Tar sands are shaping up to be the thorn in BP (BP-) and Shell's (RDSB) sides as concerns over potential expense prove almost as rife as worries over the environmental impact.
February 26th, 2010:
Oil giants hit by concerns over tar sands
Iraq talks with Shell prolonged, continue-official
BAGHDAD, Feb 26 (Reuters) – Talks between Iraq and Royal Dutch Shell (RDSa.L) on a natural gas deal near the southern oil hub of Basra are taking longer than expected but still ongoing, a senior Iraqi oil official said on Friday.
“The heads of agreement will be extended and the project will be presented to the next government,” the official told Reuters on condition of anonymity.
The Iraqi government has been working to finalize the joint venture between its South Gas Company, Shell and Mitsubishi (8058.T). The deal would capture huge amounts of gas for domestic use or export, which is currently wasted by being flared at the oil fields.
Nigeria: Shell’s Opposition to PIB Selfish, FG Insists
Adeola Yusuf: 25 February 2010
Lagos Federal Government came down hard on Royal Dutch Shell on Wednesday over its opposition to the Petroleum Industry Bill (PIB), insisting that the oil major was wrong in its assessment that the bill would block investment.
Ann Pickard, outgoing Regional Executive Vice President, Shell Exploration and Production, Africa, had on Tuesday described the PIB as “a cumbersome document that lacks insight into the very basics of our industry.”
While forecasting a bleak future for the oil and gas industry post-PIB, Pickard, during a public lecture, also criticised the fiscal provisions of the proposed law which she described as the “harshest in the world”.
Shell oil sands costs rise again
REUTERS
Shell oil sands costs rise again, partner says
* Athabasca oil sands expansion’s costs rise to $14.3 bln
CALGARY, Alberta, Feb 25 (Reuters) – The cost of a 100,000-barrel-per-day expansion of Royal Dutch Shell Plc’s (RDSa.L) Athabasca oil sands project has climbed to $14.3 billion, Chevron Corp (CVX.N), one of its partners, said in a filing.
The new estimate amounts to $600 million more than the estimate provided by Chevron a year earlier.
Chevron, which hold a 20 percent stake in the oil sands mining and upgrading project, said the expansion will boost output to 255,000 barrels per day.
The cost of completing the project has steadily climbed well beyond Shell 2006 estimate of between C$10 billion and C$12.8 billion ($9.4 billion to $12 billion). Just a year ago, Chevron pegged the cost of the project at $13.7 billion.