BP share price: Group announces North Sea discoveries

Company hopes to double North Sea oil output by end of decade

BP share price: Group announces North Sea discoveries

BP (LON:BP) has announced two oil and gas discoveries in the North Sea. The update comes ahead of the oil major’s fourth-quarter results on February 6.

BP’s share price has slipped into negative territory in today’s session, having given up 0.34 percent to 506.19p as of 14:18 GMT. The stock is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.17 percent lower at 7,575.28 points. The group’s shares have added more than seven percent to their value over the past year, as compared with a near seven-percent rise in the Footsie.

North Sea discoveries

BP announced two discoveries in the North Sea today, namely Capercaillie, in Block 29/4e in the Central North Sea, and Achmelvich, in Block 206/9b west of Shetland. The blue-chip group holds 100 percent of Capercaillie, and is the operator of Achmelvich with a 52.6-percent stake, with blue-chip peer Shell (LON:RDSA) and US energy giant Chevron holding 28 percent and 19.4 percent, respectively. BP noted that well data was currently under evaluation.

“These are exciting times for BP in the North Sea as we lay the foundations of a refreshed and revitalised business that we expect to double production to 200,000 barrels a day by 2020 and keep producing beyond 2050,” Mark Thomas, BP North Sea Regional President, commented in the statement.  

Analysts on BP

Goldman Sachs reiterated its ‘neutral’ rating on BP today, valuing the shares at 545p, while JPMorgan Chase & Co, which is bullish on the group with a ‘buy’ rating, set a price target of 560p on the stock yesterday. According to MarketBeat, BP currently has a consensus ‘hold’ rating and an average price target of 537.78p.

As of 14:54 GMT, Wednesday, 31 January, BP plc share price is 504.80p.

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