NBS Petróleo e Gás Secures Funding for Onshore Expansion

NBS Petróleo e Gás, a nascent player in Brazil's energy sector, is set to commence production from its initial two onshore fields in Espírito Santo, following regulatory approval from the National Agency of Petroleum (ANP). This milestone marks a significant step for the company, founded by three former Petrobras executives, as it aims to capitalize on what it terms the “third wave” of independent oil and gas operations in the country.

The company's strategic focus is on acquiring and revitalizing marginal onshore assets, a niche identified by CEO Gelson Nico. He explains that while major independent producers like PRIO, 3R Petroleum, PetroRecôncavo, and Origem Energia have consolidated larger fields, smaller, less economically viable assets for them present opportunities for leaner operators like NBS. This strategy positions NBS as a "junior of the junior oil" companies, concentrating on fields that larger entities might overlook.

To facilitate its initial acquisition of two onshore fields from Origem Energia, NBS successfully raised capital from individual investors. The funding round, structured by multi-family office L4 Capital, saw these private investors acquire a 16% stake in the company. Carlos Suslik, Partner and CEO of L4 Capital, highlighted the attractive projected Internal Rate of Return (IRR) exceeding 55% for this group, with individual contributions ranging from R$50,000 to R$1.5 million. This approach democratizes investment in the sector, drawing parallels to the early stages of other successful independent energy firms.

With the ANP's green light for the field transfer and production, NBS is poised to begin operations. Initial output is projected at 40 barrels per day, with potential to scale up to 250 barrels daily by 2029, excluding any new drilling initiatives. This ramp-up is expected to significantly improve operational efficiency and reduce lifting costs, with a target range of $13-$15 per barrel from an initial estimate of $23 per barrel.

Further demonstrating its growth ambitions, NBS has already secured a second acquisition: a producing field from Mandacaru Energia, also located in Espírito Santo. This transaction, financed through a R$10 million debenture issuance structured by L4 Capital, is anticipated to conclude with all necessary approvals by 2027. This move diversifies NBS's portfolio with an already operational asset, strengthening its market position.

The company's forward-looking strategy involves optimizing production from its current assets while actively seeking further merger and acquisition opportunities. NBS is targeting onshore fields in key Brazilian regions including Espírito Santo, Bahia, and Rio Grande do Norte. By leveraging a streamlined operational structure and focusing on marginal fields, NBS aims to unlock value and establish itself as a significant independent producer in Brazil's evolving energy sector.