Petróleo Brasileiro S.A. - Petrobras PBR, in a crucial move to gain approval for offshore drilling in Brazil’s Foz do Amazonas region, has completed construction of a veterinary center in the Amazon town of Oiapoque, Amapá. This center has been built to fulfill a key requirement of Brazil’s environmental agency, Ibama, as Petrobras wanted to drill in an environmentally sensitive Foz do Amazonas region.
The veterinary center built by Petrobras is intended to provide care for wildlife in the event of an oil spill.Although the veterinary center has obtained an operating license from Amapa, it still awaits Ibama’s clearance. The facility is now operational and open for inspection by Ibama, serving as a vital step in Petrobras’ renewed licensing efforts.
The Foz do Amazonas basin, located within the equatorial margin, 540 kilometers off the coast of Amapá, is considered Brazil’s most promising oil frontier. The basin is considered to have immense potential as it is close to Suriname and Guyana, where more than 11 billion barrels of oil have already been discovered, attracting a major exploration interest in it. Petrobras has been trying to get approval to start drilling in the Foz do Amazonas region, but the project faces serious environmental concerns, which have complicated the approval process.
The Foz do Amazonas region is home to delicate ecosystems that have prompted concerns from environmentalists and regulatory bodies, leading to the denial of PBR’s request for the drilling license. In 2023, Ibama formally rejected the company's initial application for the offshore drilling license. However, it has resubmitted its proposal, emphasizing the enhanced safety and preparedness measures, including the new wildlife center. The final decision from Ibama remains pending, leaving PBR in a precarious position.
With the operating license granted by Amapá state, Petrobras awaits Ibama’s inspection and clearance. Following this, the company plans to relocate its rig to the FAZ-M-59 block and conduct a pre-operational assessment to demonstrate the effectiveness of its emergency response systems. Only after this evaluation will Ibama issue a final decision on the drilling permit.
Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A., or Petrobras S.A., is the largest integrated energy firm in Brazil and one of the largest in Latin America. Currently, PBR has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some top-ranked stocks like Expand Energy Corporation EXE, Prairie Operating Co. PROP and Enterprise Products Partners L.P. EPD.While Expand Energy and Prairie Operating currently sport a Zacks Rank #1 (Strong Buy) each, Enterprise Products carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The U.S.-based Expand Energy is a leading natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. The Zacks Consensus Estimate for EXE’s 2025 earnings indicates 422.70% year-over-year growth.
Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources. The Zacks Consensus Estimate for PROP’s 2025 earnings indicates 334.29% year-over-year growth.
Enterprise Products Partners operates a comprehensive midstream energy network that spans natural gas, NGLs, crude oil, petrochemicals and refined products. The Zacks Consensus Estimate for EPD’s 2025 earnings indicates 8.18% year-over-year growth.
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