Investors fishing for next big Brazil startups

Private equity: Feeling out new companies in advance of upcoming bid round

Brazil’s plan to sell offshore oil licenses for the first time in six years is sending private- equity investors on a search for startups to compete with global producers including Shell and BP, according to a report.

Denham Capital Management, the Boston-based energy investor overseeing $7.3 billion, is among funds in talks with startups before a government auction, Victor Munoz, Denham’s head for Latin America, told Bloomberg.

Ouro Preto Oleo & Gas, a Brazilian explorer financed by Rio de Janeiro-based fund Turim, is seeking to attract investors, Dirceu Abrahao, the startup’s ventures director, told the news wire.

Agua Grande Petroleo, backed by Toronto-based Forbes & Manhattan, is also looking for additional private funding, chief executive Officer Peter Boot said.

"We're exploring opportunities," Munoz said in an interview with the news wire…

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