Global energy major Shell (NYSE:SHEL) has entered into a major five-year oil supply deal with Qatar. According to Arab News, the company will receive up to 18 million barrels of oil every year in Singapore over the deal term.
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Notably, this is the first-ever five-year oil sales deal for Qatar. QatarEnergy will supply Qatar Land and Qatar Marine crude oils to Shell International Eastern Trading Co. Deliveries are anticipated to begin in January 2024. Shell and QatarEnergy have teamed up on multiple energy projects in domestic and international markets. The deal is part of QatarEnergy’s strategy to set up longer-term relationships.
In October, QatarEnergy entered into a 27-year LNG supply deal with TotalEnergies (NYSE:TTE). The Gulf nation aims to expand its liquefaction capacity from 77 million metric tons a year to 126 million by 2027. In another development, Brazil’s Petrobras (NYSE:PBR) is set to return to Africa after acquiring three exploration blocks in Sao Tome and Principe from Shell.
Is Shell Stock a Buy, Sell, or Hold?
Overall, the Street has a Strong Buy consensus rating on Shell. Following a nearly 14% rise in the company’s share price over the past year, the average SHEL price target of $71.13 implies a modest 7.6% potential upside in the stock.
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