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Petrobras and OceanPact Sign $590M Deals for Offshore Services

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Key Takeaways

  • PBR and OceanPact signed four new ROSV charter contracts worth about BRL 3.2 billion over four years.
  • Services cover offshore fields and include inspections and subsea installation using ROVs for PBR.
  • OceanPact will manage vessels and ROVs capable of operating up to 3,000 meters, offshore inspections.

Petrobras (PBR - Free Report) , Brazil’s state-controlled integrated oil and gas company, has recently expanded its collaboration with OceanPact, a leading Brazilian offshore services provider. The two companies have signed four new contracts valued at approximately BRL 3.2 billion ($590 million), marking a significant move to enhance offshore operations.

These agreements are set to span four years and focus on the chartering of Remotely Operated Vehicle Support Vessels (“ROSVs”), further cementing Petrobras' commitment to maintaining and improving its offshore operations in Brazil.

What the New Contracts Mean for Petrobras and OceanPact

The new charter contracts include services for key offshore fields — Parcel do Bandolim, Parcel das Timbebas, Parcel das Paredes, and Parcel dos Reis.

As part of the agreements, OceanPact will supply a fleet of vessels designed to perform essential subsea operations, including offshore structure inspections, preventive and corrective maintenance, as well as the installation and removal of subsea equipment.

These services will be carried out using remotely operated vehicles (“ROVs”) capable of operating at depths of up to 3,000 meters. These ROVs are equipped with advanced tools for a wide range of subsea activities, making them crucial to ensuring the smooth operation of Petrobras’ offshore assets.

OceanPact, which has an extensive fleet portfolio, will be responsible for managing both the vessels and ROVs. With 28 owned vessels in its portfolio — including ROV support vessels (RSVs), offshore support and research vessels (OSRVs), platform supply vessels (PSVs), anchor handling tug supply vessels (AHTSs) and multipurpose support vessels (“MPSVs”) — the company is well-equipped to handle the demanding tasks ahead.

Petrobras’ Offshore Strategy: Focused on Efficiency and Sustainability

Petrobras’ recent moves reflect its ongoing strategy to enhance the efficiency and sustainability of its offshore operations. As one of the largest oil and gas companies in the world, Petrobras continues to focus on maintaining a strong presence in the Brazilian energy sector, which remains one of the most active regions globally for oil exploration and production. The signing of these contracts with OceanPact reinforces Petrobras’ commitment to ensuring that its operations are both safe and sustainable, relying on cutting-edge technology and robust support systems.

This collaboration comes at a time when Petrobras is growing its efforts to renovate its infrastructure and improve operational safety, crucial factors for long-term success in Brazil’s competitive offshore market.

OceanPact’s Growing Role in the Offshore Industry

For OceanPact, the new contracts mark another milestone in the company’s expansion. Last year, the company also secured a BRL 697 million contract with Petrobras for the chartering of the Ilha do Mosqueiro, an offshore terminal support vessel (OTSV). This vessel will play a crucial role in supporting Petrobras’ offshore terminals, further demonstrating OceanPact’s growing importance as a service provider to one of the world’s largest oil companies.

The partnership between Petrobras and OceanPact is also a testament to the strength of the Brazilian offshore services market. As Petrobras continues to develop its deepwater and ultra-deepwater oil fields, companies like OceanPact are critical to ensuring operations run smoothly in these challenging environments.

Looking Ahead

With the recent contract announcements, Petrobras is positioning itself for continued success in offshore exploration and production, while OceanPact enhances its reputation as a key player in the offshore services sector. As Petrobras continues to push forward with its large-scale offshore projects, the collaboration between these two companies is expected to grow even stronger, reinforcing the importance of high-quality, reliable support services for the energy sector.

The future of Petrobras’ offshore operations looks promising, thanks to innovative partnerships like the one with OceanPact. Both companies are set to benefit from the efficiencies and technological advancements that this long-term collaboration promises, ensuring their continued leadership in the offshore energy market.

PBR's Zacks Rank & Key Picks

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

Investors interested in the energy sector might look at some better-ranked stocks like USA Compression Partners (USAC - Free Report) and Oceaneering International (OII - Free Report) , sporting a Zacks Rank #1 (Strong Buy) each, and Patterson-UTI Energy (PTEN - Free Report) , which carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

USA Compression Partners is valued at $2.81 billion. The company is a leading provider of natural gas compression services in the United States. USA Compression Partners specializes in the design, operation and maintenance of compression equipment for the energy sector, focusing on helping customers optimize their natural gas infrastructure.

Oceaneering International is valued at $2.48 billion. The company is a global provider of engineered services and products to the offshore energy, aerospace and defense industries. OII specializes in underwater robotics, remotely operated vehicles and subsea engineering solutions for offshore oil and gas exploration and production.

Patterson-UTI Energy is valued at $2.23 billion. The company is a leading provider of drilling and pressure pumping services to the oil and natural gas exploration and production industry in North America. Patterson-UTI Energy offers a wide range of services, including land-based drilling rigs, pressure pumping and other energy-related solutions, primarily focused on the U.S. shale oil and gas markets.

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