BP and Shell Seek Licenses for Natural Gas Development
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy BP?
Source: seekingalpha
BP PLC's stock rose by 3.16% as it reached a 52-week high amid a broader market decline.
The increase in BP's stock price is attributed to its plans to develop the Cocuina-Manakin field in Venezuela, which is linked to a project with 1 trillion cubic feet of proven reserves. This strategic move indicates BP's strong interest in expanding its presence in the Latin American energy market, despite the overall weakness in the energy sector.
This development could enhance BP's competitive position in the region and potentially lead to increased production capabilities, which may positively impact its future earnings.
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Analyst Views on BP
Wall Street analysts forecast BP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BP is 84.26 USD with a low forecast of 6.38 USD and a high forecast of 503.69 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 38.170
Low
6.38
Averages
84.26
High
503.69
Current: 38.170
Low
6.38
Averages
84.26
High
503.69
About BP
BP p.l.c. is a United Kingdom-based integrated energy company. The Company's segments include Gas & low carbon energy, Oil production & operations, Customers & products, and Other businesses & corporate. Its gas business includes regions with upstream activities that produce natural gas, integrated gas and power, and gas trading. Its low carbon business includes solar, offshore and onshore wind, hydrogen and carbon capture and storage and power trading. Oil production & operations segment comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. Customers & products segment comprises its customer-focused businesses, which include convenience and retail fuels, electric vehicle charging, as well as Castrol, aviation and business to business and midstream. It also includes its products businesses, refining and oil trading, as well as its bioenergy businesses. Other businesses & corporate segment comprises technology and bp ventures.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Negotiation Breakdown: Negotiations that began on January 5 failed to reach a new agreement by the January 31 deadline, as BP rejected nearly all proposals, leaving workers anxious about job security and future terms.
- Union Leadership Statement: USW 7-1 President Eric Schultz stated that while workers are ready to strike, the union will continue to bargain in good faith, emphasizing the importance of unity in demanding a fair contract for all members.
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See More
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- Contract Context: The Kirkuk development contract signed last year is a key part of BP's efforts to boost earnings, with annual costs projected at approximately $1 billion over the 25-year contract period, significantly impacting BP's long-term financial performance.
- Middle East Strategy: The Middle East is one of BP's top-producing regions; in addition to Kirkuk, BP operates Iraq's largest oil field, Rumaila, in the south, further solidifying BP's market position in the region.
- Production Increase Plan: BP's plan to nearly double Kirkuk's production aligns with Iraq's ambition to raise its overall oil and gas output capacity to over 6 million barrels per day by 2029, highlighting BP's proactive role in the global energy market.
See More
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- Weak Annual Performance: For the full year 2025, Shell's adjusted earnings were $18.5 billion, a notable decline from $23.72 billion the previous year, reflecting the challenges of the market environment and weakening profitability, which may impact future investment decisions.
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- Rising Debt Levels: As of the end of last year, Shell's net debt stood at $45.7 billion with a gearing ratio of 20.7%, an increase from $41.2 billion and 18.8% in Q3, indicating financial pressure amidst declining earnings.
See More
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- Share Buyback Program: The company has announced over $3 billion in share buybacks for 16 consecutive quarters, establishing itself as a best-in-class performer in capital discipline, despite the challenges posed by declining crude prices.
- Cost Control Targets: Shell raised its cost reduction target from $2-3 billion to $5-7 billion by 2028 and lowered its capital expenditure target from $22-25 billion to $20-22 billion, indicating a strong focus on maintaining financial health in a volatile market.
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See More
