Brazilian oil giant, Petróleo Brasileiro S.A. - Petrobras PBR, has announced the termination of its agreement with Brava Energia for the sale of its two prolific natural gas fields located in the Santos Basin. The $35 million contract, which also included a 178-kilometer pipeline, fell through after Brava Energia failed to execute the key contractual conditions.
In 2023, PBR entered into a deal to sell the Urugua and Tambau natural gas fields along with a 178-kilometer pipeline infrastructure to Brava Energia for $35 million, and a commitment from Brava Energia to acquire the Cidade de Santos floating production, storage and offloading (FPSO) vessel from Japan’s Modec for $48.5 million that was operating at the same field.
The contract that was conditional on the fulfillment of the FPSO acquisition commitment did not materialize; therefore PBR announced the termination of the original contract with Brava Energia.
Per the terms of the contract, the $3 million deposit made by Brava Energia will be retained by Petrobras. PBR also announced that it will retain a full stake in its fields and will look for other alternatives to manage them.
Brazil-based Petroleo Brasileiro S.A., or Petrobras S.A., is the largest integrated energy firm engaged in the exploration and production of oil, refining, processing and transportation of oil and other energy-related activities. Currently, CVX has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Gulfport Energy Corporation GPOR,ARC Resources Ltd. AETUF and Flotek Industries, Inc. FTK. While Gulfport Energy currently sports a Zacks Rank #1 (Strong Buy), ARC Resources and Flotek Industries each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The U.S.-based Gulfport Energy Corporation is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.09% year-over-year growth.
Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS (earnings per share) growth rate for next year is 50.78%, which aligns favorably with the industry growth rate of 11.50%.
Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.
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