BP plc. (BP - Free Report) recently announced that the company has commenced production from the Angelin development, located 60 kilometres off the south-east coast of Trinidad and Tobago. The commencement of natural gas production from the development was on schedule and within budget. The Angelin development was originally discovered in 1995 through the El Diablo well and sanctioned in mid-2017.
The site is located at a water depth of around 65 meters. The present production structure includes the new Angelin platform and four wells. Peak production from the site is expected at 50,000 barrels of oil equivalent per day. Notably, the Angelin platform marks the company’s 15th installation offshore Trinidad and Tobago. The platform was created in Altamira, Mexico and reached the production site in August 2018. It has a 600-million standard cubic feet per day of production capacity. Natural gas from the production site is transported to the Serrette hub through a 21-kilometer pipeline.
The beginning of natural gas production from the site is well within two years following the sanction, which marks the company’s project execution prowess. Also, it is the company’s third major upstream project start-up this year. BP kick started two natural gas projects in the country in 2017, namely Juniper and Trinidad Onshore Compression. It has plans to develop two new projects, Cassia Compression and Matapal, which are anticipated to come online in 2021 and 2022, respectively.
The company’s plans to add two more key upstream projects through 2019 — Culzean development in U.K. North Sea and the third phase of West Nile Delta project — are on track. All these upstream projects that are either placed on production or yet to start producing will likely help BP boost output by 900 thousand barrel of oil equivalent per day within 2021.
Notably, the London-based integrated energy company has a strong portfolio of upstream projects that has been backing its impressive production growth. Since 2016, BP has placed more than 20 key upstream projects online. All the key projects delivered by BP over the years have backed the company to achieve record production levels.
Zacks Rank and Stocks to Consider
Currently, BP carries a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks as given below:
Austin, TX-based Jones Energy, Inc. is an exploration and production company. For 2019, its bottom line, which has witnessed one upside revision over the past 60 days, is expected to grow 19% year over year. The company currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Madrid, Spain-based Repsol, S.A. (REPYY - Free Report) is an integrated energy company. Its bottom line for 2019 is expected to increase 13.7% year over year. The company delivered average positive earnings surprise of 9% in the trailing four quarters. The stock currently has a Zacks Rank #2.
Enbridge Inc. (ENB - Free Report) is a Calgary, Canada-based energy infrastructure provider. The company delivered average positive earnings surprise of 33.2% in the trailing four quarters. It currently has a Zacks Rank #2.
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