Total: UBS remains neutral after contract on South Pars 11.
(CercleFinance.com) - UBS has examined the Total file after the French oil major “transformed its try” in Iran by signing the South Pars 11 (SP11) oil deposit contract.
However, it is maintaining its Neutral rating on the stock, coupled with a target price of 50 euros.
Indeed, the contract for the development of the SP11 deposit between Total and NIOC, the Iranian national company, will cover gas production of up to 400,000 barrels of oil equivalent per day. Production is scheduled to start in 2021. Total, which will be the operator of this deposit, will have a 50.1% share in the capital. The investment is estimated at 2 billion dollars for the first phase, with full field costs of up to 4.8 billion dollars.
“Given the political profile, we would expect the returns on the project to be competitive and clearly the cost profile should be very robust given the quality of the resource,”albeit without providing figures.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
However, it is maintaining its Neutral rating on the stock, coupled with a target price of 50 euros.
Indeed, the contract for the development of the SP11 deposit between Total and NIOC, the Iranian national company, will cover gas production of up to 400,000 barrels of oil equivalent per day. Production is scheduled to start in 2021. Total, which will be the operator of this deposit, will have a 50.1% share in the capital. The investment is estimated at 2 billion dollars for the first phase, with full field costs of up to 4.8 billion dollars.
“Given the political profile, we would expect the returns on the project to be competitive and clearly the cost profile should be very robust given the quality of the resource,”albeit without providing figures.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.