BP share price: Group and Eni to pursue exploration opportunity in Oman

BP (LON:BP) has moved to pursue an exploration opportunity in Oman, the blue-chip energy group has said. The move comes after the company recently gave the green light for the development of a liquefied natural gas offshore Mauritania and Senegal.

BP’s share price has fallen deep into the red in London this morning, having given up 1.09 percent to 515.50p as of 10:30 GMT. The stock is marginally underperforming the broader UK market selloff, with the benchmark FTSE 100 index currently standing 0.94 percent lower at 6,852.88 points. The group’s shares have lost more than three percent of their value over the past year, as compared with a near 12-percent dip in the Footsie.

BP and Eni target Oman

BP and Italy’s Eni said today that they had signed a heads of agreement with the Ministry of Oil and Gas of the Sultanate of Oman to work jointly towards a significant new exploration opportunity in the country. Under the agreement, the companies will work with the Government of Oman towards the award of a new exploration and production sharing agreement for Block 77 in central Oman.

Block 77 is located in central Oman, 30 km east of the BP-operated Block 61 which contains the already-producing Khazzan gas project as well as the Ghazeer project, currently under development.

Analysts on FTSE 100 group

Barclays, which is ‘overweight’ on BP, lowered its price target on the stock from 705p to 700p last week, while UBS, which sees the group as a ‘buy,’ set a price target of 610p on the shares. According to MarketBeat, the UK oil major currently has a consensus ‘buy’ rating and an average price target of 644.74p.

As of 10:47 GMT, Monday, 14 January, BP plc share price is 515.50p.