We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BP & Partners Greenlight $2.9 Billion Shah Deniz Gas Field Expansion
Read MoreHide Full Article
Key Takeaways
BP and partners approved a $2.9B investment in the Shah Deniz gas field's compression project.
The project will target low-pressure gas to boost output by 50 bcm and 25 million barrels of condensate.
The move supports BP's strategic shift from renewables to focus on upstream oil and gas.
BP plc (BP - Free Report) , the British energy giant, has announced that the Shah Deniz consortium has reached a final investment decision to invest $2.9 billion toward advancing the development of the Shah Deniz gas field in the Azeri Caspian Sea. The investment will be utilized for the new Shah Deniz Compression project, the next development phase of this gas field.
BP holds operational control of the Shah Deniz project in Azerbaijan. The British energy giant owns a 29.9% stake in the field alongside several other companies, including LUKOIL of Russia, TPAO of Turkey, SGC of Azerbaijan, NICO, and Hungary’s MVM. The expansion project for this field will focus on accessing low-pressure gas reserves in the field and boosting the field’s production capacity. Additionally, this should help the consortium maximize resource recovery from the field.
The expansion of the Shah Deniz field is expected to raise production levels and exports from the field. Notably, the company expects output to increase approximately 50 billion cubic meters of gas and roughly 25 million barrels of condensate over the productive life of the field. In 2024, the field produced 28 billion cubic meters of gas and 35 million barrels of condensate, according to BP. The Shah Deniz field is a major gas-producing field in Azerbaijan that contributes greatly to the energy security in the region.
The new expansion project, which follows two previously implemented development stages, shall enhance production recovery from the field, allowing it to maintain its position as a global energy supplier for several decades. Azerbaijan’s energy supply is highly reliant on mature oilfields in the Caspian Sea. For the next five years, the country intends to keep its oil output at 582 thousand barrels per day by attracting investments from Western energy companies.
BP has maintained its partnership with Azerbaijan for over 30 years. The investment in the Shah Deniz Compression project aligns with BP’s strategic reset (announced in February 2025) to reduce investments in low-carbon and renewable energy solutions while shifting its focus on oil and gas. The company is currently aiming to grow its upstream business and generate increased value for its shareholders.
BP’s Zacks Rank & Key Picks
BP currently carries a Zacks Rank #5 (Strong Sell).
Flotek Industriesspecializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 130,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, ET’s outlook seems positive.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to its shareholders through consistent dividend payments and share buybacks, making it an attractive choice for investors seeking steady returns.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BP & Partners Greenlight $2.9 Billion Shah Deniz Gas Field Expansion
Key Takeaways
BP plc (BP - Free Report) , the British energy giant, has announced that the Shah Deniz consortium has reached a final investment decision to invest $2.9 billion toward advancing the development of the Shah Deniz gas field in the Azeri Caspian Sea. The investment will be utilized for the new Shah Deniz Compression project, the next development phase of this gas field.
BP holds operational control of the Shah Deniz project in Azerbaijan. The British energy giant owns a 29.9% stake in the field alongside several other companies, including LUKOIL of Russia, TPAO of Turkey, SGC of Azerbaijan, NICO, and Hungary’s MVM. The expansion project for this field will focus on accessing low-pressure gas reserves in the field and boosting the field’s production capacity. Additionally, this should help the consortium maximize resource recovery from the field.
The expansion of the Shah Deniz field is expected to raise production levels and exports from the field. Notably, the company expects output to increase approximately 50 billion cubic meters of gas and roughly 25 million barrels of condensate over the productive life of the field. In 2024, the field produced 28 billion cubic meters of gas and 35 million barrels of condensate, according to BP. The Shah Deniz field is a major gas-producing field in Azerbaijan that contributes greatly to the energy security in the region.
The new expansion project, which follows two previously implemented development stages, shall enhance production recovery from the field, allowing it to maintain its position as a global energy supplier for several decades. Azerbaijan’s energy supply is highly reliant on mature oilfields in the Caspian Sea. For the next five years, the country intends to keep its oil output at 582 thousand barrels per day by attracting investments from Western energy companies.
BP has maintained its partnership with Azerbaijan for over 30 years. The investment in the Shah Deniz Compression project aligns with BP’s strategic reset (announced in February 2025) to reduce investments in low-carbon and renewable energy solutions while shifting its focus on oil and gas. The company is currently aiming to grow its upstream business and generate increased value for its shareholders.
BP’s Zacks Rank & Key Picks
BP currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the energy sector are Flotek Industries Inc. (FTK - Free Report) , Energy Transfer (ET - Free Report) and RPC, Inc. (RES - Free Report) . While Flotek Industries sports a Zacks Rank #1 (Strong Buy) at present, Energy Transfer and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Flotek Industriesspecializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 130,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, ET’s outlook seems positive.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to its shareholders through consistent dividend payments and share buybacks, making it an attractive choice for investors seeking steady returns.