BP to Market Crude From Guyana's Offshore Production Platforms

BP plc BP received a contract to market Guyana’s share of crude oil produced from two massive offshore production platforms over the next year.

The company will market Guyana’s share produced from the Liza Destiny and Liza Unity platforms at no charge per barrel, per the Ministry of Natural Resources. BP replaced a Saudi Aramco trading unit that held the contract earlier.

Guyana is one of the hottest sources of oil and gas, with about 11 billion barrels discovered so far. A consortium managing the country’s crude production expects to extract 1.2 million barrels per day (bpd) by 2027, up from the prior stated 380,000 bpd at the year-end.

Per the contract, BP will be responsible for marketing, evaluating regional and global demand centers, selecting customers and making suitable transport arrangements. The company will provide support to customers in all operating and back-office responsibilities for managing crude sales.

Additionally, BP is expected to enhance timely and cost-efficient crude oil operations and support customers in the continued introduction of the grade to multiple geographies and refinery systems. The energy giant will also provide benchmark and performance comparisons, and help the government understand the behavior and yields of the Liza blend.

BP outperformed 13 other companies to take responsibility as a marketing agent. The government of Guyana will continue to employ apparent and innovative practices to manage the nation’s hydrocarbon resources to attain maximum returns and improve the livelihoods of all citizens. The government recently cited that it would auction 14 offshore blocks to increase production by adding more oil producers.

Price Performance

Shares of BP have outperformed the industry in the past six months. The stock has gained 8.3% compared with the industry's 5.9% growth.


Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research


Zacks Rank & Key Picks

BP currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Marathon Petroleum Corporation MPC is a leading independent refiner, transporter and marketer of petroleum products. MPC’s third-quarter 2022 adjusted earnings per share of $7.81 beat the Zacks Consensus Estimate of $6.80.

In October, Marathon Petroleum completed its target to buy back $15 billion in common stock. MPC has a remaining authorization of $5 billion with no expiration date.

Halliburton Company HAL is one of the largest oilfield service providers in the world. HAL’s third-quarter 2022 adjusted net income per share of 60 cents surpassed the Zacks Consensus Estimate of 56 cents.

Halliburton anticipates international activity to gain momentum throughout the globe. The company’s state-of-the-art portfolio, selective contract wins and balanced geographic mix will help maximize profit from the upcycle. As far as North America is concerned, HAL sees continued revenue growth in a tight market.

Patterson-UTI Energy PTEN is one of the largest North America land drilling contractors, having a large, high-quality fleet of drilling rigs. PTEN’s third-quarter 2022 adjusted net profit of 28 cents per share beat the Zacks Consensus Estimate of 19 cents.

Patterson-UTI is expected to see an earnings surge of 128% in 2022. The company doubled its quarterly cash dividend to 8 cents per share from the previous 4-cent payout. The dividend will be paid out on Dec 15, 2022, to shareholders of record as of Dec 1, 2022. PTEN also increased its share repurchase authorization to $300 million.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Halliburton Company (HAL) : Free Stock Analysis Report

PattersonUTI Energy, Inc. (PTEN) : Free Stock Analysis Report

Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research