Chevron North Sea Limited, the U.K. subsidiary of the U.S.
), has taken a final investment decision to develop the Alder
Field in North Sea. The British government has given the nod on
the project, which is expected to come online in 2016.
The project is expected to process 14,000 barrels of condensate
and 110 million cubic feet of natural gas per day. Located 17
miles from the operating Britannia field, it will be developed
using a single subsea well tied to the Britannia platform.
The high-pressure, high-temperature gas condensate field is
located in the Block 15/29a of the U.K. Continental Shelf, at a
depth of 492 feet. The field, though discovered in 1975, remained
undeveloped due to its complex nature. Thanks to recent
technological advancement, development has become possible in the
Management finds the development process in tune with the
company's production growth strategy and valuable for
shareholders as well. With a 73.684% stake in the project,
Chevron acts as the operator. The remaining 26.316% is held by
Chevron Corp. is one of the largest integrated energy companies
in the world and has an impressive business model. Its current
oil and gas development project pipeline is among the best in the
industry, boasting large, multi-year projects.
However, due to its integrated nature, Chevron is particularly
susceptible to downside risk from any weakness in the global
economy. We are also concerned about the company's high level of
capital spending, which may result in reduced returns going
San Ramon, California-based Chevron Corp. currently holds a Zacks
Rank #3 (Hold), implying that it is expected to perform in line
with the broader U.S. equity market over the next one to three
Meanwhile, one can consider better-ranked players in the oil and
gas integrated industry like
). YPF sports a Zacks Rank #1 (Strong Buy) while Total holds a
Zacks Rank #2 (Buy).
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