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Petrobras (PBR) Initiates Call for SHF Radio Links at Offshore Units

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Petrobras (PBR - Free Report) initiated a call for the provision of super high frequency (SHF) point-to-point digital radio links at offshore units in the Campos and Espírito Santo basins. This initiative aims to enhance communication and connectivity across the company’s offshore platforms, ensuring seamless operations and improved safety for its workers.

With the use of advanced radio transceivers and complementary equipment, Petrobras seeks to establish efficient digital radio systems that cover a wide range of applications.

This announcement, available on the company's public procurement platform, Petronect, signifies an important development in the telecommunications infrastructure supporting PBR’s operations.

Let's discuss the significance of SHF radio links, the requirements outlined in Petrobras' call and the implications for the offshore industry.

Understanding SHF Radio Links

SHF refers to radio frequencies within the 3-30 GHz range, commonly employed in various communication applications. These radio links are pivotal in facilitating radar transmitters, wireless LAN, satellite communication, microwave radio relay links, satellite phones and other short-range terrestrial data connections.

By leveraging the advantages offered by SHF frequencies, Petrobras aims to enhance its offshore connectivity and enable seamless communication between platforms.

Petrobras' Call for Radio Transceivers and Radiating System

Petrobras' call for offshore digital radio links comprises the requirement for 18 sets of radio transceivers, along with the corresponding radiating system and complementary equipment.

With nearly 40 active private frequency licenses from the Brazilian National Telecommunications regulator Anatel for SHF radio links across 10 platforms, Petrobras emphasizes the importance of establishing a robust and efficient communication network.

Comprehensive Services and Deliverables

In addition to the provision of radio transceivers and radiating systems, Petrobras' call encompasses a range of services and deliverables. The company expects suppliers to analyze the condition of existing telecom towers on offshore platforms, perform field and compliance tests, and offer training on related goods and services. Furthermore, suppliers are required to provide an executive project that outlines the installation process comprehensively.

The project must encompass all activities necessary for the complete installation of telecom systems. This includes the issuance of documentation covering installation drawings, plans, diagrams, link calculations, frequency plans, procedures and more.

From the preparation of the installation site and mechanical assembly of racks to the integration and testing of all equipment and subsystems, the supplier is responsible for ensuring seamless installation and operational functionality.

Experience in Offshore Radio Link Installation

An essential criterion for prospective suppliers is having a demonstrated experience in installation and configuration services for radio links in offshore environments. Given the unique challenges and requirements present in offshore settings, Petrobras seeks suppliers who possess the necessary expertise and understanding of the intricacies involved. This experience increases the chances of successful installations, reliable connectivity and effective operation of the SHF radio links across PBR’s platforms.

Tender Pricing and Process & Evaluation

Although Petrobras has not provided a reference price for the tender, the selection process will prioritize the lowest offer. Interested parties are invited to submit their bids until Aug 3, although consortiums are excluded from participation. By adopting a competitive bidding approach, Petrobras aims to optimize costs while gaining access to the highest quality equipment and services to support its offshore operations.

Conclusion

Petrobras' call for offshore digital radio links marks a significant step toward enhancing communication and data transmission capabilities at its offshore units in the Campos and Espírito Santo basins. The competitive tender process highlights the company’s commitment toward achieving cost-effective solutions while maintaining high standards of quality and expertise.

As the industry eagerly awaits the outcome of this call, Petrobras is poised to bolster its offshore communication capabilities and solidify its position as a leader in the oil and gas sector.

Zacks Rank and Key Picks

Currently, PBR carries a Zacks Rank #3 (Hold).

Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum (EPM - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Murphy USA (MUSA - Free Report) and NGL Energy Partners (NGL - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Evolution Petroleum is worth approximately $264.82 million. EPM currently pays a dividend of 48 cents per share, or 6.03% on an annual basis.

The company currently has a forward P/E ratio of 7.37. In comparison, its industry has an average forward P/E of 10.60, which means EPM is trading at a discount to the group.

Murphy USA is valued at around $6.75 billion. In the past year, its shares have risen 15.2%.

MUSA currently pays a dividend of $1.52 per share, or 0.49% on an annual basis. Its payout ratio currently sits at 6% of earnings.

NGL Energy Partners is valued at around $502.64 million. In the past year, its units have risen 164.6%.

The partnership currently has a forward P/E ratio of 4.38. In comparison, its industry has an average forward P/E of 14.10, which means NGL is trading at a discount to the group.

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