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Australian Government unconvinced about FLNG safety claims


By Bill Campbell (Retired HSE Group Auditor, Shell International)

Comment on: Shell Australia’s giant Prelude floating LNG project likely to come on stream in 2017

(refer to 295-page Report by Economics and Industry Steering Committee issued 7 May 2015)

Much has been written on this website about FLNG, the Prelude specifically raising doubts about the validity of claims by Shell that FLNG risks are as safe as if not more so than conventional offshore installations. The Government report raised considerable concerns in relation to the safety of FLNG facilities. In particular, concerns were raised about the compact nature of the working environment offshore relative to the space afforded to an onshore LNG processing plant and that the facilities will remain manned during cyclonic storms.

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Shell Australia’s giant Prelude floating LNG project likely to come on stream in 2017



20 September 2016

Royal Dutch Shell is building the world’s largest floating liquefied natural gas (FLNG) project, which has the potential to transform the way natural gas resources are developed. It is designed to recover resources offshore that would otherwise be too costly or difficult to develop without the need to lay pipelines and build processing plants on land. In this article, Hazardex takes a look at the latest developments in this ground-breaking project.

The Prelude natural gas field was discovered by Shell in the Browse Basin off north Western Australia in 2007 with an additional field, Concerto, discovered nearby in 2009. Combined, these gas fields have around 3 trillion cubic feet of liquids-rich gas. The Australian Government gave the Prelude FLNG project environmental approval on November 12, 2010, and Shell took the final investment decision (FID) on May 20, 2011.

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Royal Dutch Shell: An Unsustainable Dividend


Jesse Moore: Sept 15, 2016


  • Shell is funding its dividend and capital expense programs through a combination of debt and asset sales.
  • Those assets are operating, economic assets that provide long-term value to the company under its assumptions.
  • Shell has one year of leeway at current prices to fund its dividend after that rising debt will put too much pressure on the companies balance sheet.
  • Since I have a negative outlook on prices till at least 2018, I expect a Shell dividend cut in the first half of 2017.
  • Adding to the long list of resource companies with debt-funded dividends, we have Royal Dutch Shell (RDS.A, RDS.B). With a current yield of nearly 8%, and assuming you knew nothing about oil and gas, you could reasonably conclude this company is in peak operating condition. Unfortunately for investors, that story would be far from true.

Capital Expense – Free Cash Gap Growing

Many Shell investors focus on the stability of the dividend as a hallmark of the stock. Those investors are seemingly immune to what the balance sheet, cash flow statement tell us. As the company has pushed towards gas and is being pushed by its investors towards renewables, the capital expense bills have piled up. Throughout the oil downturn, Shell has hardly reduced capital expense in line with free cash flow – a result of long-term project planning that cannot be reined in.

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Chevron Corporation, Royal Dutch Shell: Is the LNG Market Nearing Saturation?


By Staff Writer on Sep 7, 2016 at 3:19 pm EST

In the past few years, the global energy market has undergone major changes. The usage of traditional energy resources has dropped significantly, while demand for cleaner, environmental-friendly energy sources has escalated. People are now increasingly becoming aware of the effects of greenhouse gases emissions from conventional energy sources, crude oil, and coal on our natural environment and most importantly, the ozone layer.

Last year, the Paris Agreement (COP21) was a major breakthrough for the renewable industry, as leaders from around 195 countries agreed to curb their carbon emissions. The energy producers aim to maintain the rise in global temperature to 2 degrees above pre-industrial levels in the coming few years. The agreement has provided a positive momentum to the green-tech resources as a number of international energy companies have now started to increase their exposure in the segment.

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Shell Australia attacks Victoria’s ban on fracking, gas moratorium

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John Dagge, Herald Sun: August 30, 2016 

SHELL Australia has blasted the Victorian government’s move to permanently ban fracking and extend a moratorium on conventional onshore gas development, saying it will result in higher energy bills.

Chairman Andrew Smith has also warned the decision will cost the state investment dollars and jobs and make it more difficult for manufacturers, already under pressure, to stay in business.

“Every Victorian household and business will now pay higher energy prices moving forward,” Mr Smith said.

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Joint-venture partners in Browse open to new options

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  • The Australian
  • 12:00AM August 30, 2016

The one thing that the Woodside Petroleum-led Browse project has never had much of is unity among the project partners. But that may quietly be changing.

DataRoom understands that the various joint-venture partners in Browse are open to new development options for the project, and that the pipeline option floated by Woodside last week is increasingly being seen by all the partners as the most sensible plan as it stands today.

Woodside chief Peter Coleman told journalists on Friday that the option of connecting Browse to the big but ageing North West Shelf liquefied natural gas plant via a massive 1000km subsea pipeline was back on the table.

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‘Business as usual’ for Shell in New Zealand

Screen Shot 2016-08-22 at 08.11.41Written by Mark Lammey – 22/08/2016 7:47 am

Shell’s New Zealand boss has reportedly said business was proceeding “as usual” amid reports the company was planning to divest its entire $1billion-plus portfolio in the country.

Australian media reports said late last week that JP Morgan had been hired to offload Shell’s assets, which were placed under review by the oil giant in December.

But Rob Jager told New Zealand media outlets the company was still looking at a range of options and that it was “business as usual”.

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Shell looks to divest NZ assets

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Screen Shot 2016-07-29 at 16.46.22By Simon Hartley

Shell is preparing to sell all or some of its New Zealand operations, which carry an estimated value of more than $1 billion.break

Following inquiries by the ODT, Shell New Zealand country chairman Rob Jager confirmed speculation this week that investment bank giant JPMorgan had been appointed to support any sales process.

“Shell continues to explore a range of options for some or all of Shell’s assets in New Zealand. JP Morgan has been appointed to support this process,” Mr Jager said in a brief note, being unavailable for an interview.

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Shell advises JPMorgan to sell $1bn NZ oil portfolio

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BRIDGET CARTERMergers & Acquisitions Editor, Sydney

GRETCHEN FRIEMANNMergers & Acquisitions Editor, Sydney

19 August 2016

Shell has called on investment bank JPMorgan to offload its $1 billion-plus portfolio of oil exploration and production assets in New Zealand, with some analysts questioning whether Australian players will express interest in the offering.

It comes as part of a global selldown by the oil and gas giant, which signalled a retreat from various markets, amid a $US30bn ($39bn) global asset sale plan following its $US50bn takeover of BG Group.

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Australia: Shell calls for more immigration

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Mr Smith cited the immigration legacy of Australian gold rush towns like Bendigo. Picture: Gary Ramage.


  • The Australian
  • 1:37PM August 4, 2016
  • Shell Australia chairman Andrew Smith has called for greater levels of immigration to bolster population growth, saying industry has failed to advocate for immigration policy that will help the economy.

    “Often-hysterical debate has surrounded Australian immigration in the new millennium,” Mr Smith told a Melbourne Mining Club lunch.

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    Shell quiz: when is a stake ‘held for sale’ on sale?

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    • The Australian
    • 12:00AM August 2, 2016

    BRIDGET CARTERMergers & Acquisitions Editor: Sydney

    GRETCHEN FRIEMANNMergers & Acquisitions Editor: Sydney

    It’s unlike the CFO of an oil major to be imprecise when it comes to accounting classifications of assets.

    Unless maybe he doesn’t mind causing a bit of mischief for a joint venture partner with whom relationships have been less than rosy of late.

    Shell finance director Simon Henry set the hares running last week during a second-quarter earnings call when he declared the company’s 13.3 per cent stake in Woodside Petroleum had been reclassified first as “held available for sale” and then “held as an asset for sale”.

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    Gorgon full output delayed until mid-2017

    Screen Shot 2016-07-31 at 18.30.44Brian Robins: August 1 2016

    A series of commissioning problems has delayed the timing of when Chevron Corp expects the giant Gorgon gas export project to be in full production, until well into 2017.

    Since it began to bring the initial stage of the project on stream, it has encountered a series of problems that have forced it to halt processing from time to time, and it has now told analysts the first unit is operating at only a little over two-thirds of its rated capacity.

    Production was halted for two months soon after the initial exports of gas, forcing Chevron to push back towards mid-2017 when it expects the project to be fully operational, from earlier this year.

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    Royal Dutch Shell stake in Woodside Petroleum ‘held for sale’

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    by Angela Macdonald-Smith: July 29 2016

    Royal Dutch Shell looks to be heading for an exit from Woodside Petroleum sooner rather than later, after reclassifying its remaining $3 billion stake in the Australian oil and gas producer as an “asset for sale”.

    The move appears to be driven by technical reasons because of Shell’s reduced representation on Woodside’s board. But at the same time it may signal a firmer intention to dispose of the circa 13 per cent stake, which Shell has for some time declared as a non-strategic holding.

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    LNG takes another lurch toward financial oblivion

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    Lachlan Barker: 27 July 2016

    The future for gas companies is looking grim and this means market forces will effect what our governments should have done and force the industry’s closure, says Lachlan Barker.

    THE FINANCIAL REPORTING news for Queensland’s liquefied natural gas (LNG) companies is disastrous – for yet another quarter.

    Santos were the first out with their second quarterly production report and even I – a fairly close observer of the LNG market – couldn’t quite believe what I was seeing.

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    Is Gas The Future? Shell Seems To Think So

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    By Gregory Brew – Jul 20, 2016

    The world’s second largest private oil company sees a new future, and it’s not in oil.

    Shell has made a concerted effort to shift the bulk of its business from oil-related projects to natural gas, LNG and renewables. Coming on the heels of its February purchase of BG Group (a $54 billion acquisition), Shell has organized a division focused solely on renewable energy. It announced new investment for its LNG facility on Curtis Island in Australia, where natural gas has enjoyed $180 billion in new capital. It has emerged as a stronger voice on global climate change than its competitor ExxonMobil and the company’s website proposes a number of “Shell Scenarios” that could allow for a growing energy market while creating less CO2.

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    Shell chair Andrew Smith vows to rein in costs as downturn bites

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    ANDREW BURRELL: July 15, 2016

    Shell Australia chairman Andrew Smith says the downturn in the oil and gas industry has strengthened his resolve to rein in costs as he seeks to integrate the company — the nation’s biggest foreign investor — with the Queensland assets of BG Group.

    “You have to treat every dollar like it’s your own,” Smith tells The Deal, published in The Australian today, as he reflects on his 30-year career and the massive changes that have hit Shell and the petroleum industry. His mantra even extends, Smith’s colleagues reveal, to their boss’s insistence a few years ago that newspaper subscriptions be pared back in the company’s Melbourne office.

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    Shell’s LNG Canada venture again delays export terminal decision

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    Screen Shot 2016-06-15 at 15.59.39Shell’s LNG Canada venture again delays export terminal decision

    (Reuters) – Royal Dutch Shell Plc RDSa.L and its LNG Canada partners have once again pushed back the timing of a decision on building a British Columbia liquefied natural gas export (LNG) terminal, the latest setback for the Canadian province’s energy ambitions.

    LNG Canada, whose participants also include PetroChina Co Ltd 601857.SS, Mitsubishi Corporation 8058.T and Kogas, cited global industry challenges, including capital constraints, for requiring more time prior to making a final investment decision.

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    Chevron Halts Production At Gorgon Plant For Second Time This Year

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    By Lincoln Brown – Jul 01, 2016, 3:18 PM CDT

    For the second time this year, Chevron has stopped production at its Gorgon liquefied natural gas operation in Australia. The plant had to be evacuated after a gas leak was detected.

    Chevron will make the necessary repairs to the plant before restarting production next week. The plant is a joint venture with ExxonMobil, Shell, Osaka Gas, Tokyo Gas and Chubu Electric Power. The terminal, which is also owned in part by Exxon Mobil and Royal Dutch Shell, will still load cargo during the interim.

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    Saudi-Iran tensions threaten $5.4bn Japanese refinery merger

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    • The Wall Street Journal
    • 12:00AM July 1, 2016

    The battle for hegemony in the Middle East between Saudi Arabia and Iran threatens to up-end a $US4 billion ($5.4bn) merger in Japan.

    The family of the late founder of Idemitsu Kosan is opposing a planned merger between the oil refiner — Japan’s second-largest behind JX — and Showa Shell Sekiyu, its smaller rival. Idemitsu has maintained close ties with Iran since the 1950s while Showa Shell is 15 per cent owned by Saudi Arabia’s state-owned Saudi Arabian Oil Co, known as Aramco.

    The Idemitsu family said a merger would be “inappropriate” given the growing tensions between the two countries. The two Persian Gulf nations, which belong to rival sects of Islam, are jockeying for political influence in the region and have recently clashed over the question of a cap on crude output.

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    Shell CEO Urges European Governments to Keep Economy Steady After Brexit

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    Ben Van Beurden, chief executive officer of Royal Dutch Shell PLC, is seen here in Perth, Australia in April 2016. Mr. Van Beurden urged Europe’s governments to keep the economy steady despite the turbulence created by the U.K.’s referendum. PHOTO: AARON BUNCH/BLOOMBERG NEWS

    By SARAH KENT: June 30, 2016 5:49 a.m. ET

    Speaking at a conference in London, Ben Van Beurden emphasized the benefits of a single market and free movement of people. “I hope that the future relationship between the U.K. and the rest of Europe will continue to provide conditions for economic growth,” he said.

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    Shell, Total look to expand terminals and power plants in new markets

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    Written by Reporter – 13/06/2016 6:00 am

    Oil majors Shell and Total are said to be considering building terminals and power plants in new markets.

    The move comes after companies have invested billions in plants to help produce liquefied natural gas (LNG) in place such as the US and Australia.

    Laurent Vivier, president for the gas division of Total, said the company was ready to go downstream “as much as it takes” to unlock gas demand.

    He said: “We need to be present in downstream ourselves, to create demand and unlock bottlenecks along the chain including regasification, pipeline and power plants.”

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    Shell to exit up to 10 countries after BG deal

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    Royal Dutch Shell (RDSa.L) will exit oil and gas operations in up to 10 countries in a drive to deepen cost cuts and narrow its focus following its $54 billion acquisition of BG Group.

    Presenting its strategy following the close of that deal in February, the Anglo-Dutch company outlined plans to target annual spending of $25 billion to $30 billion until the end of the decade.

    It lowered its planned 2016 capex to $29 billion in a third cut from an initial $35 billion.

    Shell also raised its target for savings from the integration of BG to $4.5 billion, up $1 billion from previous guidance.

    Chief Executive Officer Ben van Beurden hopes the new cuts will help boost Shell’s shares, which have underperformed rivals since the BG deal was announced in April 2015.

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    Can This Troubled LNG Project Still Deliver for Chevron, ExxonMobil, and Royal Dutch Shell?

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    By Jay Yao: Jun 4, 2016

    Australia’s Gorgon LNG is one of the largest liquefied natural gas projects in the world. When complete, the Gorgon is expected to produce 15.6 million metric tons of LNG a year and last for 40 years. For Australia, the Gorgon was supposed to add hundreds of billions of dollars to Australia’s GDP and employ thousands of people. For the companies that invested, Gorgon was supposed to be one of the cornerstones of their LNG portfolios and deliver long-lasting shareholder value.

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    Shell News Stories from Australia

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    Angela Macdonald-SmithEnergy Reporter: June 6, 2016

    Screen Shot 2016-05-21 at 10.18.28Shell Australia chairman points to LNG as costly option for NSW, Vic gas

    NSW and Victoria may have to consider importing LNG from Queensland or Papua New Guinea if the states don’t act to get onshore gas out of the ground, even though it would be a costly solution to the current stalemate, Shell Australia chairman Andrew Smith has suggested.

    Mr Smith told the APPEA oil and gas industry conference in Brisbane on Monday that the time has come to “think creatively” about how best to serve local gas customers to ensure they have adequate and reliable supplies.

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    Doubts about $3bn Shell-Woodside block trade

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    Bridget CarterMergers and Acquisitions Editor, Sydney

    Gretchen FriemannMergers & Acquisitions Editor, Sydney

    There was fresh talk in the market last week that a $3 billion block trade by Shell selling out of Woodside Petroleum could be imminent.

    However, there were a number of analysts who dismissed the speculation, which they said would have been largely fuelled by the recent rise in the oil price.

    They said a more likely deal was an exit by Spark Infrastructure from the $6bn Duet Group, and it could happen sooner rather than later.

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    Transportation emerges as new hope for LNG demand growth

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    Angela Macdonald-SmithEnergy Reporter: 29 May 2016

    A move to cleaner transportation fuels could mop up the surplus in the global liquefied natural gas market more quickly than anticipated and open up a new growth market for producers such as Woodside Petroleum.

    Woodside is following major Royal Dutch Shell in positioning itself to benefit from increased use of gas in road transport and shipping.

    Demand for LNG from the transport sector could reach 24.4 million tonnes a year by 2020, representing a 7 per cent rise from estimated global demand, according to new findings from Bernstein Research.

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    Shell’s brutal and unfair approach to reducing staff numbers

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    Interested to know if any current Shell employees have picked up on the unfair approach to the current reorganisation.

    Management in Netherlands are seeking RFA’s and operating to a different timeline to the UK and Australia, with Australia being able to steam ahead with their reorg plans as they do not have the same constraints. So much so, that impacted employees are being asked to second guess whether they need to apply for jobs in their base countries or to stick tight and see out the brutal and unfair approach to reducing staff numbers in their current host countries.

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    Shell sees slower roll-out of floating LNG

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    Mr Henry said Prelude “remains on track to deliver some material cash flow in 2018,” signalling the venture still has some way until start-up.

    Angela Macdonald-Smith: Energy Reporter:May 5, 2016

    Royal Dutch Shell acknowledges the roll-out of its floating LNG technology will occur much more slowly than anticipated a few years ago, leaving its ground-breaking Prelude venture in WA as potentially its sole FLNG venture for several years.

    Shell had targeted a conveyor belt of huge FLNG vessels running of the production line in South Korea, being deployed at remote gas fields worldwide, with several in waters around Asia.

    But three projects that could have used five new FLNG vessels have been halted in their tracks, leaving the $US12 billion Prelude venture Shell’s only one for the forseeable future. FLNG ventures planned by other companies in Australia have also fallen foul to cost and price issues.

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    Samsung Heavy loses $4.6-billion FLNG order from Shell on oil drop

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    Screen Shot 2016-04-20 at 13.50.03By KYUNGHEE PARK on 4/28/2016

    SUNGNAM, South Korea (Bloomberg) — Samsung Heavy Industries Co., the world’s third-largest shipbuilder, said an order to build three floating LNG production facilities was canceled after the energy development project was scrapped amid a plunge in oil prices.

    The contract, valued at 5.27 trillion won ($4.6 billion), from Royal Dutch Shell was voided because of the current difficult market conditions, the Sungnam, South Korea-based company said in a regulatory filing Thursday. The shipbuilder won the deal in June on the condition that the project will start only after the client is ready to proceed.

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    Shell starts jobs consultation with Australian employees

    Screen Shot 2016-04-28 at 11.33.5828 April 2016

    Oil major Shell said it has begun discussions with staff in Australia about job losses as part of plans to cut 10,000 roles globally.

    The company previously announced the move following the merger with BG Group announced last year.

    A spokesman for the company said: “Shell last week commenced conversations with employees about business efficiency and staffing levels – as a result of combining it with the previously BG-owned OGC – a process that will lead to job reductions.”

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    Shell starts staff cut discussions with employees in Australia

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    Business | Wed Apr 27, 2016 

    Shell (RDSa.L) has started discussions with employees in Australia about job reductions, the company said on Wednesday, as part of plans to cut 10,300 jobs worldwide to lower costs.

    “Shell last week commenced conversations with employees about business efficiency and staffing levels – as a result of combining it with the previously BG-owned QGC – a process that will lead to job reductions,” a spokesman said.

    Shell is in the process of integrating assets it acquired as part of its $50 billion (£34.2 billion) takeover of gas producer BG Group, including BG’s Australian subsidiary QGC.

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    Shell to axe jobs as cost-cuts hit home

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    Shell last week informed local staff that it was starting a round of job cuts, with a large portion of workers within the company asked to re-apply for their current positions.

    While no fixed target has been set, it is estimated that about 250 jobs around Australia are likely to go as a result of the changes.

    The round of job cuts follows Shell’s recent takeover last year of BG Group. The redundancies will remove many of the overlapping roles inherited through the takeover.

    Shell had already flagged that it would axe about 2800 jobs worldwide as a result of the BG takeover, as well as a further 7000 around the globe as part of its response to the plunge in oil and gas prices.

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    Multinationals already working the angles on ‘Google Tax’

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    “We are aware of taxpayers seeking to use artificial and contrived interim arrangements with the sole aim of avoiding a potential MAAL liability from January 1, 2016,” the ATO said in a taxpayer alert.

    In 2014 Shell Australia paid $534 million in finance costs on $12.7 billion of debt owed to offshore Shell companies. But its submission to the Senate tax inquiry showed that while it paid that $169 million interest to a Bermuda associate, the biggest cost was $260.7 million paid to a Shell company in Luxembourg for cross-currency interest rate swap costs.

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    Shell Australia chairman Smith urges LNG industry to drop ego and collaborate

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    Angela Macdonald-SmithEnergy Reporter: 15 April 2016

    Shell Australia chairman Andrew Smith is set to call on LNG industry leaders to drop their egos and get serious about collaboration to reduce costs, deliver better returns and improve competitiveness.

    “We must put collaboration ahead of our industry’s natural desire to immortalise our own activities in concrete and steel,” Mr Smith will tell the LNG18 conference in Perth on Friday.

    “Australia’s LNG industry will deliver greater economic value and better international competitiveness when we get better at the sharing of infrastructure on commercial terms.”

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    Musings about the OPL 245 Shell/ENI corruption scandal and the sinking confidence in Prelude

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    I would have thought that Simon Henry’s position as CFO should now be untenable, in view of the apparent lack of effective financial governance in Nigeria while he was CFO. 

    By John Donovan

    A large number of press articles have appeared recently mentioning Ben van Beurden. 

    Since these articles are presumably fed to the press by Shell’s PR team, and Shell is not a one-man company, I checked to see whether other Shell directors have appeared recently in press releases.

    The results are somewhat curious. For example, searching for Matthias Bichsel on Google News shows that articles were published about him at least weekly until October last year, but the articles then stopped abruptly. References to Simon Henry seem to have dried up a few weeks ago – until mid-March there were articles on Henry on an almost daily basis, but recently there has been nothing. Harry Brekelmans seems to have had a low profile since his appointment, so it is harder to see whether any change has occurred. Andy Brown has almost as many press articles as Ben van Beurden. 

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    Enthusiasm cools for Prelude FLNG

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    Chief executive Ben van Beurden said Prelude, Shell’s first attempt at FLNG, should generate “real material cash” in 2018.

    But he steered clear of disclosing the construction progress and when the floater would leave its South Korean shipyard for the Browse Basin.

    The gas world is watching Prelude’s progress, not least the Woodside Petroleum-led Browse joint venture (which includes Shell) which wants to use FLNG as the development option but is pondering technological advances beyond what Prelude is designed to achieve.

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    Shell chief Ben van Beurden backs FLNG program

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    • APRIL 13, 2016 12:00AM

    Matt ChambersResources reporter: Melbourne

    Paul GarveyResources reporter: Perth

    Shell chief Ben van Beurden has defended the company’s floating LNG program after the shelving of the Browse LNG project in ­Western Australia and calls from joint-venture partner Woodside Petroleum for Shell to use more advanced FLNG technology to ­reduce costs at the giant gasfields.

    Shell is pioneering the use of floating LNG (FLNG) through the $US15 billion ($19.6bn) Prelude project, where the world’s largest vessel is being built to process gas from the Prelude field in the Browse basin.

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    Angela Macdonald-Smith: Energy Reporter

    Shell’s global chief executive Ben van Beurden has pointed to a “broad industrial logic” for the Gladstone liquefied natural gas ventures to find ways to work together more closely, signalling a potential restructuring ahead as the oil major seeks to commercialise its Arrow gas resource.

    Mr van Beurden said Shell, which recently acquired the Queensland Curtis LNG project as part of its $70 billion takeover of BG Group, was “absolutely convinced” the group would find a way of developing Arrow gas, which is jointly owned by PetroChina.

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    Shell to Chevron Awaiting Demand From LNG Market in `Pause Mode’

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    James PatonRebecca Keenan and Dan Murtaugh: April 12, 2016

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    The over-supplied LNG market is in hiatus as energy giants from Chevron Corp. to Royal Dutch Shell Plc and Woodside Petroleum Corp. await a surge of demand from countries seeking access to energy.

    Liquefied natural gas producers are in “pause mode” as low prices have stalled development of new projects, Woodside Chief Executive Officer Peter Coleman said today at the LNG18 conference in Perth. That respite means that coming years demand will exceed supply, causing prices to rise back to higher levels, Shell CEO Ben Van Beurden said.

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    Gas industry needs to work harder, innovate: Shell boss

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    Screen Shot 2016-03-15 at 10.34.57Peter Klinger – The West Australian on April 12, 2016

    Royal Dutch Shell chief executive Ben van Beurden will call for his industry to work harder at cutting costs to make sure the gas sector remains competitive with coal and the fast-growing renewable energy space.

    Mr van Beurden, one of the biggest names to address the LNG18 conference in Perth, is expected to tell more than 2000 delegates today his industry needs to constantly innovate, from upstream to downstream activities such as shipping and regasification.

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    Delays slow Prelude’s sail-away

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    Screen Shot 2016-03-15 at 10.34.57Peter Klinger – The West Australian on April 12, 2016

    Royal Dutch Shell’s floating LNG prototype is thought to be two years behind its original schedule, demonstrating the complexity of a new processing module the energy sector hopes will deliver the next generation of liquefaction production.

    Prelude’s progress will be a topic of discussion at the LNG18 conference, which kicks off in Perth today and includes sector heavyweights such as Shell chief executive Ben van Beurden.

    Shell has never revealed the timetable or budget for Prelude, based on a giant processing vessel built in South Korea to be towed to its namesake gas field off the Kimberley. The latest guidance from Shell is for “material cash in 2018” though that timetable could be challenged.

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    GE starts production on Shell’s Prelude risers, must withstand a 1-in-10,000-year cyclonic event

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    Screen Shot 2016-02-17 at 08.47.47Written by Rita Brown – 11/04/2016 7:38 am

    GE Oil & Gas today confirmed it had started production on four high pressure, high temperature dynamic flexible risers destined for Shell’s Prelude, the world’s largest offshore floating facility.

    The firm is building them to survive a 1-in-10,000-year cyclonic event, according to the contract spec.

    GE will complete the work at its facility in Newcastle, UK, where it has invested more than $21million to expand its production carousel capacity to accommodate the giant kit. They must also be able to withstand high pressures, high operating temperatures, the potential for cold shut-downs and rapid depressurisation.

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    Floating LNG hopes are deflated by Browse, Abadi decisions

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    Angela Macdonald-Smith: 28 March 2016

    Questions are being asked about whether floating LNG technology will live up to its hype after last week’s decision by Woodside Petroleum’s Browse gas venture to freeze work was followed by the axing of a floating design for the Abadi gas field in Indonesia.

    The decisions are seen as major setbacks for the innovative technology that was expected to revolutionise the industry by allowing remote offshore gas fields to be developed more cheaply and with less environmental impact.

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    ABB wins five-year Shell contract for Prelude FLNG

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    Stuart McKinnon – The West Australian on March 24, 2016

    The Malaga factory of Swiss multinational engineering giant ABB will be the focal point for a five-year contract to provide services and equipment to Shell’s Prelude floating LNG facility off the Kimberley coast.

    The Shell order includes the delivery of motors, generators, variable speed drives and low-voltage switchgear and guarantees service and lifecycle management of the electrical equipment as well as service and support for motors from third-party vendors.

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    Australian Energy Giant Woodside Delays Large Offshore L.N.G. Project

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    By STANLEY REED: A version of this article appears in print on March 24, 2016, on page B2 of the New York edition

    Woodside Petroleum and its partners, including the energy giants Royal Dutch Shell and BP, have decided to delay indefinitely the development of a huge liquefied natural gas project off Western Australia, the company said on Wednesday.

    The decision to postpone the project, called Browse, comes as L.N.G. prices in Asia have fallen by around two-thirds since 2014. The slump is attributed to a supply glut set off largely by a building boom and by lower-than-expected demand from major customers like China.

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    Where does the cancellation of Browse and Masela leave Prelude?

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    Screen Shot 2016-03-23 at 12.53.14From a Regular Contributor

    Cancellation of both the Browse and Masela FLNG developments on the same day suggests that the issues about which Bill Campbell has warned may finally have won the day. 

    If so, this is a huge climbdown for Shell, with several billion dollars in probable write-offs. 

    It’s perhaps not surprising, given the plethora of warnings from technical sources that there were serious risks involved. 

    Could Prelude be next to be axed? Parking a multi-billion dollar vessel in cyclone alley for 20 years never seemed like the most appropriate use of the pension funds invested in Shell…

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    One Floating LNG Dream Sinks As Another Gets Ready To Float

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    One Floating LNG Dream Sinks As Another Gets Ready To Float

    Screen Shot 2016-03-15 at 10.34.57Unfortunately for Shell it formally committed to the Prelude development in May, 2011, a time when oil was selling for around $120 a barrel, three-times the current price of around $41/bbl.

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    By Tim Treadgold: March 23, 2016

    No-one blinked and share prices barely fluttered when a $40 billion plan by Australia’s Woodside Petroleum ngIf: ticker to develop a floating liquefied natural gas (LNG) project was torpedoed earlier today.

    However, the knock-on consequences of sinking the Browse project will be felt most acutely at Europe’s biggest oil company, Royal Dutch Shell ngIf: ticker .

    The immediate impact on Shell is that it has a 27% interest in the Woodside-led Browse LNG project, but it is also nearing completion of the world’s biggest floating LNG barge, the $12.6 billion Prelude project.

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    Woodside halts Australian LNG project

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    By Daniel J. Graeber: March 23, 2016

    PERTH, Australia, March 23 (UPI) — Australian energy company Woodside said it was putting a hold on the development of its Browse liquefied natural gas project because of market conditions.

    Woodside said that, even with front-end engineering and design work completed, weak economic and market conditions meant it was necessary to put a hold on the $50 billion facility.

    “We have undertaken a comprehensive and rigorous process to assess all elements of the development,” Woodside CEO Peter Coleman said in a statement. “The decision represents a disciplined approach to large-scale capital investment and is consistent with our requirements for a development concept to be commercially robust across a range of scenarios.”

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    Woodside Petroleum drops $40 billion Browse floating LNG project

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    Screen Shot 2016-03-15 at 10.34.57Shell, Woodside’s biggest partner in the project, had also spoken cautiously on its prospects…

    Angela Macdonald-SmithEnergy Reporter: 23 March 2016

    Woodside Petroleum chief executive Peter Coleman is turning a keener eye to potential acquisitions after a decision by the Browse joint venture to ditch a $40 billion-plus floating LNG project freed up the company to chase “attractive” assets.

    The indefinite deferral of the Browse project off the north-west coast was forced by the collapse in oil prices, which created an “extremely challenging external environment” for the huge project despite work done to reduce costs, Woodside said.

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    Shell, PetroChina suffer $1.4bn Arrow Energy hit

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    • Matt Chambers
    • The Australian
    • March 18, 2016 12:00AM

    Screen Shot 2016-02-17 at 08.47.47Oil giants Shell and PetroChina have been forced into a further $1.4 billion writedown on their Arrow Energy coal-seam gas joint venture in Queensland after drilling in the Bowen Basin failed to deliver expected results and has delayed the project. 

    The writedowns, revealed in annual accounts filed with the Australian Securities & Investments Commission, came with an indefinite delay to the Bowen Basin project and 150 job losses at the joint venture company, which was formed in 2010 to acquire the then ASX-listed Arrow for $3.5bn.

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