On March 17, Europe's largest oil company,
Royal Dutch Shell plc
), along with its joint venture partners,
) and Petroliam Nasional Berhad or Petronas, discovered oil
offshore Sabah, Malaysia.
CONOCOPHILLIPS (COP): Free Stock Analysis
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Oil was discovered from the deep water appraisal well
Limbayong-2, in the Limbayong gas field, located in Block J off
the coast of Sabah. During the appraisal of the gas field, Shell
discovered 136 meters of oil bearing sands in the well. There are
plans to continue the appraisal to determine the recoverable
Shell stated that this find indicates the potential of the
region. The drilling activity was carried out by the consortium
in which Shell Malaysia holds a 35% stake, while ConocoPhillips
and Petronas hold a respective of 35% and 30% stake.
Shell is one of the largest integrated energy firms in the world
with a large and diversified portfolio of development projects
that offer attractive long-term opportunities. 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 energy related
Last week, Shell announced its decision to slash capital
investment this year in upstream activities in the Americas.
Shell is expected to lower the spending by 20% from the amount
invested in 2013, as the company has been incurring losses in the
North American shale resource plays. Moreover, Shell is planning
to divide its downstream portfolio into distinctive performance
segments and allocate capital accordingly to maximize profits.
Shell currently has 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 months.
Meanwhile, one can consider better-ranked players in the energy
Range Resources Corporation
Patterson-UTI Energy Inc
). Both the stocks sport a Zacks Rank #1 (Strong Buy).