BP's Interest In Culzean Field Development Rises By Twofold

Oil giant BP plc (LON:BP) (NYSE:BP) has increased its stake by twofold in the Maersk Oil-operated Culzean high-pressure high-temperature development in the UK Central North Sea, following the acquisition of an additional 16% interest from JX Nippon Exploration & Production.

As a result of this acquisition, BP’s interest in the development has augmented to 32% from 16%. The Culzean field development was approved at the end of Aug 2015. It is estimated to produce adequate gas to meet 5% of total UK demand at peak production from 2020−21.

The gas condensate field, discovered in 2008, is scheduled to come online in 2019. The field’s production life is projected to continue into the 2030s. During its plateau, it is estimated to produce 60,000−90,000 barrels of oil equivalent per day. The field is expected to hold reserves of about 250−300 million barrels of oil equivalent.

The latest acquisition reiterates BP’s focus on sustaining and expanding its operations in the North Sea for the long term. The region forms an important part of the company’s portfolio. BP, along with its co-venturers, is in the middle of a five-year 7 billion pound investment program in the North Sea. This includes major projects in the Central North Sea and Shetland area.

BP continues to invest in its major projects west of Shetland – Clair Ridge and Quad 204 – both of which are expected to bring vital new oil into production. Considerable investments are also being made by the company to ensure reliability and integrity of existing assets through an extensive renewal programme.

Currently, BP carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and gas sector include CVR Refining, LP (NYSE:CVRR) , Transocean Partners LLC (NYSE:RIGP) and Braskem S.A. (NYSE:BAK) . All these stocks sport a Zacks Rank #1 (Strong Buy).



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