Petrobras (PBR) Signs Rig Extension Deals With Constellation
Petrobras PBR, the Brazilian state-owned energy company, has announced the extension of its existing contracts for two offshore drilling rigs owned by Constellation Oil Services. This news coincides with the launch of two separate tenders for hiring additional well-intervention rigs, demonstrating Petrobras' continued commitment to investments in its offshore operations.
Rig Contract Extensions
Petrobras has extended the contracts for two of Constellation's offshore drilling rigs, which have been discussed below.
Atlantic Star: This 1976-built semisubmersible rig will continue operations for Petrobras until January 2025, marking a significant extension to its current contract.
Amaralina Star: The 2012-built drillship secured an additional 12 months of work, extending its existing contract and ensuring continued operations offshore Brazil until October 2025.
These contract extensions highlight Petrobras' deep trust in Constellation's expertise and the critical role the company plays in Brazil’s offshore oil and gas industry.
Expanding Capabilities With Targeted Acquisitions
Looking beyond immediate needs, Petrobras has launched two separate tenders seeking to enhance its well-intervention capabilities. The first tender targets the acquisition of two riser-based units, capable of operating in water depths of up to 2,400 meters. This significant expansion will enable Petrobras to access and manage reservoirs in previously inaccessible areas, unlocking further potential reserves.
The second tender seeks a single riserless unit, suitable for operating in water depths of up to 1,500 meters. This acquisition will provide Petrobras with increased flexibility and adaptability, allowing for more efficient and cost-effective intervention operations across a wider range of well types and environments.
By extending contracts with Constellation and actively seeking additional well-intervention rigs, Petrobras demonstrates its unwavering commitment to the exploration and production at Brazil's vast offshore oil and gas reserves.
Zacks Rank and Key Picks
Currently, PBR carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like The Williams Companies WMB, sporting a Zacks Rank #1 (Strong Buy), and Core Laboratories Inc. CLB and Liberty Energy Inc. LBRT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is valued at $43.21 billion. The company currently pays a dividend of $1.79 per share, or 5.04%, on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West and Gas & NGL Marketing Services segments.
Core Laboratories is worth $835.42 million. In the past year, its shares have lost 4.7%.
CLB offers reservoir description and production enhancement services and products to the oil and gas industry in the United States, Canada and abroad.
Liberty Energy is valued at $3.01 billion. LBRT currently pays a dividend of 28 cents per share, or 1.57%, on an annual basis.
LBRT is a leading provider of hydraulic fracturing and other auxiliary services to the North American onshore exploration and production companies.
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
Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
Core Laboratories Inc. (CLB) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
