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Petrobras (PBR) Unearths Great Quality Oil in Buzios Well

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Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) recently drilled a new 9-BUZ-48D-RJS well at a water depth of 1,850 meters in its deepwater Buzios field in the Santos Basin and found traces of high-quality oil. The discovery was confirmed through tests at a depth of 5,540 meters. This latest finding shows greater potential for pre-salt in the Buzios field.

The Buzios field is located 188 kilometers off the coast of Rio de Janeiro and the state-run energy giant is its chief operator with 90% interest. The rest is held by Chinese producers CNOOC (CEO - Free Report)  and China National Petroleum – the parent of PetroChina (PTR - Free Report) .

Earlier this year, Petrobras made a similar discovery through the 9-BUZ-39DA-RJS well in the Buzios field and found an oil column of at least 208 meters via tests at a vertical depth of 5,400 meters.

Buzios is the newest subsalt field to be fully developed following the Tupi and Sapinhoa fields, which are Brazil's first and the third biggest oil and natural gas producers in terms of volume. Buzios field extracted its first oil in April 2018. It is Brazil's second-most productive oilfield and per the latest available data from the National Petroleum Agency, the country’s energy regulator, it produced 564,474 barrels of oil per day and 22.7 million cubic meters of gas daily in October.

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 as well as refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons in addition to other energy-related activities.

Zacks Rank & Key Pick

Petrobras currently carries a Zacks Rank #3 (Hold). A better-ranked player in the energy space is Hess Midstream Partners LP (HESM - Free Report) , 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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