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Chevron (CVX) Inks Deal With Equatorial Guinea for Block EG09
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Chevron Corporation (CVX - Free Report) recently inked a deal with the government of Equatorial Guinea (EG) for offshore block EG09 in the Douala Basin, near the Cameroon border.
Per the deal, CVX will be run with an 80% stake, the rest being held by GEPetrol, the state-owned oil company. Chevron will implement a work program in collaboration with the government that will pave the way for Block EG09 development.
Considering its closeness to other blocks where large-scale discoveries were made, Block EG09, which was previously explored by South Africa's PetroSA, has the potential to possess significant oil and gas deposits.
Chevron is expected to successfully provide hydrocarbons that will further establish EG as a top African producer with the correct exploration strategy and technology.
CVX joined the country's EG market late last year with the purchase of Noble Energy and has since begun operations via the Alen gas pipeline, which transports output from the offshore Alen field to onshore processing plants.
In April 2019, Noble Energy, currently owned by Chevron, had approved the development of the Alen natural gas project. The Alen field is located at Block O (95%) and Block I (5%), offshore EG and includes a 70-kilometer long pipeline that can carry up to 950 million cubic feet of natural gas equivalent per day (MMcfe/d) from the Alen field, located in the Douala Basin.
The Alen gas project is a major effort toward the country’s planned EG gas mega-hub. The hub aims to use the existing infrastructure and develop a flourishing gas industry in EG, which will facilitate the processing of discovered resources in the country.
San Ramon, CA-based Chevron currently produces oil from its Aseng well in Block I and gas condensate from its Alen field in Block O. Offshore block EG09 lies to the south of Block I.
About Equatorial Guinea
Despite its tiny size, Equatorial Guinea has some of Africa's greatest oil and gas deposits, with gas reserves believed to be 1.5 trillion cubic feet and oil reserves estimated to be 1.1 billion barrels. The government enforced a number of regulatory frameworks to attract investment and accelerate growth to establish the country as a Gas Mega Hub. The agreement with Chevron reinforces this goal by highlighting the country's exploration potential and the role that hydrocarbons will play in boosting economic growth.
Zacks Rank & Key Picks
Chevron currently has a Zack Rank #3 (Hold). Investors interested in the energy sector might look at the following stocks worth considering with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum Corporation (OXY - Free Report) is an integrated oil and gas company with significant exploration and production exposure. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. As of 2020 end, Occidental Petroleum's preliminary worldwide proved reserves totaled 2.91 billion BOE compared with 3.9 billion BOE at the end of 2019.
In the past year, shares of Occidental Petroleum have surged 99% compared with the industry's growth of 96.6%. OXY's 2021 earnings are expected to soar 151.4% from the year-ago reported figure. Occidental Petroleum has also witnessed eight northward estimate revisions in the past 60 days. In the third quarter, OXY achieved its divestiture target of $10 billion by inking a deal to sell off its interest in two offshore Ghana assets for $750 million.
PDC Energy is an independent upstream operator dealing in exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, which reached its current status following the January 2020 merger with SRC Energy, is currently the second-largest producer in the Denver-Julesburg Basin. As of 2020 end, PDC Energy's total estimated proved reserves were 731,073 thousand barrels of oil equivalent.
In the past year, shares of PDC Energy have gained 169% compared with the industry's growth of 108.6%. PDCE's earnings for 2021 are expected to surge 273.4% from the prior-year reported figure. In the past 60 days, the Zacks Consensus Estimate for PDC Energy's 2021 earnings has been raised 26.8%. Earnings of PDCE beat the Zacks Consensus Estimate in all the last four quarters, the average being 51.06%.
Phillips 66 (PSX - Free Report) is the leading player in its operations like refining, chemicals and midstream in terms of size, efficiency and strengths. PSX’s operations include processing, transportation, storing, and marketing fuels and products worldwide. Phillips 66 is currently valued at $33.9 billion and offers a quarterly dividend of 92 cents.
PSX is projected to see a year-over-year earnings surge of 532.6% in 2021. It has witnessed three upward revisions in the past 30 days. Phillips 66 beat the Zacks Consensus Estimate three times in the last four quarters and missed once. PSX currently has a Zacks Style Score of A for Value.
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Chevron (CVX) Inks Deal With Equatorial Guinea for Block EG09
Chevron Corporation (CVX - Free Report) recently inked a deal with the government of Equatorial Guinea (EG) for offshore block EG09 in the Douala Basin, near the Cameroon border.
Per the deal, CVX will be run with an 80% stake, the rest being held by GEPetrol, the state-owned oil company. Chevron will implement a work program in collaboration with the government that will pave the way for Block EG09 development.
Considering its closeness to other blocks where large-scale discoveries were made, Block EG09, which was previously explored by South Africa's PetroSA, has the potential to possess significant oil and gas deposits.
Chevron is expected to successfully provide hydrocarbons that will further establish EG as a top African producer with the correct exploration strategy and technology.
CVX joined the country's EG market late last year with the purchase of Noble Energy and has since begun operations via the Alen gas pipeline, which transports output from the offshore Alen field to onshore processing plants.
In April 2019, Noble Energy, currently owned by Chevron, had approved the development of the Alen natural gas project. The Alen field is located at Block O (95%) and Block I (5%), offshore EG and includes a 70-kilometer long pipeline that can carry up to 950 million cubic feet of natural gas equivalent per day (MMcfe/d) from the Alen field, located in the Douala Basin.
The Alen gas project is a major effort toward the country’s planned EG gas mega-hub. The hub aims to use the existing infrastructure and develop a flourishing gas industry in EG, which will facilitate the processing of discovered resources in the country.
San Ramon, CA-based Chevron currently produces oil from its Aseng well in Block I and gas condensate from its Alen field in Block O. Offshore block EG09 lies to the south of Block I.
About Equatorial Guinea
Despite its tiny size, Equatorial Guinea has some of Africa's greatest oil and gas deposits, with gas reserves believed to be 1.5 trillion cubic feet and oil reserves estimated to be 1.1 billion barrels. The government enforced a number of regulatory frameworks to attract investment and accelerate growth to establish the country as a Gas Mega Hub. The agreement with Chevron reinforces this goal by highlighting the country's exploration potential and the role that hydrocarbons will play in boosting economic growth.
Zacks Rank & Key Picks
Chevron currently has a Zack Rank #3 (Hold). Investors interested in the energy sector might look at the following stocks worth considering with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum Corporation (OXY - Free Report) is an integrated oil and gas company with significant exploration and production exposure. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. As of 2020 end, Occidental Petroleum's preliminary worldwide proved reserves totaled 2.91 billion BOE compared with 3.9 billion BOE at the end of 2019.
In the past year, shares of Occidental Petroleum have surged 99% compared with the industry's growth of 96.6%. OXY's 2021 earnings are expected to soar 151.4% from the year-ago reported figure. Occidental Petroleum has also witnessed eight northward estimate revisions in the past 60 days. In the third quarter, OXY achieved its divestiture target of $10 billion by inking a deal to sell off its interest in two offshore Ghana assets for $750 million.
PDC Energy is an independent upstream operator dealing in exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, which reached its current status following the January 2020 merger with SRC Energy, is currently the second-largest producer in the Denver-Julesburg Basin. As of 2020 end, PDC Energy's total estimated proved reserves were 731,073 thousand barrels of oil equivalent.
In the past year, shares of PDC Energy have gained 169% compared with the industry's growth of 108.6%. PDCE's earnings for 2021 are expected to surge 273.4% from the prior-year reported figure. In the past 60 days, the Zacks Consensus Estimate for PDC Energy's 2021 earnings has been raised 26.8%. Earnings of PDCE beat the Zacks Consensus Estimate in all the last four quarters, the average being 51.06%.
Phillips 66 (PSX - Free Report) is the leading player in its operations like refining, chemicals and midstream in terms of size, efficiency and strengths. PSX’s operations include processing, transportation, storing, and marketing fuels and products worldwide. Phillips 66 is currently valued at $33.9 billion and offers a quarterly dividend of 92 cents.
PSX is projected to see a year-over-year earnings surge of 532.6% in 2021. It has witnessed three upward revisions in the past 30 days. Phillips 66 beat the Zacks Consensus Estimate three times in the last four quarters and missed once. PSX currently has a Zacks Style Score of A for Value.