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Posts under ‘Gas’

Groningen quake zone: another shaker

Reinforcing homes in Dutch gas extraction quake zone estimated at 30 bln euros Mon Apr 20, 2015 9:01am EDT (Reuters) – The estimated cost to reinforce more than 150,000 Dutch homes to withstand earthquakes caused by extracting gas in the massive Groningen field was increased to at least 30 billion euros ($32 billion), the province […]

BG Deal May Leave Shell’s Arctic Ambitions In Limbo

By Nick Cunningham: Sun, 19 April 2015 Royal Dutch Shell’s purchase of BG will turn the combined company into a natural gas behemoth. But one casualty of the merger could be one of Shell’s iconic drilling campaigns: the Arctic. The Arctic is thought to hold 13 percent of the world’s undiscovered oil reserves, and 30 percent […]

‘Big Oil’ poring over troubled waters

‘Big Oil’ poring over troubled waters By Mark Robinson, 17 April 2015 The severity of crude oil’s collapse meant that its effects were always likely to be felt far beyond petrol station forecourts. Reduced assumptions on future pricing convinced oil and gas majors, already given over to renewed capital discipline, to also accelerate the reduction in […]

Landmark Deal Curbs Flaring Pollution

Top oil-producing nations and companies pledge to eliminate the waste of natural gas that also exacerbates global warming April 17, 2015 |By Lisa Friedman and ClimateWire Top oil-producing nations, including the Russian Federation, Kazakhstan and Angola, as well as Royal Dutch Shell PLC and other companies say they will stop flaring natural gas by 2030 […]

Total, BP say feel no M&A pressures after Shell deal

PARIS/LONDON | BY MICHEL ROSE AND DMITRY ZHDANNIKOV: Thursday 16 April 2015 (Reuters) – French oil major Total (TOTF.PA) and British rival BP (BP.L) are under no pressure to make acquisitions after the recent takeover of BG Group by Anglo-Dutch rival Shell (RDSa.L), they said on Thursday. Royal Dutch Shell (RDSa.L) unveiled plans last week […]

A Halt to Groningen Production Could Significantly Impact on Shell’s Remaining Reserves

POSTING ON SHELL BLOG: 17 APRIL 2015 RELATES TO ARTICLE: Shell/Exxon Induced Earthquakes undermine Dutch Gov Revenues According to figures published on this site, Shell replaced just 26% of the reserves that it produced in 2014. The Groningen field represents a significant fraction of Shell’s remaining reserves. If Groningen production is halted to reduce the […]

Shell/Exxon Induced Earthquakes undermine Dutch Gov Revenues

By John Donovan The Groningen gas field is a giant natural gas field located near Slochteren in Groningen province in the northeastern part of the Netherlands. Discovered in 1959, it is the largest natural gas field in Europe. It is operated by the Nederlandse Aardolie Maatschappij BV (NAM), a joint venture between Royal Dutch Shell […]

After The BG Group Plc Deal, Is Royal Dutch Shell Plc’s Dividend At Risk?

By Rupert Hargreaves – Wednesday, 15 April, 2015 Shell’s (LSE: RDSB) merger with BG Group will create a Footsie titan. The enlarged group will make up around 10% of the index, and provide 10% of the index’s dividends. And at present levels the company supports a dividend yield of 6.2%, a yield that’s hard to turn down.  […]

The Exxon Mobil-BP Merger Rumor That Just Won’t Go Away

SeekingAlpha.com article by Dave Dierking published 15 April 2015 The Exxon Mobil-BP Merger Rumor That Just Won’t Go Away Summary The rumors of the viability of an Exxon Mobil-BP merger surfaced once again recently following the Royal Dutch Shell-BG merger. Exxon Mobil could be compelled to make such a transaction due to BP’s relatively inexpensive […]

Exxon-Shell gas venture may have to adjust Groningen output after court ruling

Exxon-Shell gas venture may have to adjust Groningen output after court ruling AMSTERDAM: Wed Apr 15, 2015 6:09am EDT (Reuters) – Gas production joint venture NAM is studying the impact of a court ruling that halted production at a small part of the massive Groningen gas field because of safety concerns, the Dutch government said […]

Shell starts supplying natural gas to Ukraine

Shell starts supplying natural gas to Ukraine Ukraine will be receiving gas via Slovakia  Royal Dutch Shell will start gas supplies to Ukraine via Slovakia in April 2015, according to Ukrainian media.  The company plans to provide at least 120 to 130 million cubic meters this month at a cost of USD 253 per 1,000 […]

SHELL TO ACQUIRE BG: IMPLICATIONS FOR THE NORTH SEA

14 April 2015 Shell announced an offer of a £47bn ($70bn) acquisition of BG in the second biggest oil and gas deal on record after Exxon and Mobil’s £51bn ($75.3bn) merger in 1998.  Shell and BG expect to make annual savings of £1.7bn ($2.5bn) and the combined company is estimated to be worth £180bn ($266bn). […]

Dutch Court Limits Loppersum Gas Output in Groningen Region

Article by Isis AlmeidaElco and Van Groningen published 14 April 2015 by Bloomberg.com Dutch court limits fracking on earthquake fears A Dutch court suspended gas production from the Loppersum area of the Groningen natural gas field, Europe’s biggest, as earthquakes linked to production damaged homes. Loppersum, which pumps less than 10 percent of the field’s output, may […]

A Frank Discussion On Royal Dutch Shell’s Dividend

SeekingAlpha.com article published 13 April 2015 A Frank Discussion On Royal Dutch Shell’s Dividend Summary Before the BG acquisition, Royal Dutch Shell had a dividend payout ratio of 90% for 2015. The acquisition of BG Group will put Shell on the hook for $15 billion in annual dividends as BG shareholders will own 19% of […]

How Will Exxon Mobil Fare After The Shell-BG Deal?

SeekingAlpha.com article published 13 April 2015 How Will Exxon Mobil Fare After The Shell-BG Deal? Summary It seems as though Exxon Mobil could be the next integrated oil company in line to announce a merger. According to Credit Suisse, it is possible that Shell, post-merger, could surpass Exxon Mobil as the largest publicly traded producer […]

Dutch Court to Rule on Gas Output From Europe’s Biggest Field

Article by Isis Almeida published 13 April 2015 by Bloomberg.com The Netherlands, the biggest gas producer in the European Union, said Feb. 9 it would limit output from the field during the first half of the year, sending prices up 13 percent that week. Unrelated to the court case, the government has also said it […]

Bold Bens Big Bet

By John Donovan On Friday afternoon, a contributor posted a comment on our Shell Blog under the headline: “Bold Bens Big Bet” Very bold of Ben van Beurden. Most courageous Shell leader for many a year. Still many pitfalls, as can be seen in some of the most recent articles about the BG takeover. Not […]

Shell Makes A Huge Bet On LNG and Pre-Salt

Shell Makes A Huge Bet On LNG and Pre-Salt Anglo-Dutch oil major, Royal Dutch Shell Plc., recently announced plans for a mammoth – $70 billion – acquisition of BG Group Plc. to further extend its leadership position in the global LNG (liquefied natural gas) market and increase its exposure towards the exploration and development of […]

Shell And BG Group: Strong Strategic Fit, But Additional Financial Risks Ahead

Article by Pim Keulen published 12 April 2015 by Seeking Alpha  Shell And BG Group: Strong Strategic Fit, But Additional Financial Risks Ahead Source: total.com Summary Shell announced the acquisition of BG Group for the amount of $69 billion. From a strategic point of view, the deal seems to make perfect sense. From a financial […]

Kashagan to Start Production in 2017, Says Royal Dutch Shell Report

BY MICHELLE WITTE in BUSINESS on 13 APRIL ASTANA – Production at Kazakhstan’s giant Kashagan offshore oil field is expected to restart in 2017, Royal Dutch Shell stated in its 2014 annual report. “After the start of production from the Kashagan field in September 2013, operations had to be stopped in October 2013 due to […]

RTE failed to truthfully inform the public on Corrib Gas Project

– Shell to Sea send submission on RTE’s Public Service Statement — 12 April 2015 RTÉ – Ireland’s National Television and Radio Broadcaster Shell to Sea have today sent in a submission to RTE as part of RTE’s public consultation on the updating of their Public Service Statement [1]. In the submission, Shell to Sea […]

Shell paid too much to buy BG Group

ARTICLE BY STEPHEN SIMKO, MORNINGSTAR PUBLISHED APR. 11, 2015 BY BUSINESS INSIDER On April 8, Royal Dutch Shell (RDS.A) (RDS.B) (RDSA) (RDSB) announced its intention to acquire BG Group (BRGYY) (BG.) in a $70 billion cash-and-stock deal that values BG’s equity at GBX 1,350 per share, or 11% above our GBX 1,200 fair value estimate for BG at […]

BP left stranded by US vilification as rejuvenated Shell storms ahead

Article by Jeremy Warner published 12 April 2015 by The Sunday Telegraph  BP left stranded by US vilification as rejuvenated Shell storms ahead They say that fortune favours the brave. Ben van Beurden (right), chief executive of Royal Dutch Shell, will be hoping they are right, for by firing the starting gun on a new wave of oil […]

Funds circle for spin-off gains from Shell deal

Article by Ashley Armstrong published 12 April by The Sunday Telegraph Funds circle for spin-off gains from Shell deal The world’s largest private equity firms are already circling the $30bn (£20bn) of assets that could be spun off by Shell following its acquisition of BG Group, the largest ever merger between two UK companies. Warburg […]

Dividend doubts creep in after Shell’s £47bn swoop for BG Group

Article by Andrew Neil published 11 April 2015 by proactiveinvestors.co.uk Dividend doubts creep in after Shell’s £47bn swoop for BG Group “We think Shell’s acquisition of BG will likely be viewed as strategically smart and opportune, but should oil prices stay lower for longer, it could put pressure on UK dividends and be detrimental to […]

Greenpeace activists abandon Arctic drill rig retained by Shell after six-day stay

Associated Press article published by Fox News 11 April 2015 Greenpeace activists abandon Arctic drill rig retained by Shell after six-day stay SEATTLE –  Greenpeace says six activists opposed to offshore drilling in the Arctic have abandoned a Seattle-bound drill rig they boarded in the Pacific Ocean six days ago. The organization said in an […]

BG acquisition offers Shell opportunity for major strategy change

By Paddy Briggs As a Shell “lifer” – more than forty years if you include my time as a Director of the Pension  Fund – I cannot recall a bigger strategic shift than the acquisition of BG. It offers the Corporation a unique opportunity to do what Tom Peters called “stick to its knitting” – to concentrate on […]

Shell Acquisition of BG Group to Create Giant Operator of LNG Ships

LONDON –  Royal Dutch Shell PLC’s (RDS.A) planned $70 billion acquisition of BG Group PLC would create a giant operator of liquefied-natural-gas vessels, offering owners that charter the ships more opportunities for lucrative, long-term contracts in an otherwise-depressed shipping industry. “The merger offers owners more flexibility and better utilization of their fleets, which could mean […]

Royal Dutch Shell Could Eclipse Exxon Mobil Corporation As Largest Producer: Credit Suisse

By: MICHEAL KAUFMAN: Published: Apr 10, 2015 at 6:22 am EST In a report published on Thursday, Credit Suisse commented on the aftermath of Royal Dutch Shell plc’s (ADR) (NYSE:RDS.A) announcement to acquire BG Group Plc (ADR) (OTCMKTS:BRGYY). The sell-side research firm deliberated that the transaction makes sound strategic sense and moves Shell down the cost […]

Royal Dutch Shell’s £47bn swoop on BG Group faces potential stumble over asset ownership

By LAURA CHESTERS FOR THE DAILY MAIL Royal Dutch Shell’s swoop on BG Group will face a series of hurdles including competition fears and questions over the ownership of some of its newly acquired assets. The £47billion acquisition of BG will make Shell the largest foreign oil company in Brazil – but there are concerns […]

Shell complaint claims Greenpeace activists risk success of Arctic drill

Adam Vaughan: Friday 10 April 2015 15.19 BST Shell has warned it could miss a window to drill for oil in the Arctic this summer, if six Greenpeace activists occupying a rig under contract to the company are not removed, court filings by the oil company reveal. “Left unsanctioned, Greenpeace USA’s illegal and tortious actions will, as […]

Is Royal Dutch Shell Up For The Challenge?

By: MICHEAL KAUFMAN: Published: Apr 10, 2015 at 10:33 am EST he energy sector’s mega deal between Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) and BG Group Plc (ADR) (OTCMKTS:BRGYY) is now under close scrutiny by China and other countries, as well as by investors. When asked about the details of regulatory concerns, both parties refused to […]

Royal Dutch Shell plc Shareholders Express Concern Over Dividends After BG Group Merger

By: MICHEAL KAUFMAN: Published: Apr 10, 2015 at 9:39 am EST A $70 billion merger deal between Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and BG Group plc (ADR) (OTCMKTS: BRGYY) was finalized earlier during the week. Shell had paid a premium of 50% on BG Group’s share price on April 9. Many have commended the efforts […]

Shell-BG takeover to test China’s pledge on antitrust transparency

Shell-BG takeover to test China’s pledge on antitrust transparency HONG KONG | BY MICHELLE PRICE AND DENNY THOMAS: Fri Apr 10, 2015 (Reuters) – Royal Dutch Shell’s $70 billion bid for BG Group Plc will put to the test a pledge by China’s antitrust regime to be more transparent, after it faced strong criticism last year […]

An investment-grade lesson from the Shell-BG supermerger

Article by Bengt Saelensminde published 10 April 2015 by MoneyWeek.com An investment-grade lesson from the Shell-BG supermerger This week’s mega-takeover deal between BG and Shell has got the City in somewhat of a tizz. What a great windfall. The oil and gas sector is on fire right now. Which companies will be snapped up next? The corporate […]

Shell’s Huge Gas Bet Underscores Big Oil’s Push to Replace Coal

Article by Javier Blas and Rakteem Katakey published 10 April 2015 by Bloomberg.com BP Plc coined the slogan “Beyond Petroleum.” The new industry mantra might be “Beyond Oil and Into Gas.” Oh, and while we’re at it, “Down With Coal.” Consider Royal Dutch Shell Plc’s recent $70 billion acquisition of BG Group Plc — clearly a huge bet […]

Royal Dutch Shell’s proposed $70 billion acquisition of BG could trigger pre-emption rights

  Extracts from an article by Daniel McCarthy published 9 April 2015 by Micro Cap Observer Royal Dutch Shell’s proposed $70 billion acquisition of BG could trigger pre-emption rights The proposed takeover of BG Group by Royal Dutch Shell in a $70 billion deal could be short-sighted, and capable of triggering pre-emption rights in gas […]

Shell May Need $100-per-Barrel Oil to Make BG Deal Work

Article by Tim Mullaney published 9 April 2015 by TheStreet.com Shell May Need $100-per-Barrel Oil to Make BG Deal Work NEW YORK (TheStreet) — How aggressive was Royal Dutch Shell’s (RDS.A – Get Report) $70 billion deal to buy British oil and gas producer BG Group (BRGYY)? So aggressive that oil may have to rebound […]

Shell expected to slash jobs and spending

By LAURA CHESTERS FOR THE DAILY MAIL Royal Dutch Shell is planning a £20bn sell-off of assets to create a leaner oil giant after its £47bn swoop for rival BG Group. Shell has snapped up BG to expand its liquefied natural gas business and Brazilian deepwater wells but the deal also creates a sprawling £200bn […]

Shell sounds starting gun for more mergers in big oil

By ALEX BRUMMER FOR THE DAILY MAIL After all the fuss over the appointment and fat cat pay for Helge Lund, the new chief executive of BG, one must wonder why chairman Andrew Gould bothered. Just weeks after Lund took the reins, assets were written down by £6bn and Gould found himself in cloak and […]