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Petrobras (PBR) Secures Bids for Albacora and Albacora Leste
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Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently announced that it obtained binding proposals for the Albacora and Albacora Leste fields in the Campos Basin from the PetroRio/Cobra and EIG Global Energies Partners/Enauta/3R Petroleum consortiums.
For both fields, such bids might be worth more than $4 billion. The firm is evaluating the same in accordance with the project's assessment criteria, taking into consideration all value components and other factors represented in the bids, such as firm and contingent payments, and other applicable contractual requirements.
After the assessment of the proposals is completed, the commencement of the negotiating phase will be submitted for consideration by the company's Executive Board. The firm explains that the transaction's execution is contingent on the conclusion of the negotiations and the required corporate approvals.
Last September, Petrobras announced its intention to sell its entire stake in the Albacora and Albacora Leste concessions, located in the deep waters in the northern region of the Campos Basin. Per management, the plan is in sync with the company’s strategy to cut costs and improve its capital allocation.
The 455-square kilometer Albacora field is located at a water depth of 100-1,050 meters and approximately 110 kilometers far from Cabo de São Tomé. The state-run energy giant is the sole owner and the operator of this stake.
The 511.56-square kilometer Albacora Leste field is located at a water depth ranging from 1,000 meters to 2,150 meters and approximately 120 kilometers from Cabo de São Tomé. Petrobras is the chief operator of the block with 90% interest while Repsol Sinopec Brasil holds the remaining10% stake.
Petrobras has a target set to sell assets worth $20-$30 billion over five years under its 2020-2024 investment plan. In early 2020, the company put the Papa-terra deep-water oilfield along with the Golfinho and Camarupim fields up for sale. Asset sales are part of its portfolio-optimization strategy and accordingly, it had put more than 100 mature onshore and shallow-water offshore fields up for auction in the past.
Also, recently, Petrobras stated in a securities filing that CNOOC Limited (CEO - Free Report) is interested in paying it $2.08 billion for an extra 5% share in the massive Buzios pre-salt field in the Santos Basin. Given this development, the Brazilian state-run oil company does not foresee any impact on its 2021 output target until the deal is completed.
The move comes well over three months after Rio de Janeiro-based Petrobras signed the Buzios Coparticipation Agreement with Présal Petróleo S.A. (PPSA) and its Chinese partners CNODC Brasil Petróleo e Gás Ltda. (CNODC) andCNOOC, which will control the coexistence of the Transfer of Rights (TOR) Agreement and the Production Sharing Contract for surplus oil found in the Buzios field offshore Brazil.
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 the reservoir wells, shale and other rocks. The operations also include refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons apart from other energy-related operations.
Image: Bigstock
Petrobras (PBR) Secures Bids for Albacora and Albacora Leste
Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently announced that it obtained binding proposals for the Albacora and Albacora Leste fields in the Campos Basin from the PetroRio/Cobra and EIG Global Energies Partners/Enauta/3R Petroleum consortiums.
For both fields, such bids might be worth more than $4 billion. The firm is evaluating the same in accordance with the project's assessment criteria, taking into consideration all value components and other factors represented in the bids, such as firm and contingent payments, and other applicable contractual requirements.
After the assessment of the proposals is completed, the commencement of the negotiating phase will be submitted for consideration by the company's Executive Board. The firm explains that the transaction's execution is contingent on the conclusion of the negotiations and the required corporate approvals.
Last September, Petrobras announced its intention to sell its entire stake in the Albacora and Albacora Leste concessions, located in the deep waters in the northern region of the Campos Basin. Per management, the plan is in sync with the company’s strategy to cut costs and improve its capital allocation.
The 455-square kilometer Albacora field is located at a water depth of 100-1,050 meters and approximately 110 kilometers far from Cabo de São Tomé. The state-run energy giant is the sole owner and the operator of this stake.
The 511.56-square kilometer Albacora Leste field is located at a water depth ranging from 1,000 meters to 2,150 meters and approximately 120 kilometers from Cabo de São Tomé. Petrobras is the chief operator of the block with 90% interest while Repsol Sinopec Brasil holds the remaining10% stake.
Petrobras has a target set to sell assets worth $20-$30 billion over five years under its 2020-2024 investment plan. In early 2020, the company put the Papa-terra deep-water oilfield along with the Golfinho and Camarupim fields up for sale. Asset sales are part of its portfolio-optimization strategy and accordingly, it had put more than 100 mature onshore and shallow-water offshore fields up for auction in the past.
Also, recently, Petrobras stated in a securities filing that CNOOC Limited (CEO - Free Report) is interested in paying it $2.08 billion for an extra 5% share in the massive Buzios pre-salt field in the Santos Basin. Given this development, the Brazilian state-run oil company does not foresee any impact on its 2021 output target until the deal is completed.
The move comes well over three months after Rio de Janeiro-based Petrobras signed the Buzios Coparticipation Agreement with Présal Petróleo S.A. (PPSA) and its Chinese partners CNODC Brasil Petróleo e Gás Ltda. (CNODC) andCNOOC, which will control the coexistence of the Transfer of Rights (TOR) Agreement and the Production Sharing Contract for surplus oil found in the Buzios field offshore Brazil.
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 the reservoir wells, shale and other rocks. The operations also include refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons apart from other energy-related operations.
Zacks Rank & Key Picks
Petrobras currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Continental Resources, Inc. and Murphy USA Inc. (MUSA - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources’ earnings beat the Zacks Consensus Estimate in three of the previous four quarters, missing the mark on a single occasion.
Murphy USA’s bottom line beat the Zacks Consensus Estimate in three of the last four quarters and meeting the same on one occasion.