Royal Dutch Shell (LON:RDSA) and its partners have started production at a deepwater project in Brazil, the Anglo-Dutch energy giant said in a statement on Friday. The news came after the blue-chip group updated investors on its fourth-quarter and full-year performance last week, beating analyst forecasts and delivering a rise in cash flow for the last three months of 2018.
Shell’s share price rose in the previous session, adding 0.93 percent to close at 2,384.00p and outperforming the broader UK market. The group’s shares have lost less than one percent of their value over the past year. This morning, Shell’s shares have extended Friday’s gains, having climbed 0.76 percent to 2,402.00p as of 08:08 GMT.
Lula North project update
Shell announced with consortium partners the start of production at the Lula North deepwater project in the Brazilian Santos Basin. The Anglo-Dutch group has a 25-percent stake in the Lula consortium, operated by Petrobras, which holds 65 percent. The FTSE 100 group noted that Lula, discovered in 2006, is the largest producing field in Brazil and accounts for 30 percent of the country’s oil and gas production.
Production at Lula North is processed by the P-67 floating production and storage offloading vessel (FPSO) and is operated by Petrobras. Shell and its partners began production at Lula Extreme South with the P-69 FPSO in October last year.
Analysts on FTSE 100 group
JPMorgan Chase & Co reaffirmed Shell as an ‘overweight’ on Friday, without specifying a price target on the shares, while HSBC continues to see the blue-chip oil major as a ‘hold’. According to MarketBeat, the Anglo-Dutch group currently boasts a consensus ‘buy’ rating and an average price target of 2,919.67p.