BP plc BP announced the commencement of gas production from West Nile Delta project’s second stage. The British energy giant expects daily maximum production volumes of the commodity from this offshore project in Egypt to touch 700 (MMCF) million cubic feet of gas by April.
Investors should know that in the past three years, the integrated energy player has successfully placed 21 key upstream projects online, including West Nile Delta’s second stage. BP has made a projection that all major upstream developments will help it produce daily volumes of 900,000 barrels of oil equivalent by 2021.
The company earlier thought of developing the complex project in two stages. However, to maximize gas production opportunities in Egypt, the energy giant along with its partners have planned to develop five natural gas fields of West Nile Delta project — where BP has 82.8% operating stake — in three stages.
In Egypt, BP has invested more than $35 billion in the past 55 years. With this, BP has placed itself as among the largest overseas investors focused in developing the country’s prolific resources. Once all the five fields of the West Nile Delta project start production, the company expects the development to produce 1.4 billion cubic feet of natural gas daily — equivalent to as high as 20% of the recently-produced natural gas volumes by Egypt.
Headquartered in London, BP recently reported strong fourth-quarter results, thanks to the increase in oil equivalent price realizations and contributions from fuels marketing businesses.
Currently, the stock carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include Jones Energy Inc. JONE, Golar LNG Partners LP GMLP and Sunoco LP SUN. Jones and Sunoco carry a Zacks Rank #2 (Buy), while Golar LNG sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Jones Energy expects 2019 earnings growth of 19% year over year.
Golar LNG delivered average positive earnings surprise of 92.8% in the preceding four quarters.
Sunoco LP pulled off average positive earnings surprise of 18.39% in the trailing four quarters.
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