Will BP's Drilling Project In Australia Be Deferred Again?
Zacks Investment Research | Sep 29, 2016 10:00PM ET
According to recent media reports, BP plc (LON:BP)’s (NYSE:BP) project to drill for oil in the Great Australian Bight is likely to be deferred yet again. Australian regulators have requested the oil giant to provide additional information related to the environmental programs for drilling in the area, thereby raising the possibility of further delays.
The Great Australian Bight is a stretch of the coastline in the southern part of the continent that is rich in wildlife. Though BP’s drilling plans in the area do not run the risk of being rejected by Australia’s regulators, the need to provide more information will undoubtedly delay the company’s drilling program. In fact, this is the third time that the regulators have asked for more facts related to the drilling plan.
Great Australian Bight is among the most significant sources of oil in the world. Given that the area is still largely unexplored by the company, it holds immense potential. According to BP, the geology of Mississippi Delta – where the many energy players are producing oil and gas for years – might be similar to Great Australian Bight.
The Great Australian Bight has a unique ecosystem that houses whales, sea lions and other wildlife and hence, environmental groups remain skeptical regarding drilling projects in the area. In fact, most environmentalists are of the opinion that the project is extremely risky for the environment of coastal communities in this region.
London-based BP is one of the world's major integrated energy companies involved in both upstream and downstream operations. In terms of assets, BP owns a strong and diversified portfolio of global energy businesses that offer attractive long-term growth opportunities. The group’s strong inventory of development projects should help volume growth in the long run.
BP PLC Price
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.