Petrobras P-55 Starts Production
Brazilian state-run energy giant, Petroleo Brasileiro SA or Petrobras (PBR) brought online its P-55 platform. The semi-submersible platform started production from the Roncador field, at the Campos Basin, in Rio de Janeiro.
The vessel set sail for its destination on Oct 6 from the Rio Grande Shipyard, after completion of necessary tests and certifications. The platform has an expected production capacity of 180,000 barrels of oil and can treat 6 million cubic meters of gas per day. The 52,000 ton P-55 – the largest semi-submersible platform built in Brazil – will be connected to 11 oil producing wells in the basin.
The Roncador field is owned and operated by Petrobras and holds substantial recoverable oil reserves. Bringing online the P-55 platform is a step forward for Petrobras toward increasing its production.
Headquartered in Rio de Janeiro, Petrobras is the largest integrated energy firm in Brazil and one of the largest in Latin America. The company operates through six segments: Exploration and Production, Refining, Transportation and Marketing, Distribution, Gas and Power, Biofuels and International.
Recently, the company sold its 35% stake in block BC-10 to partners Royal Dutch Shell plc (RDS.A) and Indian energy explorer ONGC. Shell purchased 23% of the stake in the block, raising its net holding to 73%. The remaining 12% was bought by ONGC, increasing its stake to 27%. This divestment would generate funds to meet its $237 billion five-year investment plans.
The company currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile one can consider other energy sector stocks such as Harvest Natural Resources Inc. (HNR) and Transocean Ltd. (RIG). Both these currently sport a Zacks Rank #1 (Strong Buy).
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