Indonesia Energy Corporation (IEC) said it signed a memorandum of understanding (MoU) with Aguila Energia e Participações Ltda. (AEP) to collaborate on oil and gas projects in Brazil.
The MoU establishes a cooperative framework to jointly identify, evaluate, and pursue potential opportunities to acquire or participate in oil and gas or other energy-related projects in Brazil, IEC said in a news release. IEC and AEP will seek to enter into appropriate definitive agreements for projects on an opportunity-by-opportunity basis.
The collaboration combines “IEC’s oil and gas and capital market experience with AEP’s capabilities in local Brazilian transactions, regulatory engagement, and asset development,” according to the release.
IEC President Frank Ingriselli said, “This collaboration marks an exciting first step by IEC to evaluate world-class opportunities beyond Indonesia in Brazil, a market that has become one of the most attractive for upstream investment. Working with Blener Mayhew and his team will give us immediate local insight and access. In addition to opportunities in Brazil, AEP may also assist us in further commercializing our Indonesian assets and identifying new Indonesian domestic growth projects. Together with our planned drilling program at our Kruh Block, this initiative advances our growth strategy to scale production and diversify our portfolio in the final months of 2025 and beyond”.
“We believe Brazil is experiencing an attractive convergence of market catalysts that create an exceptional entry point for nimble independent oil and gas companies like ours,” Ingriselli added.
The executive mentioned Brazil’s bid system that allows acquisition opportunities, as well as the trend of junior operators divesting assets, as reasons for exploring growth opportunities in the country.
Ingiselli also mentioned that concession contracts with the Brazilian government offered “the potential for higher after-tax cash flows compared to production-sharing contracts, as well as the potential for enhanced operational flexibility and internal rates of return”.
The MoU comes just a few weeks after IEC announced that it plans to drill two back-to-back wells on its 63,000-acre Kruh Block in Indonesia, starting in the fourth quarter, the company said.
The new drilling activities will be supported by exploratory seismic work done by the company during 2024 and early 2025, which upgraded wellsite prospects and drilling locations, according to the release.
IEC previously reported that investments in Kruh Block and the 3D seismic work completed earlier this year resulted in a 60 percent increase in proved gross reserves.
AEP describes itself as a Rio de Janeiro–based independent oil and gas company focused on unlocking value in mature onshore oilfields across Northeast Brazil. The company holds a portfolio of seven development-stage oilfields in the states of Bahia and Rio Grande do Norte. The company’s principals have participated in Brazilian onshore asset processes, including leading a $1.5 billion consortium bid for Petrobras assets in Bahia.
Jakarta-based Indonesia Energy Corporation describes itself as a publicly traded energy company engaged in the acquisition and development of strategic, high growth energy projects in Indonesia. IEC’s principal assets are its Kruh Block located onshore on the Island of Sumatra and its Citarum Block located onshore on the Island of Java, both in Indonesia.
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