Petrobras (PBR) sells entire stake in Papa-terra for $ 105.6 million
Petroleo Brasileiro SA or Petrobras PBR recently signed an agreement to sell its entire stake in the Papa-terra deepwater oil field located in the Campos Basin in Brazil to 3R Petroleum Offshore SA. Chevron Corporation CVX holds the remaining 37.5%.
The transaction is worth $ 105.6 million. 3R Offshore, a company that plans to rejuvenate its mature offshore assets, has already paid Petrobras $ 6 million and is disbursing an additional $ 9.6 million upon closing of the transaction. The remaining $ 90 million will be offset by contingent payments under the contract, which are tied to the asset’s production levels and future oil prices.
Located at a water depth of 1,200 meters, the Papa-terra field is part of concession BC-20. The oil field was commissioned in 2013 and produces oil as well as gas through two offshore platforms, namely the P-61 type tension leg wellhead platform and the storage and unloading of floating production type P-63. Its average oil and gas production from January to June 2021 was 17,900 barrels of oil equivalent per day (BOE / D).
The sale fits perfectly into the company’s portfolio management strategy. It will help improve the company’s capital allocation to maximize returns for shareholders. Petrobras focuses its resources on world-class assets in deep and ultra-deep water where it has demonstrated a great competitive advantage over the years.
Earlier this month, Petrobras reached an agreement with Petromais Global Exploration and Production SA to divest its full ownership of the land and shallow water fields of Polo Alagoas, located in the state of Alagoas, Brazil.
Petrobras’ divestiture decision was part of its plans to offload non-core assets and focus on deepwater offshore development, primarily in the prolific pre-salt zone. The company will receive $ 300 million for assets. Of the total, $ 60 million will be paid immediately while the remaining $ 240 million will be provided at the end of the transaction.
Based in Rio de Janeiro, Petrobras SA is the largest integrated energy company in Brazil and one of the largest in Latin America. The company’s activities include the exploration, exploitation and production of petroleum from reservoir wells, shale and other rocks, as well as the refining, processing, trading and transportation of petroleum and petroleum products, natural gas and other fluid hydrocarbons as well as other energy-related activities.
Zacks rank and choice of keys
Petrobras currently has a Zacks Rank # 3 (Hold). Some higher ranked players in the energy space are Diamondback Energy, Inc. FANG and Continental Resources, Inc. CLR, each currently displaying a Rank 1 of Zacks (strong buy). You can see The full list of today’s Zacks # 1 Rank stocks here.
Bitcoin, like the internet itself, could change everything
Blockchain and cryptocurrency have sparked one of the most exciting talking points in a generation. Some call it “the internet of money” and predict that it could change the way money works forever. If this is true, it could do to banks what Netflix did to Blockbuster and Amazon to Sears. Experts agree that we are in the early stages of this technology and as it develops it will create several investment opportunities.
Zacks just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and other cryptocurrencies with much less volatility than buying them directly.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.