BP’s West Nile Delta stride
BP (BP) has started production at its nine subsea wells in the Taurus and Libra fields in the West Nile Delta in Egypt. The project is operating ahead of schedule and above the expected level of production. The fields were expected to produce 600.0 MMscfd (million standard cubic feet of gas per day) for supply to the Egyptian national gas grid. However, the field has started producing 700.0 MMscfd and is about eight months ahead of schedule.
The West Nile Delta consists of five gas fields expected to produce 1,500 MMscfd of gas by 2019. That would account for 30.0% of Egypt’s gas production. The West Nile Delta is divided into two projects to make the gas available to the country at a faster pace. The stakeholders include operator BP with an 82.8% stake and DEA Deutsche Erdoel AG with a 17.2% stake.
Bob Dudley, BP Group’s chief executive, said, “It is also another important step in BP’s growing production from high-quality new projects – in total, the West Nile Delta project will account for around a quarter of the new production we expect by 2020. Coupled with the series of important agreements that BP has recently made around the world, the continuing start-ups of these projects demonstrate momentum and a return to growth across BP.”
The West Nile Delta would add to BP’s upstream production. BP’s major projects are expected to generate 800,000 barrels of oil equivalent per day of new production until 2020. We’ll look at that in detail in the next part.
BP is a component of the FTSE 100 Index, which is comprised of large UK companies. If you’re looking for exposure to large US companies, you can consider the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones Industrial Average ETF (DIA). Both have a ~6.0% exposure to energy sector stocks.
In the next parts of this series, we’ll review BP’s latest stock performance and dividend yields trend followed by analysts’ ratings. Then we’ll evaluate BP’s segmental dynamics followed by its upstream and downstream performance. We’ll also analyze the company’s leverage and cash flow position.
Let’s start by looking at BP’s upcoming upstream projects.