BP plc (BP Quick QuoteBP - Free Report) initiated the drilling of the first oil production well from the newly established Azeri Central East (“ACE”) platform, located in the Azeri sector of the Caspian Sea.

The ACE project, with a budget of $6 billion, represents the next expansion phase of the extensive Azeri-Chirag-Gunashli (“ACG”) field in the Caspian Sea. The well is anticipated to reach up to 3,188 meters, with the drilling process expected to span three months.

ACE constitutes a platform featuring 48 slots dedicated to production, drilling and quarters. Positioned midway between the pre-existing Central Azeri and East Azeri platforms, it is situated in the Caspian Sea at a water depth of 137 meters.

As part of the project, newly installed infield pipelines have been incorporated to transfer oil and gas from the ACE platform. The pipelines connect to the established ACG Phase 2 oil and gas export pipelines, optimizing the transportation process and directing resources toward the onshore Sangachal terminal.

Furthermore, a water injection pipeline has been established connecting the East Azeri and ACE platforms, ensuring a supply of injection water from the Central Azeri compression and water injection platform to the ACE facilities.

The ACE platform, along with its associated facilities, is designed to handle a processing capacity of up to 100,000 barrels of oil per day. Over its operational lifespan, the project is anticipated to yield a production of up to 300 million barrels.

The milestone follows the successful and secure completion of all offshore hook-up, installation and commissioning activities associated with the ACE topsides unit. The topsides unit had been transported from the Bayil fabrication yard in August 2023.

Sanctioned in April 2019, the ACE project marked a milestone as the initial major investment decision undertaken by the ACG partnership. This decision closely followed the extension of the ACG Production Sharing Agreement (PSA) to 2049, a consensus reached in 2017. The latest achievement allows BP to meet its first oil production target for ACE and deliver it in early 2024.

Zacks Rank & Stocks to Consider

BP currently carries a Zack Rank #3 (Hold).

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

EOG Resources (EOG Quick QuoteEOG - Free Report) boasts an appealing growth profile, delivers upper-quartile returns and is guided by a disciplined management team.

EOG Resources has a strong focus on returning capital to shareholders. From 1999 through 2024, the company is committed to raising its regular dividend at a compound annual growth rate of 21%. EOG has never suspended or lowered its dividend, even during business turmoil, reflecting solid underlying business.

Liberty Energy (LBRT Quick QuoteLBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America.

Liberty’s board of directors announced a cash dividend of seven cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend reflects a 40% rise from the previous quarter’s level. As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.

PBF Energy Inc. (PBF Quick QuotePBF - Free Report) has one of the most complex refining systems in the United States, boasting a high Nelson Complexity Index of 12.7.

Compared with composite stocks belonging to the industry, the leading upstream energy company’s debt-to-capitalization ratio has been consistently lower over the past few years. The company boasts a robust liquidity position, with a cash balance of $1.9 billion, which is more than sufficient to cover its long-term debt of $1.2 billion. This underscores the company’s strong financial liquidity.