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, Helix Ink Lucrative $786M Well Intervention Deals
Read MoreHide Full Article
Petrobras (PBR - Free Report) , a leading energy company in Brazil, and Helix Energy Solutions Group, Inc. (HLX - Free Report) , a Houston-based provider of oil and gas equipment and services, signed new three-year charter and service contracts for the Siem Helix 1 and Siem Helix 2 vessels. These advanced, riser-based well-intervention vessels will operate in offshore Brazil, with the contracts valued at approximately $786 million. This move continues the companies’ longstanding partnership, ensuring that the energy needs in the Santos and Campos Basins are addressed with cutting-edge and efficient solutions.
Details of the Contracts
Scope of the Contracts: These contracts cover a comprehensive range of services, including production enhancement, well decommissioning, subsea installation, offshore crane operations and Remotely Operated Vehicle (ROV) operations. These deals were awarded after a competitive tender process, underscoring the value and trust PBR places in Helix’s capabilities.
Duration and Extension Options: The contracts span an initial three years, with the option for an additional three-year extension. This flexibility allows both companies to adapt to the dynamic needs of the offshore energy market, ensuring that the collaboration can evolve with emerging technologies and market demand.
Financial Impact: The contracts' estimated value is a substantial $786 million, reflecting the high demand for reliable and efficient well intervention services in Brazil. This financial commitment not only highlights the strategic importance of these vessels but also highlights Helix's position as a leader in the global well-intervention market.
Advanced Well-Intervention Vessels
Siem Helix 1: A Proven Performer
The Siem Helix 1 has a track record of excellence, having previously worked for PBR from April 2017 to July 2021. In this period, the vessel completed 74 well interventions in the Santos and Campos Basins, demonstrating its reliability and efficiency in the field. The vessel's return to PBR’s service marks a continuation of its legacy of high performance.
Siem Helix 2: A Pillar of Offshore Operations
Since 2017, the Siem Helix 2 has been instrumental in performing riser-based well-intervention activities for PBR. Operating in the Santos and Campos Basins, this vessel has completed more than 100 well interventions to date. The vessel’s consistent performance and advanced capabilities have made it a cornerstone of PBR's offshore operations.
Capabilities of the Vessels
The Siem Helix 1 and Siem Helix 2 are purpose-built vessels designed to handle a wide range of subsea services, including optimizing existing well outputs to maximize production efficiency, safely retiring and sealing wells that are no longer productive, installing subsea infrastructure critical for offshore energy production, supporting various construction and maintenance activities in deepwater environments through offshore crane and ROV operations and providing rapid response capabilities in the event of an offshore incident.
Strategic Importance of the Contracts
Strengthening the PBR-HLX Relationship: These contracts further strengthen the long-standing relationship between PBR and Helix. In the past seven years, HLX has consistently delivered safe and cost-effective well-intervention services to PBR, reinforcing the trust and collaboration between the two companies.
Supporting Petrobras' Energy Transition Goals: HLX's commitment to innovation and tailored solutions aligns with PBR’s broader energy transition goals. By optimizing production from existing assets, these contracts contribute to a more sustainable and efficient energy future for Brazil.
Competitive Edge in the Offshore Market: The award of these contracts following a competitive tender process highlights Helix's competitive edge in the offshore market. The company's extensive global experience in well intervention, combined with its advanced fleet, positions HLX as a preferred partner for major energy companies like PBR.
Prospects and Opportunities
Potential for Contract Extensions: With the option for an additional three years, there is significant potential for the continuation of this partnership beyond the initial contract period. This provides both companies with the opportunity to build on its existing success and explore new avenues for collaboration.
Expanding Helix's Presence in Brazil: Successfully executing these contracts could open doors for HLX to increase its presence in the offshore market of Brazil. As PBR continues to develop its offshore assets, there may be further opportunities for HLX to provide advanced well-intervention services.
Technological Advancements and Innovation: As the offshore energy sector evolves, Helix's commitment to innovation will be crucial in maintaining its competitive advantage. The company’s focus on developing new technologies and improving operational efficiencies will be key to meeting the challenges in the future.
Conclusion
PBR’s decision to renew and expand the partnership with HLX highlights the company’s strategic commitment to enhancing its well-intervention capabilities. These contracts are expected to deliver significant benefits to the company in terms of operational efficiency, cost optimization, risk mitigation, technological advancement and strengthened partnership.
Zacks Rank and Key Picks
Currently, PBR and HLX carry a Zacks Rank #3 (Hold).
Denver, CO-based SM Energy is valued at $5.37 billion. The company currently pays a dividend of 72 cents per share, or 1.53%, on an annual basis.
SM, an independent energy company, engages in the acquisition, exploration, development and production of oil, gas and natural gas liquids in the state of Texas.
Findlay, OH-based MPLX LP is valued at $43.73 billion. In the past year, its shares have risen 21.2%.
MPLX owns and operates midstream energy infrastructure and logistics assets in the United States. It operates in two segments, namely Logistics and Storage, and Gathering and Processing.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Petrobras, Helix Ink Lucrative $786M Well Intervention Deals
Petrobras (PBR - Free Report) , a leading energy company in Brazil, and Helix Energy Solutions Group, Inc. (HLX - Free Report) , a Houston-based provider of oil and gas equipment and services, signed new three-year charter and service contracts for the Siem Helix 1 and Siem Helix 2 vessels. These advanced, riser-based well-intervention vessels will operate in offshore Brazil, with the contracts valued at approximately $786 million. This move continues the companies’ longstanding partnership, ensuring that the energy needs in the Santos and Campos Basins are addressed with cutting-edge and efficient solutions.
Details of the Contracts
Scope of the Contracts: These contracts cover a comprehensive range of services, including production enhancement, well decommissioning, subsea installation, offshore crane operations and Remotely Operated Vehicle (ROV) operations. These deals were awarded after a competitive tender process, underscoring the value and trust PBR places in Helix’s capabilities.
Duration and Extension Options: The contracts span an initial three years, with the option for an additional three-year extension. This flexibility allows both companies to adapt to the dynamic needs of the offshore energy market, ensuring that the collaboration can evolve with emerging technologies and market demand.
Financial Impact: The contracts' estimated value is a substantial $786 million, reflecting the high demand for reliable and efficient well intervention services in Brazil. This financial commitment not only highlights the strategic importance of these vessels but also highlights Helix's position as a leader in the global well-intervention market.
Advanced Well-Intervention Vessels
Siem Helix 1: A Proven Performer
The Siem Helix 1 has a track record of excellence, having previously worked for PBR from April 2017 to July 2021. In this period, the vessel completed 74 well interventions in the Santos and Campos Basins, demonstrating its reliability and efficiency in the field. The vessel's return to PBR’s service marks a continuation of its legacy of high performance.
Siem Helix 2: A Pillar of Offshore Operations
Since 2017, the Siem Helix 2 has been instrumental in performing riser-based well-intervention activities for PBR. Operating in the Santos and Campos Basins, this vessel has completed more than 100 well interventions to date. The vessel’s consistent performance and advanced capabilities have made it a cornerstone of PBR's offshore operations.
Capabilities of the Vessels
The Siem Helix 1 and Siem Helix 2 are purpose-built vessels designed to handle a wide range of subsea services, including optimizing existing well outputs to maximize production efficiency, safely retiring and sealing wells that are no longer productive, installing subsea infrastructure critical for offshore energy production, supporting various construction and maintenance activities in deepwater environments through offshore crane and ROV operations and providing rapid response capabilities in the event of an offshore incident.
Strategic Importance of the Contracts
Strengthening the PBR-HLX Relationship: These contracts further strengthen the long-standing relationship between PBR and Helix. In the past seven years, HLX has consistently delivered safe and cost-effective well-intervention services to PBR, reinforcing the trust and collaboration between the two companies.
Supporting Petrobras' Energy Transition Goals: HLX's commitment to innovation and tailored solutions aligns with PBR’s broader energy transition goals. By optimizing production from existing assets, these contracts contribute to a more sustainable and efficient energy future for Brazil.
Competitive Edge in the Offshore Market: The award of these contracts following a competitive tender process highlights Helix's competitive edge in the offshore market. The company's extensive global experience in well intervention, combined with its advanced fleet, positions HLX as a preferred partner for major energy companies like PBR.
Prospects and Opportunities
Potential for Contract Extensions: With the option for an additional three years, there is significant potential for the continuation of this partnership beyond the initial contract period. This provides both companies with the opportunity to build on its existing success and explore new avenues for collaboration.
Expanding Helix's Presence in Brazil: Successfully executing these contracts could open doors for HLX to increase its presence in the offshore market of Brazil. As PBR continues to develop its offshore assets, there may be further opportunities for HLX to provide advanced well-intervention services.
Technological Advancements and Innovation: As the offshore energy sector evolves, Helix's commitment to innovation will be crucial in maintaining its competitive advantage. The company’s focus on developing new technologies and improving operational efficiencies will be key to meeting the challenges in the future.
Conclusion
PBR’s decision to renew and expand the partnership with HLX highlights the company’s strategic commitment to enhancing its well-intervention capabilities. These contracts are expected to deliver significant benefits to the company in terms of operational efficiency, cost optimization, risk mitigation, technological advancement and strengthened partnership.
Zacks Rank and Key Picks
Currently, PBR and HLX carry a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like SM Energy Company (SM - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and MPLX LP (MPLX - Free Report) , carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Denver, CO-based SM Energy is valued at $5.37 billion. The company currently pays a dividend of 72 cents per share, or 1.53%, on an annual basis.
SM, an independent energy company, engages in the acquisition, exploration, development and production of oil, gas and natural gas liquids in the state of Texas.
Findlay, OH-based MPLX LP is valued at $43.73 billion. In the past year, its shares have risen 21.2%.
MPLX owns and operates midstream energy infrastructure and logistics assets in the United States. It operates in two segments, namely Logistics and Storage, and Gathering and Processing.