BP plc (BP - Free Report) commenced production at the Clair Ridge oil field in the U.K. North Sea. The field is considered as one of the country's biggest new oil developments in decades. The company anticipates production to peak at 120,000 barrels of oil per day.
Located 75 kilometers (47 miles) west of Shetlands, the Clair Ridge project represents the second phase of the Clair field. The first phase commenced production in 2005, while the third phase is under evaluation. Discovered in 1977, Clair is expected to produce for the next four decades. The project is estimated to hold recoverable volumes of 640 million barrels of oil.
Besides, two bridge-linked platforms, the Clair Ridge project will comprise a new oil and gas pipeline linked to the Clair export pipeline. The pipeline will be used to export oil to the onshore Sullom Voe terminal.
The other partners in the field include Royal Dutch Shell plc (RDS.A - Free Report) , Chevron Corporation (CVX - Free Report) and ConocoPhillips (COP - Free Report) . The partners spent seven years and more than $5.8 billion to enhance the field’s output.
In 2018, Clair Ridge is BP’s sixth major start-up subsequent to seven in 2017. These new projects are anticipated to boost the company’s production by 900,000 barrels of oil equivalent (boe) per day by 2021. In 2017, BP sold stakes in several fields. Therefore, Clair Ridge is one of BP’s vital assets.
Additionally, over the next five years, BP intends to invest $1 billion in South Africa. Of the amount, more than 25% will be allocated to upgrade the SAPREF refinery, which will produce lower sulfur diesel.
Currently, BP has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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