Shell (RDS.A) signs gas deal with Oman for Block 10, Saih Rawl
Royal Dutch Shell plcThe subsidiary of (RDS.A) Shell Integrated Gas Oman BV and its partners have agreed to develop and produce natural gas from Block 10 of the Saih Rawl gas field under a concession agreement with Oman. A separate gas sales contract for gas produced from the block has also been signed by the parties.
RDS.A’s partners are OQ and Marsa Liquefied Natural Gas LLC, a joint venture between TotalEnergies and OQ.
According to Oman’s Energy Ministry, the block is expected to produce 0.5 billion cubic feet of gas per day (bscf / d). Production should start within a few years.
According to the concession agreement, Shell operates Block 10 with a working interest of 53.45%, while OQ and Marsa Liquefied Natural Gas LLC respectively hold 13.36% and 33.19% of the shares.
On behalf of Block 10 enterprise partners, Petroleum Development Oman (PDO) is constructing the infrastructure for the project, including the main pipeline to the Saih Rawl gas processing plant. After the initial phase, the company will drill and connect wells to maintain production.
In addition, Shell and Energy Development Oman (EDO) have agreed to process natural gas from Block 10 at EDO’s plant in Saih Rawl.
Additionally, RDS.A and the Government of Oman have agreed to explore ideas for a separate downstream gas project in which Shell could manufacture and sell low carbon products and also support hydrogen growth. in the Middle Eastern nation.
Over the past decades, Shell has remained a partner in Oman’s growth and success. The company is active in the country’s oil and gas industry, with joint ventures and independent activities ranging from research and development, exploration and production to trade, retail and alternative energy.
Rank of Zacks and choice of keys
Shell currently has a Zack Rank # 3 (Hold). Investors interested in the energy sector might consider the following stocks to consider with a Zacks Rank # 1 (strong buy) right now. You can see The full list of today’s Zacks # 1 Rank stocks here.
Western Oil Company OXY is an integrated oil and gas company with significant exposure to exploration and production. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. At the end of 2020, OXY’s preliminary proven global reserves stood at 2.91 billion boe compared to 3.9 billion boe at the end of 2019.
In the past year, shares of Occidental Petroleum have jumped 99% against the industry’s growth of 96.6%. OXY profits in 2021 are expected to rise 151.4% from the figure released a year ago. OXY has also witnessed eight northward estimate revisions over the past 60 days. In the third quarter, OXY met its divestment target of $ 10 billion by signing an agreement to sell its stake in two Ghanaian offshore assets for $ 750 million.
PDC Energy PDCE is an independent upstream operator specializing in the exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, which reached its current status following the January 2020 merger with SRC Energy, is currently the second largest producer in the Denver-Julesburg basin. At the end of 2020, PDC Energy’s estimated total proved reserves stood at 731,073,000 barrels of oil equivalent.
In the past year, shares of PDC Energy have gained 169% versus industry growth of 108.6%. PDCE’s profits for 2021 are expected to increase by 273.4% from the figure released the previous year. Over the past 60 days, Zacks’ consensus estimate for PDC Energy’s earnings in 2021 has been increased by 26.8%. PDCE earnings have beaten Zacks’ consensus estimate over the past four quarters, averaging 51.06%.
Sunoco LP SUN is a master limited partnership engaged in the distribution of fuel to approximately 10,000 customers, including independent dealers, commercial customers, convenience stores and distributors. In the United States, Sunoco is among the largest fuel distributors in the wholesale market by volume. In 2020, the partnership sold 7.1 billion gallons of fuel.
SUN’s profits for 2021 are expected to increase 743.4% from the previous year’s figures. Sunoco currently has a Zacks Style score of A for Value and Growth. For 2021, SUN is forecasting fuel volumes of 7.25 billion to 7.75 billion gallons, indicating an increase from the reported level of 7.09 billion gallons in 2020.
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