Yesterday, 4:55 AM
- BP is shipping almost 3M barrels of U.S. crude to customers across Asia, pioneering a lengthy and complex operation likely to become more popular after OPEC last week announced deep production cuts.
- Using its global shipping and trading network, BP was able to grapple with U.S. port limitations and the need to transfer oil between ships off Malaysia to split up cargoes, according to sources in Thomson Reuters Eikon.
Tue, Dec. 6, 2:57 PM
- BP has the highest exposure in the countries that have said they will cut oil production, Rystad Energy says, with the likely participation of Russia, where BP holds a 20% stake in Rosneft (OTC:RNFTF), puts it ahead of rivals Total (NYSE:TOT), Shell (RDS.A, RDS.B), ExxonMobil (NYSE:XOM), Eni (NYSE:E) and Chevron (NYSE:CVX).
- “If Russia should deliver on their production cut, we believe that the fields operated by Rosneft will be affected,” Rystad's Espen Erlingsen says. "Also in Iraq, the government will need to reduce production from the large Basra fields. Here the BP-operated Rumaila is a likely candidate for cuts.”
- BP has ~1.6M bbl/day of production in the affected countries, with Russia accounting for roughly half the total, according to the Rystad analysis; Total has ~700K bbl/day of output in the countries, Shell has 586K bbl/day, followed by XOM with 563K, Eni with 497K, and CVX 194K.
Mon, Dec. 5, 7:17 PM
- In addition to Pemex's farmout of the Gulf of Mexico's potentially lucrative Trion oil field to BHP Billiton, beating out BP, today's final phase of Mexico’s first oil and gas bid round awarded of eight of 10 deepwater blocks in the Gulf to a variety of global operators.
- In four other areas surrounding Trion in the Perdido Fold Belt, areas 1 and 4 went to China's Cnooc (NYSE:CEO), area 2 to a consortium of Total (NYSE:TOT) and ExxonMobil (NYSE:XOM), and area 3 to a group comprising Chevron (NYSE:CVX), Pemex and Inpex.
- In the Salina basin to the south, areas 1 and 3 went to a consortium of Statoil (NYSE:STO), BP and Total (TOT), area 4 to Sierra Offshore and a Mexican entity, and Area 5 to a group led by Murphy Oil (NYSE:MUR) and Sierra Offshore; areas 2 and 6 received no bids.
- CEO, STO and Pemex each submitted individual bids that did not win an award, while consortia that unsuccessfully submitted bids were Eni (NYSE:E) and Lukoil (OTC:LUKOF, OTCPK:LUKOY), and Royal Dutch Shell (RDS.A, RDS.B) and Atlantic Rim Mexico.
Mon, Dec. 5, 12:23 PM
- BHP Billiton (BHP +1.2%) wins the bidding to partner with Mexican state oil company Pemex to develop the potentially lucrative Trion deepwater oil field in the Gulf of Mexico, outbidding BP (BP +0.6%), the only other company that participated, with a $624M offer.
- The competition marks the first time Pemex will join forces with a private company to drill since Mexico’s 2013 opening of the oil industry; BHP will own 60% of the project to Pemex's 40%.
- The Trion field was discovered in 2012 and is thought to contain ~485M barrels of commercial reserves; Pemex CEO José Antonio González Anaya has said the field should produce ~120K bbl/day by 2025.
- Bids for 10 other deepwater blocks up for auction are due to be opened later today.
Mon, Dec. 5, 10:47 AM
- BP (BP +0.4%) says it has acquired Repsol's (OTCQX:REPYF, OTCQX:REPYY) 3.06% stake in the Tangguh liquefied natural gas project in Indonesia for $313M.
- The purchase lifts operator BP's stake in the Tangguh plant, which processes 7.6M metric tons/year of lNG, to a little more than 40%.
- In June BP gave the go-ahead for the $8B expansion of Tangguh's third LNG train.
Mon, Dec. 5, 3:35 AM
- In a highly anticipated opening to foreign oil companies, Mexico will hold its first auction of deepwater oil and gas blocks today.
- The waters are believed to hold important energy reserves, but Mexico's longtime national oil company Pemex, does not have the capital or expertise to develop them.
- Investors are closely watching the results as a measure of the energy overhaul's success as well as potential bidders BP, Chevron (NYSE:CVX), Petrobras (NYSE:PBR) and Statoil (NYSE:STO).
- ETFs: EWW, MXF, MXE, UMX, DBMX, SMK, QMEX, HEWW
Thu, Dec. 1, 8:38 PM
- BP says it will move ahead with its long-delayed Mad Dog project in the deepwater Gulf of Mexico, its first major new platform in the region since the 2010 oil spill disaster.
- The oil giant BP says it has reduced the cost of phase 2 development to $9B, compared with an initial $20B estimate in 2013.
- "It could be an indication that they are optimistic that prices will recover, but even if not, they feel confident enough to sanction a project with prices ~$50/bbl in the deepwater," says Sanford Bernstein analyst Mark Tabrett. "Around two years ago, people didn't think that was an economic level to sanction anything in deep water, so [the decision] seems like a bullish indicator for the market."
- BP expects Mad Dog to begin producing oil in late 2021 and have the capacity to pump up to 140K bbl/day from up to 14 wells.
Thu, Dec. 1, 10:21 AM
- The price of oil pushed through $50 per barrel today, and is currently posting a 2.9% advance on the session at $50.91.
- The S&P 500 is flat and Nasdaq is down 0.45%, but the XLE has tacked on another 1.8% to yesterday's big rise.
- Mid-cap movers: Enerplus (ERF +8.2%), Southwestern Energy (SWN +7.9%), Range Resources (RRC +5.3%), Weatherford (WFT +7.1%), Ensco (ESV +8.2%), Crescent Point (CPG +6.3%).
- Among the large players: Exxon (XOM +1.1%), Chevron (CVX +2%), Shell (RDS.A +2.2%), (RDS.B +2.3%), BP (BP +2.4%), ConocoPhillips (COP +2%), Marathon (MRO +3.1%), Halliburton (HAL +2.3%)
Wed, Nov. 30, 5:45 PM
- Big oil earnings will double next year as crude prices continue to march higher and oilfield services costs remain depressed, Evercore ISI head of energy research Doug Terreson tells CNBC.
- Terreson's top picks are Royal Dutch Shell (RDS.A, RDS.B), BP, ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), but he also sees upside for smaller independent E&P companies and oilfield services firms.
- "While we expected OPEC to cut production, today's outcome exceeded our expectations," Terreson says, "so this is a positive outcome for the oil markets, and we also think for the outlook for energy stocks in 2017 too," adding that he is "unrepentantly bullish."
Wed, Nov. 30, 9:50 AM
- Shares of energy companies surge at the open, as hopes for an OPEC deal to cut production send crude oil futures soaring.
- Reports say Saudi Arabia is prepared to accept "a big hit" to production and agree to Iran freezing output at pre-sanctions levels.
- In early trading: XOM +2.2%, CVX +2.3%, RDS.A +3.6%, BP +3.4%, TOT +1.7%, STO +5.1%, PBR +8.1%, COP +7.2%, MRO +12.1%, APC +8%, DVN +12.7%, HES +9.5%, ENB +2.1%, PSX +0.8%, SLB +4.2%, HAL +8.3%, BHI +4.3%, KMI +4.8%, EPD +2.7%, ETP +3.8%, WMB +5.4%, RIG +11.3%, SE +2.2%, CHK +9.4%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, PXI, FIF, PXJ, RYE, NDP, GUSH, PSCE, DRIP, DDG, FXN, CRAK
Tue, Nov. 29, 10:20 AM
- Crude oil continues to slide - WTI now -3.8% at $45.27/bbl, and Brent -3.8% at $46.40/bbl - dragging oil and gas equities (XLE -2.1%) down with it.
- Iran's oil minister says he is not prepared to reduce supply, and Saudi Arabia says it would not participate in a production deal without Iran and Iraq.
- Reuters reports that Iran has written to OPEC saying Saudi Arabia needs to cut oil output to 9.5M bbl/day; Saudi has said it was prepared to reduce its production only by 500K bbl/day from current levels of 10.5M.
- In early trading: XOM -1%, CVX -1.7%, RDS.A -1.4%, BP -1%, TOT -0.3%, STO -1.8%, PBR -3.7%, COP -2.9%, MRO -4%, APC -2.8%, DVN -2.7%, HES -3.6%, ENB -2.3%, PSX -1.2%, MPC -0.8%, SLB -2.2%, HAL -2.3%, BHI -2.1%, KMI -1.4%, EPD -2%, ETP -2.2%, WMB -2.4%, SE -2.3%, CHK -2.6%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, FIF, PXJ, RYE, NDP, GUSH, DRIP, DDG, FXN, CRAK
Tue, Nov. 29, 8:55 AM
- Chevron (NYSE:CVX) is teaming up with Mexico's Pemex and Japan’s Inpex to bid for the right to explore for oil and natural gas in Mexico's first-ever deepwater auction, set for Dec. 5.
- The auction marks the first time Mexico's state-owned operator will partner with private companies to develop crude in the Gulf of Mexico, and is one of seven groups and eight individual bidders to qualify for participation.
- Total (NYSE:TOT) is joining forces with BP and Statoil (NYSE:STO) in one group, and with ExxonMobil (NYSE:XOM) in another, while Eni (NYSE:E) and Lukoil (OTCPK:LUKOY, OTC:LUKOF) also joined up, and Anadarko Petroleum (NYSE:APC) and Royal Dutch Shell (RDS.A, RDS.B) formed another group; other companies involved include BHP, CEO, MUR.
- The Mexican regulator has not specified which bids are for the Trion field joint venture with Pemex or for the other areas.
Fri, Nov. 25, 12:05 PM
- BP (BP -0.4%) acquires a 10% stake in Egypt’s Giant Zohr Gas Field for $375M, according to Bloomberg.
- The company has an option to add another 5% stake by the end of 2017.
- "This interest in a truly world-scale asset will complement our existing Egyptian business," noted BP CEO Bob Dudley in an e-mailed statement.
Mon, Nov. 21, 11:26 AM
- BP (BP +2.1%) has created a new executive committee to explore business in Iran which will exclude its American CEO Bob Dudley to avoid potential violations of U.S. sanctions still in place, Reuters reports.
- The new committee is headed by CFO and British national Brian Gilvary, who will coordinate BP's operations in Iran and any discussions with the country's national oil company, according to the report.
- BP has yet to sign any deals with Iran, and a lack of clarity over Iran's terms for new production contracts, difficulties facing the banking system due to continued U.S. sanctions, and companies' severe budget constraints due to lower oil prices have kept most oil majors on the sidelines.
Wed, Nov. 16, 11:45 AM
- BP (BP -1.2%) says it plans to cut as many as 80 salaried positions at the company's 413K bbl/day refinery in Whiting, Ind.
- Union-represented hourly and salaried employees at the refinery, which is BP's largest in the U.S., will not be affected by the layoffs.
- BP does not specify when the cuts, totaling 3%-4% of the plant's total workforce of 1,800 employees and contractors, will take effect.
Tue, Nov. 15, 3:48 PM
- CLSA upgrades Chevron (CVX +2.3%) and EOG Resources (EOG +2%) while downgrading BP (BP +1.8%) and ConocoPhillips (COP +2.4%) following Q3 group earnings results that were better than expected, mainly benefiting from self-help initiatives.
- The firm upgrades CVX to Buy from Outperform with a $127 price target, believing the company’s strategic shift towards its short-cycle upstream business is a game changer and that the Permian update in its Q3 conference call is "just the beginning."
- CLSA upgrades EOG to Outperform from Underperform with a $105 target, as the Yates transaction in September creates a platform with 6K premium locations, and sees significant further upside underpinned by EOG’s technical innovation and operational excellence.
- However, BP is downgraded to Outperform from Buy with a $37 target, as BP has done a remarkable job in positioning for long-term growth with cash breakeven at $50-55/bbl, but the firm awaits clarity on a Lower 48 strategy.
- Finally, COP is cut to Underperform from Outperform with a $47 target, as the lack of meaningful Delaware/Midland Basin shale exposure is a key negative vs. other large-cap E&P peers.
- Oil and gas stocks are broadly higher today in a very strong session for crude oil.