Brazil's state-run energy giant Petroleo Brasileiro S.A., or Petrobras (PBR) announced the news of an explosion at the Floating Production Storage and Offloading (FPSO) platform, Cidade de Sao Mateus. The unit was operating at the Camarupim field, located in the Espirito Santo basin, during the time of the accident.
Petrobras had hired the natural gas platform from BW Offshore – worldwide operator of FPSO vessels. It is apparent that the incident stemmed from the leakage of gas from the pump room of the offshore platform.
Petrobras reported that among 74 workers onboard, three were killed. Six workers are missing still now where as ten have survived the accident and were taken for medical care. Petrobras claims that along with BW Offshore, it is giving every support to the injured and their families.
This is one of the most tragic incidents in the history of Petrobras. In 2001, 11 workers of the company died when semi-submersible P-36 rig sunk.
Production from the Cidade de São Mateus FPSO platform has been stopped following the explosion. According to Petrobras, the floating unit was producing 2.2 million cubic meters of natural gas every day, which accounts for almost 3% of the company’s Brazilian natural gas production.
Headquartered in Rio de Janeiro, Petrobras is the largest integrated energy firm in Brazil and one of the largest in Latin America. The company’s activities include: exploration, exploitation and production of oil from reservoir wells, shale and other rocks, as well as refining, processing, trading and transportation of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
The company currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, better-ranked players in the energy sector include InterOil Corp. (IOC), Golar LNG Partners LP (GMLP) and Tesoro Corp. (TSO). InterOil and Golar LNG sports a Zacks Rank #1 (Strong Buy) while Tesoro carries a Zacks Rank #2 (Buy).
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