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Petrobras (PBR) Signs Charter Contract for CTV SeaLoader2
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Brazilian energy giant Petrobras S.A. (PBR - Free Report) inked a charter contract with SeaLoading Holding, a subsidiary of Japan’s Mitsui O.S.K. Lines (“MOL”). The charter contract was signed for the cargo transfer vessel (CTV) SeaLoader 2, which started working for Petrobras on a trial period in January 2022.
During this trial period, the CTV successfully completed more than 30 crude oil offloading operations from the Brazilian giant’s FPSOs located in the Santos Basin, off the coast of Brazil. The offloading operations involved transporting the cargo to the tankers. According to MOL, the vessels transported were up to the VLCC size during the trials.
Along with the charter contract, the two companies also signed a memorandum of understanding (MoU) to start negotiations to build a new CTV by the end of 2024. MOL’s subsidiary, SeaLoading, holds the patent for the CTV technology. Currently, only two CTVs exist in the world, both owned by SeaLoading Holdings.
In offshore oil production, a floating production, storage and offloading system (FPSO) is used to transport the crude oil produced in the field to the demand area via crude oil tankers. In most cases, the FPSOs require Dynamic Positioning (DP) shuttle tankers with special cargo handling equipment for receiving the crude oil and transporting it to an oil storage terminal or calm waters. After that, it can be offloaded and then reloaded into a crude oil tanker.
However, the firm highlights that using a CTV increases the efficiency of crude oil logistics. By connecting a CTV between an FPSO and the crude oil tanker, crude oil can be directly loaded from the FPSO to the tanker.
According to MOL, the use of CTVs will contribute to the reduction in CO2 emissions compared to the use of DP shuttle tankers for the transfer of crude oil. The company specifically mentioned that the CTVs are anticipated to achieve a 60% reduction in CO2 emissions compared to using a DP shuttle tanker for offloading in the Santos basin, off the coast of Brazil. The reduction is projected to be around 80% when the CTVs are used off the coast of Uruguay. However, the reduction rate will vary depending on several factors such as the actual CTV and the DP shuttle tanker's loading/offloading, fuel consumption, sea conditions and so on.
The shipping company aims to strengthen its collaboration with oil majors, including Petrobras, to expand the use of CTVs in the future. MOL intends to increase efficiency in the supply chain, from crude oil production and storage to offloading, by using CTVs instead of DP shuttle tankers.
Petrobras plans to put another 11 FPSO units into operation in the pre-salt layer offshore Brazil by 2027. The energy giant intends to use a major chunk of its $102 billion planned investment for oil and natural gas over the next five years. It has also dedicated $11.5 billion to projects that will help reduce its carbon footprint.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. With a pipeline network extending more than 125,000 miles, its network spans more than 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. The recently announced acquisition of the Wintershall Dea asset portfolio is expected to increase HBRIY's estimated production. The company has also done well in reducing its debt in the past year.
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Petrobras (PBR) Signs Charter Contract for CTV SeaLoader2
Brazilian energy giant Petrobras S.A. (PBR - Free Report) inked a charter contract with SeaLoading Holding, a subsidiary of Japan’s Mitsui O.S.K. Lines (“MOL”). The charter contract was signed for the cargo transfer vessel (CTV) SeaLoader 2, which started working for Petrobras on a trial period in January 2022.
During this trial period, the CTV successfully completed more than 30 crude oil offloading operations from the Brazilian giant’s FPSOs located in the Santos Basin, off the coast of Brazil. The offloading operations involved transporting the cargo to the tankers. According to MOL, the vessels transported were up to the VLCC size during the trials.
Along with the charter contract, the two companies also signed a memorandum of understanding (MoU) to start negotiations to build a new CTV by the end of 2024. MOL’s subsidiary, SeaLoading, holds the patent for the CTV technology. Currently, only two CTVs exist in the world, both owned by SeaLoading Holdings.
In offshore oil production, a floating production, storage and offloading system (FPSO) is used to transport the crude oil produced in the field to the demand area via crude oil tankers. In most cases, the FPSOs require Dynamic Positioning (DP) shuttle tankers with special cargo handling equipment for receiving the crude oil and transporting it to an oil storage terminal or calm waters. After that, it can be offloaded and then reloaded into a crude oil tanker.
However, the firm highlights that using a CTV increases the efficiency of crude oil logistics. By connecting a CTV between an FPSO and the crude oil tanker, crude oil can be directly loaded from the FPSO to the tanker.
According to MOL, the use of CTVs will contribute to the reduction in CO2 emissions compared to the use of DP shuttle tankers for the transfer of crude oil. The company specifically mentioned that the CTVs are anticipated to achieve a 60% reduction in CO2 emissions compared to using a DP shuttle tanker for offloading in the Santos basin, off the coast of Brazil. The reduction is projected to be around 80% when the CTVs are used off the coast of Uruguay. However, the reduction rate will vary depending on several factors such as the actual CTV and the DP shuttle tanker's loading/offloading, fuel consumption, sea conditions and so on.
The shipping company aims to strengthen its collaboration with oil majors, including Petrobras, to expand the use of CTVs in the future. MOL intends to increase efficiency in the supply chain, from crude oil production and storage to offloading, by using CTVs instead of DP shuttle tankers.
Petrobras plans to put another 11 FPSO units into operation in the pre-salt layer offshore Brazil by 2027. The energy giant intends to use a major chunk of its $102 billion planned investment for oil and natural gas over the next five years. It has also dedicated $11.5 billion to projects that will help reduce its carbon footprint.
Zacks Rank and Key Picks
Currently, PBR holds a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Energy Transfer LP (ET - Free Report) , Archrock, Inc. (AROC - Free Report) and Harbour Energy (HBRIY - Free Report) . Both Energy Transfer and Archrock presently sport a Zacks Rank #1 (Strong Buy), while Harbour Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. With a pipeline network extending more than 125,000 miles, its network spans more than 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. The recently announced acquisition of the Wintershall Dea asset portfolio is expected to increase HBRIY's estimated production. The company has also done well in reducing its debt in the past year.