BP plc BP, the British energy major, has signed a Production Sharing Agreement (“PSA”) with Trinidad and Tobago in the shallow water block NCMA 2. BP’s subsidiary won an offshore bidding round hosted by Trinidad and Tobago last year. The agreement allows for the exploration and production of natural gas in the shallow water block.
The PSA is aimed at increasing the country's natural gas output to boost the supply of its liquefied natural gas (LNG) facilities. Trinidad and Tobago’s natural gas supply has been dwindling in recent years, and as such, the country is struggling to increase output to feed its LNG facilities. The country’s Ministry of Energy and Energy Industries is actively promoting exploration and production activities in the upstream segment by marketing available concessions to attract investments.
Block NCMA 2 lies in the North Coast Marine Area of Trinidad. The water depth at the site is approximately 200 meters. This is the second agreement signed by Trinidad and Tobago to increase the country's natural gas output. The first agreement was signed in September 2024 with Shell plc for the Modified U(c) block. This block attracted the maximum attention among the 13 areas presented in the shallow water auction by the Caribbean country last year.
BP’s Zacks Rank and Key Picks
Currently, BP carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Smart Sand, Inc. SND, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
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