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Shell (RDS.A) Begins Production in Barracuda Offshore Project
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Royal Dutch Shell plc , through its subsidiary BG International, started gas production from Block 5C, offshore Trinidad and Tobago.
Block 5C, also known as the Barracuda project, is situated in the East Coast Marine Area (“ECMA”), one of the most promising gas-producing areas in Trinidad and Tobago. In January 2020, the company made a final investment decision on the development of Block 5C.
Barracuda is one of the largest projects of the oil giant in Trinidad and Tobago, since its acquisition of BG Group in 2016. It is Shell’s first greenfield gas development in the country.
The backfill project has a gas production capacity of 25,000 barrels of oil equivalent per day (boe/d). It is expected to have a peak production capacity of 40,000 boe/d.
The development involves two subsea wells, of which one is located in the Endeavour field and the other in the Bounty field. Both wells are fully owned by Shell.
The well in the Endeavour field was drilled to a depth of 20,000 feet, while the Bounty well was drilled to a depth of 16,000 feet. The wells are two of the deepest development wells in Trinidad and Tobago, and have a tied back to the company’s Dolphin platform.
Per Shell, the execution of the Barracuda project is a major step to deliver gas to the domestic and international markets through the Atlantic Liquefied Natural Gas (“LNG”) facility. Notably, the company’s stake in the LNG plant ranges from 46% to 57.5% in each of the four trains of the facility.
Updating on its Trinidad and Tobago portfolio, Shell expects to produce first gas from the Colibri project in 2022. Colibri is a four-well joint venture, which Shell is developing with Heritage Petroleum Co. Ltd.
Company Profile & Price Performance
Shell is one of the primary oil majors — a group of U.S. and Europe-based big energy multinationals — with global operations. The company is fully integrated, as it participates in every aspect related to energy from oil production to refining and marketing.
Shares of the company have underperformed the industry in the past six months. The stock has gained 6.4% compared with the industry’s 18.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stock to Consider
The company currently carries a Zack Rank #3 (Hold).
Image: Bigstock
Shell (RDS.A) Begins Production in Barracuda Offshore Project
Royal Dutch Shell plc , through its subsidiary BG International, started gas production from Block 5C, offshore Trinidad and Tobago.
Block 5C, also known as the Barracuda project, is situated in the East Coast Marine Area (“ECMA”), one of the most promising gas-producing areas in Trinidad and Tobago. In January 2020, the company made a final investment decision on the development of Block 5C.
Barracuda is one of the largest projects of the oil giant in Trinidad and Tobago, since its acquisition of BG Group in 2016. It is Shell’s first greenfield gas development in the country.
The backfill project has a gas production capacity of 25,000 barrels of oil equivalent per day (boe/d). It is expected to have a peak production capacity of 40,000 boe/d.
The development involves two subsea wells, of which one is located in the Endeavour field and the other in the Bounty field. Both wells are fully owned by Shell.
The well in the Endeavour field was drilled to a depth of 20,000 feet, while the Bounty well was drilled to a depth of 16,000 feet. The wells are two of the deepest development wells in Trinidad and Tobago, and have a tied back to the company’s Dolphin platform.
Per Shell, the execution of the Barracuda project is a major step to deliver gas to the domestic and international markets through the Atlantic Liquefied Natural Gas (“LNG”) facility. Notably, the company’s stake in the LNG plant ranges from 46% to 57.5% in each of the four trains of the facility.
Updating on its Trinidad and Tobago portfolio, Shell expects to produce first gas from the Colibri project in 2022. Colibri is a four-well joint venture, which Shell is developing with Heritage Petroleum Co. Ltd.
Company Profile & Price Performance
Shell is one of the primary oil majors — a group of U.S. and Europe-based big energy multinationals — with global operations. The company is fully integrated, as it participates in every aspect related to energy from oil production to refining and marketing.
Shares of the company have underperformed the industry in the past six months. The stock has gained 6.4% compared with the industry’s 18.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stock to Consider
The company currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are Petrobras (PBR - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), and Range Resources Corporation (RRC - Free Report) and Southwestern Energy Company (SWN - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Petrobras’ earnings for 2021 are expected to rise 29.9% year over year.
Range Resources’ earnings for 2021 are expected to increase 23% year over year.
Southwestern’s earnings for 2021 are expected to rise 11.5% year over year.