British Petroleum (BP) is exploring for more oil as crude prices soar back above $100 a barrel.
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BP, as the company is known, has agreed to buy an operating interest in three offshore exploration blocks in Namibia from Canada-based Eco Atlantic Oil & Gas (TSE:EOG) as it ramps up its focus on finding new oil deposits around the world.
BP is paying Eco Atlantic $2.7 million in cash for the 60% interest in the three petroleum exploration licenses, the Canadian firm confirmed. The British oil major has turned its focus back to oil and gas after an ill-fated foray into renewable energy.
The Price of Crude Oil
BP’s renewed focus on crude oil also comes with energy prices soaring due to the ongoing war between the U.S. and Iran. On April 14, oil prices were up 5% and trading right around $100 a barrel, a jump of more than 30% since the end of February.
BP is under growing pressure from Wall Street and its shareholders to execute a strategic shift from spending on low-carbon energy sources to oil and gas projects that will boost shareholder value in the near-term. Namibia is a global oil and gas exploration hot spot and hopes to produce its first oil by 2030.
Is BP Stock a Buy?
BP stock has a consensus Hold rating among 13 Wall Street analysts. That rating is based on four Buy, seven Hold, and two Sell recommendations issued in the last three months. The average BP price target of $45.06 implies 4% downside from current levels.
