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BP, Petrobras Ink MoU for Cooperation in Business Ventures

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BP plc (BP - Free Report) and Petroleo Brasileiro S.A. (PBR - Free Report) , also known as Petrobras, have formed a strategic alliance to appraise potential business ventures in Brazil and beyond.

The companies have inked a memorandum of understanding (MoU) that allows them to explore upstream, downstream, trading and across low carbon areas. The agreement is likely to incorporate transfer of technology as well as joint training and research.

The cooperation is in sync with BP’s strategy to capitalize on its expertise in alliance with other world-class energy company. This will help expand the company’s portfolio and enable it to work on newer regions in all the segments — upstream, downstream, trading and low carbon — in and outside Brazil. It will help BP enhance value for shareholders.

BP’s presence in Brazil dates back to over six decades. The company has been supplying fuels and lubricants, discovering oil and gas as well as developing biofuels. Currently, BP and Petrobras are partners in 16 exploration blocks in the country. Recently, the companies obtained exploration and production rights for two more blocks offshore Brazil in the Santos pre-salt basin

Currently, BP employs about 7,000 people at its various business sites in Brazil. It has operations in 15 states — Amapa, Bahia, Ceara, Espirito Santo, Goias, Maranhao, Mato Grosso, Minas Gerais, Parana, Pernambuco, Piaui, Rio de Janeiro, Rio Grande do Norte, Santa Catarina and Sao Paulo and in the Federal District.

Price Performance

BP’s shares have lost 1.9% in the last three months, outperforming the industry’s 4.9% decline.



 

Zacks Rank & Key Picks

BP carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Continental Resources, Inc and SunCoke Energy Inc (SXC - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Continental Resources is an independent oil and natural gas exploration and production company. It delivered an average positive earnings surprise of 64.9% over the last four quarters.

SunCoke Energy produces metallurgical coke in the United States. The company delivered an average positive earnings surprise of 130.6% in the last four quarters.

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