Shell (SHEL) and Partners Explore $20B Bonga South West Deepwater Oilfield in Nigeria
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: seekingalpha
- Massive Investment: Shell and its partners are planning to invest up to $20 billion in the Bonga South West deepwater oilfield in Nigeria, with half allocated for capital expenditures and the other half for operating expenses, reflecting strong confidence in Nigeria's oil and gas market.
- Government Support: Nigerian President Tinubu has approved 'investment-linked' incentives for Shell to develop this long-stalled project, indicating the government's commitment to attracting foreign investment and accelerating project timelines.
- Significant Resource Potential: The Bonga South West oilfield is estimated to contain 820 million barrels of reserves with a potential peak production capacity of 220,000 barrels per day, which could significantly boost Nigeria's oil output and economic returns.
- Strategic Investment Decision: Shell increased its stake in the Bonga oilfield to 65% last year by acquiring shares from TotalEnergies, further solidifying its strategic position in offshore production in Nigeria after divesting its onshore assets.
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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.
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