Back to top

Image: Bigstock

BP Confirms Shearwater Stake Divestment to Tailwind Energy

Read MoreHide Full Article

BP plc (BP - Free Report) recently confirmed the divestment of its Shearwater stake, per reports. It has agreed to sell its 27.5% interest in the Shearwater field to Tailwind Energy, a privately-held oil and gas company. Several reports in the last few months hinted at the potential transaction, which included Tailwind Energy as a contender for acquiring the stake. The acquirer has Mercuria Energy Group as equity partner.

The Shearwater project is operated by Royal Dutch Shell plc and is located in the U.K. North Sea, 225 kilometers east of Aberdeen. The field produces 18,000 barrels of oil equivalent per day. Last year, the British energy giant agreed to divest Shearwater and Andrew projects to Premier Oil for $625 million, which didn’t materialize. Instead, Premier Oil merged with Chrysaor Holdings, with the combined entity being named Harbour Energy plc (HBRIY - Free Report) .

The financial details of the deal are yet to be disclosed. The Andrew project is not included in the deal. It is not expected to be divested at the moment as the company informed its staff to continue operations at the site.

The divestment is in line with the company’s plan of streamlining its portfolio. In 2021 alone, the company is expected to gather $4-$6 billion of proceeds from divestments and disposals. By 2025, BP will likely sell $25 billion worth of assets, which can provide it with funds to support the company’s energy transition. BP is currently going through a restructuring phase. It has plans to reduce emissions and boost low-carbon spending. BP intends to boost low-carbon spending to $5 billion per annum by 2030. Within this time period, it plans to reduce emissions from operations by 30-35%.

Price Performance

BP has gained 13.3% in the past year compared with 25.2% rise of the industry it belongs to.

Zacks Rank & Stock to Consider

The company currently has a Zacks Rank #3 (Hold). A better-ranked player in the energy space is Braskem S.A. (BAK - Free Report) , having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Braskem’s bottom line for 2021 is expected to rise 231.3% year over year.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BP p.l.c. (BP) - free report >>

Braskem S.A. (BAK) - free report >>

Harbour Energy PLC Sponsored ADR (HBRIY) - free report >>

Published in