Oil major BP p.l.c. (NYSE:BP) said Wednesday it entered a production sharing agreement for six blocks in Uzbekistan's North Ustyurt region, marking its first project in the country.

The company acquired a 40% stake in the PSA from existing partners SOCAR and Uzbekneftegaz, which will each retain 30%, with SOCAR remaining operator.

The project is currently in its first phase, with seismic activities underway.

BP Earnings Beat Estimates As Revenue Climbs

Last month, BP reported adjusted earnings of $1.24 per American depositary share, sharply higher than 53 cents a year earlier.

Revenue rose to $52.26 billion from $46.91 billion in the prior-year quarter, topping analyst estimates of $45.66 billion.

The company also declared a quarterly dividend of 8.32 cents per ordinary share and said it expects to raise the payout by at least 4% annually.

Production Outlook Remains Under Pressure

BP said it expects reported upstream production to decline in 2026 due to ongoing disruptions in the Middle East, although underlying upstream production is projected to remain broadly flat compared with 2025 levels.

For the second quarter, the company expects sequential declines in upstream production, citing seasonal maintenance activity in the Gulf of America and continued geopolitical disruptions in the Middle East.

The company also warned that elevated oil and gas price volatility could pressure contracts tied to production-sharing agreements.

Analyst Consensus & Recent Actions

The stock carries a Hold rating with an average price forecast of $47.04. Recent analyst moves include:

  • Argus Research: Upgraded to Buy (forecast $50.00) (May 11)
  • RBC Capital: Upgraded to Outperform (May 11)
  • Scotiabank: Sector Outperform (Raises forecast to $58.00) (April 22)

BP Stock Price Activity

BP Price Action: BP shares were trading down 0.90% at $44.00 at the time of publication on Wednesday, according to Benzinga Pro data.

Photo via Shutterstock