Sweden’s Maha Energy has proposed a merger between Brazilian independent players 3R Petroleum and PetroReconcavo to create a local powerhouse with dozens of onshore assets.

Shares at both 3R Petroleum and PetroReconcavo are rising more than 10% in early trading in the Sao Paulo Stock Exchange on the heels of the news.

The two companies signed in 2022 a memorandum of understanding to assess opportunities to share facilities and resources related to oil and gas producing assets in the mature Potiguar and Reconcavo basins.