Petrobras, Shell and CNOOC Sign Contracts to Expand in Brazil

Group 1 - Petrobras S.A. has signed three concession agreements with Shell and CNOOC for blocks in the Pelotas Basin offshore southern Brazil, awarded during the fourth cycle of the permanent concession offer by ANP in December 2023 [1] - In total, Petrobras was awarded 29 blocks in the Pelotas Basin, with 26 contracts in partnership with Shell, where Petrobras holds a 70% stake as the operator [2] - For the remaining contracts, Petrobras formed a consortium with Shell and CNOOC, holding a 50% stake as the operator, while Shell and CNOOC hold 30% and 20% stakes, respectively [3] Group 2 - Petrobras has a $102 billion spending plan as part of its 2024-2028 strategy, focusing on significant investments in oil and gas, including the newly acquired contracts [4] - The company aims to diversify its portfolio and strengthen its position in deep-water oil fields, with a focus on energy transition and plans to establish 14 new floating production storage and offloading vessels over the next five years [5] Group 3 - Petrobras is the largest integrated energy firm in Brazil and one of the largest in Latin America, currently holding a Zacks Rank 4 (Sell) [6] - The company is involved in multiple projects in countries like Colombia and South Africa as part of its diversification strategy [6]