Repsol (REPYY) to Resume Exploration Activities in Libya
Repsol Energy REPYY announced that Libya’s National Oil Corporation (NOC) has lifted force majeure, allowing operations to resume in the Al-Sharara oil field after it was shut down three weeks ago.
Al-Sharara is operated by Akakus, a joint venture of the Libyan National Oil Corporation, in partnership with Repsol, TotalEnergies, OMV and Equinor. It is one of the largest oilfields located in the Murzuq Basin, with a production capacity of nearly 300,000 barrels of oil per day. Libya’s politically unstable climate has been a major reason behind multiple production disruptions in the oilfield.
REPYY expects Al-Sharara’s output to increase to 260,000 barrels of oil per day in the upcoming days. It holds stakes in the blocks NC115 and NC186, positioned 7000 kilometers south of Tripoli. Al-Sharara has oil accumulations in the blocks NC115 and NC186.
Repsol has highlighted its plans to restart exploration and production activities in Libya in April. The company has scheduled to drill up to six exploration wells in the NC115 and NC186 licenses, in the current year.
Repsol began E&P activities in Libya in the 1960s. Oil production in block NC115 started in 1996, while the same for NC186 began in 2003.
Zacks Rank and Other Key Picks
Currently, REPYY carries a Zacks Rank #2 (Buy).
Investors might want to look at some other top-ranked stocks in the energy sector, such as Vaalco Energy EGY, Enbridge ENB and Harbour Energy HBRIY. While Vaalco currently sports a Zacks Rank #1 (Strong Buy), Enbridge and Harbour Energy hold a Zacks Rank #2 each.
Vaalco Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Enbridge is an energy infrastructure company with a diversified portfolio of midstream assets. With a huge network of transportation and storage assets, the company derives stable fee-based revenues.
Harbour Energy is a leading independent oil and gas company, primarily involved in upstream operations. Upon completion of the recently announced acquisition of Wintershall Dea asset portfolio, its estimated production will increase to 500,000 barrels of oil equivalent per day. The company has also done well in reducing its debt in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Enbridge Inc (ENB) : Free Stock Analysis Report
Vaalco Energy Inc (EGY) : Free Stock Analysis Report
Repsol SA (REPYY) : Free Stock Analysis Report
Harbour Energy PLC Sponsored ADR (HBRIY) : Free Stock Analysis Report
