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BP and Rosneft to Exploit Extensive Arctic Gas Resources

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BP Plc (BP - Free Report) and Rosneft have entered into an accord for exploring the extensive reserve of natural gas and oil in the Arctic area, per the Russian energy firm. 

Kharampursky and Festivalny are the license blocks that will likely be explored and developed by the British and Russian energy players. The companies expect a total of 880 billion cubic meters (bcm) of natural gas from both the blocks. However, the project awaits sections from the regulatory bodies.

In the joint venture for Arctic development, BP is expected to have 49% ownership while the remaining 51% stake will be in the possession for Rosneft. Investors should know that Rosneft will engage in the marketing of natural gas and crude produced from the project.

Rosneft added that along with BP, it will be exploring new prospects that will include tight gas. The firms are confident about successfully exploiting the complex project given its vast expertise and competencies.

As per media resources, with this agreement, BP and Rosneft will be developing limestone gas and oil. Since the United States put sanctions on the development of shale deposits of Russia – per Reuters, BP is not going against the sanctions.

London-based BP is among the leading integrated energy players in the world. The stock has rallied 11.5% year to date, outperforming the 5.1% gain of the Zacks Oil International Integrated industry.

 

 

The stock sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy sector with the same Zacks Rank are Lonestar Resources US Inc. , Northern Oil and Gas, Inc. (NOG - Free Report) and China Petroleum & Chemical Corporation . You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Fort Worth, TX, Lonestar is an upstream energy player. The company is expected to post year-over-year earnings growth of 81.3% in 2017.

Based in Minnetonka, MN, Northern Oil is an upstream energy player. The company’s 2017 revenues are estimated to grow almost 44%.

Headquartered in Beijing, China Petroleum is a leading integrated energy player. The company will likely witness year-over-year earnings growth of 59.1% in 2017.

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