Back to top

Analyst Blog

British energy giant BP plc (BP - Analyst Report) has awarded a five-year, multi-million pound contract to energy services company Wood Group ODL, effective Jan 2014.

Per the terms of the contract, Wood Group ODL will offer document control and information management services for BP’s North Sea business. This contract, which deepens the 11-year tie between BP and Wood Group ODL, was awarded through a competitive tender process.

Wood Group ODL – a Wood Group PSN business – also manages other contracts with BP globally to provide operations procedure manuals and training and competency assessments.

Recently, BP along with its partner ConocoPhillips (COP - Analyst Report) made a huge find at its Gila prospect, in the deepwater U.S. Gulf of Mexico. The discovery represents the first major find by BP since the massive rig outburst that caused the worst environmental tragedy in the U.S. history. After the Macondo well blowout, the U.S. regulators lifted a five-month ban on deepwater drilling in 2010. The latest find is the third discovery in recent years in the emerging Paleogene trend in the Gulf. The previous finds were Kaskida in 2006 and Tiber in 2009.

BP has a strong pipeline of projects and expects four additional upstream ventures to commence by the end of 2013. Of these, Angolan LNG and Atlantis North Expansion commenced operations in the first half of 2013, while Australia-North Rankin phase 2 and Azerbaijan-Chirag are on track to start production in the second half. Six more project start-ups are expected by next year. Altogether, BP has about 50 major assignments through the decade. Of these, 11 involve more than $10 billion in total cost. The latest contract will come handy in view of its vast contract pipeline.

BP carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and gas sector include Blueknight Energy Partners, L.P (BKEP - Snapshot Report) and Tesco Corp. (TESO - Snapshot Report). All these stocks hold a Zacks Rank #1 (Strong Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%