BP Stock Strikes Higher as it Seals Azerbaijan Deal

Shares in oil giant BP (BP) and ExxonMobil (XOM) drove higher today as they signed new oil and gas exploration deals in Azerbaijan.

Bringing Expertise

BP stock was up 2% while XOM was 0.6% higher as the two groups sealed agreements with Azeri state energy company SOCAR.

Azerbaijan has proven oil reserves of 7 billion barrels and proven natural gas reserves of 1.7 trillion cubic meters, according to the U.S. Department of Energy.

The country’s oil output has been declining for several years after the Azeri–Chirag–Gunashli (ACG) complex of oilfields passed its peak of 50 million metric tons, or 1 million barrels per day, in 2010.

However, Exxon believes it can bring its expertise in developing unconventional fields to bear. It did not comment, however, on possible oil and gas volume uplift as a result.

BP Pivot

BP did not comment on its agreement, but it continues its new strategic pivot in moving away from its ambition of being a renewable first energy developer to returning to its oil and gas traditions. As such, it is looking to up its spending on oil and gas fields while ditching low-carbon assets such as wind farms.

It is also, as reported by Reuters, seeking to sell 50% of its solar unit Lightsource bp to a strategic partner for cash and a commitment to future investments.

These moves could bolster BP, which is said to be in the takeover sights of oil rivals such as Shell (SHEL). This is because the turmoil at BP has led to its share price slipping around 8% in the last three months.

Is BP a Good Stock to Buy Now?

On TipRanks, BP has a Hold consensus based on 3 Buy, 8 Hold and 1 Sell rating. Its highest price target is $35. BP stock’s consensus price target is $30.56 implying an 3% upside.

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