Petrobras PBR, the renowned Brazilian oil company, announced the commencement of production on the FPSO Almirante Barroso platform in Brazil’s Búzios field. This state-of-the-art platform, equipped with advanced technology, has the impressive capacity to produce up to 150,000 barrels of oil and 6 million cubic meters of gas per day.
The Búzios field currently accounts for approximately 17% of Brazil's national oil production, averaging 560,000 barrels per day.
The Significance of Búzios Field
The field plays a pivotal role in Petrobras' oil production, showcasing the significance of Brazil's pre-salt reserves and ensuring the country’s energy security. With its impressive production capacity and advanced technology, the FPSO Almirante Barroso, along with the existing platforms and upcoming units, is set to significantly boost Brazil's oil production and contribute to the country’s energy security.
The field's production is projected to reach nearly 700,000 barrels per day by 2025.
Cutting-Edge Technology at Work
The FPSO Almirante Barroso, chartered from Modec, is an advanced floating production, storage and offloading unit. Situated 180 kilometers off the coast of Rio de Janeiro, it operates at a remarkable water depth of 1,900 meters.
As the fifth platform to commence operations in the Búzios field, it joins the P-74, P-75, P-76 and P-77 units that are already in production. The use of cutting-edge technology, combined with the expertise of Petrobras and its partners, ensures efficient and safe operations in the challenging offshore environment.
A World-Class Deepwater Asset
The Búzios field is globally recognized as the largest deepwater oil field. Its development plan encompasses a total of 11 platforms, highlighting the substantial investment and commitment of Petrobras to maximizing this valuable asset’s potential.
Currently, six units are under construction, namely the FPSO Almirante Tamandaré, P-78, P-79, P-80, P-82 and P-83. These upcoming platforms are expected to further enhance the field's production capacity and solidify Brazil's position as a major player in the oil and gas industry.
Stakeholders in Búzios Field
Petrobras holds a significant 88.99% stake as the operator of the Búzios field. The other partners, China National Offshore Oil Corporation, and China National Oil and Gas Exploration and Development Company hold stakes of 7.34% and 3.67%, respectively.
The collaboration brings together the expertise and resources of these companies, facilitating the successful development and operation of the Búzios field.
The commencement of production on the FPSO Almirante Barroso platform marks a milestone in Petrobras' operations in the Búzios field. As the largest deepwater field in the world, Búzios holds immense potential. PBR, together with its partners, is committed to unlocking the field’s resources and driving sustainable growth in the oil and gas sector.
Zacks Rank and Key Picks
Petrobras is a Brazilian company that explores, produces, and sells oil and gas in Brazil and abroad. It operates through various segments — Exploration and Production, Refining, Transportation and Marketing, and Gas and Power. The company also engages in prospecting, drilling, refining, processing, trading, and transporting crude oil, oil products, natural gas and other liquid hydrocarbons.
Petrobras currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks for investors interested in the energy sector are Evolution Petroleum EPM and Murphy USA MUSA, each sporting a Zacks Rank #1 (Strong Buy), and Archrock AROC holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum: EPM is worth approximately $271.47 million. EPM currently pays a dividend of 48 cents per share, or 5.88% on an annual basis.
The company currently has a forward P/E ratio of 7.38. In comparison, its industry has an average forward P/E of 19.60, which means EPM is trading at a discount to the group.
Murphy USA: MUSA is valued at around $6.30 billion. In the past year, its shares have risen 19.4%.
MUSA currently pays a dividend of $1.52 per share, or 0.53% on an annual basis. MUSA's payout ratio currently sits at 6% of earnings.
Archrock: AROC is valued at around $1.55 billion. It delivered an average earnings surprise of 26.27% for the last four quarters and its current dividend yield is 6.06%.
Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.
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