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BP plc BP, the UK-headquartered energy giant, has resumed gas production from its Shah Deniz Alpha platform in the Caspian Sea after resolving a technical issue that halted operations earlier this month. The temporary suspension on Jan. 10, 2025, was due to a malfunction in a subsea condensate export pipeline linking the platform to the Sangachal terminal.
The company confirmed that the issue caused no environmental harm or safety risks to the platform or pipeline. Production and export operations have since restarted and are being gradually ramped up.
During the downtime, the malfunction affected regional gas supplies, including a temporary halt in deliveries to Serbia and Bulgaria. Serbia experienced a daily suspension of 1.7 million cubic meters of gas, while Bulgaria faced interruptions starting Jan. 7, 2025, with an expected resolution by Jan. 11, 2025. Despite the disruptions, Azerbaijan maintained gas supplies to Serbia.
Discovered in 1999, the Shah Deniz gas-condensate field is among the world’s largest, with estimated reserves of 1 trillion cubic meters of gas and 243 million tons of condensate. Located in Azerbaijan’s sector of the Caspian Sea, the field has been developed in two phases.
Phase 1, initiated in 2006, included the development of 11 wells, the construction of platforms and the 692-kilometer South Caucasus Pipeline (SCP) to Türkiye. Phase 2, considered one of the largest and most complex gas projects globally, further bolstered Azerbaijan’s role as a key gas supplier to Europe and Asia.
BP remains committed to enhancing its hydrocarbon production in Azerbaijan. The company has also been working on other projects in the region, including its giant oil field operations initiated in April 2024.
The resumption of operations at Shah Deniz Alpha is a crucial step in maintaining the field’s output and reinforcing Azerbaijan’s position as a significant player in global energy markets.
BP’s Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Range Resourcescarries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.