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BP & Reliance Industries To Revive NEC-25 Gas Block Plan

Published 09/07/2017, 09:01 PM
Updated 07/09/2023, 06:31 AM
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As per Bloomberg, oil major BP (LON:BP) Plc (NYSE:BP) is working with Reliance Industries of India to make fresh investments for the development of a gas block, located off the coast of Bay of Bengal.

The NEC-OSN-97/2 block is located near a military missile launching center in Chandipur. As a result, India’s defense minister raised an objection which had hurt activities in the block to some extent.

However, the companies are now discussing technical aspects related to the block development with the oil regulators of India. In fact, to come up with a final investment plan, they are assessing the reservoirs as well.

In June 2017, BP and Reliance Industries came out with a combined investment plan of $6 billion for developing the D6 gas field. The offshore field, which is located in the Krishna-Godavari basin, is on the south of the NEC-25 gas block.

According to the Directorate General of Hydrocarbons, these investment plans will significantly increase natural gas production in India in the next five years.

Headquartered in London, BP is one of the largest integrated energy firms in the world with a strong and diversified portfolio of development projects.

However, the company lost 5% year to date as compared with the 3.5% decline of its industry.

BP currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.

A few better-ranked players in the energy sector are TransCanada Corporation (TO:TRP) , Transmontaigne Partners LP (NYSE:TLP) and Range Resources Corporation (NYSE:RRC) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Calgary, Canada, TransCanada is a midstream energy firm in North America. The company posted an average positive earnings surprise of 4.06% over the last four quarters.

Transmontaigne — headquartered in Denver, CO — is involved in the transportation and storage of refined petroleum products. The firm recorded an average positive earnings surprise of 6.60% over the last four quarters.

Based in Fort Worth, TX, Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of U.S. oil and gas resources. The company’s 2017 earnings are estimated to grow 116.5%.

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BP p.l.c. (BP): Free Stock Analysis Report

TransMontaigne Partners L.P. (TLP): Free Stock Analysis Report

TransCanada Corporation (TRP): Free Stock Analysis Report

Range Resources Corporation (RRC): Free Stock Analysis Report

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