from the liberalization of the oil and gas market in Brazil and from Petrobras’ divestment program.
For more information about Petroreconcavo, please visit www.petroreconcavo.com.br/