The Spanish energy giant,Repsol, S.A. REPYY, recently returned to Libya’s energy scene with its exploration activities in the Murzuq Basin after a hiatus of more than a decade. On Dec. 31, 2024, the company spudded its first exploration well, A1-2/130 (Muammal Nasr), marking its first step in drilling in Libya since 2014.
The A1-2/130 well is located about 800 km south of Tripoli and just 12 km from the prolific Sharara oil field. It is planned to be drilled to a total depth of 1,844 meters (6,050 feet). If this drilling and exploration activity turns out successful, the company also expects to tie back to this asset in the future.
Sharara is Libya’s biggest oilfield, with a production capacity of 320,000 barrels per day. Repsol is also a partner in Sharara with other eminent stakeholders like NOC, TotalEnergies, OMV and Equinor.
Libya’s state-owned National Oil Corporation (NOC) has issued its plan to offer 22 onshore and offshore exploration blocks to revitalize the country’s energy sector by increasing foreign investment. Expected to start in early 2025, the plan highlights the country’s efforts to revive its oil industry and the overall economic expansion.
In 2024, the country’s crude oil production touched its highest levels since 2013 and surpassed 1.4 million barrels per day (bpd). The country has set targets to further increase production levels in the years to come by creating a favorable investment scenario for international energy companies.
Many foreign investors are returning to Libya, validating confidence in the country’s energy sector. Companies like Eni and BP are about to drill their first exploration well in Libya. The bid round by the country will further unlock opportunities for many more new projects and partnerships.
As Repsol enters into exploration activities in Libya, the company’s operations are expected to contribute significantly to regional economic growth, further cementing its role in the global energy landscape.
Repsol explores, develops and produces crude oil products and natural gas. It also transports petroleum products and liquefied petroleum gas and refines petroleum. Currently, REPYY has a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector might look at some better-ranked stocks like TechnipFMC plc FTI,KLX Energy Services Holdings, Inc. KLXE and Flotek Industries, Inc. FTK. While TechnipFMC currently sports a Zacks Rank #1 (Strong Buy), KLX Energy and Flotek Industries each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
London-based TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The Zacks Consensus Estimate for FTI’s 2024 earnings indicates 260% year-over-year growth.
KLX Energy Services Holdings provides oilfield services focused on the wells’ completion, intervention and production activities. KLXE’s expected EPS (earnings per share) growth rate for next year is 28.52%, which aligns favorably with the industry growth rate of 15.10%.
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TechnipFMC plc (FTI) : Free Stock Analysis Report
Repsol SA (REPYY) : Free Stock Analysis Report
Flotek Industries, Inc. (FTK) : Free Stock Analysis Report
KLX Energy Services Holdings, Inc. (KLXE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。