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BP, Kosmos Energy Team up to Develop LNG Export Project
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Oil giant BP plc (BP - Free Report) has entered into an agreement with Kosmos Energy to farm into assets worth $916 million in the Mauritania-Senegal basin. Kosmos Energy is planning to build an outstanding LNG project in the aforementioned region.
Per the terms of the agreement, BP will assume named operatorship and obtain a 62% working interest in Kosmos Energy’s licenses covering blocks C6, C8, C12, and C13 offshore Mauritania. BP will also acquire an effective 32.49% working interest in the licenses covering the Saint Louis Offshore Profond and Cayar Offshore Profond blocks, situated in offshore Senegal.
Kosmos will continue to hold a 28% and 32.51% effective working interest in the licenses offshore Mauritania and Senegal, respectively, and will remain the exploration operator.
BP will make an upfront payment of $162 million and $221 million as carry on exploration and appraisal expenses. The company will also conduct a drill stem test on Tortue, anticipated to be completed in 2017. The test includes $533 million maximum carry on development costs until first gas production on the Tortue project.
In 2017, Kosmos expects a front-end engineering and design study to be concluded with the aim of realizing a final investment decision by 2018.
BP will also pay a contingent bonus of about $2 per barrel, for about 1 billion barrels of liquids, structured as a production royalty and subject to a future liquids discovery and oil price.
With the aim of reducing development time and driving capital efficiency, the partners intend to process and transport the gas from Tortue at a nearshore LNG facility. The planned complex could be expanded in phases to contain future gas discoveries.
Moreover, BP and Kosmos have inked an exclusive exploration partnership covering potential new ventures prospects in Mauritania, Senegal and The Gambia. Kosmos will continue as exploration operator of all new ventures attained within the areas of interest, while BP will become development operator.
Over the last three months, shares of BP have lost 2.1% compared with the industry’s decrease of 2.3%.
Range Resources delivered a positive earnings surprise of 250.00% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average negative earnings surprise of 94.22%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.
TransCanada delivered a positive earnings surprise of 12.00% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 4.06%.
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BP, Kosmos Energy Team up to Develop LNG Export Project
Oil giant BP plc (BP - Free Report) has entered into an agreement with Kosmos Energy to farm into assets worth $916 million in the Mauritania-Senegal basin. Kosmos Energy is planning to build an outstanding LNG project in the aforementioned region.
Per the terms of the agreement, BP will assume named operatorship and obtain a 62% working interest in Kosmos Energy’s licenses covering blocks C6, C8, C12, and C13 offshore Mauritania. BP will also acquire an effective 32.49% working interest in the licenses covering the Saint Louis Offshore Profond and Cayar Offshore Profond blocks, situated in offshore Senegal.
Kosmos will continue to hold a 28% and 32.51% effective working interest in the licenses offshore Mauritania and Senegal, respectively, and will remain the exploration operator.
BP will make an upfront payment of $162 million and $221 million as carry on exploration and appraisal expenses. The company will also conduct a drill stem test on Tortue, anticipated to be completed in 2017. The test includes $533 million maximum carry on development costs until first gas production on the Tortue project.
In 2017, Kosmos expects a front-end engineering and design study to be concluded with the aim of realizing a final investment decision by 2018.
BP will also pay a contingent bonus of about $2 per barrel, for about 1 billion barrels of liquids, structured as a production royalty and subject to a future liquids discovery and oil price.
With the aim of reducing development time and driving capital efficiency, the partners intend to process and transport the gas from Tortue at a nearshore LNG facility. The planned complex could be expanded in phases to contain future gas discoveries.
Moreover, BP and Kosmos have inked an exclusive exploration partnership covering potential new ventures prospects in Mauritania, Senegal and The Gambia. Kosmos will continue as exploration operator of all new ventures attained within the areas of interest, while BP will become development operator.
Over the last three months, shares of BP have lost 2.1% compared with the industry’s decrease of 2.3%.
BP currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Range Resources Corp. (RRC - Free Report) , Braskem S.A. (BAK - Free Report) and TransCanada Corp. (TRP - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Range Resources delivered a positive earnings surprise of 250.00% in the preceding quarter. The company beat estimates in three of the trailing four quarters with an average negative earnings surprise of 94.22%.
Braskem delivered a positive earnings surprise of 107.79% in the quarter ending September 2016.
TransCanada delivered a positive earnings surprise of 12.00% in the preceding quarter. It surpassed estimates in two of the trailing four quarters with an average positive earnings surprise of 4.06%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>