BP plc, in collaboration with Aker BP, has made a noteworthy oil discovery in the Ost Frigg Beta/Epsilon exploration well located in Norway’s North Sea. The drilling of the well, situated in licenses 873 and 442 in the Yggdrasil area, is nearing completion with the assistance of Saipem’s Scarabeo 8 semi-submersible rig. Aker BP holds interests of 47.7% and 87.7% in licenses 873 and 442, respectively.

Preliminary estimates indicate that the recent discovery showcases a gross recoverable volume of 40-90 million barrels of oil equivalent (MMboe), surpassing the initial pre-drill estimate of 18-45 MMboe. This discovery has expanded the resource base for the Yggdrasil development, which was previously projected to be 650 MMboe (gross). Consequently, the newly discovered reserves will be evaluated for potential inclusion in the Yggdrasil development.

In December 2022, Aker BP submitted a plan for the development and operations of the Yggdrasil project to Norwegian authorities. The North Sea holds substantial oil and gas reserves, and production from the Norwegian North Sea area is scheduled to commence in 2027.

Aker BP has also announced its commitment to several field development projects on the Norwegian continental shelf, with investments exceeding NOK 200 billion. Yggdrasil, already comprising multiple discoveries, is set to undergo development with an investment of NOK 115 billion. Aker BP recognizes further potential in the Yggdrasil area and intends to continue exploration activities in the region.

BP’s stock has outperformed the industry over the past six months, experiencing a gain of 1.9% compared to the industry’s decline of 5.3%.

While BP currently carries a Zack Rank #3 (Hold), other notable players in the energy sector include Murphy USA Inc. (MUSA), Sunoco LP (SUN), and Dril-Quip, Inc. (DRQ). Murphy USA and Sunoco hold a Zacks Rank #1 (Strong Buy), while Dril-Quip has a Zacks Rank #2 (Buy).

These developments highlight the positive momentum and potential for growth in the energy sector, paving the way for further advancements in the exploration and production of valuable resources.