Petrobras, (PBR) CNOOC Sign a Strategic Expansion Cooperation Deal
Petrobras (PBR), Brazil’s state-owned oil and gas company, signed a strategic cooperation with China National Offshore Oil Corp (CNOOC) in order to expand the latter’s presence in Brazil's deep-water pre-salt basins, per media reports.
The deal, according to CNOOC, is a milestone in the development of the cooperation and has major implications for the Belt and Road Initiative and international energy cooperation. Most of the Chinese oil and gas companies, according to an analyst, have recently expanded domestic production while purchasing stakes in other oilfields as the country has been strengthening its energy security by diversifying its procurement.
According to an analyst at BloombergNEF, CNOOC's oil and gas production is anticipated to increase more than 6% annually between 2022 and 2024. According to the data published by BloombergNEF, pre-salt oil production in Brazil has increased dramatically over the previous 10 years, increasing from 70,000 barrels per day (b/d) in January 2011 to 2.3 million b/d by the third quarter of 2022. Brazil's pre-salt oil projects are extremely cost-competitive and such projects only need to attain a break-even status on a project level at a price of $35 per barrel.
CNOOC has a strong foothold in Brazil's oil and gas industry, with a 7.34% stake in an integrated development project, the deepwater Buzios field, and a 9.65% stake in the Mero oilfield development. In Brazil, CNOOC is the first foreign company to achieve autonomous natural gas sales.
Zacks Rank & Key Picks
Currently, Petrobras carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy sector are USA Compression Partners, LP USAC, currently sporting a Zacks Rank #1 (Strong Buy), and Global Partners GLP and Evolution Petroleum Corporation EPM, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
USA Compression Partners is one of the largest independent natural gas compression service providers across the United States in terms of fleet horsepower. USAC has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 30 days.
Global Partners is a Delaware limited partnership, formed by affiliates of the Slifka family. The partnership owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. GLP is one of the largest wholesale distributors of distillates. It has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 30 days.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields, and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
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