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BP's FPSO Vessel Departs From China to its Final Destination

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BP plc (BP - Free Report) announced that its floating production, storage and offloading (“FPSO”) vessel for the Greater Tortue Ahmeyim (“GTA”) liquefied natural gas (“LNG”) project departed from Qidong in China.

The FPSO vessel will cover 12,000 nautical miles to the project offshore Mauritania and Senegal. It is expected to arrive in the second quarter of 2023.

The FPSO is a crucial component of one of the world’s most innovative gas projects, the GTA development. The GTA development includes subsea development of gas fields and near-shore floating LNG facilities. The project’s first phase is expected to produce 2.3 million tons of LNG each year.

The FPSO will produce around 500 million standard cubic feet of gas per day with eight processing and production modules. The FPSO will process natural gas by removing condensate, water and other impurities.

After that, the gas will be exported to the project’s offshore floating LNG facilities. Most of the gas will be liquefied by the floating LNG facilities, allowing export to international markets. Some are allocated to help meet the rising demand in Mauritania and Senegal.

Regarding BP’s recent activities in Mauritania, the company signed an exploration and production sharing contract last year for the BirAllah gas resource. It also signed a memorandum of understanding with the Mauritania government for large-scale production of green hydrogen in the country. BP and partners continue progressing on the proposed Yakaar-Teranga gas-to-power project offshore Senegal. 

The FPSO departure is an important milestone for the GTA project, which is the epitome of BP’s strong hydrocarbon strategy. With the constant support of its partners, BP remains committed to helping Mauritania and Senegal to develop their world-class resources sustainably.

Price Performance

Shares of BP have outperformed the industry in the past six months. The stock has gained 26.5% compared with the industry’s 22.9% growth.


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Zacks Rank & Other Key Picks

BP currently carries a Zack Rank #2 (Buy).

Investors interested in the energy sector might look at the following companies that also presently carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Eni SpA (E - Free Report) , based in Rome, Italy, is among the leading integrated energy players in the world. Eni’s third-quarter adjusted earnings from continuing operations of $2.14 per American Depository Receipt beat the Zacks Consensus Estimate of $2.04.

Eni is expected to see an earnings rise of 179.6% for 2022. Eni raised its share buyback after profits surged amid rising oil and natural gas prices. The company increased its share buyback program to an annual total of €2.4 billion.

Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. OII’s third-quarter 2022 adjusted profit of 23 cents per share beat the Zacks Consensus Estimate of 13 cents.

OII is expected to see an earnings rise of 82.4% for 2022. For 2022, Oceaneering projects consolidated EBITDA of $215-$240 million and continued significant free cash flow generation of $25-$75 million.

Phillips 66 (PSX - Free Report) is the leading player in each of its operations, including refining, chemicals and midstream, in terms of size, efficiency and strengths. PSX’s third-quarter 2022 adjusted earnings per share of $6.46 beat the Zacks Consensus Estimate of $4.98.

PSX is expected to see an earnings rise of 241.2% in 2022. Phillips 66’s board of directors authorized a $5-billion increase to its stock repurchase program, bringing the total share repurchases authorized since 2012 to $20 billion. This reflects Phillips 66’s strong focus on returning capital to stockholders.

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