Brazilian state-run energy giant,
Petroleo Brasileiro SA or Petrobras
) reported that it has stopped its petroleum coke production
momentarily as its Duque de Caxias-based Reduc Refinery's
petroleum coke unit caught fire. Petrobras' Reduc Refinery has a
processing capacity of roughly 240,000 barrels of crude oil per
day, reflecting about 10% of the overall refining capacity of
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The fire broke out at the coke plant on Saturday evening. The
unit uses residual oil as input for producing naphtha and
petroleum coke. The petroleum coke is further utilized as fuel in
every power plant. Petrobras reveals that the fire has not caused
any injuries and environmental damages. Moreover, it marks the
fourth fire accident in the Reduc refinery since Nov, 2013.
Petrobras added that it has formed a special team to investigate
the fire incident.
However, the labor union has raised questions regarding the
safety measures implemented by Petrobras. The union pointed out
that the company has increased its processing capacity
significantly to 98% from 85% to fulfill the local demand without
adopting additional safety procedures.
Headquartered in Rio de Janeiro, Petrobras is an integrated
energy firm. The company's activities include: the exploration,
exploitation and production of oil from reservoir wells, shale
and other rocks, and in the refining, processing, trade and
transport of oil and oil products, natural gas and other fluid
hydrocarbons, in addition to other energy-related activities.
Petrobras currently holds a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy
Harvest Natural Resources Inc.
Athlon Energy Inc.
). All the stocks sport a Zacks Rank #1 (Strong Buy).