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BP in Talks to Exit Senegal's Yakaar-Teranga Natural Gas Field
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BP plc (BP - Free Report) is in talks to exit the Yakaar-Teranga offshore natural gas field in Senegal due to it no longer aligning with the strategic objectives of the U.K.-based supermajor, per a report by Bloomberg.
In 2017, BP, in collaboration with its joint venture partner Kosmos Energy (KOS - Free Report) , announced a significant gas discovery known as Yakaar-1, emphasizing its importance in the field of natural gas exploration.
During that period, BP believed the Yakaar discovery, along with the Teranga discovery, to be instrumental in establishing the groundwork for an additional LNG hub within the basin.
Yakaar-Teranga is anticipated to serve as a natural gas source for gas-to-power initiatives in Senegal, supporting Africa’s efforts to reduce energy poverty and increase access to power for a larger segment of the population.
The BP-operated Yakaar-Teranga Phase 1 represents a conventional gas development situated in the ultra-deepwater region of Senegal. Currently, the project is in its feasibility stage, with commercial production anticipated to commence in 2024.
Should BP proceed with its potential departure from Yakaar-Teranga, the operatorship of the offshore gas field would likely transition to Kosmos. Additionally, Senegal’s state-owned oil company, Petrosen, may have the opportunity to increase its ownership stake in the project through renegotiation.
Speaking about BP and Kosmo’s other activities in Senegal, the larger Greater Tortue Ahmeyim gas development, which extends across the maritime boundary of Senegal and Mauritania, is on track to achieve commercial production in the coming year.
The U.K.-based BP has a strong portfolio of upstream projects, backing impressive production growth. BP is the holding company of one of the world's largest petroleum and petrochemical groups. BP has set an aggressive energy transition plan to capitalize on the mounting clean energy demand.
Matador Resources Company (MTDR - Free Report) is among the leading oil and gas explorers in the shale and unconventional resources in the United States. MTDR’s prime priorities include lowering debt, delivering free cashflows and maintaining or increasing dividends.
Matador Resources has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for MTDR’s 2023 and 2024 earnings per share is pegged at $6.59 and $8.84, respectively.
APA Corporation (APA - Free Report) boasts a large, geographically diversified reserve base with multi-year trends in reserve replacement. The company’s high-quality drilling inventory with greater resource potential should enable it to deliver competitive per-share growth.
APA Corp has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for APA’s 2023 and 2024 earnings per share is pegged at $4.72 and $6.52, respectively.
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BP in Talks to Exit Senegal's Yakaar-Teranga Natural Gas Field
BP plc (BP - Free Report) is in talks to exit the Yakaar-Teranga offshore natural gas field in Senegal due to it no longer aligning with the strategic objectives of the U.K.-based supermajor, per a report by Bloomberg.
In 2017, BP, in collaboration with its joint venture partner Kosmos Energy (KOS - Free Report) , announced a significant gas discovery known as Yakaar-1, emphasizing its importance in the field of natural gas exploration.
During that period, BP believed the Yakaar discovery, along with the Teranga discovery, to be instrumental in establishing the groundwork for an additional LNG hub within the basin.
Yakaar-Teranga is anticipated to serve as a natural gas source for gas-to-power initiatives in Senegal, supporting Africa’s efforts to reduce energy poverty and increase access to power for a larger segment of the population.
The BP-operated Yakaar-Teranga Phase 1 represents a conventional gas development situated in the ultra-deepwater region of Senegal. Currently, the project is in its feasibility stage, with commercial production anticipated to commence in 2024.
Should BP proceed with its potential departure from Yakaar-Teranga, the operatorship of the offshore gas field would likely transition to Kosmos. Additionally, Senegal’s state-owned oil company, Petrosen, may have the opportunity to increase its ownership stake in the project through renegotiation.
Speaking about BP and Kosmo’s other activities in Senegal, the larger Greater Tortue Ahmeyim gas development, which extends across the maritime boundary of Senegal and Mauritania, is on track to achieve commercial production in the coming year.
The U.K.-based BP has a strong portfolio of upstream projects, backing impressive production growth. BP is the holding company of one of the world's largest petroleum and petrochemical groups. BP has set an aggressive energy transition plan to capitalize on the mounting clean energy demand.
BP currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources Company (MTDR - Free Report) is among the leading oil and gas explorers in the shale and unconventional resources in the United States. MTDR’s prime priorities include lowering debt, delivering free cashflows and maintaining or increasing dividends.
Matador Resources has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for MTDR’s 2023 and 2024 earnings per share is pegged at $6.59 and $8.84, respectively.
APA Corporation (APA - Free Report) boasts a large, geographically diversified reserve base with multi-year trends in reserve replacement. The company’s high-quality drilling inventory with greater resource potential should enable it to deliver competitive per-share growth.
APA Corp has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for APA’s 2023 and 2024 earnings per share is pegged at $4.72 and $6.52, respectively.