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BP plc BP will likely commence production from the Grand Tortue Ahmeyim gas field development in 2023, per Bloomberg. Production from the offshore gas field will be equally shared by Senegal and Mauritania, said Sophie Gladima — the oil minister of Senegal — to Bloomberg.
The development process of the field faced several delays due to the coronavirus pandemic. It affected resource mobilization, constructions and installations, thereby resulting in a delay in scheduled 2022 start of production from the field. As Senegal was looking forward to the energy money for boosting its economy, the $4.8-billion project’s delay affected its plans. Importantly, the project will likely enable the country to lower electricity generation costs.
In the first phase, the project is expected to produce liquefied natural gas (LNG) of 2.5 million tons per annum and natural gas of 70 million cubic feet per day. In addition to the two countries Senegal and Mauritania, BP has Kosmos Energy Ltd. KOS as partner in the Grand Tortue Ahmeyim gas field development. Once the project comes online, it will likely enhance BP’s hydrocarbon portfolio and boost cash flows.
Integrated energy company, BP has a strong portfolio of upstream projects that has been backing impressive production growth. Since 2016, BP has placed 23 key upstream projects online. All the key projects BP has been delivering over the years have backed the company to generate record production levels. Notably, the projects that were placed into production will help it in fetching significant cash flows. Importantly, despite the coronavirus pandemic, BP has been progressing with key upstream projects, although the progress is decelerating.
BP’s shares have gained 8.6% in the past six months compared with 13.4% rise of the industry it belongs to.
Zacks Rank & Stocks to Consider
BP currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Suncor Energy Inc. SU and Summit Midstream Partners, LP SMLP, each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Suncor’s sales for 2021 are expected to increase 18.2% year over year.
Summit Midstream’s bottom-line estimates for 2021 have increased 12.4% in the past 60 days.
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Suncor Energy Inc. (SU) : Free Stock Analysis Report
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Kosmos Energy Ltd. (KOS) : Free Stock Analysis Report
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