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BP Divests Trinidad Assets, Refocuses on Shallow and Deepwater Gas
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BP plc (BP - Free Report) has entered into a deal to sell four mature gas fields and undeveloped resources in Trinidad and Tobago to Perenco T&T. This move is part of BP’s strategy to redirect its operations toward shallow water, deepwater and cross-border gas projects in the region.
BP Divests Mature Assets to Perenco T&T
BP Trinidad and Tobago (“BPTT”), a subsidiary of BP, has agreed to sell its Immortelle, Flamboyant, Amherstia and Cashima gas fields to Perenco T&T. These assets, which have been operational since the 1990s and early 2000s, currently produce around 30,000 barrels of oil equivalent per day. The sale also includes undeveloped resources from the Parang field, discovered in 1968.
As part of the deal, BP will continue purchasing gas from these fields to meet its contractual obligations. The transfer of ownership and operatorship is expected to be completed by the end of 2024.
BP's High-Grading Strategy in Trinidad and Tobago
This divestment aligns with BP’s broader strategy to high-grade its portfolio by focusing on new growth areas in Trinidad and Tobago. David Campbell, president of BPTT, emphasized that this transaction would allow BP to concentrate on shallow water developments, as well as deeper and cross-border gas opportunities.
Campbell emphasized that this move aligns with BP's goal to boost gas production, drive value and support Trinidad and Tobago's energy future. The shift toward new gas projects reflects BP's strategy to streamline operations and enhance value.
For Perenco, the buyout of these assets represents a significant expansion of its presence in Trinidad and Tobago. Perenco’s CEO, Armel Simondin, highlighted that the company plans to apply its expertise in mature field operations to extend the life and production potential of the newly acquired fields.
Perenco entered the Trinidad market in 2016 and has since become a notable gas supplier for the domestic market. The acquisition further solidifies the company’s role in supporting Trinidad and Tobago’s energy security.
BP Eyes Future Gas Growth
BP’s disposal of mature assets is part of a series of moves aimed at optimizing its Trinidad portfolio. In 2023, BP, in partnership with Shell, secured three deepwater blocks and participated in a 2024 shallow-water bid round. Additionally, BP was granted a license for the Cocuina field in Venezuela, marking a step toward the development of the cross-border Manakin-Cocuina gas field.
BP has also formed a joint venture with EOG Resources, Inc. (EOG - Free Report) for the development of the Coconut field, with the first gas expected in late 2026. This project, along with other planned developments, reflects BP’s commitment to growing its gas business in Trinidad and Tobago.
MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.29. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
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BP Divests Trinidad Assets, Refocuses on Shallow and Deepwater Gas
BP plc (BP - Free Report) has entered into a deal to sell four mature gas fields and undeveloped resources in Trinidad and Tobago to Perenco T&T. This move is part of BP’s strategy to redirect its operations toward shallow water, deepwater and cross-border gas projects in the region.
BP Divests Mature Assets to Perenco T&T
BP Trinidad and Tobago (“BPTT”), a subsidiary of BP, has agreed to sell its Immortelle, Flamboyant, Amherstia and Cashima gas fields to Perenco T&T. These assets, which have been operational since the 1990s and early 2000s, currently produce around 30,000 barrels of oil equivalent per day. The sale also includes undeveloped resources from the Parang field, discovered in 1968.
As part of the deal, BP will continue purchasing gas from these fields to meet its contractual obligations. The transfer of ownership and operatorship is expected to be completed by the end of 2024.
BP's High-Grading Strategy in Trinidad and Tobago
This divestment aligns with BP’s broader strategy to high-grade its portfolio by focusing on new growth areas in Trinidad and Tobago. David Campbell, president of BPTT, emphasized that this transaction would allow BP to concentrate on shallow water developments, as well as deeper and cross-border gas opportunities.
Campbell emphasized that this move aligns with BP's goal to boost gas production, drive value and support Trinidad and Tobago's energy future. The shift toward new gas projects reflects BP's strategy to streamline operations and enhance value.
For Perenco, the buyout of these assets represents a significant expansion of its presence in Trinidad and Tobago. Perenco’s CEO, Armel Simondin, highlighted that the company plans to apply its expertise in mature field operations to extend the life and production potential of the newly acquired fields.
Perenco entered the Trinidad market in 2016 and has since become a notable gas supplier for the domestic market. The acquisition further solidifies the company’s role in supporting Trinidad and Tobago’s energy security.
BP Eyes Future Gas Growth
BP’s disposal of mature assets is part of a series of moves aimed at optimizing its Trinidad portfolio. In 2023, BP, in partnership with Shell, secured three deepwater blocks and participated in a 2024 shallow-water bid round. Additionally, BP was granted a license for the Cocuina field in Venezuela, marking a step toward the development of the cross-border Manakin-Cocuina gas field.
BP has also formed a joint venture with EOG Resources, Inc. (EOG - Free Report) for the development of the Coconut field, with the first gas expected in late 2026. This project, along with other planned developments, reflects BP’s commitment to growing its gas business in Trinidad and Tobago.
BP’s Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at a couple of better-ranked stocks like MPLX LP (MPLX - Free Report) and Core Laboratories Inc. (CLB - Free Report) . While MPLX currently sports a Zacks Rank #1 (Strong Buy), Core Laboratories carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.29. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Zacks Style Score of B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.