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TotalEnergies (TTE), SOCAR Start Production in Absheron Gas Field
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TotalEnergies SE (TTE - Free Report) and its partner SOCAR (State Oil Company of the Republic of Azerbaijan) commenced the production of the first development phase of the Absheron gas and condensate field in the Caspian Sea, around 100 kilometers south-east of Baku.
This accomplishment symbolizes the linking of a subsea production well to a new gas processing platform, which is connected to SOCAR's current Oil Rocks facilities.
Equal shares of TotalEnergies and SOCAR are invested in this project, operated by Joint Operating Company of Absheron Petroleum.
Rationale Behind the Production
The first stage of development is expected to result in a production capacity of 4 million cubic meters of gas per day and 12,000 barrels a day of condensate. The gas will be supplied to the domestic market in Azerbaijan.
The launch of the Absheron gas field highlights TotalEnergies’ commitment to meet the rising gas demand at affordable technical costs, with minimal greenhouse gas emissions.
The partnership between TTE and SOCAR represents a significant step in realizing the Absheron offshore field's potential, adding to Azerbaijan's energy supply and meeting the country's rising gas demand.
Growth Prospects
Per a report published by the U.S. Energy Information Administration in 2021, Azerbaijan increased its production of natural gas by 36% or more than 200 billion cubic feet during 2017-2019.
The Azerbaijan oil and gas upstream market is projected to witness a CAGR of 1.5% between 2023 and 2027, per a recent report published by the Mordor Intelligence firm.
Such growth prospects offer solid expansion opportunities for oil and gas companies like TotalEnergies, Chevron Corporation (CVX - Free Report) , Williams Company, Inc. (WMB - Free Report) and BP Plc (BP - Free Report) . These companies are adopting measures to increase natural gas production, as discussed below.
In February 2023, Chevron and Williams Company collaborated to increase natural gas production in the deepwater Gulf of Mexico and the Haynesville Basin. Under the agreement, Williams will offer natural gas gathering services to Chevron's Haynesville dedication.
In turn, Chevron made a long-term capacity commitment on Williams' Louisiana Energy Gateway project. This project is designed to facilitate the transportation of natural gas to premium markets.
In the deepwater Gulf of Mexico, Chevron is the operator of the Ballymore project with a 60% working interest. This project involves three production wells with design capacity of 75,000 barrels of crude oil per day.
Williams will provide offshore natural gas gathering and crude oil transportation services as well as onshore natural gas processing services for this project.
BP has a handful of gas producing projects that are currently in construction. For example, GTA1 is the first phase of the Greater Tortue Ahmeyim project, which will produce gas from an ultra-deepwater subsea system and mid-water floating production, storage and offloading vessel. Its KG D6 MJ project will develop a total of about 3 trillion cubic feet of discovered gas resources, which will be exported to the onshore terminal.
CVX’s (three to five years) long term earnings growth rate is 14.3%. It delivered an average earnings surprise of 7.67% in the last four quarters.
WMB’s long-term earnings growth rate is 3.5%. The Zacks Consensus Estimate for WMB’s 2023 sales indicates a year-over-year increase of 8.6%.
BP’s long-term earnings growth rate is 6.5%. It delivered an average earnings surprise of 18.33% in the last four quarters.
Price Performance
In the past three months, shares of TotalEnergies have lost 12% compared with the industry’s 31% decline.
Image Source: Zacks Investment Research
Zacks Rank
TotalEnergies currently carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
TotalEnergies (TTE), SOCAR Start Production in Absheron Gas Field
TotalEnergies SE (TTE - Free Report) and its partner SOCAR (State Oil Company of the Republic of Azerbaijan) commenced the production of the first development phase of the Absheron gas and condensate field in the Caspian Sea, around 100 kilometers south-east of Baku.
This accomplishment symbolizes the linking of a subsea production well to a new gas processing platform, which is connected to SOCAR's current Oil Rocks facilities.
Equal shares of TotalEnergies and SOCAR are invested in this project, operated by Joint Operating Company of Absheron Petroleum.
Rationale Behind the Production
The first stage of development is expected to result in a production capacity of 4 million cubic meters of gas per day and 12,000 barrels a day of condensate. The gas will be supplied to the domestic market in Azerbaijan.
The launch of the Absheron gas field highlights TotalEnergies’ commitment to meet the rising gas demand at affordable technical costs, with minimal greenhouse gas emissions.
The partnership between TTE and SOCAR represents a significant step in realizing the Absheron offshore field's potential, adding to Azerbaijan's energy supply and meeting the country's rising gas demand.
Growth Prospects
Per a report published by the U.S. Energy Information Administration in 2021, Azerbaijan increased its production of natural gas by 36% or more than 200 billion cubic feet during 2017-2019.
The Azerbaijan oil and gas upstream market is projected to witness a CAGR of 1.5% between 2023 and 2027, per a recent report published by the Mordor Intelligence firm.
Such growth prospects offer solid expansion opportunities for oil and gas companies like TotalEnergies, Chevron Corporation (CVX - Free Report) , Williams Company, Inc. (WMB - Free Report) and BP Plc (BP - Free Report) . These companies are adopting measures to increase natural gas production, as discussed below.
In February 2023, Chevron and Williams Company collaborated to increase natural gas production in the deepwater Gulf of Mexico and the Haynesville Basin. Under the agreement, Williams will offer natural gas gathering services to Chevron's Haynesville dedication.
In turn, Chevron made a long-term capacity commitment on Williams' Louisiana Energy Gateway project. This project is designed to facilitate the transportation of natural gas to premium markets.
In the deepwater Gulf of Mexico, Chevron is the operator of the Ballymore project with a 60% working interest. This project involves three production wells with design capacity of 75,000 barrels of crude oil per day.
Williams will provide offshore natural gas gathering and crude oil transportation services as well as onshore natural gas processing services for this project.
BP has a handful of gas producing projects that are currently in construction. For example, GTA1 is the first phase of the Greater Tortue Ahmeyim project, which will produce gas from an ultra-deepwater subsea system and mid-water floating production, storage and offloading vessel. Its KG D6 MJ project will develop a total of about 3 trillion cubic feet of discovered gas resources, which will be exported to the onshore terminal.
CVX’s (three to five years) long term earnings growth rate is 14.3%. It delivered an average earnings surprise of 7.67% in the last four quarters.
WMB’s long-term earnings growth rate is 3.5%. The Zacks Consensus Estimate for WMB’s 2023 sales indicates a year-over-year increase of 8.6%.
BP’s long-term earnings growth rate is 6.5%. It delivered an average earnings surprise of 18.33% in the last four quarters.
Price Performance
In the past three months, shares of TotalEnergies have lost 12% compared with the industry’s 31% decline.
Image Source: Zacks Investment Research
Zacks Rank
TotalEnergies currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.