Shell PLC Plans $20 Billion Investment in Nigeria's Oil Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Benzinga
- Investment Commitment: Shell Petroleum Development Company is poised to invest up to $20 billion in Nigeria's oil and gas sector, reflecting strong confidence in the market and expected to drive local economic growth while enhancing the company's position in Africa.
- Project Progress: Ongoing negotiations for the Bonga South-West project could attract nearly $10 billion in capital spending, further solidifying Shell's investment footprint in Nigeria and generating substantial operating expenditures.
- Investment Decisions: Shell has made a final investment decision of approximately $5 billion for the Bonga North project and approved an additional $2 billion for the HI/Feed shallow-water gas development, demonstrating its ongoing expansion strategy in Nigeria.
- Production Guidance Adjustment: Shell has revised its Integrated Gas production guidance to around 930,000 to 970,000 boe/d, reflecting a keen response to market demand, while also lowering its LNG liquefaction volume forecast, showcasing adaptability to market fluctuations.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on SHEL
Wall Street analysts forecast SHEL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SHEL is 74.27 USD with a low forecast of 41.75 USD and a high forecast of 91.00 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.
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 75.790
Low
41.75
Averages
74.27
High
91.00
Current: 75.790
Low
41.75
Averages
74.27
High
91.00
About SHEL
Shell plc is an international energy company engaged in the principal aspects of the energy and petrochemical industries. The Company's segments include Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure. The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas and operates the infrastructure necessary to deliver them to the market. The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonization businesses. The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries.
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.
BP and Shell Seek US Licenses for Natural Gas Development
- Gas Development Licenses: BP and Shell are seeking U.S. licenses to develop natural gas fields shared with Venezuela, indicating their strong interest in the Latin American energy market.
- Loran-Manatee Discovery: Shell aims to secure a license for the Loran-Manatee field, which holds approximately 10 trillion cubic feet of natural gas, with 7.3 trillion cubic feet on the Venezuelan side, potentially enhancing its competitive position in the region.
- Cocuina-Manakin Project: BP plans to develop the Cocuina-Manakin field, with the Venezuelan portion linked to the idled Plataforma Deltana offshore gas project that has 1 trillion cubic feet of proven reserves, which could facilitate its expansion in Latin America if approved.
- Dragon Field Production Plans: Production at the Dragon field is expected to commence in Q4 2027, with an output of 350 million cubic feet per day, further solidifying Trinidad and Tobago's status as Latin America's largest LNG exporter.
Continue Reading
Shell and Eni Face $4B Arbitration Ruling in Kazakhstan
- Arbitration Outcome: Shell and Eni lost an international arbitration case regarding the Karachaganak field in Kazakhstan, making them liable for up to $4 billion in compensation, highlighting increased risks in the international investment landscape.
- Compensation Range: While the final compensation amount is yet to be determined, external legal advice suggests that the consortium may need to repay between $2 billion and $4 billion, potentially impacting future financial planning and investment decisions.
- Contractual Changes: The arbitration ruling upheld the Kazakh government's position that the companies recovered unapproved cost overruns, which is expected to lead to changes in the oil distribution formula within the field's production sharing contract, affecting the project's profitability model.
- Consortium Structure: Shell and Eni each hold a 29.25% stake in the project, with other partners including Chevron at 18%, Russia's Lukoil at 13.5%, and KazMunayGaz at 10%, illustrating the diversified investment structure of the consortium.
Continue Reading