U.S. Markets open in 9 hrs 26 mins

Equinor Inks Deal With AcuPetroleo for Oil Transshipment

Zacks Equity Research
Top Ranked Income Stocks to Buy for April 15th

Equinor ASA EQNR has inked a contract with AcuPetroleo (a partnership of Brazil’s PrumoLogistica and Germany’s Oiltanking). Per the terms, AcuPetroleo will host oil transshipment functions for Equinor at the T-Oil terminal in Acu port in the north of Rio de Janeiro.

The contract, which is for a period of three years, will begin in January 2020. It will provide respite to the company’s oil production from the Roncador field. Also, it will facilitate Equinor to operate through class Suezmax and VLCC (very large crude carrier) vessels. The majority of its oil exports from Brazil will be transported through the AcuPetroleo terminal.

In T-OIL, the oil transshipment operation is carried out by a world-class operator — Oiltanking — in a breakwater protected area. The location enables consistent and secure operation with competence and cutback in final cost. These factors enhance the efficiency of the Brazilian oil. The operation depends on the two ships docked at the breakwater, surrounded by containment barriers, which reduces the risk of impact to the environment.

The terminal has the capacity to handle three oil transshipment operations concurrently and is certified to move about 1.2 million barrels of oil per day(MMbopd).

T-OIL, with a depth of 82 feet (25 meters), is the only Brazilian private terminal. It has a capacity to receive VLCC class ships, which are among the largest in the world and have a storage capacity of about 2 MMbopd.

Equinor’s endeavors to improve recovery of resources in mature fields are noteworthy. The company has operations in all major hydrocarbon-producing regions of the world with an emphasis on the NCS. We believe that Statoil is well positioned to sustain steady production growth over the next few years on the back of large resource base at NCS.

Zacks Rank & Key Picks

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

Some better-ranked players in the energy space are Antero Resources Corporation AR, CrossAmerica Partners L.P. CAPL and Lonestar Resources US Inc LONE. While Antero Resources and CrossAmerica Partners sport a Zacks Rank #1 (Strong Buy), Lonestar Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources’ is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids and oil resources in the Appalachian Basin. The company earnings beat the Zacks Consensus Estimate in two of the last four quarters.

CrossAmerica Partners is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The partnership delivered an average positive earnings surprise of 452.2% in the last four quarters.

Lonestar Resources is a Fort Worth, TX-based exploration and production company. The top line for 2019 is expected to increase 4.3% year over year. It currently has a Zacks Rank of 2.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CrossAmerica Partners LP (CAPL) : Free Stock Analysis Report
Antero Resources Corporation (AR) : Free Stock Analysis Report
Lonestar Resources US Inc. (LONE) : Free Stock Analysis Report
Statoil ASA (EQNR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research