BP (LON:BP) and Azerbaijan’s SOCAR are looking into creating a petrochemicals joint venture in Turkey, the FTSE 100 group has said. The companies are expected to reach a potential final investment decision next year.
BP’s share price has fallen deep into the red in today’s session, having given up 1.65 percent to 494.20p as of 14:49 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.52 percent lower at 6,730.68 points. The group’s shares lost more than two percent of their value over the past year, as compared with about a 10.5-percent dip in the Footsie.
BP and SOCAR mull over new JV
BP announced in a statement today that it was considering the creation of a joint venture to build and operate a PTA, paraxylene and aromatics facility, in Turkey, together with the State Oil Company of the Azerbaijan Republic (SOCAR). The facility would produce 1.25 million tonnes per annum (tpa) of purified terephthalic acid (PTA), 840,000 tpa paraxylene (PX) and 340,000 tpa benzene.
The two groups, which are already partnered in a number of projects, including the Shah Deniz 2 gas project in Azerbaijan, have signed a heads of agreement and expect to work towards a potential final investment decision next year, which could result in start-up of the new plant in 2023.
Analysts on FTSE 100 energy group
Credit Suisse, which rates BP as an ‘outperform,’ lowered its price target on the shares from 675p to 650p today, while last week, Goldman Sachs, which is bullish on BP with a ‘buy’ rating, set a valuation of 750p on the stock. According to MarketBeat, the London-listed group currently has a consensus ‘buy’ rating and an average price target of 494.90p.