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Shell is streamlining its operations in Malaysia and Norway following its merger with BG Group

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By Micheal Kaufman on Apr 6, 2016

Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has shipped a cargo of Bintulu condensate from Malaysia to New Orleans, Louisiana, Reuters reported citing a trade source familiar with the matter. This is the first time that the US is importing this type of a condensate from Malaysia.

According to news sources, the Polaris, vessel containing 200,000 barrels of the offshore oil produced by the Malaysian state oil giant, Petronas, left the Malaysian terminal in February. The tanker stopped at Singaporean port, before heading towards Louisiana. read more

Royal Dutch Shell Limiting Investment in Chinese Shale Gas

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By Muhammad Ali Khawar on Apr 3, 2016

Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) unlike BP plc. (ADR) (NYSE:BP) is looking less enthusiastic for the exploration and production of shale gas. As reported by Bloomberg, Shell has indicated that it is not pursuing with the development of the Fushun-Yongchuan shale gas block in the China’s Sichuan province.

The news comes following BP and China National Petroleum Corporation (CNPC) latest deal for shale gas exploration in the country. Both the parties signed a production sharing contract (PSC) for shale gas exploration, development, and production in China’s Nejiang-Dazu block in the Sichuan basin. read more

Are BP and Royal Dutch Shell Refinery Segments in Trouble?

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By Muhammad Ali Khawar on Feb 26, 2016

The oil and gas companies have been severely hit by a more than 70% crash in crude oil prices over the past one and a half year. Their only saving grace, however, is the high refinery margin. In 2015, the falling revenue of oil giants from the upstream segment — the likes of Exxon Mobil Corporation (NYSE:XOM), Shell, and BP — was offset by the high margins from the refinery segment.

Bidness Etc here discusses whether in 2016, the energy companies will continue to enjoy the oil refinery boom, or the glut in the downstream segment would weigh down the energy companies’ performance. read more

Royal Dutch Shell – BG Group Merger Almost Complete

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By Muhammad Ali Khawar on Feb 12, 2016 at 1:58 pm EST

The biggest energy deal of 2015, between Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) and BG Group, is just three days away from its closing. On Monday, the two European energy giants will merge to form one of the biggest companies in the global oil and gas industry.

Today is the last trading day for BG Group on the London Stock Exchange. The company would be delisted from the Stock Exchange, effective February 15.

Though $70 billion may seem a lot to many people in the low oil environment, Bidness Etc believes the benefits of the merger are likely to outweigh its costs in the long-run. read more

Royal Dutch Shell: Here’s Why S&P Downgraded Credit Rating

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By Muhammad Ali Khawar on Feb 2, 2016 at 6:49 am EST

Standard & Poor’s (S&P) recently downgraded Royal Dutch Shell’s (ADR) (NYSE:RDS.A) credit rating from “AA-” to “A+,” as a result of the depressed crude environment. Since June 2014, crude oil prices have fallen more than 70%.

The downgrade came just weeks after the S&P lowered Brent crude expectations for the year. Initially, it expected the global crude oil benchmark to trade at around $55 per barrel. However, only last month the firm cut its price forecast to $40 per barrel, when the market conditions failed to recover. read more

Royal Dutch Shell – BG Group Merger: Investors Remain Divided

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By Muhammad Ali Khawar on Jan 22, 2016 at 8:14 am ESt

A few days before the shareholders’ meetings on January 27 and January 28, the proposed merger of Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and BG Group has received major support from one of the biggest shareholders of Shell. According to Reuters, Norges Bank Investment Management said it will vote in favor of the proposed merger.

The $790 billion Norwegian fund is the fifth largest investor of European giant, Shell. It believes, amidst low oil prices, the deal will make both the energy companies stronger. The transaction will also be positive for the long-term interests of the companies’ shareholders, the bank added. read more

Royal Dutch Shell: Investors Should Reconsider Support of BG Deal

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By Mushhood Khan on Jan 5, 2016 at 9:46 am EST

Just as Royal Dutch Shell plc (ADR) (NYSE:RDS.A) edges closer to its $50 billion takeover of BG Group, investors are losing confidence in the company.

Shell has secured regulatory approval from related authorities across the globe; the deal now only requires the shareholders’ vote, which will be obtained later this month. With oil prices trading at record lows, fund managers who own stakes in both BG and Shell, have reduced their share in the former.

Capital Group, one of the world’s leading investment groups, sold off majority of its stake in the BG deal during December. According to its securities filings, the Group sold around $600 million of BG shares last month, bringing down its stake from 2.2% to 0.9%. read more

Royal Dutch Shell: Cheap Oil Makes BG Group Path Slippery

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Ahead of the final vote for the deal, crude oil prices have dropped significantly, presenting one last threat to the merger – by far, the biggest one of all the hurdles it has faced. Further declines in oil prices could be a deal breaker for Shell and BG.

By Mushhood Khan on Dec 28, 2015 at 6:46 am EST

Royal Dutch Shell plc (ADR) (NYSE:RDS.A), one of the largest integrated oil companies in the world, has been in pursuit of UK-based BG Group plc (OTCMKTS:BRGYY) for its valuable LNG assets and its deepwater acreage. Announced in April this year, the $70 billion deal is the biggest of its kind in the energy sector in more than a decade.

Completion of such a grand deal faces several challenges; companies might not be able to meet the conditions of merger, antitrust laws may pose legal hindrances, shareholders might vote against it, or the change in core business conditions might make the deal unviable over the course of time. read more

Royal Dutch Shell Terminates Rig Contract with Transocean

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By Mushhood Khan on Dec 28, 2015 at 9:07 am EST

Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has terminated its rig contract with Transocean for the harsh environment semi-submersible rig, Polar Pioneer. The contract was initially scheduled to expire in 2017, but was rescinded today i.e. December 28. Transocean said in a press release that it would be compensated “for the early termination through a lump-sum payment.”

The contract for the Polar Pioneer rig was awarded to Transocean in 2013 at a $620,000 day-rate. The Polar Pioneer rig was a part of Shell’s controversial drilling project in the Arctic Ocean. It was used in the Burger J prospect in the Chukchi Sea, 70 miles from the village of Wainwright. read more

$70 billion deal between Royal Dutch Shell plc and BG Group plc may be in danger

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Royal Dutch Shell-BG Group Deal: Succumbed to Pressures?

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According to various market participants, the merger does not make sense at low oil prices and so they are urging Shell to pay a termination-fee of $750 million to BG Group and walk out of the deal.

By Mushhood Khan on Dec 22, 2015

Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has just entered the last stage of closing one of the biggest energy deals this year. Yesterday, the oil giant announced that BG Group would file a request for approval in the High Court, following the consent by China’s Ministry of Commerce (MOFCOM) coupled with the unanimous decision of the boards of directors. Subsequently, the energy companies will publish scheme documents for their shareholders and set up a shareholders’ meeting. The companies are expected to release documents today. read more

Shell’s £40bn takeover of BG Group edges closer despite tumbling oil price and shareholder discontent

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By CITY & FINANCE REPORTER FOR THE DAILY MAILPUBLISHED: 21:55, 21 December 2015

Tumbling oil prices and shareholder discontent have not prevented Royal Dutch Shell’s £40billion takeover of BG Group entering the final stages.

The deal could complete in February after BG applied to the High Court to hold the shareholder meetings to vote on it in the new year.

The tie-up has been unpopular with some investors and experts who argue it does not make sense when the oil price is so low. 

The price of Brent crude plummeted to an 11-year low yesterday as excess supply continued to flood the market. 

Oil production is running close to record highs and Brent futures fell by as much as 2 per cent to a low of just above $36 a barrel, their weakest since July 2004. read more

BP plc, Royal Dutch Shell and Others up in Arms against Coal

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By Micheal Kaufman on Dec 2, 2015

Environmentalists are winning the race against energy companies, as the world tries to adopt environmental-friendlier ways of energy generation. World leaders from over 19 countries and prominent personalities such as Bill Gates and Mark Zuckerberg are at the UN Climate Summit in Paris, which has been ongoing from November 30 and will continue until December 11.

Energy Companies Coming in Front

The growing concern over global warming and rising temperatures has lined up global energy companies such as Royal Dutch Shell, BP plc. (ADR) (NYSE:BP) and Total SA (ADR) (NYSE:TOT). These companies have recently teamed up to support climate change and asked authorities to consider a carbon tax. read more

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. read more

US Follows Royal Dutch Shell plc Backs Away From Arctic Drilling

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By: Micheal KaufmanOct 19, 2015

The US Interior Department announced on Friday that it will cancel the auction of 2016 and 2017 natural gas and offshore oil leases in the Arctic Ocean. The auction was scheduled under the Department’s current five-year Chukchi Sea leasing program for 2012–2017. The division cited low crude oil prices and lack of interest from oil companies as the main reason behind its decision.

This news comes a few weeks after Royal Dutch Shell plc (ADR) (NYSE:RDS.A) withdrew its Arctic drilling plan. The oil giant had spent $7 billion for the Arctic campaign. It said last month that it has dropped its exploration and production (E&P) activities in the Burger prospect of the Chukchi Sea, as it found few traces of oil and natural gas in the region. The company was not satisfied with the drilling results; it had initially expected huge amount of oil traces in the Ocean. Shell has dropped all future plans of Arctic drilling for the foreseeable future. read more

BP plc, Royal Dutch Shell And Others Declare Joint Action On Climate Change

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Screen Shot 2015-10-16 at 22.05.20By: Micheal Kaufman: Oct 16, 2015 

Global warming over the past few years has become a major issue. Companies around the world keep on pumping and burning record levels of conventional fossil fuels. Burning of fossil fuels leads to carbon emissions, which are highly detrimental for the environment. Activists have now have taken a stern hand regarding pollution and are urging companies to adopt safer cleaner fuels. President Barack Obama recently also stressed upon the importance of using alternatives, such as natural gas, which are safer for the environment. read more

Shell Starts Nigeria Offshore Expansion of Up to 50,000 Barrels

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Screen Shot 2015-09-25 at 22.48.19Rakteem Katakey: Bloomberg.com: 5 Oct 2015

  • Bonga phase 3 oil passes through floating production facility
  • Shell has 55% of Bonga, Exxon 20%, Total, Agip 12.5% each

Royal Dutch Shell Plc expanded oil production off Nigeria’s coast by starting the third phase of its Bonga field. 

That phase has a peak production capacity of about 50,000 barrels of oil equivalent, Shell said Monday in an e-mailed statement. The floating production and storage facility serving Bonga’s third phase has a capacity of more than 200,000 barrels of oil and 150 million standard cubic feet of natural gas a day.

Shell has a 55 percent stake in Bonga and operates what it says were the first deposits to be developed in Nigeria’s deep waters in 2005. Exxon Mobil Corp. holds 20 percent, while units of Total SA and Agip, a subsidiary of Italy’s Eni SpA, each own 12.5 percent. read more

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