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Shell moving some jobs from New Orleans to Houston

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By Jennifer Larino, NOLA.com | The Times-Picayune: 18 APRIL 2016

Shell will relocate some jobs from New Orleans to Houston as it moves forward with plans to cut its global workforce by 10,000 employees and contractors. The company started cutting jobs last year in response to low oil prices.

Details are sparse on how the global cuts affect the roughly 1,900 workers based in One Shell Square in downtown New Orleans. Shell says it does not provide layoff counts by region. Workers close to the situation have reported that jobs may be moving to Houston in addition to cuts. They asked not to be named to protect their jobs. read more

Shell under pressure to reduce spending

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Markets | Fri Apr 8, 2016 3:05am EDT

By Ron Bousso

LONDON, April 8 Royal Dutch Shell is under pressure from shareholders to cut annual spending below $30 billion after buying BG Group to ensure it can maintain its dividend given the slow oil price recovery.

Shell and other large oil companies slashed budgets, scrapped huge projects and cut tens of thousands of jobs last year in the face of a slump in oil prices from a June 2014 peak of nearly $116 a barrel to below $40.

Shell reduced spending by $8.4 billion to $28.9 billion last year and for the first time in more than three decades global capital spending in the oil and gas industry, known as capex, is set to fall for a second year in a row. read more

Shell delivers more Brazil deep-water production from Parque das Conchas

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HOUSTON, Mar 14, 2016 (PR Newswire Europe via COMTEX) — Third phase of major deep-water project delivered, optimizing production capacity

HOUSTON, March 14, 2016 /PRNewswire/ — Shell and its joint venture announce the start of oil production from the third phase of the deep-water Parque das Conchas (BC-10) development in Brazil’s Campos Basin. Production for this final phase of the project is expected to add up to 20,000 barrels of oil equivalent per day (boe/d), at peak production, from fields that have already produced more than 100-million barrels since 2009. read more

An oilman’s $7 billion refresher course in the economics of drilling and climate change

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To many analysts, it looked like Odum was pushed into leaving.

Steven Mufson March 11, 2016

Marvin Odum, president of Shell Oil, was attending a meeting of the parent company’s executive committee in Singapore when word trickled in that an exploration well drilled in Alaska’s Chukchi Sea — the crowning step in a multi-year $7 billion quest — was a dry hole.

Maybe not bone dry. In a recent interview, Odum wouldn’t say. But in the oil business glossary, a dry hole is one that can’t pay off commercially, and Shell’s hole definitely qualified. The parent company, Royal Dutch Shell, abruptly dropped any further drilling — a setback for the industry, though a relief for environmentalists.

For years, they had fought a vigorous, litigious and politically intense battle over the Chukchi. Meanwhile Shell, lured by potentially rich rewards, had overcome a couple of embarrassing rig mishaps at sea and patiently navigated the courts and the Obama administration’s permitting process. Now, geology had rendered its verdict. read more

Shell says to start new exploration phase in BC-10 Brazil field

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Screen Shot 2016-02-17 at 08.47.47RIO DE JANEIRO: TUE Mar 8, 2016

Royal Dutch Shell will start in coming days a new exploration phase in the BC-10 project off the coast of Brazil, where it has already invested more than $1 billion, the company’s chief executive in the country said in a presentation.

Shell wants to keep investing in Brazil as the country has viable oil reserves despite recent market uncertainties, Shell Brazil CEO Andre Araujo said. read more

Petrobras cancels sale of stake in Brazil offshore oilfields

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RIO DE JANEIRO: Tue Mar 1, 2016 

Brazil’s Petroleo Brasileiro SA (PETR4.SA) has cancelled an agreement to sell to a local oil firm its 20 percent stake in two offshore oil fields it operates with Shell, the state-led oil company said in a securities filing on Monday.

Petrobras gave no reason for the cancellation of the sale of the stake in the Bijupirá and Salema fields in the Campos basin to PetroRio PRIO3.SA.

Royal Dutch Shell Plc (RDSa.L), which owns 80 percent of the two fields, announced two weeks ago it was cancelling a planned sale of its share to PetroRio, then known as HRT, and gave no explanation for the move. read more

Shell Sees Opportunity In Brazil

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Screen Shot 2016-02-17 at 08.47.47By Dex Dunford: Wed, 17 February 2016

Hot on the heels of their $52-billion takeover of BG Group going into effect last month, Shell appears poised to make big moves in Brazil.

Already the second largest oil and gas producer in Brazil, Shell has set its sights even higher. The only thing that stands in its way is state-owned Petrobras.

Ben van Beurden, CEO of Royal Dutch Shell, made his feelings on the matter very clear this week when he said that Petrobras should cede some of its drilling rights to private firms. read more

Brazil’s Petro Rio says Shell backs out of Campos Basin deal

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SAO PAULO: Tue Feb 16, 2016

Brazilian oil and gas company Petro Rio SA PRIO3.SA said on Tuesday that Royal Dutch Shell (RDSa.L) had canceled an agreement to sell offshore assets in the Campos Basin for an undisclosed sum.

Europe’s largest oil company, which gained approval last month to take over BG Group BG.L, had agreed in January 2015 to sell its 80 percent stake in the Bijupirá and Salema fields, along with a drill ship, to Petro Rio, known then as HRT.

(Reporting by Gustavo Bonato and Brad Haynes; Editing by David Goodman) read more

Shell hails benefits of £36bn BG takeover

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The mega-deal – creating the biggest trader of liquefied natural gas – came into force after shareholders waved through the tie-up at the end of January.

Chief executive Ben van Beurden said it marked an “important moment for Shell”, which would bolster its cash flow and “significantly boost” its reserves and production.

The impact of the deal – coupled with the low oil price – will lead to 10,000 job losses, with Shell already cutting 7,500 staff, while a further 2,500 positions are expected to be lost now the deal is complete. Shell also looks set to offload $30bn of assets. read more

North Sea has a big future, says Shell after BG takeover

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Screen Shot 2016-01-20 at 08.29.05Robin Pagnamenta James Hider Energy Editor: February 16, 2016

Royal Dutch Shell reiterated its confidence in the North Sea oil industry yesterday as it sealed a £35 billion acquisition of its rival BG Group and promised a rapid boost in output from Brazil.

Writing exclusively for The Times on the first day after completing the merger, Ben van Beurden, Shell’s chief executive, promised to retain many of BG’s existing assets in the North Sea, where high costs and plunging oil prices have fuelled deep unease about job losses and future investment… read more

Shell Oil CEO Says Petrobras Should Step Aside In Brazil

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Ben van Beurden, Chief Executive Officer of Royal Dutch Shell, said in Brazil on Feb. 15 that the government should allow for more foreign investment in the country’s lucrative off-shore oil fields without having to partner with beleaguered oil major Petrobras.

By Contributor: Kenneth Rapoza: 15 Feb 2016

Brazil’s government-owned oil giant, Petrobras, should cede some of its drilling rights to foreign firms, Royal Dutch Shell Oil CEO Ben van Beurden was quoted saying in Estado de Sao Paulo newspaper on Monday.

The Shell Oil man is arguing for greater private investment in Brazil’s precious off-shore oil fields in the Atlantic Ocean, rather than current rules that require 50% ownership by Petrobras. In theory, such a move would entice private oil firms to explore for more oil and keep it for themselves, rather than having to share half of it with Petrobras. That wouldn’t eliminate government royalties, of course, but it would give foreign firms like Shell the incentive to explore and develop deep water oil fields on their own. read more

Shell expects its Brazil output to quadruple by 2020: CEO

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RIO DE JANEIRO | BY JEB BLOUNT AND MARTA NOGUEIRA: Mon Feb 15, 2016

Royal Dutch Shell (RDSa.L), Europe’s largest oil company, expects to make robust investments in Brazil’s offshore resources, hoping to quadruple oil and gas output there by the end of the decade, its chief executive officer said on Monday.

CEO Ben van Beurden spoke in Brazil shortly after Shell’s $52 billion takeover of BG Group Plc BG.L, approved in late January, took effect.

Thanks to BG’s large portfolio of assets in Brazil and Shell’s decision to buy 20 percent of the giant Libra offshore project in 2013, Brazil will be a key area for the Anglo-Dutch company as it focuses on liquefied natural gas and deepwater oil production, van Beurden said. read more

Shell completes BG takeover

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Written by Niamh Forrest – 15/02/2016

Shell has completed its $68.2billion merger with BG Group which will now be delisted from the London Stock Exchange.

The oil major said it follows the sanction of scheme at a hearing held four days ago and the delivery of the court order to the Registrar of Companies today.

Shell well issued 1,523,804,425 Shell A shares and 3,745,486,731 Shell B shares.

Chief executive Ben Van Beurden said: “This is an important moment for Shell.

“It significantly boosts our reserves and production and will bring a large injection to our cash flow. read more

Shell faces $30bn battle to sell assets after BG takeover

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Shell completes its much-anticipated takeover of BG Group on Monday, facing a fresh battle to dispose of $30bn of assets in the next three years as the oil market downturn drags on.

The £35bn mega merger was proposed before the full brunt of the oil market’s 70pc collapse slashed value across the sector, and Shell is under pressure to push through the disposals to maintain shareholder dividends even as profits plummet.

Shell’s reported its sharpest decline in income in 13 years for 2015 as sales collapsed by 97pc to cut profits by 56pc compared to the year before.

But with the oil rout wiping value from across the embattled oil and gas sector analysts say Shell will struggle to spin-off assets at the price it once expected to. 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

Oil market spiral threatens to prick global debt bubble, warns BIS

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By Ambrose Evans-Pritchard6:33PM GMT 05 Feb 2016

The global oil industry is caught in a self-feeding downward spiral as falling prices cause producers to boost output even further in a scramble to service $3 trillion of dollar debt, the world’s top watchdog has warned.

The Bank for International Settlements fears that a perverse dynamic is at work where energy companies in Brazil, Russia, China and parts of the US shale belt are increasing production in defiance of normal market logic, leading to a bad “feedback-loop” that is sucking the whole sector into a destructive vortex. read more

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