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Petróleo Brasileiro S.A. - Petrobras PBR recently awarded a contract to Constellation Oil Services Holding for Plug and Abandonment (P&A) of shallow-water wells in the Sergipe, Alagoas, Ceará and Potiguar basins. The $170 million deal underscores Petrobras' responsible decommissioning plans and Constellation's expertise in offshore drilling services.
Constellation will deploy the jack-up rig Admarine 511, owned by its commercial partner ADES Holding Co. The rig, currently in Bahrain, will be mobilized to Brazil and operate for a firm execution period of 1,143 days, with an option to extend for up to 472 days. Constellation will have about 210 days to mobilize Admarine 511 and will also be operated and run by it.
An Insight Into Admarine 511
The Admarine 511 is a three-legged MSC CJ46-X100D model cantilever jack-up rig, capable of working in water depths up to 375 feet. Before deployment, it is undergoing class inspection and modifications to meet Brazilian regulatory standards.
The campaign will commence with the P&A of multiple wells linked to fixed platforms, ensuring a systematic and efficient decommissioning process. The project is expected to generate around 100 direct new jobs, primarily for Brazilian professionals, reinforcing Constellation’s role in supporting the local workforce.
Expanding Constellation’s Market Reach
Constellation emphasized the significance of this contract as it marks its strategic return to shallow-water operations, expanding its market segment. It also highlighted that this initiative aligns with Petrobras' decommissioning plans, ensuring ongoing demand for P&A services beyond this contract’s duration.
This partnership sets a benchmark for future collaborations, solidifying Constellation’s position as a key player in Brazil’s offshore oil and gas sector and validating its long-term partnership with Petrobras.
PBR’s Zacks Rank and Key Picks
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, ARC Resources Ltd. AETUF and Diversified Energy Company PLC DEC. While Expand Energy and ARC Resources currently sport a Zacks Rank #1 (Strong Buy) each, Diversified Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.