Back to top

Image: Shutterstock

Petrobras (PBR) to Sell Stake in 2 Deepwater Campos Basin Fields

Read MoreHide Full Article

Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) announced the commencement of the binding phase as it plans to sell its entire stake in the Albacora and Albacora Leste concessions, located in the deep waters in the northern region of the Campos Basin. Per management, the plan is in sync with the company’s strategy to cut costs and improve its capital allocation.

The 455-sq-km Albacora field is located at a water depth of 100-1,050 meters and approximately 110 kilometers far from Cabo de São Tomé. The state-run energy giant is the sole owner and operator of the stake.

The 511.56-sq-km Albacora Leste field is located at a water depth ranging from 1,000 to 2,150 meters and approximately 120 kilometers from Cabo de São Tomé. Petrobras is the chief operator of the block with a 90% interest, while Repsol Sinopec Brasil holds the remaining10% stake.

Petrobras has a target set to sell assets worth $20-$30 billion under its 2020-2024 investment plan. Asset sales are part of its portfolio-optimization strategy and accordingly, it had put more than 100 mature onshore and shallow-water offshore fields up for auction in the past.

Also, last week, Petrobras announced the commencement of the sale process of its entire interests in the Bahia Terra Cluster, a group of 28 onshore production field concessions situated in the Recôncavo and Tucano Basins in the state of Bahia. Per management, the divestment is in line with the company’s strategy to minimize expenses and enhance its capital deployment, thereby, boosting its shareholder value.

Company Profile

Petrobras is the largest integrated energy firm in Brazil and one of the biggest farms in Latin America. The company’s activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks. The activities 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 has a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space areMatador Resources Company (MTDR - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Denbury Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Petroleo Brasileiro S.A.- Petrobras (PBR) - free report >>

Diamondback Energy, Inc. (FANG) - free report >>

Matador Resources Company (MTDR) - free report >>

Published in