BP Eyes Petrobras Partnership for Brazil Pre-Salt Bumerangue Development

BP plc BP is exploring the possibility of partnering with Petróleo Brasileiro S.A. – Petrobras PBR to develop its Bumerangue oil and gas discovery in Brazil’s pre-salt layer, the company’s largest global find in 25 years, per a Reuters report. CEO Murray Auchincloss said the firm is seeking a partner to advance the project, located in deepwater fields beneath a thick layer of salt.BP’s Find Raises CO2 ConcernsWhen announcing the discovery, BP revealed that preliminary rig-site analysis detected elevated carbon dioxide levels in the reservoir, prompting questions about the project’s commercial viability. Industry experts note that excessive CO2 can complicate extraction and increase costs, potentially making a project unprofitable. BP’s head of production and operations, Gordon Birrell, however, downplayed the concern, saying he is not particularly worried about the CO2 levels.Petrobras’ Pre-Salt CO2 ChallengePetrobras, a leader in Brazil’s pre-salt exploration, is working on early-stage technologies to make oil reserves with high CO2 content economically viable. Past discoveries, such as the large Jupiter field, remain undeveloped due to excessive CO2. Sources at Petrobras told Reuters that while BP is yet to approach PBR about Bumerangue, the discovery still looks quite promising.BP and Petrobras’ Existing CollaborationBP, which acquired full ownership of Bumerangue in a 2022 auction, already partners with Petrobras in other pre-salt blocks, such as Alto de Cabo Frio Central in the Campos Basin. Industry insiders believe BP may eventually present Bumerangue’s data to Petrobras, but the timeline remains uncertain as the project’s viability is still being assessed.Zacks Rank & Key PicksBP and PBR currently carry a Zack Rank #3 (Hold).Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation AM and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts, protecting it against big oil price swings or changes in shipment. ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report Antero Midstream Corporation (AM): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks