Roundup: Petrobras CEO, electric power tenders, M&As and more

New CEO 1

The board of Brazil’s federal oil firm Petrobras voted to confirm Magda Chambriard as the new CEO. 

An engineer and former head of oil and gas watchdog ANP, Chambriard was recently appointed by President Luiz Inácio Lula da Silva to replace Jean Paul Prates at the helm of the federal oil giant. 

She is an advocate of exploration in the Equatorial Margin and is expected to emphasize the need to increase oil production.

New CEO 2

José Cotello will take over as the CEO of independent oil producer Seacrest Petróleo on June 1.

Cotello has worked for Colombia's Ecopetrol, Brazil's Petra Energia and SLB (formerly Schlumberger), headquartered in Houston.

Tenders

Brazil’s mines and energy ministry (MME) has opened a public consultation on the draft guidelines for the auctions to buy electricity from new generation projects, known as the A-4 and A-6 auctions for 2024.

The auctions are scheduled to take place sequentially in December, and aim to supply the distributors' market for 2028 and 2030, respectively.

Hydroelectric (up to 50MW), wind, solar and thermoelectric projects are expected to participate, as well as hybrid solutions, with contract terms of 15 and 20 years. 

Biomethane

Brazil’s piped gas distribution association Abegás and renewable energies and biogas research center CIBiogás signed an agreement in Foz do Iguaçu, Paraná state, aimed at joining forces to develop the biomethane market.

"Piped gas distributors are fully interested in developing the biomethane market, making it possible to connect to the distribution grid and internalize this source, as well as adopting and stimulating new applications in the industrial, automotive and other segments," said Abegás CEO Augusto Salomon in a press release. 

Ethanol

President Luiz Inácio Lula da Silva took part in the opening ceremony of Raízen's second-generation ethanol plant in Guariba, São Paulo.

With an investment of 1.2bn reais (US$232mn), the unit is considered the largest in the world and has estimated production capacity of 82Ml/y.  

Second generation ethanol differs in that it uses bagasse from the production of sugar and regular ethanol to produce more biofuel.

M&A 1

The shareholders of 3R Petroleum have approved the merger with Enauta. 

The companies estimate that the operation will cost around 40mn reais, mainly considering costs of valuations, legal advice and other advisory services.

The deal also provides for the roll-up of Maha Energy's 15% stake in 3R Offshore so that it will receive 2.17% of the new integrated company. 

M&A 2

Statkraft has completed the purchase of Enerfín, the renewable subsidiary of Spain's Elecnor. 

The transaction adds to a portfolio of 1.5GW of projects in operation and under construction globally. 

In Brazil, the company will add nine more wind farms for a combined 632MW in Rio Grande do Sul and Rio Grande do Norte.

Between projects under construction, operations and recent acquisitions, the company's renewable energy output in Brazil exceeds 2.2GW.

Distribution capex

Neoenergia Cosern (Rio Grande do Norte) will invest more than 2.1bn reais in works on the Potiguar electricity system between 2024 and 2027. 

This year, investments totaling more than 434mn reais are planned across the state. 

By 2027, 196km of new high-voltage lines will be built, as well as four new electrical substations in Extremoz, Natal, São Gonçalo do Amarante and Upanema. 

Another 22 electrical substations throughout the state will be modernized during the period.

Water reservoirs

Consultancy Thymos Energia projects that Brazil's hydroelectric reservoirs will reach 78% storage capacity by the end of June, when the fall season ends. 

This projection is 8.8 percentage points lower than the figure registered in the same period last year. 

According to Thymos, this situation should not affect tariff flags and energy prices in the short term, which should remain stable throughout 2024.

Financial recovery

Light's board approved the terms and conditions of the company's new judicial reorganization plan – similar to Chapter 11 bankruptcy protection. 

The new plan provides for an injection of funds into the company through a capital increase and the capitalization of certain credits, as well as the full payment of debts of up to 30,000 reais.