Petroleo Brasileiro S.A. or Petrobras PBR announced the commencement of the binding phase as it plans to sell off its stakes in the four fields, namely, Tuna, Curimã, Espada and Xaréu. This state-run energy giant is the sole owner of this Ceara Cluster and plans to sell its 100% operating interest in the project. Per management, the plan is in sync with the company’s strategy to cut costs and improve its capital allocation.

The four fields are located in the shallow waters, 19 miles off the coast of the state of Ceara. In 2019, the average production from these fields averaged 4,200 barrels of oil and 76,900 square meters of gas daily.

In a separate press release, Petrobras announced the conclusion of the sale process of its entire stake in the Baúna field. The field located in the shallow waters of Santos Basin is sold to Karoon Petróleo & Gás Ltda (Karoon), a subsidiary of Karoon Energy Ltd. Per management, this divestment is in line with the company’s strategy to minimize expenses and enhance its capital deployment, thereby boosting its shareholder value.

Company Profile

Petrobras is the largest integrated energy firm in Brazil and one of the biggest in Latin America. The company’s activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks. The activities also include refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons besides other energy-related operations.

Zacks Rank & Key Picks

Petrobras currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Oasis Petroleum Inc OASPQ, Antero Resources Corporation AR and Matador Resources Company MTDR, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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