Shell & Petrobras Expand Equity in Brazil's Two Pre-Salt Fields

A consortium of Shell plc SHEL and Petróleo Brasileiro S.A. - Petrobras PBR recently announced the expansion of stakes in Brazil’s pre-salt region that continues to be a strategic growth engine for both companies. In the latest bid round led by Pré-Sal Petróleo (“PPSA”), the companies jointly secured additional equity in the Atapu and Mero units — further strengthening their positions in the highly productive Santos Basin. The acquisition enhances long-term production visibility and supports both companies’ ambitions to maximize value from Brazil’s world-class deepwater resources.Deepening Strategic Positions in Atapu & MeroUnder the auction, Shell Brasil acquired 26.76% of Atapu Open Acreage and 20% of Mero Open Acreage, marginally increasing its overall interests to 16.917% in Atapu and 20% in Mero. The winning bids of $50.5 million for Atapu and $293.4 million for Mero will be followed by payment in December 2025, which will be made in Brazilian Reals, with the corresponding contracts scheduled for execution in March 2026.For Shell, currently carrying a Zacks Rank #3 (Hold), the additional acreage strengthens an already competitive portfolio in Brazil, contributing to its plan to maintain 1.4 million barrels per day of liquids production through 2030. For Petrobras, currently carrying a Zacks Rank #3, the move aligns with its 2026-2030 Strategic Plan, which prioritizes high-return, pre-salt developments that boost domestic output and value generation.High-Performing Assets Driving Long-Term GrowthThe Mero field remains one of Brazil’s most promising pre-salt hubs, supported by a fleet of four FPSOs — Guanabara, Sepetiba, Marechal Duque de Caxias and Alexandre de Gusmão — which came online between 2022 and 2025. Along with the Early Production System, Mero now offers a robust gross production capacity of 770,000 barrels per day. Petrobras, as operator, continues to lead the deployment of cutting-edge deepwater technologies, while Shell leverages its global offshore expertise to enhance project performance.Atapu has also demonstrated attractive productivity since 2020 through the P-70 FPSO, and future output will be bolstered by the upcoming P-84 FPSO, currently under construction. The field combines efficient operations with strong reservoir potential — an advantage recognized by both companies in their expanded participation.Disciplined Investment With Clear Value PropositionThe successful bids for both fields reflect Shell’s and Petrobras’ disciplined approach to capital deployment in assets with strong, proven economics. Petrobras noted that the disbursement aligns with its production curve projections through 2030, while Shell emphasized the acquisitions’ contribution to maintaining a high-margin, low-carbon footprint portfolio.Both companies expect the increased working interests to take effect from 2027, unlocking additional value from existing production while supporting Brazil’s energy security and economic growth.Reinforcing Long-Standing Partnership in the Pre-SaltFor decades, Shell and Petrobras have collaborated to develop some of the world’s most technically complex and commercially significant deepwater resources. Their joint acquisition in the recent bid round underscores the ongoing strength of this partnership.Shell enhances its global deepwater leadership and ensures access to resilient barrels, while Petrobras strengthens its operator role in key Brazilian basins and reinforces its status as the country’s largest producer.Key PicksInvestors interested in the energy sector may consider some top-ranked stocks like Baytex Energy Corp. BTE and Natural Gas Services Group, Inc. NGS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Baytex Energy is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. The Zacks Consensus Estimate for BTE’s 2025 earnings indicates 9.5% year-over-year growth.Natural Gas Services manufactures, fabricates, sells, rents and services natural gas compressors that enhance the production of natural gas wells. The Zacks Consensus Estimate for NGS’ 2025 earnings indicates 13.3% year-over-year growth.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free 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 Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report Natural Gas Services Group, Inc. (NGS): Free Stock Analysis Report Baytex Energy Corp (BTE): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): 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