Yahoo Finance Why Production Is Poised to Grow in BP’s Upstream Projects
Is BP's Upstream Portfolio Poised for Growth?
BP’s upstream project pipeline
BP (BP) has gigantic proved reserves of 17.1 billion boe (barrels of oil equivalent). Plus, the company has a strong pipeline of projects in its portfolio.
BP expects the following projects to come online by 2020:
Algeria
75 Mboepd (thousand barrels of oil equivalent per day) in Salah Southern Fields, started February 2016
107 Mboepd in Amenas Compression, expected startup 2016
United States
8 Mboepd in Point Thomson, started April 2016
23 Mboepd Thunder Horse Water injection, expected startup 2016
42 Mboepd Thunder Horse South expansion, expected startup 2017
North Sea
122 Mboepd in Quad 204, expected startup 2016
99 Mboepd in Clair Ridge, expected startup 2017
99 Mboepd in Culzean, expected startup 2018+
Trinidad
94 Mboepd in Juniper, expected startup 2017
Oman
200 Mboepd in Oman Khazzan, expected startup 2017
Australia
50 Mboepd in Persephone, expected startup 2017
77 Mboepd in Western Flank B, expected startup 2018+
Azerbaijan
370 Mboepd in Shah Deniz Stage 2, expected startup 2018+
Egypt
287 Mboepd in Tauras/Libra and Giza/Fayoum/Raven, expected startups T/L 2017, G/F/R: 2018+
Clearly, BP has strong production growth in the offing, especially in Oman, Azerbaijan, and Egypt. The above-mentioned projects are expected to result in around 800 Mboepd of new production by 2020. With a huge reserve base and new project startups, BP’s upstream portfolio is likely to become valuable and increasingly profitable in the scenario of rising oil prices.
For global stock exposure, you could consider the Vanguard Total World Stock ETF (VT). The ETF has ExxonMobil (XOM), Royal Dutch Shell (RDS.A), and Total S.A. (TOT) in its portfolio.
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