We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Petrobras (PBR) to Sell Off Fazenda Belem Cluster Stake
Read MoreHide Full Article
Petroleo Brasileiro S.A. orPetrobras (PBR - Free Report) recently inked a deal with SPE Fazenda Belém S.A., a unit of oil field operator 3R Petroleum, as it aims to divest its interest in the onshore fields of Fazenda Belém and Icapuí. Per management, the plan is in line with the company’s strategy to cut costs and improve its capital allocation. This state-run energy giant is the sole owner of the two fields and intends to sell full operating ownership of the project.
The two above-mentioned fields, located in the Potiguar Basin of Ceara, Brazil, are together known as the ‘Fazenda Belém’ cluster. The sale of the two fields is priced at $35.2 million, of which $8.8 million has already been paid at the time of signing the contract. Management further informed that another $16.4 million will be paid at the close of the transaction and the residual $10 million will be paid in the first 12 months from the date of the deal’s conclusion.
Per Petrobras, the transaction value does not take into account the adjustments due and are subject to compliance with prior conditions, such as the consent by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
In a separate press release, Petrobras announced that it has signed a letter of intent with Malaysian contractor MISC to provide a floating production storage and an offloading facility (FPSO) to be installed in the giant Mero field in the Santos Basin offshore Brazil. Located in the Libra area, the Mero field is the third largest of the pre-salt and is operated by Petrobras with 40% stake.
The Mero 3 FPSO, to be named Marechal Duque de Caxias, will be the third unit to be deployed in the Mero field, which will be able to process 180,000 barrels per day of oil and 12 million cubic metres per day of natural gas.
The project requires drilling of 15 development wells including eight oil producers and seven water and gas injectors, which will be joined to the FPSO through a rigid riser-based subsea structure.
The letter of intent places the term of the charter at 22.5 years from the date of the company’s final approval of the Mero 3 FPSO. The operation is likely to commence in the first half of 2024.
Company Profile
Petrobras is the largest integrated energy firm in Brazil and one of the biggest in Latin America. The company’s activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks. The operations also include refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons beside other energy-related operations.
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Petrobras (PBR) to Sell Off Fazenda Belem Cluster Stake
Petroleo Brasileiro S.A. orPetrobras (PBR - Free Report) recently inked a deal with SPE Fazenda Belém S.A., a unit of oil field operator 3R Petroleum, as it aims to divest its interest in the onshore fields of Fazenda Belém and Icapuí. Per management, the plan is in line with the company’s strategy to cut costs and improve its capital allocation. This state-run energy giant is the sole owner of the two fields and intends to sell full operating ownership of the project.
The two above-mentioned fields, located in the Potiguar Basin of Ceara, Brazil, are together known as the ‘Fazenda Belém’ cluster. The sale of the two fields is priced at $35.2 million, of which $8.8 million has already been paid at the time of signing the contract. Management further informed that another $16.4 million will be paid at the close of the transaction and the residual $10 million will be paid in the first 12 months from the date of the deal’s conclusion.
Per Petrobras, the transaction value does not take into account the adjustments due and are subject to compliance with prior conditions, such as the consent by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
In a separate press release, Petrobras announced that it has signed a letter of intent with Malaysian contractor MISC to provide a floating production storage and an offloading facility (FPSO) to be installed in the giant Mero field in the Santos Basin offshore Brazil. Located in the Libra area, the Mero field is the third largest of the pre-salt and is operated by Petrobras with 40% stake.
The Mero 3 FPSO, to be named Marechal Duque de Caxias, will be the third unit to be deployed in the Mero field, which will be able to process 180,000 barrels per day of oil and 12 million cubic metres per day of natural gas.
The project requires drilling of 15 development wells including eight oil producers and seven water and gas injectors, which will be joined to the FPSO through a rigid riser-based subsea structure.
The letter of intent places the term of the charter at 22.5 years from the date of the company’s final approval of the Mero 3 FPSO. The operation is likely to commence in the first half of 2024.
Company Profile
Petrobras is the largest integrated energy firm in Brazil and one of the biggest in Latin America. The company’s activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks. The operations also include refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons beside other energy-related operations.
Zacks Rank & Key Picks
Petrobras currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Murphy USA Inc. (MUSA - Free Report) , CNOOC Limited (CEO - Free Report) and SilverBow Resources Inc. (SBOW - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>