Europe's largest oil company
Royal Dutch Shell plc
) announced that its subsidiary has commenced operations of a
project in Nigeria to produce and sell oil, providing a new source
of energy and economic benefits. Operated by Shell Nigeria
Exploration and Production Co. Ltd. (or SNEPCo), a Shell affiliate,
the deepwater Bonga North West project involves the recovery of
40,000 oil equivalent barrels per day at its peak.
A part of Shell's broader Bonga development - which came online in
2005 as the West African nation's first deepwater initiative in
water depths over 1,000 meters - the Bonga North West is an
extension of the overall project.
SNEPCo (55% interest) is operator of the Bonga project - off the
Nigerian coast - with the other partners being Esso Exploration
& Production Nigeria (Deepwater) Ltd. (20%), Total E&P
Nigeria Ltd. (12.5%) and Nigerian Agip Exploration Ltd. (12.5%).
Oil produced from the Bonga North West facility will be transported
through an undersea conduit to the existing Bonga floating
production, storage and offloading (FPSO) export hub close to the
Nigerian shore. The platform, which has been upgraded to tackle the
extra liquids flow from the Bonga North West development, will then
unload the oil onto tankers for worldwide shipping.
Shell - operating in Nigeria since 1937 - has hailed the project
startup as integral to its upstream business, while building on its
commitment in the African country.
The Hague-based Royal Dutch Shell, which trumped continental rival
BP plc (
) last week in reporting better-than-expected second quarter
earnings, owns one of the largest integrated oil and gas businesses
in the world. The group has operations all over the world and is
involved in various activities related to oil and natural gas,
chemicals, power generation, renewable energy resources and other
Shell currently carries a Zacks Rank #2 (Buy), implying that it is
expected to outperform the broader U.S. equity market over the next
one to three months.
In addition to Shell, there are certain other international
integrated energy players like Sasol Ltd. (
) and YPF S.A. (
) that offer even greater value and are worth buying now. Both the
firms sport a Zacks Rank #1 (Strong Buy).
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