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BP Awards Pre-FEED Deal for Greater Tortue Ahmeyim Project

Zacks Equity Research
Oil equivalent volumes from key upstream projects along with increased contributions from fuels marketing businesses back BP's better-than-expected Q1 earnings.

BP plc BP has awarded a contract to the British unit of engineering and construction company— KBR, Inc KBR. The deal is related to the phases 2 and 3 of the Greater Tortue Ahmeyim project.

The contractis for pre-front end engineering design (pre-FEED) services.KBR will be responsible for designing the offshore platforms and underwater pipelines to boost natural gas production. The yield will be transferred to an offshore liquefied natural gas (LNG) plant that BP proposes to develop.

The contract involves the further development of Tortue field beyond Phase 1 of the development located in the C-8 block off the shore of Mauritania and the Saint-Louis Profond block offshore Senegal.

The Greater Tortue Ahmeyim project will produce and process gas from an ultra-deepwater subsea system and mid-water floating production storage and offloading (FPSO) vessel.The ultra-deepwater subsea system will be tied back to mid-water gas processing platforms. Subsequently, the gas will be transported to pre-treatment and offshore LNG facilities at the established Phase 1 hub.

Also, BP stated that the project will provide about 2.5 million tons of LNG annually for global export and domestic use in the West African countries. Moreover, the Tortue/Ahmeyim gas field is estimated to hold 15 trillion cubic feet of gas.

However, industry experts estimate the total gas field spread across 33,000 square kilometer to be hold resources of 50 trillion cubic feet. This figure is equivalent to Africa’s current gas generation capacity for the next 7 years.

The C8 block is owned by a consortium that includes BP, Kosmos Energy  and Societe-Mauritanienne des Hydrocarbures et -de Patrimoine Minier holding 62%, 28% and 10%, respectively. Similarly, the partners in the Saint-Louis Profond block are BP, Kosmos Energy Ltd KOS, Timis Corporation and Societe des Petroles de Senegal.

Technip FMC has landed a FEED as well as engineering, procurement, construction, installation and commissioning contracts related to Phase 1 of the Greater Tortue Ahmeyim project.

Zacks Rank & Key Picks

Currently, BP carries a Zacks Rank #3 (Hold).

Another better-ranked player in the energy space is Antero Resources Corporation AR, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids as well as oil resources in the Appalachian Basin. The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters.

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