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BP Inks New Deal With ADNOC to Develop UAE's Bab Gas Cap Project
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Key Takeaways
BP will take a 10% stake in ADNOC's Bab Gas Cap project, developing the UAE's onshore gas resources.
The project aims to produce up to 1.5 billion cubic feet of natural gas per day for UAE output.
BP will act as asset lead for the Bab Gas Cap project, strengthening its Middle East presence.
BP plc (BP - Free Report) has joined hands with Abu Dhabi's national oil company, ADNOC, and other partners to help develop the Bab Gas Cap project in the United Arab Emirates. As a part of the deal, BP will take a 10% stake in the project. The Bab Gas Cap project plans to develop the extensive gas resources of the onshore Bab field and includes three reservoirs. The Bab field is one of the largest onshore oil fields in Abu Dhabi and contains gas resources along with valuable condensates.
The agreement is significant for BP as it gives the company direct access to upstream natural gas resources in Abu Dhabi for the first time. The project aims to produce up to 1.5 billion cubic feet of natural gas per day, which is expected to support the domestic gas and condensate production in the UAE and strengthen ADNOC’s liquefied natural gas (LNG) exports. Incremental gas supplies from the Bab project are also expected to bolster the UAE’s LNG value chain and support its LNG facilities, including ADNOC’s Ruwais LNG project. The Ruwais LNG project, which comprises two liquefaction trains, is expected to expand ADNOC's LNG export capacity and help meet rising global demand for the fuel.
ADNOC will be the majority stakeholder in the concession, holding a 60% stake in the project. The other partners in the project include BP and TotalEnergies, with a 10% stake each, and CNPC International, INPEX, China ZhenHua Oil and GS Energy, holding 8%, 5%, 4% and 3% stakes, respectively. BP has highlighted that it will act as the asset lead for this project. The signing of this agreement should strengthen BP’s upstream position and contribute to its total gas and liquids production. Furthermore, this deal expands the British energy giant’s presence in the Middle East and adds to its diversified asset portfolio. BP also has a 10% stake in ADNOC Onshore, ADNOC LNG and the Ruwais LNG project.
YPF is a leading integrated energy company in Argentina, with operations spanning the entire oil and gas value chain. As an oil and gas producer, the company has a growing focus on shale development in the Vaca Muerta formation, while also producing conventional oil and natural gas. YPF also operates pipelines and export projects, three wholly-owned refineries, and has a nationwide retail network and petrochemical operations. The company is also expanding into LNG, power and other energy-related businesses to support long-term growth.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low-decline rates, strong permeability and significant untapped reserves. The company’s properties include around 457,700 gross acres on the conventional Shelf, 5,600 gross acres in Alabama State Waters and about 141,900 gross acres in the Deepwater region. Its GoA discoveries should boost future production prospects and are expected to enhance revenues.
FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
View the Zacks #1 Rank List
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BP Inks New Deal With ADNOC to Develop UAE's Bab Gas Cap Project
Key Takeaways
BP plc (BP - Free Report) has joined hands with Abu Dhabi's national oil company, ADNOC, and other partners to help develop the Bab Gas Cap project in the United Arab Emirates. As a part of the deal, BP will take a 10% stake in the project. The Bab Gas Cap project plans to develop the extensive gas resources of the onshore Bab field and includes three reservoirs. The Bab field is one of the largest onshore oil fields in Abu Dhabi and contains gas resources along with valuable condensates.
The agreement is significant for BP as it gives the company direct access to upstream natural gas resources in Abu Dhabi for the first time. The project aims to produce up to 1.5 billion cubic feet of natural gas per day, which is expected to support the domestic gas and condensate production in the UAE and strengthen ADNOC’s liquefied natural gas (LNG) exports. Incremental gas supplies from the Bab project are also expected to bolster the UAE’s LNG value chain and support its LNG facilities, including ADNOC’s Ruwais LNG project. The Ruwais LNG project, which comprises two liquefaction trains, is expected to expand ADNOC's LNG export capacity and help meet rising global demand for the fuel.
ADNOC will be the majority stakeholder in the concession, holding a 60% stake in the project. The other partners in the project include BP and TotalEnergies, with a 10% stake each, and CNPC International, INPEX, China ZhenHua Oil and GS Energy, holding 8%, 5%, 4% and 3% stakes, respectively. BP has highlighted that it will act as the asset lead for this project. The signing of this agreement should strengthen BP’s upstream position and contribute to its total gas and liquids production. Furthermore, this deal expands the British energy giant’s presence in the Middle East and adds to its diversified asset portfolio. BP also has a 10% stake in ADNOC Onshore, ADNOC LNG and the Ruwais LNG project.
BP’s Zacks Rank and Key Picks
BP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are YPF Sociedad Anonima (YPF - Free Report) , W&T Offshore (WTI - Free Report) and FuelCell Energy (FCEL - Free Report) . While YPF sports a Zacks Rank #1 (Strong Buy), W&T Offshore and FuelCell Energy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
YPF is a leading integrated energy company in Argentina, with operations spanning the entire oil and gas value chain. As an oil and gas producer, the company has a growing focus on shale development in the Vaca Muerta formation, while also producing conventional oil and natural gas. YPF also operates pipelines and export projects, three wholly-owned refineries, and has a nationwide retail network and petrochemical operations. The company is also expanding into LNG, power and other energy-related businesses to support long-term growth.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low-decline rates, strong permeability and significant untapped reserves. The company’s properties include around 457,700 gross acres on the conventional Shelf, 5,600 gross acres in Alabama State Waters and about 141,900 gross acres in the Deepwater region. Its GoA discoveries should boost future production prospects and are expected to enhance revenues.
FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.