Oil and gas exploration and production company
Noble Energy Inc.
) expanded its operation in West Africa, thanks to the Production
Sharing Contract ("PSC") with the government of Gabon. Per the
contract, Noble Energy will operate Block F15 in the Gabon Coastal
Block F15 is located nearly 87 miles (140 km) off the coast of
Gabon and covers over 670,000 gross acres (2,700 square
kilometers) in water depths ranging from 7,500 to 9,000 feet (2,300
to 3,000 meters). Noble Energy with a 60% interest will operate
this offshore field while Australia-based Woodside Petroleum Ltd.
will hold the remaining interest.
This deal will not only mark Noble Energy's entry in Gabon but will
also expand its diversified global portfolio. Another notable
international oil and gas operator, France-based TOTAL S.A. (
) has a five decade long presence in this stable oil-focused West
African nation. TOTAL has been operating in Gabon through its
subsidiary TOTAL Gabon.
Noble Energy's offshore Eastern Mediterranean and West African
assets could play a vital role in its growth story.
Increasing tension between Europe and Russia might help Noble
Energy if the former decides to stop importing gas from Russia.
In June this year, Noble Energy signed a non-binding Letter of
Intent involving its Leviathan field partners and BG International
for the delivery of natural gas to BG's existing gas liquefaction
complexes in Egypt from the Leviathan prospect, offshore Israel.
Noble Energy's entry into Gabon appears to be a tactical move,
which will allow the company to cater to the rising demand for oil
and natural gas in the region.
Noble Energy currently holds a Zacks Rank #3 (Hold). Some
better-ranked stocks in the sector include Cheniere Energy, Inc. (
) and Anadarko Petroleum Corporation (
). While Cheniere Energy carries a Zacks Rank #1 (Strong Buy),
Anadarko Petroleum Corporation holds a Zacks Rank #2 (Buy).
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
TOTAL FINA SA (TOT): Free Stock Analysis Report
NOBLE ENERGY (NBL): Free Stock Analysis Report
ANADARKO PETROL (APC): Free Stock Analysis
CHENIERE ENERGY (LNG): Free Stock Analysis
To read this article on Zacks.com click here.