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Petrobras (PBR) Sells Two Campos Basin Fields to Perenco

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Petrobras (PBR - Free Report) , a Brazilian oil and gas company, recently announced a significant divestment move. The company has sold its entire stake in the Cherne and Bagre fields, located in the shallow waters of Brazil’s Campos basin, to Perenco Petróleo e Gás do Brasil Ltda (Perenco), a British-French independent oil and gas company for $10 million. The fields are positioned 73 km off the coast of the state of Rio de Janeiro, in water depths of 108-150 meters.

Transaction Overview

The transaction, as announced in a company statement, marks a key strategic move for Petrobras amid the evolving energy market. Production from the Cherne and Bagre fields was suspended in March 2020, leading to their dormancy. Instead of pursuing decommissioning procedures and relinquishing the concession to Brazil’s regulatory authority, the National Agency of Petroleum, Natural Gas and Biofuels (“ANP”), Petrobras opted for a strategic divestment, allowing Perenco to potentially resume production activities in the fields.

Strategic Realignment

This divestment aligns with Petrobras’ overarching strategy of optimizing its portfolio and directing investments toward assets that better resonate with its long-term objectives. Notably, the company aims to focus on activities aimed at decarbonizing its operations, thereby contributing to sustainability initiatives and mitigating environmental impacts.

Implications for Petrobras

By offloading its stake in the Cherne and Bagre fields, Petrobras not only streamlines its asset portfolio but also ensures a more efficient allocation of resources toward ventures that are in sync with the company’s strategic vision. This move highlights Petrobras’ commitment to adaptability and resilience in navigating the dynamic energy landscape, ensuring sustained growth and value creation for its stakeholders.

Impact on Perenco

For Perenco, the acquisition of Petrobras’ stake in the Cherne and Bagre fields represents a strategic opportunity to boost its presence in Brazil’s oil and gas sector. With the potential to resume production activities in the dormant fields, Perenco aims to leverage its operational expertise and technological capabilities to maximize the value of the assets and capitalize on the prevailing market dynamics.

Market Dynamics and Outlook

The transaction between Petrobras and Perenco reflects broader trends within the global energy industry, characterized by ongoing realignments and strategic partnerships to optimize operations and enhance competitiveness. As energy companies continue to adapt to evolving market conditions and regulatory frameworks, strategic divestments and acquisitions emerge as key drivers of growth and value creation.

Workforce Considerations

Importantly, Petrobras’ decision to divest its stake in the Cherne and Bagre fields highlights its commitment to responsible workforce management. Rather than resorting to workforce reductions, the company is focused on facilitating the smooth transition of relevant employees to other projects within its operational portfolio, thereby ensuring continuity and stability for its workforce.


Petrobras’ divestment of its stake in the Cherne and Bagre fields to Perenco represents a strategic maneuver aimed at optimizing its asset portfolio and aligning its operations with its long-term strategic objectives. This transaction not only emphasizes Petrobras’ adaptability and resilience in navigating the evolving energy landscape but also highlights its commitment to sustainable growth and value creation.

Zacks Rank and Key Picks

Currently, PBR carries a Zacks Rank #3 (Hold).  

Investors interested in the energy sector might look at some better-ranked stocks like Murphy USA Inc. (MUSA - Free Report) and Archrock, Inc. (AROC - Free Report) , each sporting a Zacks #1 Rank (Strong Buy), and Sunoco LP (SUN - Free Report) , carrying a Zacks #2 Rank (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA is valued at approximately $8.76 billion. In the past year, the company’s shares have surged 53.5%.

MUSA markets retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.

Archrock is valued at $2.98 billion. The company currently pays a dividend of 66 cents per share, or 3.46%, on an annual basis.

AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.

Sunoco is valued at $5.45 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, thereby ensuring consistent cash flow.

SUN’s extensive distribution network across 40 states provides a robust and reliable source of income, and the Brownsville terminal expansion should add to its revenue diversification.

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