Portuguese 
English 
Spanish 
4 min of reading 
0 comments 
From Billion-Dollar Bets in the Amazon and Namibia to Losses and Value Erosion: The Story of HRT Oil, Which Became PetroRio (PRIO) After Failing in Commercial Discoveries.
In the early 2010s, Brazil was experiencing a cycle of optimism in the oil and gas sector. The discovery of the pre-salt layer and the rise in barrel prices sparked the interest of investors and entrepreneurs. It was in this scenario that HRT Participações em Petróleo S.A., popularly known as HRT Oil, emerged with an ambitious pitch: to explore large reserves in the Brazilian Amazon and in deep waters off the coast of Namibia, Africa.
The company raised billions of reais in the market, hired international teams, and announced drilling campaigns that, according to internal projections, could transform Brazil into an even more relevant player in the energy sector. However, within a few years, the success narrative unraveled in the face of technical and economic reality. Without significant commercial discoveries and pressured by losses, HRT underwent a profound restructuring, changing its name and focus to become PetroRio, now specialized in mature oil fields.
The Foundation of HRT Oil and the Amazonian Dream
Founded in 2009 by former executives of Petrobras and the old PetroRio, HRT was born with an audacious plan: to develop onshore areas in the Solimões Basin in the Amazon, where studies indicated potential for light oil and natural gas. The concessions obtained by the company covered 21 exploratory blocks, totaling more than 48,000 km².
-
Lula reveals a masterstroke by Petrobras to undo a deal made by Bolsonaro, which involves the return of an important refinery that currently produces less than half of what was expected and makes Brazil dependent on international diesel.
-
A study confirms that the natural gas sector will reduce greenhouse gas emissions in Brazil by 0.5% and accelerate the energy transition by 2026.
-
Petrobras implements a severe adjustment and confirms a 55% increase in the price of aviation kerosene with a proposal for installment payments for the companies.
-
The rise in oil prices could ensure an extra revenue of R$ 100 billion for the Federal Government, indicates a recent economic study.
The differentiator, according to the company, was the combination of geological expertise with cutting-edge technology to operate in remote and environmentally sensitive areas. This discourse attracted national and foreign investors, and HRT quickly raised capital through public share offerings in the then BM&FBovespa.
Namibia as a New Frontier for Oil
In addition to the Amazon, HRT sought to diversify its bets by acquiring offshore exploratory blocks in the Walvis Basin in Namibia. The strategy was to leverage geology similar to that of the Brazilian coast, a result of the breakup of the supercontinent Gondwana, which indicated the possibility of finding reservoirs equivalent to those in the pre-salt.
The African operation was seen as the “crown jewel” for investors, with the promise of placing HRT among the discoverers of large offshore reserves. The initial drilling program planned three wells: Wingat-1, Murombe-1, and Mokopane-1.
The Market Enthusiasm and the Appreciation of Shares
In 2010 and 2011, HRT was at the peak of its valuation. Analysts highlighted the billion-dollar potential of discoveries and compared the company’s trajectory to other independent oil companies that found giant reserves.
The shares were traded above R$ 20, driven by expectations and a favorable international scenario, with oil prices above US$ 100.
The founder and then-president, Márcio Rocha Mello, used presentations and interviews to reinforce the optimistic discourse, even claiming that Namibia could contain “the last major set of unexplored reserves in the world.”
The Reality of the Wells and the Frustration of Investors
Between 2012 and 2013, the results of the drilling came in. The Wingat-1, the first well in Namibia, found light oil, but in insufficient volumes for commercial viability. The Murombe-1 and Mokopane-1 did not present hydrocarbons in relevant quantities.
In the Amazon, although there was natural gas, the volume and market conditions did not justify large-scale production. The complex logistics and lack of infrastructure for transportation made any project expensive.
With the wells not yielding the expected returns, HRT’s market value plummeted. In two years, shares fell from over R$ 20 to less than R$ 1.
Billion-Dollar Losses and a Change of Course
The sequence of negative results generated accumulated losses of hundreds of millions of reais. The company was forced to cut expenses, sell assets, and completely change its strategy. In 2013, Márcio Rocha Mello left the helm, and a new management initiated the restructuring process.
The focus shifted to the acquisition and revitalization of mature fields — those with declining production — taking advantage of operational experience and the opportunity in the market, with Petrobras selling assets to reduce its debt burden.
The Birth of PetroRio – PRIO
In 2014, HRT officially changed its name to PetroRio S.A., marking the start of a new phase. The company abandoned high-risk exploration areas and began investing in already discovered fields, applying techniques to enhance recovery factors and extend the life span of the assets.
Among the acquired fields are Polvo and Tubarão Martelo in the Campos Basin, which became the foundation for the growth of the new PetroRio. With a more conservative management and a focus on efficiency, the company returned to generating positive cash flow and recovering market value.
The Legacy of HRT and the Lessons for the Oil and Gas Sector
The case of HRT is often cited as an example of how high-risk exploratory projects can destroy value when not accompanied by concrete results. The combination of exaggerated expectations, lack of commercial discoveries, and oil price volatility revealed the limits of optimism in the oil and gas sector.
On the other hand, the restructuring for PRIO demonstrates that it is possible to recover a company in crisis, provided there is a clear change in strategy, financial discipline, and a focus on profitable assets.
Today, PRIO is the largest independent oil producer in Brazil and continues to expand its portfolio of mature fields, but the story of its origins carries the memory of one of the most notable chapters in the Brazilian capital markets.
Seja o primeiro a reagir!