BP and Two Gulf Firms Just Took a Venezuelan Gas Field. A Year Ago It Would Have Been Illegal

Equinor ASA is advancing the Bay du Nord oil project off Newfoundland's coast, submitting a development plan and acquiring BP's 37% stake. The $14B project, with production starting in 2031, could boost Newfoundland's economy, which faces a growing deficit. Equinor aims for a final investment decision by early 2027, with government support for environmental and economic benefits.

BP, Shell, and Gulf partners have secured agreements to develop Venezuelan offshore gas fields, including the Loran and Manatee fields. BP, UAE's XRG, and Qatar's UCC Holding will explore the Loran field, while Shell operates the Manatee field. The projects, subject to approvals and sanctions, aim to produce up to 10 trillion cubic feet of gas. Venezuela also signed oil contracts with Hunt Oil, Crossover, and SLB, with estimated investments around $2 billion.

Emerson Electric (EMR) secured a multi-million-dollar contract from BP (BP) for a Caspian Sea project. EMR's Q3 2026 sales grew 7% YoY to $4.87B, with adjusted EBITA margin at 28.5%. BP's Q2 2026 revenue benefited from strong commodity prices, with operating cash flow at $10.9B. Bernstein raised EMR's price target to $186. Both companies are subject to different operational risks and growth prospects.

Brent crude rose above $91 and WTI above $85 due to tensions in the Strait of Hormuz, including an attack on a vessel. Eight major oil firms, including Saudi Aramco, BP, and Chevron, nearly doubled Q2 profits to $87bn, benefiting from higher oil prices caused by the conflict. Saudi Aramco reported a 34% increase in net income to $33bn, while Chevron saw its highest quarterly profit in six years at $12.2bn.

A report by World Oil indicates that major oil companies saw profits surge to $90 billion in Q2 2025, nearly double the same period in 2024, due to supply disruptions in the Strait of Hormuz. Key beneficiaries include Saudi Aramco ($33B), BP ($5.73B), and Chevron ($12B). The surge is linked to geopolitical tensions and rising oil prices, with Brent crude climbing from $68 to $100 per barrel. Critics call for windfall taxes on oil companies.

BP has started formal discussions with prospective buyers for its UK North Sea assets, with sale documents indicating a £2.5 billion package, according to The Telegraph. Analysts at Rystad name Neo Next+, Adura, and Ithaca Energy as likely bidders. BP is seeking a single cash buyer for its whole portfolio, following its plan to exit the North Sea.