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Shell shielded from Forties fallout by ‘internationalisation’, North Sea sales

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Shell is performing “extremely well” at a time when Brent crude is at its highest price for three years, the oil giant’s upcoming fourth quarter results will show. The Anglo-Dutch major is in its strongest position for many years in terms of its cash generation thanks to its upstream and LNG businesses, analysts said. RBC Capital Markets anticipates Shell’s fourth-quarter adjusted net income will more than double year-on-year. The company recorded adjusted earnings of £1.3billion in Q4 2016. read more

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Shell Is Closing In on Exxon’s Crown

Even in the dynamic world of business, some things always hold true: the Big Mac outsells the Whopper, Google gets more searches than Bing, and Exxon Mobil Corp. is the world’s biggest public oil company. Or perhaps not.

Royal Dutch Shell Plc is the closest it’s ever been to attaining the long-coveted prize of overtaking its American rival. While the Anglo-Dutch oil major still has some work left to snatch Exxon’s crown, Chief Executive Officer Ben van Beurden has made getting to the top his restless mission. read more

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Shell Takes a Last Exit From Mideast Oil — WSJ

By Sarah Kent and Benoit Faucon

LONDON — Royal Dutch Shell PLC is giving up on its last oil fields in Iraq, leaving the world’s second-biggest oil company with a dwindling footprint in the Middle East — a region it helped build into a petroleum powerhouse. Shell said Monday it is selling for an undisclosed amount a stake in the West Qurna 1 oil field in Iraq to Japan’s Itochu Corp., the latest step in a gradual retreat from the region. The company is also expected to give up its holding in Iraq’s Majnoon oil field later this year, though it will retain its natural-gas interests in the country. FULL ARTICLE read more

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U.S. offers drillers nearly all offshore waters, but focus is on eastern Gulf

Ernest Sheyder and Valerie Volcovici

HOUSTON/WASHINGTON (Reuters) – President Donald Trump’s administration has proposed opening up nearly all of America’s offshore waters to oil and gas drilling, but the industry says it is mainly interested in one part of it, now cordoned off by the Pentagon: the eastern Gulf of Mexico. “The eastern Gulf of Mexico could be very attractive to industry because of the proximity to existing infrastructure in the central and western Gulf of Mexico,” the National Ocean Industries Association, which represents the offshore oil and gas industry, said in a statement. FULL ARTICLE read more

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Bolivia says signs $1.6 bln in gas deals with Repsol, Petrobras, Shell

By Marianna Parraga: NOVEMBER 21, 2017

SANTA CRUZ, Bolivia, Nov 21 (Reuters) – Bolivia’s government on Tuesday signed natural gas development deals with Spain’s Repsol, Brazil’s Petrobras, Royal Dutch Shell and Pan American Energy that are expected to draw $1.6 billion in investment and boost output. The deals cover blocks in the Iniguazu, San Telmo Norte and Astillero gas areas. Repsol, Shell and Pan American Energy will participate in the Iniguazu consortium, while Petrobras will be a partner in the other two. FULL ARTICLE read more

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Greg Hands used a meeting with a Brazilian minister to pass on oil companies’ concerns: Rex Features

Brazilian government later gave major drilling licenses to the two companies

Liam Fox’s Department for International Trade successfully lobbied the Brazilian government over environmental regulations on behalf of three major oil companies, an official document has revealed. Greg Hands, the international trade minister, reportedly made representations on behalf of BP, Shell and Premier Oil during a trip to Brazil in March. Details revealed in the cable were apparently released by mistake. Following a freedom of information request, the DIT sent Greenpeace the full cable, with sensitive passages highlighted instead of redacted. It later released a second version with the same passages blacked out. FULL ARTICLE read more

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UK trade minister lobbied Brazil on behalf of oil giants

A telegram obtained by Greenpeace shows that Greg Hands met a Brazilian minister to discuss relaxation of tax and environmental regulation. Greenpeace accused the department of acting as a “lobbying arm of the fossil fuel industry”. read more

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Shell to begin drilling in Brazil’s Gato do Mato block in 2019

Alexandra Alper: NOVEMBER 13, 2017 RIO DE JANEIRO (Reuters) – Royal Dutch Shell Plc’s Brazil chief said on Monday that the oil major plans to begin drilling in 2019 in an offshore block in the coveted pre-salt layer that it won in an auction last month with France’s Total. “We already drilled in the area. We know how to do it. We have the experience. So it is just about putting in place everything that we already have in order to not waste time,” Andre Araujo, Shell’s Brazil unit head, told reporters on the sidelines of an event in Rio de Janeiro. FULL ARTICLE
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Shell Brazil looking for partnerships in new energy

Reuters Staff: NOVEMBER 13, 2017

RIO DE JANEIRO, Nov 13 (Reuters) – Royal Dutch Shell PLC’s Brazil chief said on Monday the company is seeking partnerships in new energy.

Shell Brazil Chief Executive Andre Araujo made the remarks at an event in Rio de Janeiro. (Reporting by Alexandra Alper, writing by Jake Spring; Editing by Alden Bentley)

SOURCE

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Royal Dutch Shell: The Cash Machine

 Nov. 6, 2017 12:35 PM ET

Summary

  • Royal Dutch Shell has reported nearly 50% increase in profits following improvement in energy prices which fueled a turnaround of its upstream division.
  • In the first three quarters of 2017, Royal Dutch Shell generated $15.42 billion of free cash flows (ex. working cap. changes), surpassing even the industry’s cash flow king Exxon Mobil.
  • Oil prices have climbed to almost $61 a barrel and could stay at this level in the future, which could give a major boost to Shell’s earnings and cash flows.
  • read more

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    Royal Dutch Shell takes cashflow crown off Exxon Mobil

    Royal Dutch Shell has taken Exxon Mobil’s cashflow crown, a year after completing the biggest deal in its history.

    Europe’s largest energy company vaulted ahead on this closely watched indicator of financial health in the first nine months of 2017 as assets acquired from BG Group from Brazil to Australia churned out cash. For the year as a whole, Shell is on course to surpass its larger US rival on the measure for the first time in about two decades.

    Shell generated $28.38 billion (€24.34bn) of cashflow from operations in the first nine months of the year, compared with $23.52 billion (€20.18bn) from Exxon. Chief executive Ben Van Beurden has already spelled out that his main long-term goal was overtaking Exxon to become the best-performing oil major. read more

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    Shell says can pump oil from Brazil’s pre-salt fields below $40/bbl

    Simon WebbAlexandra Alper: OCTOBER 25, 2017

    RIO DE JANEIRO (Reuters) – Royal Dutch Shell will participate in Brazil’s deepwater oilfield auction on Friday and is confident it can pump oil from the fields on offer for less than $40 a barrel, a top Shell executive said. Brazil will hold its first auction in four years for its pre-salt oilfields on Friday. The eight deepwater blocks on offer hold billions of barrels in reserves, and for the first time, Brazil will allow foreign oil firms to operate the fields in the region. Shell believes it could pump oil from the pre-salt fields below the company’s target breakeven cost of $40 per barrel, Wael Sawan, Executive Vice President for Shell’s deepwater division, told Reuters. The high quality of the reserves and the prolific output volume that the pre-salt wells can produce make them an attractive proposition, he said. FULL ARTICLE read more

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    Shell divests its interest in Comgas for a headline of US$380 million

    HOUSTON, Oct. 10, 2017/PRNewswire/ — Shell Gas BV, Shell Brazil Holding BV and Integral Investments BV (“Shell”) today announce they have signed an agreement with Cosan Ltd. to execute an existing Put Option Agreement, which allows Shell to sell all of its 16.8% interest in Companhia de Gas de São Paulo (“Comgás”) to Cosan Ltd. Under the agreement, Shell will exchange its ~21.8 million common shares in Comgás for Cosan S.A. Indústria e Comércio (“Cosan SA”) shares plus cash. read more

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    Brazil’s Raízen trying to cut sugar production costs -CEO

    RIO DE JANEIRO, Sept 15 (Reuters) – Brazil’s Raízen, the world’s largest sugar producer, is trying to cut production costs to remain profitable amid depressed international prices, Chief Executive Luis Henrique Guimarães said on Friday.

    Raízen, a 50-50 joint venture between Cosan SA Indústria e Comércio and Royal Dutch Shell Plc, plans to crush up to 63 million tonnes of cane in the current crop season, more than 10 percent of total Brazilian cane output.

    (Reporting by Rodrigo Viga Gaier; Writing by Marcelo Teixeira; Editing by Paul Simao) read more

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    Shell to invest $2 billion per year in Brazil through 2020

    SEPTEMBER 14, 2017 / 5:25 PM

    SAO PAULO (Reuters) – The Brazilian unit of Royal Dutch Shell PLC will invest $2 billion per year in the country through 2020, Flávio Rodrigues, the unit’s director of government relations and regulatory affairs, said at an industry event on Thursday.

    The investment plan does not include potential bids for oil exploration areas, he said, which the government will auction off in September and October.

    On average, the oil company produced 325,000 barrels of oil equivalent per day (boepd) in the first quarter, Rodrigues added.  read more

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    Shell/Petrobras: a partnership of corrupt oil giants

    The Brazilian Petrobras Scandal: The Brazilian oil giant Petrobras is the largest company in the Southern Hemisphere. On November 14, 2014, a series of police raids netted politicians and Petrobras bigwigs who had paid $2 billion in bribes… Now we have news that Petrobras is linking up with Royal Dutch Shell, which is currently mired in a billion dollar scandal: OPL 245…

    Shell and Petrobras sign technical cooperation agreement to strengthen deep water partnership

    Posting on Shell Blog by Bogus Group

    Shell MoU with Petrobras and their partnership to share experience on cost efficiency and use of technology.

    Déjà vu springs to mind (Daily Telegraph 01 March 2012) on BG Group finance of $1.8bn from Brazilian Development Bank to fund interests offshore Brazil (was this the same interests that Chapman demanded his cohorts in Brazil disclose over estimated reserves?).

    Daily Telegraph 14 May 2013 also noted Chris Finlayson rhetoric to “keep up the pace with huge discoveries” and focusing on “value over volume”, leaving the company “lean and agile”. read more

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