BP’s Zohr field kickstarts production
BP’s (BP) Zohr field, which is a mega gas project in the Mediterranean Sea off the shore of Egypt, began production. It’s a deep-water field that was discovered in August 2015 by ENI (E). The field can produce ~440,000 barrels of oil equivalent per day at peak levels. It is estimated that the field holds in-place potential gas reserves of 30 trillion cubic feet. The stakeholders of the field include ENI (E) with a 60% stake, BP with a 10% stake, and Rosneft with a 30% stake. ENI operates the field via a joint venture.
With the start-up of the Zohr field, BP has successfully begun seven huge projects in the year. BP’s major upstream projects are expected to generate around 800 thousand barrels of oil equivalent per day of new production by 2020. We will discuss BP’s upstream projects in the next part.
In regards to Zohr’s start-up, BP’s group chief executive, Bob Dudley, stated, “This is also an important strategic milestone for BP, marking the completion of one of the biggest development programmes we have ever delivered in a single year. Seven new upstream projects around the world have been brought safely into production in 2017, on average under budget and on schedule.”
Zohr could prove to be quite critical in altering Egypt’s energy landscape. This is the second field in Egypt, followed by West Nile Delta, to start production in the current year. These fields will add to Egypt’s hydrocarbon production, helping the country meet its rapidly growing demand.
This series will examine BP’s current position, in terms of financial and market performance, and its outlook for the near future. We will begin by looking at the status of BP’s major upstream assets. Then in the next couple of parts, we’ll evaluate the outlook for BP’s upstream and downstream segments. We’ll also look at analysts’ ratings and dividend outlook. Plus, we’ll briefly analyze BP’s latest results including its debt and cash flow position.
Later in the series, we’ll examine BP’s stock performance, price forecast based on implied volatility, changes in short interest, institutional holdings, and valuations.