Harbour Energy plc HBRIY, in collaboration with Abu Dhabi-based Mubadala Energy, has signed a contract with Indonesia’s government to develop a Central Andaman oil and gas block.

The deal was signed two months after the companies received the oil and gas exploration license for the block from the Indonesian oil and gas regulator, MIGAS. It is also the first to be signed under the new gross split scheme.

Key Insights of Central Andaman Oil and Gas Block

The prolific Andaman Block, located offshore northern Sumatra island, holds a potential with estimated reserves of 100 million barrels of oil and 500 billion cubic feet of natural gas, as declared by the Energy Ministry of Indonesia.

HBRIY, the block operator, holds 60% of the stake in partnership with Mubadala Energy, holding the remaining 40%.

HBRIY’s Entry Into the New Gross Split Scheme

This contract marks the first venture in Indonesia under the new Gross Split Production Sharing scheme. The new scheme was designed to streamline operations and enhance contract efficiency as it offered better contract terms with the key feature of an assured profit-sharing ratio and was much simpler compared to the previous version.

HBRIY’s Zacks Rank and Key Picks

U.K.-based North Sea producer Harbour Energy, an independent oil and gas company, currently holding a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Mach Natural Resources LP MNR, Flotek Industries, Inc. FTK and Targa Resources Corp. TRGP. While Mach currently sports a Zacks Rank #1 (Strong Buy), Flotek Industries and Targa Resources each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Mach Natural Resources LP is an independent upstream oil and gas company that focuses on the acquisition, development and production of oil, natural gas and natural gas liquids reserves. The Zacks Consensus Estimate for MNR’s 2024 earnings indicates 205.56% year-over-year growth.

Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.

Houston, TX-based Targa Resources Corp. is a premier energy infrastructure company and a leading provider of integrated midstream services in North America. The Zacks Consensus Estimate for TRGP’s 2024 earnings indicates 71.58% year-over-year growth.

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