This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Petrobras' Search May Be a Boon for National Oilwell Varco

NEW YORK (TheStreet) -- In need of raising $15 billion due to rising costs associated with its offshore production projects in Brazil, Petroleo Brasileiro, also known as Petrobras (PBR), is reaching out for an investment partner with deep pockets.

According to a Sept. 10 article in the Wall Street Journal, PBR has asked Morgan Stanley (MS) to help it find a partner that would be willing to fork out as much as $4 billion to help it invest in state-of-the-art technology used for finding oil and gas deep down in "Davey Jones's Locker."

According to an article on the company's interesting Web site on Sept. 6, "...[P]roduction started at the Chinook field, in the U.S. Gulf of Mexico,  which is connected to the FPSO BW Pioneer (a Floating, Production, Storage and Offloading platform).

"The Chinook #4 production well was drilled and completed in Lower Tertiary reservoirs, a promising offshore exploration frontier in the Gulf of Mexico, at a depth of about 8,000 meters.

"This FPSO, located approximately 250 kilometers off the coast of the State of Louisiana at a water depth of 2,500 meters, is also connected to the Cascade field which initiated production in February 2012."

That's what I call "really deep drilling" -- 2,500 meters equates to around 8,000 feet deep, and the technology needed to operate at those depths is still semi-experimental and extremely expensive. In fact, it has been the risks and costs involved in this process and getting the oil it produces all the way to shore (175 miles away) that has made some of Petrobras' drilling partners shy away.

PBR owns nearly 67% of Chinook, and French energy giant Total (TOT) is its partner. The Chinook project is the first in U.S. waters to utilize a floating production, storage and unloading vessel that collects the oil at the surface where tankers can receive it.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs