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Shell Needs To Divest Assets In Order To Afford BG Deal

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Screen Shot 2016-01-16 at 10.15.56By Andy Tully: 2 FEB 2016

Royal Dutch Shell is selling even more assets as it tries to cope with the persistent fall in the price of oil and its controversially expensive merger with BG group, approved last week by the shareholders of both companies.

In a statement Monday in London, the Anglo-Dutch oil giant said it plans to sell its 51 percent stake in the Shell Refining Co. (SRC) to Malaysian Hengyuan International Limited for $66.3 million. This is in addition to Shell’s sale of its marketing operations in Denmark and Norway, its liquid petroleum gas business in France and one-third of its shares in its Japanese arm, Showa Shell Sekiyu KK.

Shell also has recently sold off refining operations in Australia and Italy, as well as some of its retail outlets in Britain.

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Shell shareholders approve $50 billion BG takeover

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Screen Shot 2015-12-23 at 09.03.45THE HAGUE | BY KAROLIN SCHAPSWed Jan 27, 2016 1:56pm GMT

Royal Dutch Shell (RDSa.L) shareholders approved its $50 billion takeover of BG Group (BG.L) on Wednesday, clearing the last main hurdle to creating the biggest liquefied natural gas (LNG) trader in the world.

BG shareholders are also expected to approve one of the biggest deals in the energy sector in the past decade at a meeting on Thursday, a vote that would allow the two oil and gas companies to merge on Feb. 15.

Few investors have openly challenged the deal’s strategic benefits for Shell. But with oil languishing near $30 a barrel and only a slow recovery forecast, some had questioned the viability of a deal that would increase Shell’s debt burden.

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Shell’s BG Deal Gets Backing of Shareholder Advisory Firm

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By Rakteem Katakey: Jan 8, 2016: Bloomberg.com 

Royal Dutch Shell Plc has won the backing for its takeover of BG Group Plc from a body that advises many of its largest shareholders.

Shell’s biggest ever deal has “compelling strategic rationale” and “significant positive economics to be realized within a relatively short time frame,” Institutional Shareholder Services said in a report dated Thursday. “Support for this transaction is warranted.”

Shell is on the brink of pulling off its biggest acquisition, but oil’s collapse to less than $35 a barrel from about $55 on the day the deal was announced in April has prompted some investors to question whether the company is paying too much. The energy producer has justified the deal by saying it would boost its ability to maintain dividends, make it the world’s largest LNG producer and give it new assets from Australia to Brazil.

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Shell to take axe to spending, jobs after $US53b BG Group takeover

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BG Group’s Queensland Curtis LNG project will be owned by Shell after the takeover.

Angela Macdonald-Smith: Energy Reporter: 23 Dec 2015

Oil giant Royal Dutch Shell has told shareholders the $US53 billion takeover of BG Group will act as a “springboard to change and reshape” the group, and outlined plans for job and spending cuts, as well as $US30 billion of asset sales that look certain to affect the business in Australia.

In a prospectus issued overnight for the takeover, which is heading for completion early next year, Shell cut expected capital expenditure for the merged group by $US2 billion to about $US33 billion, down 30 per cent from 2014 levels. It also slashed another $US1 billion from Shell’s own capex budget this year, dropping it to $US29 billion.

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Shell plans to complete BG merger by Feb. 15, cuts spending plan

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LONDON | BY RON BOUSSO AND KAROLIN SCHAPS: Tue Dec 22, 2015 12:09 EST

Royal Dutch Shell (RDSa.L) said on Tuesday it planned to complete its proposed $53 billion takeover of BG Group (BG.L) by Feb. 15, outlining plans for further spending cuts next year in the face of low oil prices.

Shell also lowered the capital spending plan for next year for the combined group by $2 billion to $33 billion, saying it would bolster its ability to weather the industry’s downturn and to maintain dividend payments.

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Screen Shot 2015-11-20 at 08.55.47Published at 11:00AM – 19/12/15

Shell’s giant Prelude FLNG project is nearing completion, as the oil and gas supermajor releases an updated video of the project.

Shell Prelude FLNG

Prelude LNG project, will be located 200 miles (322km) offshore Western Australia, in an area known as the Browse basin, in 820 feet (250m) of water.

The project is centred around the giant Prelude FLNG vessel, currently under construction in South Korea.

The 488 metre (1,601 ft) long, 74 metre (243 ft) wide vessel is part of an overall project, that includes vast subsea infrastructure and technological breakthroughs, that has cost Shell and partners an estimated US$12.6 billion.

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This Oil Giant Is Going to Slash Thousands of Jobs

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Royal Dutch Shell expects to slash thousands more jobs to save costs if its takeover of BG Group goes through as planned early next year following a final green light from China.

The acquisition, which was announced on April 8 and is biggest in the sector in a decade, has been cleared by China’s Ministry of Commerce, Shell said on Monday, after earlier approvals from Australia, Brazil, and the European Union.

Shell RDS.A -1.32% and BG LON: BG will now send a merger prospectus to shareholders and hold special general meetings for votes on the deal. If approved, it will face a court hearing 10 days later and could be completed by early February.

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SHELL NEDERLAND APPOINTS FIRST EVER FEMALE CEO

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Screen Shot 2015-11-20 at 08.55.47Dec 8, 2015 by Janene Pieters

As of January 1st Marjan van Loon will be the first ever female CEO of Shell Nederland. On Monday the oil and gas group announced that current CEO Dick Benschop will take another role within Shell International on the same date.

“Marjan brings a wealth of experience and expertise to fill this important position” managing director Ben van Beurden said, according to news wire ANP.

Van Loon, 49, started working for Shell 26 years ago. Since 2009 she’s filled the roll of vice president of LNG & Gas Processing, where she is responsible, among other things, for the largest ship, the Prelude, which serves as a gasworks far off the western coast of Australia.

Benschop was CEO of Shell Nederland from May 1st, 2012. In his new position he will be responsible for better management of collaborations over which Shell does not have direct control – joint ventures in which the company has minority interests.

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OPEC ‘dead’ as oil countries go it alone on price and production

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December 7, 2015

OPEC has abandoned all pretence of acting as a cartel. It’s now every member for itself.

At a chaotic meeting Friday in Vienna that was expected to last four hours but extended to nearly seven, the Organisation of Petroleum Exporting Countries tossed aside the idea of limiting production to control prices. Instead, it went all in for the one-year-old Saudi Arabia-led policy of pumping, pumping, pumping until rivals – external, such as Russian and US shale drillers, as well as internal – are squeezed out of market share.

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LNG market seen in worse state than oil

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“The oil market is not so bad,” Dr Fesharaki said. “LNG is far worse.”

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Angela Macdonald-SmithEnergy Reporter: 7 Dec 2015

The crude oil market is seen as being in dire straits, but liquefied natural gas is much worse, according to experts.

Hanging as a dark cloud over the market for the next several years are large volumes of LNG from committed US export projects that have firm sales contracts but have yet to be sold to end-users.

Consultancy FGE says between 25 million and 35 million tonnes of the 65 million tonnes a year of US LNG export capacity under construction has been sold to “middle men”, traders or portfolio LNG players such as BG Group or Mitsubishi, that still need to sell the gas on.

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Shell Has Underperformed, But It Could Be The Only Oil Major That Emerges Bigger From The Downturn

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Screen Shot 2015-11-20 at 08.55.47…the company’s profits plummeted 70% from last year to $1.77 billion…

Sarfaraz A. Khan: Sunday, Dec 6, 2015

Summary

  • The oil major Royal Dutch Shell is closing in on its biggest-ever merger with the UK based oil and gas producer BG Group.
  • Shell has been the worst performing stock in its peer group and now offers an above average yield of 7.8%.
  • But Shell is generating enough cash from operations and asset sales to cover its spending.
  • More importantly, Shell could be the only oil major that emerges even bigger from the downturn.

The oil major Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) is closing in on its biggest ever merger with the UK based oil and gas producer BG Group (OTCQX:BRGYY). On Wednesday, the Anglo-Dutch oil producer revealed that it has received a green signal from Australia’s Foreign Investment Review Board following an approval from the country’s anti-trust regulator received last month. The BG Group is one of the major players in Australia’s rising LNG sector where the company has invested more than $20 billion on developing the Queensland Curtis LNG plant.

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Gas Wars Down Under Finally Come To An End: Shell-BG Group Tie-Up Gets Green Light

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Royal Dutch Shell CEO Ben Van Beurden addresses a keynote speech during the World Gas Conference in Paris on June 2, 2015. Photo Credit:  ERIC PIERMONT/AFP/Getty Images)

Tim Daiss, CONTRIBUTOR: DEC 4, 2015

The proposed $70 billion Shell-BG Group mega deal, one of the largest energy deals in a decade, is now a reality, at least in Australia.

On Thursday, the Australian Foreign Investment Review Board (FIRB) gave the green light to the energy tie-up. The deal has already received regulatory approval in the US, EU and Brazil, while regulatory approval from Chinese authorities is still pending, but expected to be granted. The FIRB approval comes just two weeks after the Australian Competition and Consumer Commission (ACCC), the country’s competition regulator, approved the deal.

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Shell seeks $7 bln credit facility ahead of BG deal -sources

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LONDON | BY RON BOUSSO: Bonds | Thu Dec 3, 2015

Dec 3 Royal Dutch Shell is seeking to secure a $7 billion credit facility in north America as back-up for its $70 billion acquisition of BG Group, sources said on Thursday.

U.S. bank JP Morgan Chase is arranging the facility, which will involve up to 20 banks and institutional investors, according to sources close to the matter.

The facility will be used as a “back-up” for funds already raised to finance the deal, according to one source.

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Shell wins final Australian approval for BG Group takeover

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By Ashley Armstrong: 03 Dec 2015

Shell’s £55bn takeover of BG has been cleared by Australia’s Foreign Investment Review Board, handing the deal its penultimate approval from global regulators.

The green light from FIRB for the deal comes after Australia’s competition authorities also approved the deal last month, and follows success with regulators in the US, EU and Brazil.

There has been mounting scrutiny of the rationale for pressing ahead with the takeover while oil prices remain so supressed.

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Markets | Thu Dec 3, 2015 1:11am EST

  • Deal still needs approval from China
  • Shell says deal on track to be completed in early 2016
  • Australia imposes condition to prevent tax disputes 

By Sonali Paul

MELBOURNE, Dec 3 Royal Dutch Shell on Thursday won approval from Australia’s Foreign Investment Review Board for the company’s proposed $70 billion takeover of BG Group Plc, leaving China as the last regulatory hurdle to the deal.

The approval included an unusual condition designed to prevent disputes with the Australian Taxation Office (ATO) with the merged group, amid Australia’s push to clamp down on profit shifting and tax avoidance by multinationals.

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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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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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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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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.

SOURCE

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 

Summary

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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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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Shell’s BG Deal Cleared by Australian Competition Regulator

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By James Paton: November 18, 2015: Bloomberg.com

  • 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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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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Shell plans to retain four senior BG executives after merger – memo

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Business News | London Mon Nov 16, 2015

Royal Dutch Shell plans to retain four members of BG Group’s executive team after the companies’ planned merger next year, according to an internal memo seen by Reuters on Monday.

The memo indicates that the planned $70 billion takeover of BG by Shell remains on track. Shell this month sought to ease investor concerns over the deal by announcing costs cuts and benefits that would make it work despite lower oil prices.

According to the Shell document, BG’s Chief Operating Officer Sami Iskander will become executive vice president for joint ventures. Executive Vice President for Global Energy Marketing and Shipping Steve Hill will be named executive vice president for gas and energy marketing and trading while BG General Counsel Tom Melbye Eide will become general counsel for upstream.

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ACCC under pressure as gas buyers push Shell gas concerns

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by Angela Macdonald-Smith: Nov 12 2015

In a country touting itself as “open for business”, the national competition regulator looms as a major hurdle in what could be the world’s biggest energy merger this decade, Royal Dutch Shell’s $US70 billion ($99 billion) swallowing of BG Group.

Despite Shell’s global chief Ben van Beurden claiming “massive support” from federal and state politicians for the merger, Australian competition tsar Rod Sims will first have a say, with the twice-deferred ruling from the Australian Competition and Consumer Commission due on November 19.

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Shell share price: Australia boss sees no competition issues with BG tie-up

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by Veselin ValchevThursday, 12 Nov 2015

Andrew Smith, chairman of Royal Dutch Shell Plc’s (LON:RDSA) Australian unit said he sees no local competition issues with the oil major’s bid to acquire fellow British energy giant BG Group, in contrast with reservations expressed by the Aussie competition regulator last month.

The Australian Competition and Consumer Commission (ACCC) announced last month that it is delaying its decision on whether to approve the tie-up by a further week to November 19. The regulator’s ruling was originally scheduled for September 12, but in September the commission postponed its decision by two months on competition concerns.

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Shell Australia chairman Andrew Smith says LNG needed to develop Arrow gas

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By Energy Reporter: Angela Macdonald-Smith: 12 Nov 2015

Shell Australia chairman Andrew Smith has insisted there are no issues of competition raised in eastern Australia with the oil giant’s planned $US70 billion ($98 billion) takeover of BG Group and that letting the deal proceed is the best way of ensuring the company’s undeveloped gas resources in Queensland reach buyers.

“What this market needs is more gas to be developed into the market,” Mr Smith said.

“By approving the combination that will allow for the earliest introduction of Arrow’s resource base into the east coast market,” he said, without pre-empting the November 19 decision due on the deal from the Australian Competition and Consumer Commission, which voiced reservations about it in September.

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Pickard quits Shell

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Screen Shot 2015-11-11 at 09.51.25Peter Klinger: November 11, 2015

Ann Pickard, once dubbed the “bravest woman in oil and gas” before she transformed Royal Dutch Shell’s century old presence in Australia, has quit the Anglo-Dutch giant.

However, the decision to retire from Shell will not spell the end of her exposure to oil and gas, and LNG in particular which she championed during her stint as the Anglo Dutch giant’s Australia country chair.

Ms Pickard is joining the board of oil and gas engineering contractor KBR as a non-executive director from next month.

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Plan for equality on Shell merger

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Plan for equality on Shell merger

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Jane Harper: Herald Sun: November 8, 2015 

A PEAK manufacturing group has urged the competition watchdog to place conditions on Royal Dutch Shell’s multibillion-dollar buyout of oil and gas heavyweight BG Group.

The proposed $US70 billion ($99 billion) deal would be one of the biggest in the oil and gas sector’s history.

The Australian Competition and Consumer Commission is due to announce its decision on November 19, but has raised concerns about the potential impact on gas supply.

Manufacturing Australia has made fresh calls for the ACCC to lay down parameters to ensure gas is made available to domestic and international customers in a “transparent and equal” manner.

Manufacturing Australia said it feared the merger would undermine efforts to reform what it said was presently a dysfunctional gas market.

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Screen Shot 2015-11-04 at 07.57.03Angela Macdonald-Smith: November 4, 2015

Royal Dutch Shell remains unequivocally bullish on prospects for liquefied natural gas despite the current market glut, pointing to several options for new supply projects after its planned $US70 billion ($97 billion) takeover of BG Group and plenty of new markets opening up around the world.

“The fundamentals of this market look as robust now as in the past to us,” chief financial officer Simon Henry told investors overnight Australian time, spelling out Shell’s expectation that global LNG demand will expand at 5 per cent a year to 2030, only modestly lower than the 8 per cent annual growth seen since 2000.

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Shell’s £43bn gamble of a deal for BG is sliding out of reach

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Screen Shot 2015-10-31 at 16.01.23The big question facing Mr van Beurden, is whether he can pull off such an ambitious move. If not, his time at the helm will be shortlived.

By Ben Marlow: 31 Oct 2015

Ben van Beurden must be sick of answering the same question but unless there is an unlikely sudden surge in the oil price – and therefore the fortunes of the world’s energy giants –the boss of Shell is likely to be quizzed on the same issue many more times in the coming months.

What people want to know is, will the UK oil major press ahead with its mammoth £43bn takeover bid for BG Group despite the dramatic slump in the oil price?

• BG Group profits drop as it nears merger with Shell

The fall from highs of more than $100 a barrel in mid-2014 to as low as $43 has unleashed havoc across the energy industry, forcing the majors to rein in costs at lightning speed as they desperately try to prop up profits and keep paying dividends to investors.

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BG Group profits drop as it nears merger with Shell

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By Jon Yeomans: 30 Oct 2015

BG Group, which is due to be taken over by Shell early next year, has reported a slump in profits as the low oil price continues to take a toll on producers.

Net income at the Reading-based company fell 63pc to $280m (£182m) in the third quarter from $759m a year earlier. Nonetheless, this beat expectations, with some analysts pencilling in a result closer to $200.5m.

Including impairments, disposals and foreign exchange movements caused by the falling value of the dollar, BG recorded a loss of £101m.

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Shell boss confident of ‘good’ ruling from ACCC on BG takeover

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Angela Macdonald-Smith: 30 October 2015

Royal Dutch Shell’s global chief executive Ben van Beurden says there is “massive support” from Australian federal and state governments for the oil giant’s $US70 billion ($98.6 billion) takeover of BG Group and is confident the national competition regulator will wave the deal through.

Mr van Beurden said even though the decision from the Australian Competition and Consumer Commission on the deal had been put back twice, he was “confident that they will come back with a good and prudent ruling”.

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Shell share price: Company’s problems extend beyond oil prices, analyst says

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Screen Shot 2015-10-27 at 12.33.24Big bets on shale “destroyed huge amounts of capital” and the company has few growth assets…the firm is far more likely to remain a laggard than become a leader among the oil majors for the rest of this decade…

by Veselin Valchev: Tuesday, 27 Oct 2015

Royal Dutch Shell Plc (LON:RDSA) carries hefty baggage and even if oil prices were to recover back to $100 per barrel, it would not solve all the firm’s problems, argued senior Morningstar analyst Stephen Simko.

Big bets on shale “destroyed huge amounts of capital” and the company has few growth assets, Simko said.

The notable exception is the potential addition of BG Group’s Brazilian operations, should the proposed merger complete successfully. BG’s interests in the Santos Basin are estimated to hold more than three billion barrels of recoverable oil resources and are projected to break even at only $30-35 per barrel.

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Britain’s oil giants to post worst set of earnings since rout in price of crude began last year

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By LAURA CHESTERS FOR THE DAILY MAIL: 25 October 2015

Britain’s oil giants will this week post their worst set of earnings since the rout in the price of crude began last year.

Investors will also be looking for any update on Royal Dutch Shell’s £55bn takeover of rival BG Group amid fears Shell is overpaying.

Shell, BG and BP will all post third-quarter earnings this week with the City expecting an average of a 60 per cent collapse in profits, according to experts at Morgan Stanley, suggesting the industry is facing its worse downturn in a decade.

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Is Royal Dutch Shell plc (ADR), BG Group plc (BRGYY) Merger Under Threat?

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By: Micheal KaufmanOct 22, 2015

Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) and BG Group plc.’s (ADR) (OTCMKTS:BRGYY) merger is faced with another setback, as the Australian antitrust regulator, Australian Competition and Consumer Commission (ACCC) now expects to make a decision by November 19. The commission announced on October 22, that the additional time will allow a more detailed review of the proposed acquisition.

The ACCC, earlier in September, had indicated that it will disclose its decision on the merger after two months. However, the regulatory authority has now decided to delay it by another two weeks. The delay in September had come amid ACCC’s concerns of Shell and BG’s overlapping businesses in Eastern Australia, which may limit competition.

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Australia defers decision on Shell’s BG bid by a week to November 19

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MELBOURNE: Thu Oct 22, 2015 

Australia’s competition watchdog said it has postponed a final decision on Royal Dutch Shell’s (RDSa.L) $70 billion takeover of BG Group (BG.L) by a week to November 19, following an earlier deferral in September.

The Australian Competition and Consumer Commission (ACCC) had said last month that market participants had expressed concerns the takeover may hurt gas supply competition in eastern Australia if Shell’s Arrow Energy were to sell its gas into BG’s Queensland Curtis liquefied natural gas plant for export.

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SBM Offshore wins Browse FLNG FEED

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by  AOG Staff: Monday, 19 October 2015

SBM Offshore has been awarded the front-end engineering and design (FEED) contract for three large scale turret mooring systems associated with the proposed Browse floating liquefied natural gas (FLNG) development in Australia.

The turrets are expected to be designed similar to and slightly larger in size than the Shell Prelude FLNG turret that SBM Offshore was awarded in 2011, and whose last module was recently successfully delivered from the construction yard in Dubai. Integration with the Prelude facility in Korea is currently ongoing.

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Shell keeps Prelude under wraps

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Screen Shot 2015-10-13 at 23.09.25The Anglo-Dutch giant has never disclosed Prelude’s capital cost or start-up date

Peter Klinger: October 13, 2015

Just a year out from market expectations of first gas, Royal Dutch Shell is giving nothing away about the pace of progress at its revolutionary Prelude floating LNG operation.

Shell has sent out its regular update of the mega-project, which comprises construction of the industry-changing floating processing plant in Samsung’s Geoje shipyard in South Korea and a gas-condensate well and subsea pipeline network in the Browse Basin off the Kimberley.

Shell’s update said the second-last module had been installed on the Prelude floater, while in the Browse Basin the focus was on installing flow lines and pipeline end terminations.

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Shell-BG Deal Could Face Regulatory Sanctions, But Shell Will Do Everything It Can To Save Deal

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Trefis Team, CONTRIBUTOR: 2 Oct 2015

Ever since announcing the $70 billion deal to acquire BG Group back in April, Royal Dutch Shell Plc. has been busy these last few months obtaining the required merger related approvals from various regulatory authorities. After obtaining the required clearances in Brazil, the U.S., and Europe, the process hit a snag in Australia. This is not surprising as Australia is significantly more affected by the deal in comparison to the other countries. We believe that the Australian competition authority could ask Shell to divest some of its holdings before giving the necessary clearance to the deal and the company could face similar demands from Chinese regulators as well. We also believe that Shell will agree to the conditions imposed (if any) as the company stands to benefit from the merger in the long run. The deal will allow Shell to consolidate its leadership position in the global Liquefied Natural Gas market and increase its exposure towards the exploration and development of deepwater hydrocarbon reserves, primarily the pre-salt reserves offshore Brazil.

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Shell CEO Ben van Beurden says carbon price needed to tackle climate change

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“Shell’s track record on climate change does not inspire us with confidence...”

By business reporter Michael Janda and staff: 2 Oct 2015

Shell’s global chief executive says an effective carbon price is needed to tackle climate change, whether through a trading or tax system.

Speaking exclusively to ABC TV’s The Business, Ben van Beurden said a price on carbon was necessary to discourage pollution.

“Putting, in one form or another, a real, clear price on carbon that compels people to act with rational economic actions, I think is something that we need,” he told presenter Ticky Fullerton.

When pressed over the Government’s current Direct Action plan, which provides funding for programs to cut emissions rather than charging heavy emitters, Mr van Beurden said the design of the system was a matter for politicians in each country.

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Shell boss confronts environmental, carbon challenges

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On Monday, the oil and gas giant gritted its teeth and pulled out of one of the most ambitious, expensive and controversial exploration forays on the planet – Alaska. A project that could have delivered tens of billions of dollars instead delivered a dry well and, on Sunday, van Beurden and his team called it quits.

ANALYSIS: By The Business presenter Ticky Fullerton: 2 Oct 2015

Rarely have energy companies faced greater challenges, and global giant Shell has moved to tackle some of them head on.

Of all weeks to be in London to catch up with global Shell chief executive Ben van Beurden, this was it.

On Monday, the oil and gas giant gritted its teeth and pulled out of one of the most ambitious, expensive and controversial exploration forays on the planet – Alaska.

A project that could have delivered tens of billions of dollars instead delivered a dry well and, on Sunday, van Beurden and his team called it quits.

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Market Skeptics Miss Out on $5.5 Billion From Biggest 2015 Deal

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By Inyoung Hwang: BLOOMBERG.COM 22 Sept 2015

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A fresh drop in in oil prices and political instability in Brazil is making investors miss out on about $5.5 billion in Royal Dutch Shell Plc’s pending takeover of BG Group Plc.

BG closed on Monday at 990.4 pence, about 9.5 percent below Shell’s cash-and-stock offer. The difference in share prices in the deal — the largest in the energy sector in at least a decade — is wider than the average for other global acquisitions bigger than $10 billion, data compiled by Bloomberg show.

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Shell Handed A Get-Out-Jail Card As Its $70 Billion Bid For BG Hits An Obstacle

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Tim Treadgold, CONTRIBUTOR

Shareholders in Royal Dutch Shell ngIf: ticker will be uncertain whether they should thank, or criticize, the Australian Government’s competition regulator for threatening the proposed $70 billion merger with rival oil and gas producer, BG Group ngIf: ticker .

On one hand, a deal which could transform Shell is being threatened. On the other hand, missing out on BG could be the best result for Shell.

The problem is that BG’s primary appeal to Shell is that the target, once known as British Gas, is heavily exposed to liquefied natural gas (LNG), a fuel moving into a period of significant over-supply and potentially lower prices, at least in the short term.

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Australia throws spanner in the works for Shell’s takeover of BG Group

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by Sarah Spickernell

Royal Dutch Shell’s takeover of rival BG Group has been postponed, after Australian regulators voiced concerns about the potential impact on domestic gas supplies.  

In a statement today, Rod Sims, chairman of the Australian Competition and Consumer Commission (ACCC), claimed the deal was not in the best interests of Australian consumers, as it might result in a greater proportion of east coast supplies being exported.  

He said: 

If the proposed acquisition resulted in less supply of gas to the domestic market, therefore, this could substantially lessen competition to supply domestic gas users and lead to higher domestic prices and more restrictive contractual terms.

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Australia delays decision on Shell bid for BG on gas supply concerns

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Commodities | Thu Sep 17, 2015 

* Regulator raises domestic gas supply, price concerns

* ACCC to issue final decision on Nov. 12

* Shell says still expects to complete deal in Q1 2016 

By Sonali Paul

MELBOURNE, Sept 17 (Reuters) – Australia’s competition watchdog flagged concerns on Thursday that Royal Dutch Shell’s proposed $70 billion takeover of BG Group may lessen gas supply competition in eastern Australia and delayed a final decision on the bid to November.

The Australian Competition and Consumer Commission (ACCC) said a large number of market participants had expressed concerns that the proposed takeover may lead Shell’s Arrow Energy to sell its gas into BG’s Queensland Curtis liquefied natural gas plant (QCLNG) for export.

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Shell-BG Deal Poses Competition Concerns, Regulator Says

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By James Paton Sept 17, 2015: BLOOMBERG.COM

Royal Dutch Shell Plc’s $70 billion deal to buy BG Group Plc could reduce the supply of natural gas to local customers in Australia and boost prices, according to the nation’s competition regulator, which delayed a decision on the agreement until November.

The transaction may decrease the incentive for Shell’s Arrow Energy venture with PetroChina Co. to feed gas to the domestic market, the Australian Competition and Consumer Commission wrote in a statement on Thursday. That’s because it would allow Shell to send the Arrow supplies to BG’s Queensland Curtis liquefied natural gas project on the east coast, which is super-cooling the fuel for export to customers in Asia.

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Shell CEO says only ‘something cataclysmic’ could stop BG deal

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Sep 9 2015, 14:43 ET | By: Carl Surran, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) CEO Ben van Beurden has told investors privately that only “something cataclysmic” – i.e., “if people stopped using energy” – could derail the company’s planned takeover of BG Group (OTCPK:BRGXF, OTCQX:BRGYY), WSJ reports.

The episode is among the latest attempts by top Shell execs to sell investors worried that the deal may fall through; BG shares trade at a discount to the Shell cash and share offer, concerns that Australian and Chinese regulators could set high hurdles and, more broadly, that the persistently low oil prices could yet lead Shell to rethink the merger are dampening sentiment.

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Regulatory worries, energy prices take shine off Shell-BG deal

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…persistently low oil prices could yet lead Shell to rethink the deal are dampening sentiment. That has left BG shares trading at a discount to the Shell cash and share offer.

LONDON | BY RONBOUSSO: Business News | Tue Sep 8, 2015

A look at valuations illustrates how regulatory concerns and stubbornly low energy prices have stoked investor anxiety over Royal Dutch Shell’s (RDSa.L) planned takeover of British rival BG Group (BG.L).

Hailed as an audacious and industry-changing merger when it was unveiled in April, the headline value of the deal has slipped from 47 billion pounds ($72 billion) to around 38 billion because of the lower price of Shell shares, which closely track oil prices.

Concerns that the Australian and Chinese regulators could set high hurdles and, more broadly, that the persistently low oil prices could yet lead Shell to rethink the deal are dampening sentiment. That has left BG shares trading at a discount to the Shell cash and share offer.

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Australia Defers Decision on Shell’s Takeover of BG

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Australia and China are the two regulatory hurdles yet to be cleared after Europe’s highest antitrust regulator approved the deal unconditionally on Wednesday

By ROBB STEWART: Sept. 2, 2015

MELBOURNE, Australia–Australia’s antitrust regulator has given itself more time to consider Royal Dutch Shell PLC’s planned takeover of U.K.-based oil-and-gas firm BG Group PLC.

FULL ARTICLE

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