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Biggest Oil Deal’s Risk Narrows to Record as Shell Pushes Ahead

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By Rakteem Katakey: 30 November 2015

  • BG’s shares are at smallest discount to Shell’s offer price

  • Takeover received Australia antitrust approval this month

BG Group Plc’s discount to Royal Dutch Shell Plc’s takeover offer is the narrowest since the transaction was announced in April as the likelihood increases that the biggest oil deal of the decade will go through.

BG shares were 7.8 percent lower Monday than the price implied by Shell’s offer to buy the company, about half the discount reached in August. Shell has received approvals for three of the five preconditions to the acquisition, including one this month from Australia’s antitrust authority, meaning the window for some investors to cash in on the discount is starting to close, according to William Hares, a London-based oil analyst with Bloomberg Intelligence. 

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Shell announces $717 million expansion in Geismar

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Screen Shot 2015-11-20 at 08.55.47ADVOCATE STAFF REPORT: Nov. 30, 2015

Shell Chemical LP said Monday it will invest $717 million in a new linear alpha olefins manufacturing unit at the company’s Ascension Parish complex.

The project will create 20 new jobs with an average salary of $104,000, according to Shell. The company already employs 650 people at its Geismar campus. Louisiana Economic Development estimates the project will also generate 93 indirect jobs. Shell estimates the project will also require 1,000 construction jobs at peak building activity.

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Sources claim BG merger could be okayed by year-end

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by Veselin ValchevMonday, 30 Nov 2015, 10:13 GMT

Royal Dutch Shell Plc (LON:RDSA) is on track to settle all mandatory regulatory approvals for the proposed merger with smaller rival BG Group before the end of the year, paving the way for the final shareholder verdict.

According to sources close to the negotiations, both the Australian Investment Review Board and China’s ministry of commerce, whose approvals are mandatory for the deal to go through, are expected to give the thumbs-up before Christmas.

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For Shell and BG, All Roads Lead to Lower Spending

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Screen Shot 2015-11-29 at 20.02.58By HELEN THOMAS: Nov. 29, 2015 2:00 p.m. ET

Royal Dutch Shell can’t forcibly renegotiate the deal it struck in April to buy oil and gas producer BG: The U.K. Takeover Panel wouldn’t allow it. And amid griping over the price, the oil major argues the $58 billion cash-and-shares transaction should help its cash flow regardless. That may be so. It doesn’t, however, lessen the need for Shell to do more in cutting costs and spending.


EU Directive: safety of offshore oil and gas operations

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DIRECTIVE 2013/30/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 12 June 2013 on safety of offshore oil and gas operations and amending Directive 2004/35/EC

The above EU Directive (available in many languages, including Dutch) may be of assistance to people around the world who are concerned about the operations of European oil companies. 

A link to the directive is provided at the foot of this article.

The EU directive requires European companies involved in the oil industry to comply with the contents of the directive itself, and their own internal policies and standards globally (SEMS). Oil companies do not publish their own internal policies and standards, which they consider to be confidential. However, most court cases are actually the result of Shell’s employees ignoring the SEMS standards, so this is most helpful if copies of the relevant standards can be obtained through discovery or other means. The SEMS standards are required to be in place for the companies to operate in Europe. 

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Shell-BG deal to win green light

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Questions have been raised about the growing gulf between the price of BG shares and Shell’s cash and stock offer, while some market sources have argued that the low oil price could force Shell to renegotiate the deal and reduce its bid.

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Regulators in China and Australia likely to support move to create Britain’s biggest company

Chinese and Australian regulators are expected to give their blessing to Shell’s £55bn mega takeover of BG before Christmas, leaving the future of the deal resting squarely in shareholders’ hands.

The tie-up, which will create Britain’s biggest public company, has been under mounting scrutiny in recent weeks as the City questions whether Shell can justify pushing ahead, with oil prices remaining so suppressed.

However, the takeover will advance a major step towards completion in the coming weeks with the two sides anticipating clearance from China’s Mofcom regulator after the deal was passed into the final phase of its review process.

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Green Agenda Risks $2 Trillion Worth Of Energy Projects

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Mexico’s Petroleos Mexicanos and Royal Dutch Shell stand to lose roughly $77 billion in projects

By Steve Birr: Daily Caller News Foundation

If world leaders agree on a 2 degree Celsius warming limit at the Paris climate summit, $2 trillion in new coal and petroleum projects risk being killed, according to a new report.

The London based Carbon Tracker Initiative (CTI) environmental think tank says that efforts by world governments will negatively impact the energy industry and warns investors that coal, oil and gas will be hit hardest. Mexico’s Petroleos Mexicanos and Royal Dutch Shell stand to lose roughly $77 billion in projects, while ExxonMobil would lose about $73 billion, according to Reuters.

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Oil Majors Queue in Iran as $30 Billion of Projects in Play

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by Golnar MotevalliAnthony Dipaola and Hashem Kalantari: November 28, 2015:

  • Shell, Total, Lukoil interested in specific Iranian fields

  • Iran seeks to sign first oil development deal in March, April

Total SA, Royal Dutch Shell Plc and Lukoil PJSC are among international companies that have selected oil and natural gas deposits to develop in Iran as the holder of the world’s fourth-largest crude reserves presents $30 billion worth of projects to investors.

Total is one of the companies that have been in the forefront of discussions and Eni SpA is also looking to invest, Oil Minister Bijan Namdar Zanganeh said. Shell, Total and Lukoil all specified fields they would be interested in developing in Iran, Ali Kardor, deputy director of investment and financing at National Iranian Oil Co. said in an interview in Tehran.

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Thousands more jobs at risk as Shell counts cost of BG takeover

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Martin Waller warns of a chance that “The Shell board could rise up in protest against Mr van Beurden…”

Robin Pagnamenta Energy Editor: Saturday 28 November 2015: Page 65

Royal Dutch Shell is drawing up plans for more cost-cutting after its £43 billion takeover of BG Group, amid mounting pressure from shareholders to bolster the commercial logic of the deal amid falling oil prices.

The oil giant, which already has unveiled plans to slash $3.5 billion from the combined group, is understood to believe that it can wring still more in costs from the proposed merger, which is expected to be completed next year.

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Complications Grow For Shell-BG Deal

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Trefis Team, CONTRIBUTOR: NOV 27, 2015

…the Chinese authorities reviewing the proposed Royal Dutch Shell – BG Group merger are reportedly urging Royal Dutch Shell to dole out concessions on long-term liquefied natural gas supply contracts with the country.

After getting an all-clear from the Australian completion authority last week, Shell now needs clearance from China and Australia’s Foreign Investment Review Board for the deal to close as planned in early 2016.


Ken Saro-Wiwa 20th Anniversary Commemoration

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Afri organised a protest at Shell HQ in Dublin on Nov. 10th to mark the 20th anniversary of the execution of the Ogoni 9. The execution of Ken Saro Wiwa and his colleagues was carried out by the Nigerian military dictatorship with the collusion of Shell. Shell’s disregard for human rights and the environment continues in Ogoniland and elsewhere throughout the world including Erris, Co. Mayo.

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Shell Forced to Scale Back Ambitions

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Screen Shot 2015-11-20 at 08.55.47By James StaffordThu, 26 November 2015

As with most oil companies, 2015 has been a rough year for Royal Dutch Shell. The Anglo-Dutch company reported a third quarter loss of $6 billion, which included $7.9 billion in impairment charges.

During its third quarter earnings call, Shell’s CEO Ben van Beurden summed up the company’s strategy, emphasizing restraint. “Grow to simplify” is how he put it. What that means in practice is scrapping the Arctic campaign; pulling out of the expensive Carmon Creek oil sands project in Canada; shedding assets in the less desirable parts of North American shale; selling assets elsewhere around the world, including Nigeria; and focusing on its merger with BG, which is a big bet on LNG.

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Cosan chairman: No plans to part ways with Shell on Raízen venture

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Screen Shot 2015-11-20 at 08.55.47By Marcelo Teixeira:Thu Nov 26, 2015 6:47pm GMT

SAO PAULO Nov 26 (Reuters) – Brazilian energy and transportation group Cosan SA Industria e Comercio has no plans to part ways with Royal Dutch Shell on their Raízen joint venture, the world’s largest cane processor, Cosan Chairman Rubens Ometto said on Thursday.

Asked by Reuters to comment on a local newspaper report that Shell, the oil major, would exercise a contractual option to buy out Cosan’s stake in Raízen, Ometto said the story was completely unfounded.

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How Much Further Do BP plc And Royal Dutch Shell Plc Have To Fall?

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By Royston Wild – Thursday, 26 November, 2015

To say that 2015 has represented another ‘annus horribilis’ for the oil industry would be something of a colossal understatement. Of course the year has yet to run its course, and the fossil fuel sector will be pinning their hopes on a ‘Santa Rally’ to put down a marker for 2016.

I am far from optimistic over the likelihood of such a scenario, however, and believe that industry giants like (LSE: BP) and Shell (LSE: RDSB) — firms that have seen their share prices dip 6% and 25% correspondingly since the turn of the year — have much more ground to concede.

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Screen Shot 2015-11-20 at 08.55.47BY JENNIFER MCKIERNAN POLITICAL REPORTER, 26 NOV 2015

PLANS for a £1 billion carbon capture and storage plant at Peterhead have been axed by Chancellor George Osborne in his autumn spending review.

The project, which would have been the world’s first CCS plant, had been expected to create 600 jobs in the North-east.

A spokesman for energy giant Shell said the project was not viable without UK Government funding.

He said: “While we acknowledge this decision has been made in the context of a difficult spending review, without that funding, we no longer see a future for the Peterhead project in the near term.”

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UK scraps one billion pound carbon capture technology scheme

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Screen Shot 2015-11-20 at 08.55.47“Without that funding, we no longer see a future for the Peterhead project in the near term,” a spokesman for Shell said.


Britain has scrapped plans to spend up to 1 billion pounds ($1.5 billion) to help commercialize the technology for capturing carbon dioxide emissions from power plants and storing them underground, the government said on Wednesday, putting two major projects at risk of being canceled.

The announcement comes just days before negotiators from more than 190 countries are due to meet in Paris to thrash out a global deal to cut greenhouse gas emissions blamed for rising temperatures.

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By Charles Mandel | November 25th 2015

Screen Shot 2015-11-20 at 08.55.47A handful of protesters from Sum of Us, Greenpeace, the Ecology Action and the Clean Ocean Action Committee delivered a massive 233,000-signature petition to the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) opposing what they said were extremely lax safety standards around Shell’s drilling program. Currently, if a subsea oil well blowout were to occur, the company would be allowed to take 12 to 13 days to contain it. Shell’s original proposal suggested it could take 21 days to get a capping stack to the site.

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UK government carbon capture £1bn grant dropped

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Screen Shot 2015-11-20 at 08.55.47A Shell spokesman said: “Shell is disappointed at the withdrawal of funding for the CCS Commercialisation Competition…

25 November 2015

The UK government has announced it is axing a £1bn grant for developing new carbon capture and storage (CCS) technology.

Peterhead power station and the White Rose scheme in North Yorkshire were the bidders in the competition.

Shell and SSE are behind the Aberdeenshire plans.

The energy company Drax had announced in September it was abandoning plans to introduce CCS technology in North Yorkshire.

‘Engage on implications’

In stock exchange announcement, the government said: “Today, following the Chancellor’s Autumn Statement, HM Government confirms that the £1bn ring-fenced capital budget for the Carbon Capture and Storage Competition is no longer available.

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Royal Dutch Shell, Exxon Mobil and Glencore: Energy companies risk wasting trillions on uneconomic projects

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By Jessica Morris: 25 November 2015

Energy companies risk wasting $2.2 trillion (£1.46 trillion) on uneconomic projects over the next 10 years, according to a new report.

Think tank the Carbon Tracker Initiative’s (CTI) report how fossil fuel firms risk destroying investor returns says energy companies’ focus on fossil fuels at the expense of emerging clean technologies could put them out of kilter with environmental regulation, which will eventually dampen demand.

It comes ahead of next week’s Paris Climate Change Conference (COP21) which is expected to result in, or at least pave the way for, more climate change legislation.

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Some Thoughts On Royal Dutch Shell’s Dividend In 2016

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Screen Shot 2015-11-20 at 08.55.47Casey Hoerth, Casey’s Finance Journal (Blog) Nov. 25, 2015 


Shell expects substantial cost savings and capex cuts in 2016.

Dividend sustainability in 2016 will depend on Brent crude prices.

At this time, I prefer companies that can actually acquire with oil at these prices.

Back in April, I wrote that Royal Dutch Shell’s (NYSE:RDS.A) dividend, while sustainable in the short term, would be hard to maintain in the long run if crude oil prices remained as low as they were. From what we’ve seen since April, it looks as if crude indeed wants to remain lower for longer.

Just last week, Shell had its Investor Day for 2016, where the company explained its vision for the coming year. This time around, the company didn’t center its presentation on full-year cash flow guidance for 2016. That’s because crude prices have been volatile to the point of full-year guidance being less than valuable. That, in turn, makes it difficult to get a handle on dividend sustainability for next year. This article focuses on a few things important to the company’s dividend: cash flow and capital expenditures.

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Shell’s £22,500 fine for North Sea oil spill slammed as ‘paltry’ by campaigners

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Screen Shot 2015-11-21 at 00.19.03The World Wildlife Fund warned the size of the fine would ‘do little to deter future poor behaviour’

Shell apologised for the lack of information and said it was not a deliberate attempt to cover up the spill. 

Adam Barnett: 24 November 2015

A £22,500 fine imposed on the energy giant Shell as punishment for the worst North Sea oil spill in a decade has been dismissed as “paltry” by environmental campaigners.

The World Wildlife Fund (WWF) warned the size of the fine, for a company that earns billions, would “do little to deter future poor behaviour” by oil and gas companies to avoid more damage to the environment.

The leak from the Gannet Alpha platform in August 2011 was the worst in the region in 10 years and saw more than 200 tons of oil – about 1,300 barrels – flood into the sea. 

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Shell fined by Scottish court for 2011 North Sea oil spill

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“Despite being responsible for the worst North Sea spill in a decade, the level of the fine is literally a drop in the ocean when compared to the billions earned by Shell annually…” Screen Shot 2015-11-21 at 00.19.03

LONDON: Business News | Tue Nov 24, 2015 2:42pm GMT

Oil major Royal Dutch Shell (RDSa.L) was handed a 22,500 pound fine by a local Scottish court on Tuesday for a 2011 oil spill in the North Sea that was the largest in more than a decade.

A subsea pipeline leak from Shell’s Gannet Alpha field spilled more than 200 tonnes of oil into the central North Sea in August 2011. Aberdeen Sheriff Court imposed the fine after Shell pleaded guilty in the case.

The oil major has accepted the charge and said it had since carried out a review of its North Sea pipeline system and had applied lessons learned across its British operations.

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Shell Canada fined $825,000 for Sarnia refinery pollution

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Nov 24 The Ontario government on Tuesday ordered Shell Canada, a wholly owned subsidiary of Royal Dutch Shell, to pay C$825,000 ($620,487.36) in fines for discharging a contaminating odour from its Sarnia refinery in 2013.

In a statement, the Ontario Ministry for Environment and Climate Change said Shell had pleaded guilty to one offense of permitting a discharge of an odour containing mercaptan, a foul-smelling gas.

The Shell Sarnia Manufacturing Centre is located in Corunna, Ontario, and on Jan. 11, 2013, employees discovered a leak from a line containing mercaptan, which flowed into an on-site ditch that empties into the refinery’s storm sewer system.

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Shell wins backing of Qataris for BG takeover

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Screen Shot 2015-11-25 at 07.46.39One of the biggest shareholders in Royal Dutch Shell has thrown its weight behind the oil group’s £43 billion takeover of BG Group, despite mounting concerns about the impact of plunging oil prices on the commercial logic that underpins the deal.

The Qatar Investment Authority, the sovereign wealth fund that holds a stake of up to 2 per cent in the Anglo-Dutch group and also is a shareholder in BG, is understood to be “fully supportive” of the proposed transaction, which was announced in April.

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Shell handed £22,500 fine over August 2011 North Sea oil spill

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Screen Shot 2015-11-20 at 08.55.47November 24, 2015 12:30 pm

The company carried out a review of its North Sea pipeline system following the leak, which came from a subsea pipeline in the Gannet field in August 2011.

More than 200 tonnes of oil – about 1,300 barrels – entered the North Sea from the pipe about 112 miles east of Aberdeen after the problem was first detected on August 10.

The fine was handed down at Aberdeen Sheriff Court after Shell admitted two charges.

Paul Goodfellow, Shell’s upstream director, UK & Ireland, said: “We deeply regret the Gannet spill and accept the fine which has been handed down to us.

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Shell under fire over BG Group takeover as oil price slump continues

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Robin Pagnamenta Energy Editor: November 24 2015

A leading Royal Dutch Shell shareholder has urged it to consider renegotiating the terms of its £43 billion takeover of BG Group.

It said that circumstances had “changed so much” since the proposed deal was announced in April that Shell should cut the price. Figures show that investors are betting more heavily on further falls in the oil price than at any time for more than a year.

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Gas Field quakes hit Dutch dykes

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Screen Shot 2015-11-24 at 08.13.11Senay Boztas AMSTERDAM: 22 Nov 2015: Sunday Times

THE Dutch are being forced to earthquake-proof their dykes after a spate of tremors blamed on the effects of extracting gas from the vast field running beneath the country.

Although Holland lies far from any big geological fault lines, half a century of exploitation of the Groningen field – Europe’s largest – is blamed for causing about 50 earthquakes a year.

The government is considering how much it should reduce lucrative gas production, which has been a mainstay of the Dutch economy throughout the financial crisis.

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Shell joins queue of investors waiting on Iran oil contracts

Questor delivers a damning verdict of the proposed Shell BG merger

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An Opec meeting on December 5 could send oil price even lower and sound the ‘death knell’ for the deal.

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‘If oil prices remain at these deeply depressed levels, then it could bring nothing but disaster. The famous Shell dividend could be cut, investors will be diluted and the shares would become a riskier prospect,’ writes John Ficenec in the Sunday Telegraph

He argues that while the deal makes sense on paper – as it bolsters Shell’s prospects in the dash for gas – the success rests on one factor ‘price’. 

The price here is not right, says Questor, and there is a risk that Shell is overpaying at £47 billion. 

Shell will fund the deal with 30 per cent cash and 70 per cent new Shell shares – that means selling some $30 billion (£19 billion) of assets during the three years from 2016 and a £25 billion share buy-back from 2017 to reverse dilution effects. 

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Questor share tip: Shell should walk away from BG

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The FTSE 100 oil major has endured a turbulent year after announcing its offer for rival BG, says Questor.

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By John Ficenec, Questor Editor: 22 Nov 2015

SHELL’S [LON:RDSB] deal to buy gas group BG makes perfect sense on paper. But if oil prices remain at these deeply depressed levels, then it could bring nothing but disaster.

The famous Shell dividend could be cut, investors will be diluted and the shares would become a riskier prospect.

Deal logic

Shell is suffering from declining reserves and some well publicised exploration failures such as in Alaska. BG has had its problems, but is just about to greatly increase production at one of the largest natural gas fields in the world off the coast of Brazil. There is a dash for gas around the world as governments increasingly shun coal-fired power stations.

In one fell swoop Shell can use its cash and balance sheet strength to return its dwindling reserves to growth, and underpin its dividend payments for the foreseeable future.

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China wants LNG supply concessions in return for BG merger approval, sources say

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Beijing holding a “wonderful piece of leverage”

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by Veselin ValchevFriday, 20 Nov 2015

Royal Dutch Shell Plc (LON:RDSA) might have to shell out in order to get regulatory approval from Chinese authorities for its proposed takeover of fellow UK energy giant BG Group.

According to unnamed sources cited by Reuters, the Chinese ministry of commerce has requested that Shell review liquefied natural gas (LNG) prices in long-term supply contracts with the nation’s top energy companies – CNPC, CNOOC and Sinopec.

“It’s a reasonable request given the premiums Chinese and other Asian buyers are paying for long-term LNG versus those for Europe and America. The market is oversupplied, and this situation may well last through the next five to 10 years,” said a gas official with one Chinese state energy firm.

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State regulators fine Shell Oil for toxic release in Anacortes

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Screen Shot 2015-11-21 at 00.19.03Inspectors found that Shell had skipped critical decontamination steps while shutting down the main flare. The uncontrolled release exposed workers to toxic substances.


TUMWATER, Wash. (AP) — Washington state regulators have fined Shell Oil Products $77,000 after an investigation found that it failed to control a toxic release.

The Department of Labor and Industries said Friday that they began investigating Shell’s Puget Sound Refinery in Anacortes after learning that the refinery’s main flare released contaminates into the environment.

The release prompted complaints about the odor by people living nearby.

A refinery flare is designed to burn off waste gases and vapors not used in production. It also helps to prevent fires. But the flare must be decontaminated and shut down periodically for maintenance.

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Shell charged over biggest North Sea oil leak in more than a decade

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Screen Shot 2015-11-20 at 08.55.47STV: 20 November 2015

Energy giant Shell has been charged over a major oil leak from a North Sea platform four years ago. 

The equivalent of more than 1300 barrels of oil spilled into the sea from the Gannet Alpha in August 2011, the largest leak in more than a decade. 

The UK Government carried out an investigation into the incident and Shell now faces charges over the spill, as well as pipeline maintenance and health and safety. 

Shell was able to bring the leak 112 miles east of Aberdeen under control but then faced a smaller leak which was spilling around 80 gallons of oil a day. 

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Goldman eyes $20 oil as glut overwhelms storage sites

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By Ambrose Evans-Pritchard: 20 Nov 2015

The world is running out of storage facilities for surging supplies of oil and may soon exhaust tanker space offshore, raising the chances of a violent plunge in crude prices over coming weeks, experts have warned.

Goldman Sachs told clients that the increasing glut of oil on the global market has combined with mild weather from a freak El Nino this winter. The twin-effect could send prices plummeting to $20 a barrel, the so-called ‘cash cost’ that forces drillers to abandon production. “Risks of a sharp leg lower remain elevated,” it said.

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Shell charged over Gannet Alpha leak in 2011

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Screen Shot 2015-09-17 at 07.55.40Friday 20 November 2015

Oil giant Shell has been charged after an investigation into a leak at a North Sea platform in 2011, the BBC Scotland news website has learned.

It involved the Gannet Alpha platform, 113 miles (180km) from Aberdeen.

It was reported that the pipeline leaked more than 200 tonnes of oil.

The case against Shell UK is due to call at Aberdeen Sheriff Court next week. The charges cover oil pollution, pipeline safety and health and safety regulations.

The pipeline involved was about 300ft (91m) below the surface.

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Nigerian researcher key to landmark $83 million Shell oil spill settlement to speak at IUPUI

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INDIANAPOLIS — In an out-of-court settlement reached earlier this year, Shell Petroleum Development Co. of Nigeria agreed to an $83.4 million (55 million pounds) compensation package for Bodo, a Nigerian farming and fishing community damaged by massive oil spills in 2008 and 2009. The Bodo case is the first major legal settlement where compensation has been paid directly to individual Africans and not just done through chiefs or community leaders.

This afternoon, a researcher whose data contributed to the winning of the case will speak at Indiana University-Purdue University Indianapolis.

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Lorraine Mitchelmore is stepping down as the head of Shell Canada. But she’s not going quietly.

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Screen Shot 2015-11-20 at 08.55.47NOVEMBER 18, 2015 10:20 AM


Shell has reduced greenhouse gas emissions by 20 per cent per barrel from its oilsands business in the past five years, through many small efforts, including making more efficient use of its trucks.

Yet that hasn’t stopped Shell from being a target and paying a high price for the anti-oilsands campaign.

Last month it cancelled the 80,000-barrels-a-day Carmon Creek oilsands project in Peace River in mid-construction, taking a $2-billion impairment charge.

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In Shell-BG review, China wants concessions on huge gas deals

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Chinese regulators vetting Royal Dutch Shell’s (RDSa.L) proposed merger with BG Group (BG.L) are pressing the Anglo-Dutch company to sweeten long-term gas supply contracts in a move that could cast new doubt over the near-term benefits of the $70 billion tie-up.

For China, the opportunity to re-negotiate existing liquefied natural gas (LNG) supply contracts with Shell, which combined with BG would supply around 30 percent of its imports by 2017, comes at an ideal time because the world’s top energy consumer faces a large surfeit over the next five years.

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Shell to decide on Ormen Lange subsea compression in 2016

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Screen Shot 2015-09-17 at 07.55.40STAVANGER, NORWAY: Business News | Thu Nov 19, 2015

Shell plans to decide next year whether to resume installing subsea compressors at its giant Ormen Lange field offshore Norway, a company’s senior executive said on Thursday, after stopping the project last year to save costs.

“We still expect in the course of 2016 that we will get to a point where we can see whether we can sanction a good development there or not,” Mark Wildon, a vice-president at Shell Norway, told Reuters on the sidelines of an energy conference.

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Shell’s BG Deal Cleared by Australian Competition Regulator

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By James Paton: November 18, 2015:

  • Agreement on track to be completed in early 2016, Shell says

  • Shell’s plan had faced concerns over gas supply in Australia

Royal Dutch Shell Plc’s $70 billion deal to buy BG Group Plc was cleared by Australia’s competition watchdog despite concerns it could reduce natural-gas supply to local customers and boost prices.

“The proposed acquisition would be unlikely to substantially lessen competition in the wholesale natural gas market,” Rod Sims, chairman of the Australian Competition and Consumer Commission, said in a statement on Thursday.

Shell’s takeover has already won key regulatory approvals from the U.S., the European Union and Brazil. Shell on Thursday called the Australian decision a “major step forward” for the transaction, which still requires clearance from China’s antitrust regulators and is on track to be completed in early 2016.

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Safety risks prompt Dutch court to order cuts at Groningen gas field

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Screen Shot 2015-11-18 at 09.13.40Sectors | Wed Nov 18, 2015 4:33pm IST

By Anthony Deutsch and Toby Sterling

A Dutch court on Wednesday ordered more cuts in gas production at Groningen, Europe’s largest gas field, saying the government had given too little consideration to the stronger and more frequent earthquakes extraction had caused.

Output at the field, the world’s 10th largest, will now be capped at 27 billion cubic metres (bcm) per year from 33 bcm, the court said, adding that the government had failed to sufficiently weigh public safety risks.

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Exxon’s Dutch Gas Gag

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Screen Shot 2015-11-18 at 09.13.40Liam Denning: November 18, 2015

If you’ve never been to Groningen, it’s a pleasant college town in the northern Netherlands. It also happens to share its name with one of the world’s largest natural gas fields. Tourists are best advised to focus on the scenic bicycling routes. Exxon Mobil is more attuned to what lies beneath.

The region around Groningen has a problem that is becoming familiar in places like Oklahoma: earthquakes brought on by gas production. On Wednesday, a Dutch court ruled that the production cap on the giant field should be reduced temporarily by another 18 percent, to about 950 billion cubic feet for the year that started October 1. Altogether, the cap has been cut by about a third since 2014.

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Australia watchdog clears Shell’s $70 billion bid for BG Group

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MELBOURNE | BY SONALI PAULBusiness News | Thu Nov 19, 2015 

Royal Dutch Shell (RDSa.L) cleared a major hurdle to its $70 billion (46 billion pounds) takeover of BG Group (BG.L) on Thursday, winning a green light from Australia’s competition watchdog, which said the deal would not change the dynamics of the domestic market.

The acquisition will make Shell the world’s top liquefied natural gas (LNG) trader, although it still needs approval from China and Australia’s Foreign Investment Review Board to go ahead as planned in early 2016.

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ACCC clears Shell’s $98b takeover of BG Group

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To the relief of Shell, the Australian Competition and Consumer Commission waved through the mega-merger on Thursday…

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Angela Macdonald-Smith: Energy Reporter

East coast gas buyers left disappointed by the competition regulator’s unconditional approval for Royal Dutch Shell’s $US70 billion ($98 billion) takeover of BG Group have turned their attention to the Foreign Investment Review Board as they look for conditions to be put around the deal.

To the relief of Shell, the Australian Competition and Consumer Commission waved through the mega-merger on Thursday, which will align the oil giant’s undeveloped gas in Queensland – held in the Arrow venture with PetroChina – with BG’s $28 billion LNG export project in Gladstone.

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Dutch court orders more cuts in gas production

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Screen Shot 2015-11-18 at 09.13.40Wednesday 18 November 2015

[JURIST] The Dutch Council of State [official website, in Dutch] on Wednesday ordered [judgment, in Dutch; press release, in Dutch] more cuts in gas production. The court came to this decision after stronger and more frequent earthquakes occurred in the Netherlands as a result of extraction. The Groningen [BBC backgrounder], the field in question, will be capped at 22 billion cubic meters (bcm) per year from 33 bcm, due to the government’s failure to weight public safety risks after earthquakes caused extensive damage in the Netherlands’ northernmost province. Due to the Groningen supplying 15 percent of Europe’s gas, the Court ruled [Reuters report] “should it turn out to be a relatively cold year, the maximum gas extraction can be raised to 33 billion cubic metres.” The government has twice this year reduced production from its original target of 39.4 bcm. The ruling applies to all production through October 2016.

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Shell finds 100 million oil barrels in deep-water Gulf discovery

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Posted on November 18, 2015 | By Collin Eaton

HOUSTON — Probing one of its recent discoveries in deep waters of the Gulf of Mexico, Royal Dutch Shell found 100 million barrels of oil equivalent buried at its Kaikias field, nearby three of its massive production facilities and a network of subsea pipes, the company said Wednesday.

The one-year-old Kaikias discovery, about 60 miles south of the Louisiana coast in the Mars-Ursa basin, is nowhere near the size of the big-ticket deep-water oil fields that Shell uncovered in that region two decades ago.

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Corrib gas project spend to top €3.6bn as Shell await Government approval

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Screen Shot 2015-11-18 at 23.10.02The costs of the Corrib gas project are set to top €3.6bn by the end of this year, more than four times the original estimate of €800m.

Gordon Deegan: Wednesday, November 18, 2015

Yesterday, operator Shell E&P Ltd confirmed that the 2015 spend by the Corrib partners on the field will be €260m.

Some €320m was spent last year, as total costs approach €3.6bn by the end of 2015.

A spokesman for Shell Ireland said: “As construction of the Corrib development is essentially completed, the capital investment in the project will reduce significantly from 2016 onwards.

“The Corrib facilities have been technically ready to start up since September 1 last.

“After what has been a protracted development phase, Shell is understandably eager to start producing gas as soon as possible.

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Dutch Court to Rule on Gas Output From Europe’s Biggest Field

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Screen Shot 2015-11-18 at 09.13.40Anna Shiryaevskaya, Fred Pals and Kelly Gilblom: 18 November 2015:

  • Final ruling Wednesday on output from EU’s biggest gas field

  • Government plans to decide on future production in December

A Dutch court will Wednesday decide on the future of Europe’s largest natural gas field as local residents seek to stop tremor-inducing production that’s damaging their houses.

The Council of State will rule on whether production from the Groningen gas field should be limited after in September hearing appeals from about 40 individuals, housing corporations and environmental groups. That comes before the government plans to next month outline future output at the field, which generated about 10.7 billion euros ($11.4 billion) in revenue last year and also supplies Germany, Belgium and France.

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Shell racks up nearly €100m loss as it waits on go-ahead for first Corrib gas

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Corrib Gas Project mired in corruption allegations and a related cover-up led by Michael Crothers

Paul O’Donoghue: 18 November 2015

The company behind the controversial Corrib gas project racked up losses of over €98m last year as it awaits a final government permit to begin flowing gas at the site.

Accounts just filed for Shell E&P, the Shell subsidiary managing the project in Ireland, show administrative costs amounted to €18.8m last year, down from €20.3m in 2013.

It made an operating loss of just over €26m compared to €28.5m the year before. Most of the loss was an actuarial loss that related to the firm’s pension scheme.

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Shell share price: Canada boss leaves company

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Screen Shot 2015-10-28 at 08.03.29by Veselin ValchevTuesday, 17 Nov 2015, 11:18 GMT

Royal Dutch Shell Plc (LON:RDSA) announced yesterday that the boss of the firm’s Canada division, Lorraine Mitchelmore, is stepping down from the company at the end of 2015, following six years at the helm.

The move comes less than a month after the Anglo-Dutch oil major abandoned its 80,000 barrel per day Carmon Creek thermal oil sands project in Alberta, amid a reshuffle of the firm’s portfolio.

A spokesman for Shell Canada said Mitchelmore’s departure had nothing to do with the decision to shelve Carmon Creek.

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