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Petrobras Expands Onshore Drilling in Bahia With $122M Investment

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Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) recently awarded drilling contracts to EBS Perfurações and Conterp to expand its onshore oil and gas production. The agreements, valued at approximately R$707 million ($122 million), aim to enhance oil and gas production in Bahia. This project will generate around 530 direct and indirect jobs, contributing to the local development of Bahia.

PBR’s Contract Details

The newly contracted rigs will be installed in Petrobras’ onshore drilling campaign from September 2025 to June 2029. While EBS will drill wells up to 5,000 meters deep, Conterp will focus on drilling wells with a depth of 4,000 meters. EBS and Conterp will carry out 65% of the activities using Brazilian-sourced materials and services.

Impact on PBR and Bahia’s Economy

Petrobras’ investment reflects its growing interest in onshore operations. Expanding of operations in the onshore field will increase Petrobras' oil and gas production and help it remain competitive in the energy market.

The contract will boost Bahia’s economy by creating local jobs and generating indirect benefits in the services and logistics sector.

PBR’s Zacks Rank and Key Picks

Rio de Janeiro-based Petrobras is the largest integrated energy firm in Brazil. 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. Currently, PBR has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some top-ranked stocks like Mach Natural Resources LP (MNR - Free Report) , Sunoco LP (SUN - Free Report) and Gulfport Energy Corporation (GPOR - Free Report) .While Mach Natural Resources and Sunoco currently sport a Zacks Rank #1 (Strong Buy) each, Gulfport Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oklahoma-based Mach Natural Resources LP is an independent upstream oil and gas company that focuses on the acquisition, development and production of oil, natural gas and natural gas liquids reserves. The Zacks Consensus Estimate for MNR’s 2024 earnings indicates 179.17% year-over-year growth.

Dallas, TX-based Sunoco LP is a master limited partnership that deals with the distribution of motor fuel to roughly 10,000 customers, including independent dealers, commercial customers, convenience stores and distributors. The Zacks Consensus Estimate for SUN’s 2024 earnings indicates 184.11% year-over-year growth.

Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.

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