Royal Dutch Shell Plc  .com Rotating Header Image

Posts from ‘January, 2015’

BIG OIL: Who will blink first to set the M&A scramble in motion

Screen Shot 2015-01-31 at 08.53.48With more than $110 billion of oil and gas assets on the block as companies big and small count the cost of the collapse in oil prices, it is now a question of who will blink first to set the M&A scramble in motion.

Screen Shot 2015-01-29 at 13.58.27

Article published by Reuters 30 Jan 2015 under the headline:

Buyers bide their time in $110 bln oil asset sell-off

* Half of the assets on sale are in North America

* North Sea could prove a hard sell

* Potential buyers holding out for further price falls

* Wave of deals expected within three to six months

By Ron Bousso

LONDON, Jan 30 (Reuters) – With more than $110 billion of oil and gas assets on the block as companies big and small count the cost of the collapse in oil prices, it is now a question of who will blink first to set the M&A scramble in motion.

Energy groups with spare cash, venture capital funds and multinational and state oil companies are eyeing assets with valuations that have largely tracked the halving of the oil price to less than $50 a barrel since last June. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Oil rout gives Exxon and Shell reason to buy rival ‘sisters’

Screen Shot 2015-01-31 at 08.53.48…a major deal over the next year that will bring together two of the super majors, or see one of their smaller rivals swallowed up, is highly likely – and almost a certainty if historical precedent is anything to go by. Certainly, if the oil rout of the late 90s is anything to go by, a major deal among the industries big “sisters” is just around the corner.

Article By Andrew Critchlow, Commodities editor, The Telegraph, published 30 Jan 2015 under the headline:

Oil rout gives Exxon and Shell reason to buy rival ‘sisters’

First there were the “Seven Sisters”, a term coined in the 1950s to describe a cabal of the world’s biggest international oil companies (IOCs), which at that time controlled the supply of fossil fuels with a vice-like grip.

Then came the Yom Kippur war of 1973 and the subsequent Middle East oil crisis, which would gradually see their power over more than three-quarters of the world’s crude wrestled back by newly independent states in the Persian Gulf.

By the late 1990s – with oil prices at around $20 (£13.20) per barrel – the original seven had grown much bigger and been morphed into new giants, which consumed their smaller rivals in a race to acquire what little of the world’s oil and gas reserves still remained open to them. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell overstated its fourth quarter results by $178 million

Screen Shot 2015-01-29 at 13.58.27

Screen Shot 2015-01-06 at 21.26.38Fri Jan 30, 2015 4:48pm GMT

(Reuters) – Royal Dutch Shell (RDSa.L) said on Friday it had overstated its fourth quarter results by $178 million (118.44 million pounds) due to an error in the valuation of its fuel inventory.

The company said its underlying earnings, which are most closely watched by analysts and investors, were unaffected by the mistake.

“A stock valuation error in its downstream operations was discovered,” Shell said in a statement.

“Royal Dutch Shell’s fourth quarter and full year 2014 earnings, on a current cost of supplies (CCS) basis are unchanged,” the company said in the statement.

However, as a consequence of the error, Shell reduced fourth quarter income to shareholders from $773 million to $595 million. Full year income was cut from $15,052 million to $14,874 million. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell knew of fraud and moneylaundering activities during purchase of an oilfield in Nigeria

Screen Shot 2014-10-30 at 09.22.43This story is currently being reported by multiple Dutch news publishers on 31 Jan 2015

Non professional translation

Shell knew of dubious practices in Nigeria

Shell knew of fraud and moneylaundering activities during the purchase of an oilfield in Nigeria.

This is a statement in OneWorld magazine in an investigation of “dubious” trading in the African Country.

According to OneWorld, Shell acted against its own business principles, as is shown in a reconstruction of the purchase of the oilfield.

Shell paid together with ENI more than a billion dollars for a licence in oilfield 245, off the coast of Nigeria.

This field contains about a quarter of all Nigerian reserves. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Where is my defamation writ from Edward Heerema, Allseas son of Pieter Schelte?

Screen Shot 2015-01-26 at 19.09.50By John Donovan

Despite my forthright comments about Edward Heerema (the owner of the multibillion dollar ship Pieter Schelte), describing him a sinister individual who engages in shady financial machinations, I have not yet received a defamation writ.

Threats yes, but no writ. 

Edward Heerema is one of the squabbling sons of Pieter Schelte Heerema, the offshore pioneer and former German Waffen SS officer/war criminal. 

It could be because Allseas does not have my address, in which case they only need to ask me for it. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell shelves Arrow LNG project in Queensland

Screen Shot 2014-06-23 at 11.37.41From an article by Angela Macdonald-Smith published 30 Jan 2015 by The Sydney Morning Herald under the headline:

“Shell shelves Arrow LNG project in Queensland”

Royal Dutch Shell has finally ditched plans for a new $US20 billion-plus liquefied natural gas project in Queensland,making it the latest casualty of the oil price slump.

Global chief executive Ben van Beurden said the proposed greenfield Arrow LNG project with PetroChina was “off the table”, while other ventures would be slowed as priority was given instead to Shell’s North American LNG projects.

The Arrow greenfield project is formally “cancelled,” Shell said in a presentation released for its fourth-quarter results in London which cited several ventures that were being deferred or abandoned in the wake of the collapse in oil prices. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell, Exxon Sell North Sea Field to ONE After Oil-Price Rout

Screen Shot 2014-06-23 at 11.37.41Article by Jillian Ward published 29 Jan 2015 by Bloomberg under the headline:

“Shell, Exxon Sell North Sea Field to ONE After Oil-Price Rout”

Extracts

(Bloomberg) — Royal Dutch Shell Plc and Exxon Mobil Corp. have sold their stakes in the Sean field to Oranje-Nassau Energie BV for an undisclosed sum as drillers seek to offload aging North Sea assets.

Shell and Exxon each sold a 25 percent stake in the gas field to Amsterdam-based ONE, the companies said. The deal — still subject to partner and regulatory approvals — will likely be completed in the first half of 2015, Shell said in an e-mailed statement.

“Sean has entered a phase where it offers greater value to other companies than it does for Shell,” The Hague-based company said. “The deal shows that Shell is delivering its strategy to focus on areas where the company can add value in the U.K. Continental Shelf.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Inside Shell’s earnings report: Proof that the Saudis’ oil market strategy is working

Screen Shot 2015-01-30 at 11.57.22

Screen Shot 2015-01-30 at 12.02.38By Puneet Kollipara January 29 at 5:43 PM

Saudi Arabia shocked the world last fall in breaking from its traditional mold of keeping oil production artificially low to prop up oil prices. Instead, the Saudis and other OPEC nations voted to keep oil output steady even in the face of a global supply surplus, a move seemingly designed to respond to the threat that the Saudis see from rising output from non-OPEC producers — from U.S. shale plays to Russia’s Arctic to Brazil’s deep offshore waters. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell’s Arctic Dilemma

CONTRIBUTOR COMMENT

In the context of BvB’s comments about the Arctic, it is perhaps worth noting that in the absence of an intention to pursue their Arctic prospects, Shell would be obliged to write off/write down their past expenditure… And that would have resulted in a very miserable result for 2014. The problem has at least been delayed, but it won’t go away.

RELATED: Bad idea: Shell’s gearing up to start drilling in the Arctic again: salon.com

Extract

Neither risk of an oil spill nor global climate change nor the falling price of oil will keep Shell from exploiting the Arctic’s oil.

After suspending its Arctic program for years following the grounding of one of its drilling rigs, the company announced Thursday that it plans to start drilling this summer in Alaska’s Chukchi Sea.

“Will we go ahead?” CEO Ben van Beurden said during the company’s fourth quarter results conference. “Yes if we can. I’d be so disappointed if we wouldn’t.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

BP Shell merger on the horizon

Screen Shot 2014-10-28 at 12.29.57Potentially, a prolonged period of low oil prices might finally see BP and Shell, like two drunken sailors, holding each other up through the merger that has so long been on the horizon.

AN ARTICLE BY ALEX BRUMMER FOR THE DAILY MAIL PUBLISHED 30 Jan 2015 

Screen Shot 2015-01-30 at 08.41.40

“ALEX BRUMMER: Big oil players confront the slump by slashing capital expenditure”

Oil exploration and production is a long-term enterprise so it is encouraging that Shell chief executive Ben van Beurden is not hitting the panic button.

The group’s market value of £139billion makes it the biggest beast on the FTSE 100 by a long chalk. In that context, and with its strong cash flows, the asset disposals and the proposed cuts in capital spending of $15billion (£9.9billion) over three years are relatively modest.

In pressing on with capital expenditure, despite the fall in the oil price by 60 per cent over the last year, Shell looks to be counting on energy prices bouncing back. It is an interesting assumption because there is a prevailing view that there has been a mispricing of oil for a lengthy time because of a glut of supplies. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell bows to investor pressure on climate risk

Screen Shot 2015-01-29 at 13.58.27

Screen Shot 2015-01-06 at 21.26.38WASHINGTON Thu Jan 29, 2015 1:49pm EST

(Reuters) – In a rare move, oil major Shell on Thursday backed a resolution proposed by activist investors to force the company to recognize climate change risks by improving its transparency.

Shell’s executive vice president of investor relations JJ Traynor said the company would urge shareholders to vote for the resolution at the annual general meeting in May.

The announcement coincided with Shell saying Thursday that it would cut $15 billion in spending but continue to drill in Alaska’s Arctic.

The resolution was filed by the Aiming for A coalition of UK investors representing close to £200 billion ($300 billion) in assets and calls on Shell to disclose additional information in five areas related to climate change in its annual reporting from 2016. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell resumes Arctic drilling but cuts $15bn from global investment

Screen Shot 2015-01-29 at 15.57.27Royal Dutch Shell is reviving plans to drill for oil in Arctic in a move likely to intensify its battle with environmentalists.

The Anglo-Dutch giant’s chief executive Ben van Beurden accepted that Arctic drilling “divides society”, but said the world needs new sources of oil.

Greenpeace said Shell was taking a “massive risk” in a “pristine” region.

Shell also announced a $15bn (£9.9bn) cut in global spending, and profit figures that disappointed investors.

The cut in investment – spread over three years – comes after a fall in the oil price. Although the price is expected to remain lower in the medium term, Mr van Beurden said: “We are taking a prudent approach here and we must be careful not to over-react to the recent fall in oil prices.

“Shell is taking structured decisions to balance growth and returns.”

Shell also said profits for the last three months of 2014 had risen to $4.2bn compared with $2.2bn in the same period a year earlier. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Ben Van Beurden Ringing NYSE Bell on Monday?

Screen Shot 2014-12-16 at 18.04.57

Hi John,

I am an ex-Shell employee and appreciate your site very much. I still keep in touch with friends at Shell, and one of them is traveling to New York this weekend ahead of the NYSE bell ringing ceremony on Monday. My friend was told that BVB and Marvin Odum would both be in attendance. Apparently this event has been described as celebrating the launch of SHLX (Shell Midstream Partners LP) on the NYSE, however I am wondering if it could be about something bigger since Ben and Marvin are both going to be there. (Perhaps a merger Monday BP takeover?) Do you have any ideas? read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell wants to resume drilling in Arctic this summer

Screen Shot 2015-01-29 at 13.58.27

Screen Shot 2013-11-01 at 09.31.18By Karolin Schaps and Ron Bousso

Jan 29 (Reuters) – Oil major Shell wants to revive its Arctic oil drilling programme this year after a near two-year suspension, angering environmentalists who say the risk of an oil spill is too high.

Remote and costly to develop, the Arctic is estimated to contain 20 percent of the world’s undiscovered hydrocarbon resources and despite fierce opposition, plans for drilling north of the Arctic Circle are under way in the United States, Russia and Norway.

Shell, Europe’s largest energy firm, is intent on restarting its Arctic drilling campaign in Alaska’s Chukchi Sea this summer. It was suspended in early 2013 following the grounding of a drilling rig. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell Chief Pledges Everything to Maintain Its ‘Iconic’ Dividend

Screen Shot 2015-01-29 at 10.59.50

BLOOMBERG: Shell Chief Pledges Everything to Maintain Its ‘Iconic’ Dividend

by Nidaa Bakhsh and Mark Barton

(Bloomberg) — Royal Dutch Shell Plc Chief Executive Officer Ben van Beurden pledged to do all he can to maintain payments to shareholders of Europe’s largest oil company after crude prices fell by more than half in the past six months.

“We have a very long-term dividend policy and I’m not minded to change that,” Van Beurden said in an interview today with Bloomberg Television. “The dividend is an iconic item at Shell and I will do everything to protect it.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Royal Dutch Shell Reports 57 Percent Drop in Net Income

Screen Shot 2015-01-29 at 09.19.40

Screen Shot 2015-01-12 at 08.45.23LONDON — Jan 29, 2015, 3:42 AM ET: By DANICA KIRKA Associated Press

Royal Dutch Shell PLC, Europe’s largest oil company by market value, said Thursday that fourth quarter net income fell 57 percent to $773 million and that it would cap spending this year in response to falling oil prices.

Shell is one first big producers to report earnings since the recent plunge in oil prices, so the results are likely to set the tone for its peers. The price of Brent crude dropped about 50 percent last year.

Fourth quarter earnings on current cost of supplies basis, which excludes the impact of changes in the oil price on inventory, rose 93 percent to $4.2 billion. For the year, such earnings rose 14 percent to $19 billion. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan
%d bloggers like this: