Petrobras Eyes African Oil to Boost Reserves as Output Decline Looms

Group 1 - Petrobras S.A. intends to purchase stakes in oil assets in Africa, specifically targeting Angola, Namibia, and South Africa to replenish reserves as output is expected to decline after 2030 [1] - The company is discussing the acquisition of these assets from other companies and existing partners in Brazil, including ExxonMobil, Shell, and TotalEnergies, viewing this as a strategic and economically advantageous move [2] - Petrobras aims to reach a production level of 2.8 million barrels per day (bpd) by 2025 and increase it to 3.1 million bpd by 2029, with current reserves totaling 11.4 billion barrels of oil equivalent (boe) in 2024, up from 10.9 billion boe in 2023 [3] Group 2 - Petrobras considers its projects sustainable in the current oil price environment, with low-cost operations at $45 per barrel, ensuring profitability even in low commodity price scenarios [4] - The company currently holds a Zacks Rank 3 (Hold), with better-ranked stocks in the energy sector including SM Energy (Rank 1), Sunoco LP, and Archrock (both Rank 2) [5]