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Petrobras' Buzios Oil Field Reaches Record Production Milestone

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Key Takeaways

  • Petrobras' Buzios oil field topped 900,000 barrels per day, setting a new production milestone.
  • New wells and added platforms have driven output growth and improved efficiency at Buzios.
  • Petrobras plans further expansion with the P-78 unit, aiming to make Buzios Brazil's top field.

Petrobras S.A. (PBR - Free Report) , a Brazilian state-owned energy giant, noted that the Búzios oil field, situated in the prolific Santos Basin, offshore Brazil, has surpassed previous records and reached a new production milestone. The Búzios field has recently exceeded its daily production level of 900,000 barrels of oil. It is located 180 kilometers off the coast of Rio de Janeiro, Brazil.

The Búzios field is one step closer to matching the production levels of the Tupi field, which is also operated by Petrobras in the Santos Basin. With continued production growth, Búzios can become the largest oil-producing field in the country by 2025. Notably, Brazil’s most productive wells are part of the Búzios field.

The Búzios field is located at water depths of approximately 2,000 meters and is one of the largest deepwater oilfields in the country. The field currently has four platforms and two floating production, storage and offloading (FPSO) units in operation. This includes platforms P-74, P-75, P-76 and P-77, along with FPSOs Almirante Barroso and Almirante Tamandaré.

Petrobras mentioned that the company has significantly ramped up output in the first half of the year. The company has brought more wells online in the Búzios field during this period than in the previous year. Notably, these wells have delivered strong results, surpassing the daily production level of 900,000 barrels of oil. The company is currently working toward raising production levels while reducing costs. Per Petrobras, the focus on simplifying its projects results in lower expenses and more efficient production. PBR has also reiterated its commitment to sustainability and pushing toward a fair energy transition process.

PBR also mentioned that the vastness of the Búzios field has enabled the company to reach impressive production levels. The startup of a fifth well on the FPSO Almirante Tamandaré supported the company in achieving the same. Notably, another production unit, the P-78, is anticipated to start operations in the field, boosting output even further.

With these developments, the Búzios field is currently on track to become the largest oil-producing field in Brazil. Petrobras’ strategy to expand production, while lowering costs and streamlining projects, underpins the company’s role in contributing to energy security in the country while maintaining profitability.

PBR’s Zacks Rank & Other Key Picks

Currently, PBR carries a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks from the energy sector are Enbridge Inc. (ENB - Free Report) , Antero Midstream Corporation (AM - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. The company has a stable business model supported by take-or-pay contracts, protecting it against commodity price volatility.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

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