U.K. supermajor BP plcBP announced that has entered into a broad framework agreement with state-owned Kuwait Petroleum Corp. ("KPC''). Per the agreement, the two companies will explore opportunities for joint investment in oil and gas exploration alongwith trading deals.
The agreement will also cover investments in midstream and petrochemical projects globally, including any use of BP's proprietary paraxylene technology as part of KPC's petrochemicals projects. In 2014, the energy major signed a technical services agreement with KPC subsidiary Kuwait Oil Co. for oil recovery in the Burgan field.
In recent times, the performance of the beleaguered commodity crude leaves much to be desired for. Over the past week, West Texas Intermediate (WTI) crude futures dived approximately 4% and is now hovering around $38 per barrel, while natural gas prices are around the $2.000 per million Btu (MMBtu).
BP expects first-quarter 2016 production to be broadly flat with fourth-quarter 2015. Also, full-year 2016 underlying production is expected to be broadly flat with 2015. For the first quarter, the company projects sequentially lower refining margins.
London-based BP plc is one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products. It operates in three segments: Exploration and Production, Refining and Marketing, and Other Businesses and Corporate.
BP currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector include SolarEdge Technologies, Inc. SEDG , Braskem S.A. BAK and Enviva Partners, LP EVA . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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