Equinor Inks Deal With AcuPetroleo For Oil Transshipment
Zacks Investment Research | Mar 18, 2019 11:20PM ET
Equinor ASA (NYSE:EQNR) has inked a contract with AcuPetroleo (a partnership of Brazil’s PrumoLogistica and Germany’s Oiltanking). Per the terms, AcuPetroleo will host oil transshipment functions for Equinor at the T-Oil terminal in Acu port in the north of Rio de Janeiro.
The contract, which is for a period of three years, will begin in January 2020. It will provide respite to the company’s oil production from the Roncador field. Also, it will facilitate Equinor to operate through class Suezmax and VLCC (very large crude carrier) vessels. The majority of its oil exports from Brazil will be transported through the AcuPetroleo terminal.
In T-OIL, the oil transshipment operation is carried out by a world-class operator — Oiltanking — in a breakwater protected area. The location enables consistent and secure operation with competence and cutback in final cost. These factors enhance the efficiency of the Brazilian oil. The operation depends on the two ships docked at the breakwater, surrounded by containment barriers, which reduces the risk of impact to the environment.
The terminal has the capacity to handle three oil transshipment operations concurrently and is certified to move about 1.2 million barrels of oil per day(MMbopd).
T-OIL, with a depth of 82 feet (25 meters), is the only Brazilian private terminal. It has a capacity to receive VLCC class ships, which are among the largest in the world and have a storage capacity of about 2 MMbopd.
Equinor’s endeavors to improve recovery of resources in mature fields are noteworthy. The company has operations in all major hydrocarbon-producing regions of the world with an emphasis on the NCS. We believe that Statoil (OL:EQNR) is well positioned to sustain steady production growth over the next few years on the back of large resource base at NCS.
Zacks Rank & Key Picks
Currently, Equinor carries a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are Antero Resources Corporation (NYSE:AR) , CrossAmerica Partners L.P. (NYSE:CAPL) and Lonestar Resources US Inc (NASDAQ:LONE) . While Antero Resources and CrossAmerica Partners sport a Zacks Rank #1 (Strong Buy), Lonestar Resources carries a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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