Markets
E

Shell Starts Third Phase of Production in Bonga Oil Field

Royal Dutch Shell plcRDS.A has commenced the third stage of operations from its massive Bonga oil field, located off the coast of Nigeria. In this phase, Shell has roughly 50,000 barrels oil equivalent of peak production capacity.

It is to be noted that the floating production and storage vessel assisting the third phase of the development has a production capacity of more than 200,000 barrels of oil and 150 million standard cubic feet of natural gas every day.

Shell is the operator of the Bonga field with a 55% stake. Among the other members, Exxon Mobil Corporation XOM has a 20% interest. The affiliates of Eni SpA E and TOTAL SA TOT hold 12.5% each.

Looking back, it was during 2005 that the Bonga field had started producing oil and natural gas. This is also the first deep water project - 1,000 meters deep - in Nigeria. Most importantly, the field has generated more than 600 million barrels of oil so far.

Shell is one of the largest integrated energy firms in the world with a strong and diversified portfolio of development projects that offer attractive long-term opportunities. The company's decision to acquire BG Group, UK's third largest energy player, is expected to improve its prospects.

However, Shell's revenues, earnings and cash flow have been significantly hurt by weak crude prices.

As a result, the company currently carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.

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 >>

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

ROYAL DTCH SH-A (RDS.A): Free Stock Analysis Report

ENI SPA-ADR (E): Free Stock Analysis Report

EXXON MOBIL CRP (XOM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

E TOT RDS.A XOM

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More