Colombia’s state-controlled oil company Ecopetrol is moving to significantly expand its footprint in Brazil, announcing an agreement to acquire a 26% equity stake in Brava Energia, with plans to take majority control through a follow-on tender offer.
The deal, signed with a group of Brava’s key shareholders, covers more than 120 million shares—equivalent to roughly 26% of the company’s capital. To secure control, Ecopetrol intends to launch a voluntary tender offer at R$23 per share, representing a premium of nearly 28% to Brava’s recent trading average.
The transaction underscores Ecopetrol’s push to diversify geographically and strengthen its upstream portfolio beyond Colombia. Brazil has emerged as one of the most attractive oil and gas investment destinations globally, particularly due to its prolific offshore basins and stable regulatory framework.
Brava Energia itself is a relatively new player, formed in 2024 through the merger of 3R Petroleum and Enauta Participações. The company has quickly scaled into one of Brazil’s largest independent oil and gas producers, with operations spanning offshore and onshore assets as well as exposure to midstream and downstream segments.
By targeting control, Ecopetrol is effectively buying into an established platform with immediate production and reserves, rather than pursuing greenfield exploration.
The acquisition offers a direct boost to Ecopetrol’s operational metrics. Based on 2025 figures, Brava reported average production of approximately 81,000 barrels of oil equivalent per day and total reserves of 459 million barrels of oil equivalent.
Upon closing, Ecopetrol would incorporate a proportional share of these volumes into its portfolio, enhancing both production sustainability and cash flow generation. This is particularly relevant as Latin American producers increasingly seek to offset natural decline rates in mature assets.
The deal is also expected to contribute positively to key financial metrics, including EBITDA and return on average capital employed (ROACE), aligning with Ecopetrol’s capital discipline framework.
Ecopetrol plans to fund the acquisition through a bridge loan, indicating a willingness to leverage its balance sheet for strategic growth. However, the transaction remains subject to several conditions, including regulatory approval from Brazil’s antitrust authority (CADE) and the successful completion of the tender offer to reach at least a 51% voting stake.
The structure reflects a two-step approach common in Latin American M&A: an initial negotiated stake followed by a broader market offer to consolidate control.
