Equinor Secures New Offshore Block in Brazil's Santos Basin

Equinor ASA EQNR has strengthened its footprint in Brazil’s energy sector after securing the S-M-1617 exploration block in the Santos Basin during the country’s 5th Open Permanent Concession bidding round. The Norwegian energy major was awarded the license with a 100% stake, committing a signature bonus of approximately 30.5 million Brazilian Real (about USD 5.5 million).EQNR Gains Strategic Ground Near Existing AssetsThis latest win brings the S-M-1617 block, located roughly 60 kilometers from Equinor’s existing S-M-1378 license, under its control. The proximity between the two blocks is seen as a strategic advantage, allowing the company to build synergies and expand its potential in an already promising area.Equinor sees the successful bid as a strategic step in strengthening its international portfolio, with Brazil remaining a core focus area. According to Veronica Coelho, senior vice president and Brazil country manager, the award supports the company’s long-term presence in Brazil and reflects its continued commitment to the region’s growth.Brazil: A Core Growth Market for EQNREquinor has been present in Brazil for over 20 years and views it as a key pillar of its international growth strategy. The S-M-1617 block sits about 400 kilometers off the coast in waters up to 2,600 meters deep — typical of the ultra-deepwater terrain that has become Equinor’s area of expertise.The company is also actively advancing other projects in Brazil, including the Bacalhau development in the Santos Basin and the Raia project in the Campos Basin. Additionally, it holds stakes in the Roncador field operated by Petrobras and continues to operate the Peregrino field until its handover to PRIO is finalized.Beyond Oil: Renewables on the HorizonWhile exploration and production remain central to Equinor’s Brazil operations, the company is also scaling up its presence in renewables. Through its subsidiary, Rio Energy, Equinor is already operating onshore renewable assets and is working on additional projects aimed at supporting Brazil’s energy transition.With the S-M-1617 acquisition, Equinor is not just adding acreage, it’s doubling down on Brazil as a long-term, strategic growth hub for both fossil and renewable energy investments.EQNR’s Zacks Rank & Key PicksEQNR currently carries a Zack Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. SUBCY, Oceaneering International, Inc. OII and RPC Inc. RES. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Oceaneering Internationaland RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities. The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want 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 Oceaneering International, Inc. (OII): Free Stock Analysis Report RPC, Inc. (RES): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis Report Equinor ASA (EQNR): 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