Brazilian integrated energy giant
Petroleo Brasileiro S.A.
) announced that the second well drilled in the Jupiter area of
Santos basin also confirmed the presence of natural gas and
condensate in the region.
Petrobras drilled the well - 3-BRSA-967A-RJS (3-RJS-683A) -
commonly known as Jupiter Nordeste in the ultra-deep waters of
block BM-S-24 and at water depth of 7,089.9 feet. The well is 4.6
miles away from the first discovered well in Jupiter acreage and
170.9 miles off the coast of Rio de Janeiro.
The company stated that drilling of the second well is still
ongoing and has reached a depth of 17,841.2 feet. Petrobras has
identified a 577.4 feet thick oil column in the well that shows
excellent permeability and porosity.
Stated-controlled Petrobras, with an 80% interest, acts as the
operator of the exploration block, while Petrogal Brasil holds the
As per the Appraisal Plan approved by the Oil, Natural Gas and
Biofuels National Agency, Petrobras along with its partner will
consistently conduct activities and investments required for the
assessment of the area.
Headquartered in Rio de Janeiro, Petrobras operates in six
segments: Exploration and Production, Refining, Transportation and
Marketing, Distribution, Gas and Power, and Biofuels and
Petrobras - the fourth biggest company by market capitalization
Exxon Mobil Corp.
Royal Dutch Shell plc
) - currently retains a Zacks #4 Rank, which translates into a
short-term Sell rating. We also maintain a long-term Underperform
recommendation on the stock
We remain concerned regarding Petrobras' exposure to the volatile
oil and gas fundamentals, which are expected to impact
profitability. Moreover, the company's huge investment
requirements, operational hindrances and international business
risks also add to our negative sentiment.
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