Brazil's state-owned energy company, Petrobras S.A. PBR, has announced that the gas potential in the Guajira Basin, offshore Colombia, is around 6 trillion cubic feet, confirming that these findings at the newly renamed Sirius-1 and Sirius-2 wells may double Colombia’s gas reserves.
PBR, the operator of the wells, holds a 44.44% stake in the consortium through its Colombian division Petrobras International Braspetro B.V. with Colombia’sstate-owned energy giant, Ecopetrol S.A. EC, which holds a 55.56% interest.
Amid Colombia’s declining oil and gas production, PBR’s announcement could ease some of the worries. The discoveries made at the wells will boost the volumetric potential for gas in the region and will also play a vital role in filling the alarming energy supply gap.
The consortium of the two companies is planning to continue its operations to develop the area. They also said that the development will take place under the contractual provisions of the National Hydrocarbon Agency. Petrobras,carrying a Zacks Rank #3 (Hold), and Ecopetrol,carrying a Zacks Rank #5 (Strong Sell), further plan to study and evaluate the commercial viability of these discoveries.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Along with increasing the reserves of natural gas, the development of infrastructure to transport these reserves is equally important. The Petrobras-Ecopetrol consortium has therefore been exploring innovative ways to connect Colombia’s coastal regions to inland gas markets. One such idea is to reuse the existing crude oil pipelines to transport natural gas. This repurposing idea will not only optimize the infrastructure investment but will also support Colombia's National Natural Gas Transportation System.
The current president of Colombia, Gustavo Petro, is committed to aligning with a broader energy transition by reducing the country’s dependence on oil and gas. The Colombian government has stopped issuing new drilling permits and has also introduced an investment plan of $40 billion, which will primarily focus on renewable energy.
The Guajira Offshore Basin serves the dual purpose of addressing Colombia's immediate energy crisis as well as aligning with the nation’s efforts to reduce the country’s reliance on coal and oil in favor of cleaner energy alternatives.
Investors interested in the energy sector might look at some better-ranked stocks like Archrock AROC and PEDEVCO Corp. PED. Archrock and PEDEVCO currently sport a Zacks Rank #1 (Strong Buy) each.
Headquartered in the United States, Archrock, Inc. is a provider of natural gas contract compression services as well as a supplier of aftermarket services of compression equipment. The Zacks Consensus Estimate for AROC's 2024 earnings indicates 50.72% year-over-year growth.
PEDEVCO Corp. is an oil and gas company, engaged in the acquisition and development of energy projects in the United States and Pacific Rim countries. Over the past 60 days, the Zacks Consensus Estimate for PED's 2024 earnings has improved by 60%.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
Ecopetrol S.A. (EC) : Free Stock Analysis Report
Pedevco Corp. (PED) : Free Stock Analysis Report
Archrock, Inc. (AROC) : Free Stock Analysis Report
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