Petrobras Begins Decommissioning Campos Basin's P-12 Platform

Petroleo Brasileiro S.A. or Petrobras PBR recently announced that it commenced decommissioning of its P-12 platform in the Campos Basin. The move came after receiving consent from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA) and the Navy.

Per management, decommissioning of the P-07 and P-15 platforms in the Campos Basin along with the FPSO Piranema in the Sergipe-Alagoas Basin, are also slated for this year. Platforms P-07, P-12 and P-15 will be presented at a public auction, which is set to be held this month.

Last December, Petrobras had chalked out a five-year (2020-2024) investment budget comprising five strategies that are as follows:

i) achieving greater return on capital, ii) lowering the cost of capital, iii) minimizing costs, iv) meritocracy and v) addressing environmental concerns.

Per the plan, 18 production platforms are projected to be decommissioned by 2024. The same will be carried out in accordance with the best global practices.

Price Performance

Shares of this Rio de Janeiro-based operator have lost 47% year to date compared with the 37.4% decline of the industry it belongs to.

Company Profile

Petrobras is the largest integrated energy firm in Brazil and one of the biggest in Latin America. The company’s activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons besides other energy-related operations.

Zacks Rank & Key Picks

Petrobras currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Gulfport Energy Corporation GPOR, Devon Energy Corporation DVN and Antero Resources Corporation AR, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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