Petrobras Achieves First Oil at Mero-4 in Brazil's Santos Basin

Petróleo Brasileiro S.A. - Petrobras PBR has announced the startup of first oil and gas production via Alexandre de Gusmão floating production, storage and offloading vessel (“FPSO”) at the Mero field. This milestone arrives more than two months ahead of schedule, strengthening Brazil’s energy output from the prolific presalt Santos Basin.

Overview of Mero Field Strengthening Brazil’s Offshore Output

Located in the Libra block, about 180 km off the coast of Rio de Janeiro, the Mero-4 field lies in deepwater ranging from 1,800 meters to 2,100 meters. The final investment decision for the field was announced in August 2021.

Mero-4 is the latest in a series of FPSO-based developments at the Mero field, following Mero-1, 2 and 3 units which began operations between 2022 and 2024. Together, these installations now bring the Mero field’s total installed capacity to 770,000 barrels of oil per day, making it one of the most significant deepwater assets globally.

Insight Into Alexandre de Gusmão FPSO

Alexandre de Gusmão, one of the largest FPSOs in the world, was chartered by Petrobras from SBM Offshore. The FPSO was integrated in China in December 2024 and brought to the field in March 2025. It has a crude oil production capacity of 180,000 barrels per day and can compress 12 million cubic meters of natural gas daily, along with water injection capacity of 250,000 cubic meters.

Designed with sustainability in mind, the FPSO is equipped with resources to operate the HISEP (High Pressure Separator) feature, which has the capability to minimize greenhouse gas emissions, notably the reinjection of associated gas into the reservoir and a zero routine flaring policy.

The FPSO will be connected to 12 subsea wells, including oil producers, water and gas injectors, and a convertible well. Operated under a 22.5-year charter by SBM Offshore affiliates, the unit plays a pivotal role in expanding Brazil’s offshore production capabilities.

Collaborative Effort Under the Libra PSC

The Mero field is developed under the Libra Production Sharing Contract, signed in 2013. Petrobras leads as operator with a 38.6% stake, alongside TotalEnergies and Shell Brasil (each with 19.3%), CNPC and CNOOC (each with 9.65%), and Pré-Sal Petróleo SA (with 3.5%). This multinational collaboration underscores the strategic importance of Brazil’s presalt reserves in the global energy mix.

PBR’s Zacks Rank & 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 better-ranked stocks like Flotek Industries, Inc. FTK, Epsilon Energy Ltd. EPSN and RPC, Inc. RES. While Flotek Industries and Epsilon Energy currently sport a Zacks Rank #1 (Strong Buy) each, RPC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2025 earnings indicates 55.88% year-over-year growth.

Houston, TX-based Epsilon Energy is an on-shore focused oil and natural gas company that is engaged in the acquisition, development, gathering and production of oil and gas reserves. The Zacks Consensus Estimate for EPSN’s 2025 earnings indicates 200% year-over-year growth.

Atlanta, GA-based RPC is an oilfield service provider in almost all of the prospective plays, like the Rocky Mountain regions, Appalachian area, Gulf of Mexico and other resources in the United States. The Zacks Consensus Estimate for RES’ next quarter earnings indicates 33.33% growth.

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This article originally published on Zacks Investment Research (zacks.com).

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