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Petrobras (PBR) Begins Non-Binding Phase of Marlim Cluster

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Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently commenced the non-binding phase for the sale of 50% of its interests in the four fields of legacy deepwater Marlim Cluster.

Last month, Petrobras commenced the opportunity disclosure stage with reference to the impending sale of its 50% stake in this cluster located in the Campos Basin, offshore Brazil. The state-run energy giant is the sole owner of this cluster and intends to remain its operator after the sell-off. Per management, the plan is in line with the company’s strategy to rein in costs and better its capital management policy.

The Marlim Cluster comprises four production concessions, namely Marlim, Voador, Marlim Leste and Marlim Sul, which produce nearly 10% of the company's total output.

The Marlim and Voador fields, which share the production infrastructure, cover an expanse of 339.3 square kilometres with water depth between 400 meters and 1,050 meters. The site is at a distance of 150 kilometres off the coast of the state of Rio de Janeiro to the northern side. The two fields produced 65,300 barrels of oil per day, on average, and 885,000 cubic meter of gas per day from January 2020 to November 2020.

Marlim Leste, which is stationed 107 kilometers from Cabo de São Tomé and to the east of the Marlim field at water depths varying from 780 meters to 2,000 meters produced 39,400 barrels of oil and 633,000 cubic meter of gas daily from January to November 2020.

Marlim Sul is located at a distance of 90 kilometres from the northern coast of Rio de Janeiro at a water depth of 800-2,500 metres. The field produced around 109,600 barrels of oil per day and 2,073,000 cubic meters of gas per day, on average, from January 2020 to November 2020.

Earlier in November, Petrobras announced the initiation of the binding phase as it plans to divest its interests in the four fields, namely Tuna, Curimã, Espada and Xaréu. The company holds 100% stake in the Ceara Cluster and aims to sell its entire operating interest in the project.

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 players in the energy space are Hess Midstream Partners LP (HESM - Free Report) , DCP Midstream Partners, LP (DCP - Free Report) and China Petroleum & Chemical Corporation (SNP - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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