BP plc (BP - Free Report) ), the UK-headquartered energy giant, achieved a milestone in its biggest gas project to date with the arrival of a floating production, storage, and offloading (“FPSO”) vessel. The vessel, a crucial component of the Greater Tortue Ahmeyim (“GTA”) Phase 1 liquefied natural gas (LNG) development project, has completed its journey from China to the coasts of Mauritania and Senegal. This brought BP closer to commencing gas production, slated for the third quarter of 2024.
The FPSO Tortue began its voyage on Jan 20, 2023, from Qidong, China, where it was constructed at the Cosco Shipping Heavy Industry for more than three and a half years. Following a series of sea trials, the vessel traveled over 12,000 nautical miles, stopping at Tenerife Shipyards in the Canary Islands for inspections and repairs, before reaching its destination. Currently, the FPSO is being moored 40 kilometers offshore in 120 meters of water.
The GTA Phase 1 project has been designed to extract gas from an ultra-deepwater subsea system and process it using the mid-water FPSO Tortue. The processed gas, after removal of heavier hydrocarbon components, will be transferred to Golar LNG’s floating LNG ("FLNG") vessel, Gimi, which arrived at the maritime border of Mauritania and Senegal in early 2024.
Dave Campbell, BP’s senior vice president in Mauritania and Senegal, highlighted the importance of the project. He emphasized the company’s commitment to investing in both present and future energy systems, with GTA Phase 1 serving as a tangible demonstration of this commitment. Campbell praised the safe arrival and installation of the FPSO vessel, attributing its success to the resilience, skills, teamwork and considerable effort of all partners involved.
The GTA Phase 1 development is expected to produce 2.3 million tons of LNG annually for more than 20 years, marking it as the first gas development in this new basin offshore Mauritania and Senegal. With subsea wells at depths of up to 2,850 meters, the project features the deepest subsea infrastructure in Africa and has been declared a national project of strategic importance by the presidents of the aforementioned countries.
The FPSO is expected to process more than 500 million standard cubic feet of gas per day, removing water, condensate and impurities before transferring the gas via pipeline to the FLNG vessel at the Hub Terminal, approximately 10 kilometers offshore. The gas will then be cryogenically cooled, liquefied and stored at the FLNG Gimi before being exported. Some of the gas should meet the growing demand in the host countries.
The FPSO Tortue is an engineering marvel, constructed using more than 81,000 tons of steel, 37,000 meters of pipe spools and 1.52 million meters of cable. The vessel can house up to 140 people during normal operations.
With the FPSO’s arrival, BP is positioned to make significant progress in the GTA project, signaling a fresh phase of energy production and economic advancement for Mauritania and Senegal.
Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Investors interested in theenergysector may look at some better-ranked stocks like Archrock Inc. (MPC - Free Report) , SM Energy Company (SM - Free Report) and Sunoco LP(SUN - Free Report) . While Archrock and SM Energy currently sport a Zacks Rank #1 (Strong Buy) each, Sunoco carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.07. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $6.63. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $5.15 and $4.48, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past seven days.
