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Shell jobs: Move means “lower forever”

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Written by Erikka Askeland – 26/05/2016 7:45 am

Paul Goodfellow, Shell’s Vice President for UK & Ireland, has said that despite the “tough message” he had to deliver yesterday to staff in Aberdeen, he saw green shoots of sustainable change emerging in the North Sea.

The 475 North Sea job cuts – part of a wider round of 2,200 across Shell’s global operations – comes after a 90 day review since Shell’s £36million mega-merger with BG Group earlier in the year.

He said this most recent round of job losses was not just in response to “lower for longer” – the common industry view that oil will stay around $50 for the forseeable future – but “lower forever”.

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Shell to cut another 2,200 jobs

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The cuts are mainly due to Shell’s takeover of oil and gas exploration firm BG Group and prolonged low oil prices, it said.

Shell has announced more than 10,000 job losses over the past two years.

In February, the firm posted its steepest fall in full-year earnings for 13 years.

“Despite the improvements that we have made to our business, current market conditions remain challenging,” said Shell UK and Ireland vice president Paul Goodfellow.

“Our integration with BG provides an opportunity to accelerate our performance in this ‘lower for longer’ environment.

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Shell Cuts 2,200 More Jobs to Withstand Lower-For-Longer Oil

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Screen Shot 2016-05-21 at 10.18.28By Rakteem KatakeyMay 25, 2016 — 11:19 AM BST

Royal Dutch Shell Plc will cut 2,200 more jobs, taking the total tally of losses to 12,500 from 2015 to 2016 as the world’s second-biggest oil company continues to adjust to the slump in prices. 

At least 5,000 jobs will be cut this year, the company said in an e-mailed statement. These reductions are in response to oil prices staying “lower for longer,” and as a result of the acquisition of BG Group Plc earlier this year, said Paul Goodfellow, Shell’s vice president for the U.K. and Ireland. 

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Shell to Cut at Least Another 2,200 Jobs Globally

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By THE ASSOCIATED PRESS: LONDON — May 25, 2016, 6:08 AM ET

Anglo-Dutch oil company Royal Dutch Shell says it will trim at least 2,200 jobs globally amid challenging times in the oil industry.

The losses are in addition to cuts already being implemented because of the energy company’s merger with BG. The losses will include some 475 positions in the North Sea.

Oil companies around the world are slashing jobs and postponing investments to adjust to lower energy prices. Prices have fallen because production remains high even as slower economic growth, particularly in China, reduces consumption.

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Royal Dutch Shell faces demand to reveal all on climate change

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Screen Shot 2016-04-20 at 13.50.03Investors say Shell has failed to fully address the impact of lower oil & gas demand due to new technologies

Coalition says Shell’s climate change management could have a bearing on executive pay

Philip Waller23 May 2016

Campaigning investors have urged Royal Dutch Shell PLC (LON:RDSB) to be more upfront with its plans to handle climate change, saying it could affect executive pay.

The Aiming for A coalition says Shell has failed to fully address the impact of reduced demand for oil and gas because of new technologies such as carbon capture and electric cars.

The group acknowledged improvements made by the company, but demanded more risk and strategy disclosure.

It said investors with assets worth US$5.05trln, including Rathbone Greenbank Investments, will provide Shell with direct feedback on progress at Shell’s AGM on Tuesday.

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Shell shareholders to vote on pay

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Screen Shot 2016-05-12 at 11.17.55BOSSES at Royal Dutch Shell will face shareholders at the group’s annual general meeting tomorrow amid concern over the chief executive’s “unacceptable” £4million pay deal.

Investors have been urged to vote against the firm’s remuneration report in protest at Ben van Beurden’s pay for 2015, even though it marked a significant reduction from the £18.6million he was paid in 2014 in the wake of plunging profits.

Shell’s latest annual report revealed boss Mr van Beurden’s total pay for last year was £4.3million – a 77 per cent fall on 2014 after the tumbling cost of crude took its toll on the group.

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Shell ‘failing to plan for green future’

Screen Shot 2016-05-23 at 07.34.07A statement tabled by Aiming for A, a coalition of investors, with the backing of asset managers with $5 trillion under management, calls on Shell to do more to model the impact of reduced demand for oil and gas because of new technologies.

FULL ARTICLE (PAYWALL)

Green really is the new black as Big Oil gets a taste for renewables

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Terry MacalisterSaturday 21 May 2016

The world’s largest oil companies have in recent weeks announced a series of “green” investments – in wind farms, electric battery storage systems and carbon capture and storage (CCS). These unexpected moves come hot on the heels of revelations by Saudi Arabia, the world’s biggest crude exporter, that it plans to sell off parts of its national oil company and diversify its economy away from petroleum.

They also come in the aftermath of a United Nations climate change agreement and before annual general meetings for Shell and Exxon Mobil this week, meetings at which shareholders will demand that more be done to tackle climate change.

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Royal Dutch Shell Merger Completion Results in Serious Debt Woes

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By Micheal KaufmanMay 20, 2016 at 2:09 pm EST

The energy sector has been badly affected due to substantial decline in oil and gas price. This has forced companies to implement counter steps such as capital expenditure reduction and asset disposals.

Royal Dutch Shell plc (ADR) (NYSE:RDS.A), a major oil company, is reportedly looking for buyers for its North Sea assets. The assets had been mainly bought during its multibillion takeover of BG Group.

According to a report by Bloomberg, the company is in talks with chemical producers including privately owned Neptune Oil and Gas and Ineos Group AG, established by former CEO of Centrica Sam Laidlaw. Shell could look to sell a package of assets and want to gauge buyers’ sentiments before formal assets disposals process is launched. With no final decision been made yet, there is also a possibility that the assets might be retained.

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Royal Dutch Shell Under Pressure As It Seeks To Divest North Sea Assets

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Summary

Royal Dutch Shell reportedly testing the waters for its $30 billion divestiture plan.

Most of the assets are located in the North Sea.

What will potential buyers be looking at?

Weak selling environment could result in company retaining some assets.

Gary BourgeaultMay 19, 2016 5:35 PM ET

After its $54 billion acquisition of BG Group, Royal Dutch Shell Plc (NYSE:RDS.A) (NYSE:RDS.B) had its credit rating cut after the huge increase in debt. Now it has reportedly entered into talks with interested parties in order to raise about $30 billion from the sale of assets, according to Bloomberg, citing sources not wanting to be identified.

The report said the bulk of the assets in question are from the BG acquisition, with the majority of the assets located in the high-cost North Sea region. In March, other unidentified people said Shell was also shopping assets in India and Trinidad and Tobago, along with the U.S. pipelines.

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Shareholders Outraged At BP, Shell CEO Pay Packages

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Screen Shot 2016-05-12 at 11.17.55…investors will be left holding underperforming oil stocks, whereas oil company CEOs will continue to reward themselves with fat paychecks, disregarding shareholder’s sentiments.

By RAKESH UPADHYAY: May 19, 2016

The massive revolt against the pay of BP’s chief executive, Bob Dudley, where almost 60 percent of the shareholders rejected the £14m (US$20 million) pay package is a stern warning to oil companies that investors aren’t pleased with the gaping disconnect between performance and pay structure.

Similarly, Royal Dutch Shell CEO Ben Van Beurden’s 2015 pay package, including pension and tax equalization of 5.576 million euros (US$6.1 million), is likely to face resistance from shareholders as two shareholder-advisory firms have urged them to oppose the CEO’s pay.

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Shell Said to Start Talks With Buyers for North Sea Asset Sales

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Screen Shot 2016-04-20 at 13.50.03By Dinesh Nair and Rakteem Katakey: May 19, 2016 – 1.24PM BST

Royal Dutch Shell Plc is in talks with potential buyers for some North Sea assets, mostly fields it got this year as part of the record acquisition of BG Group Plc, according to people familiar with the matter.

The Anglo-Dutch energy giant has been in talks with companies including privately held chemical producer Ineos Group AG and Neptune Oil & Gas, set up by former Centrica Plc chief Sam Laidlaw, the people said, asking not to be identified as the information is private. Shell is seeking to sell a package of assets and is talking with companies to gauge their interest before a formal sale process is launched, the people said. No final decision has been made and Shell may decide to retain the properties, they said.

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Has Royal Dutch Shell Plc lost its blue chip status?

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Blue chips are stocks that are considered more reliable than most of their peers. This could be because they operate in an industry that has been relatively stable in the past, or because they have an advantage over their peers, which makes their financial performance more consistent and robust than sector rivals.

With Shell’s (LSE: RDSB) share price having fallen by almost a third since its 2014 high and its bottom line forecast to decline by 35% in the current year, it appears at first glance as though Shell is not a blue-chip share. Yet despite this it still features as a core stock in a wide range of portfolios, with investors having historically viewed it as being a safe, secure and reliable investment for the long term.

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Royal Dutch Shell Clings To Its Dividend

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Casey Hoerth: May 18, 2016 

Summary

  • Management decreased operating expenses 20% year on year in the first quarter.
  • However, record low oil and gas prices have caused a large cash flow gap in Q1.
  • Results should improve in coming quarters, but I still do not expect Shell to become cash flow neutral.
  • I believe the dividend’s days are numbered, even with crude at $49 per barrel.

Upstream energy companies have taken quite a beating over the first quarter of 2016, thanks to record low crude oil prices. Brent Crude hit its $31 low back in January, and as earnings results came in over the last couple weeks, it became readily obvious to me that the carnage was widespread. Even the big integrated names took it on the chin, financially.

Royal Dutch Shell (NYSE:RDS.A) is no exception. Shell has adamantly clung to its dividend since the downturn started, and the company’s balance sheet has suffered as a result. On April 15th Moody’s downgraded Shell from Aa1 to Aa2, and outlook remains negative. It’s not too hard to see why that is.

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Dutch Take On Gazprom in Battle Over Europe’s Oil-Linked Gas

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Screen Shot 2016-05-13 at 10.52.28The legal action coincides with government curbs on output after earthquakes in the Netherlands…

By Kelly Gilblom: May 18, 2016

In its new role as a natural gas importer, the Netherlands wants to make sure it doesn’t overpay.

GasTerra BV, the nation’s biggest buyer and seller of gas, initiated arbitration against Gazprom PJSC’s export unit, the Russian company said Monday. It is seeking a price review for fuel purchased from Europe’s largest supplier under a long-term contract linked to oil, which has rallied this year as the price on gas hubs extended declines.

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The legal action coincides with government curbs on output after earthquakes in the Netherlands, home to the European Union’s largest gas field, which turned it into a net importer of the fuel. Utilities from Germany’s RWE AG to Turkey’s Botas Boru Hatlari Ile Petrol Tasima AS filed arbitration claims against Gazprom PJSC’s export unit after market prices fell below contract rates, with EON SE and Engie SA settling cases with Europe’s biggest gas supplier this year.

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Shell Looks to Offload $40B In Non-Core Assets

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May 17, 2016

Royal Dutch Shell plc (NYSE:RDS.A) is divesting US$40 billion in non-core assets in its attempt to cut capital expenditures and raise cash in a desperate attempt to right its balance sheet wrongs after its takeover of BG Group plc earlier this year left it strapped for cash and laden with nearly US$81 billion worth of debt.

The costly merger at a time of depressed oil prices has rendered Shell the largest publicly owned company in the UK and the largest producer of liquefied natural gas (LNG) in the world.

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Shell Looks for a Hedge Against Climate Change

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Screen Shot 2016-04-20 at 13.50.03BGeoffrey Smith: MAY 16, 2016

Royal Dutch Shell is creating a new unit specially for renewables and alternative energy, but it continues to insist that its current business of burning hydrocarbons is under no threat from global policies to mitigate climate change.

The company told investors last week that it will combine its modest operations in green energy—biofuels, wind and solar technologies—into a business unit called “new energies” under its natural gas business. It will go public with the idea in June, according to The Guardian.

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Protesters block train tracks to 2 Washington refineries near Anacortes

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Protesters walk north along West March Point Road Saturday past the Tesoro Refinery rail yard near Anacortes. About 1,000 people walked the six-mile round trip to the tip of March Point, home to two refineries. (Scott Terrell)

By PHUONG LE: The Associated Press: May 14, 2016

Hundreds of climate activists on Saturday marched to the site of two refineries in northwest Washington state to call for a break from fossil fuels, while a smaller group continued to block railroad tracks leading to the facilities for a second day.

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Shell and Exxon secured ‘secret deal’ on Groningen gas production

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Friday 13 May 2016

Oil companies Shell and Exxon held secret talks with the economic affairs ministry in 2005 to set levels of production in the Groningen gas field up to and beyond 2020, according to documents obtained by NOS.

The documents show that the two companies exerted pressure on the ministry not to scale back gas extraction despite increasing concern over the increased frequency of earthquakes in the region.

The Dutch parliament was informed of the talks, which took place in 2005, but only knew of an agreement to set production levels for the next 10 years. The documents obtained under freedom of information legislation show that the deal also covered the years up to 2020, when the gas field is expected to go into decline, and afterwards.

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Halliburton-Baker Hughes deal ‘not fixable’

Shell participates in bid for Dutch offshore wind farm

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Markets | Thu May 12, 2016 12:40pm EDT

By Toby Sterling and Thomas Escritt

May 12 Royal Dutch Shell is in a consortium bidding to build two 350 megawatt wind farms off the coast of the Netherlands, the oil company said on Thursday, delivering on a promise to invest more in wind energy.

Shell, bidding in the Dutch government tender together with energy company Eneco and contractor Van Oord NV, will use turbines built by Vestas if successful, the three companies in the consortium said in a statement.

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Shell Plans Oil-Asset Sale in Gabon, Says President

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By DREW HINSHAW in Kigali, Rwanda, and SARAH KENT in London: May 12, 2016

Royal Dutch Shell PLC is looking to sell oil blocks in Gabon, the country’s president said, as the company’s mammoth divestment plan threatens a Central African nation already hard hit by crashing crude prices.

Shell is in the process of selling off $30 billion of assets in the wake of its roughly $50 billion acquisition of BG Group PLC earlier this year. The deal gives the Anglo-Dutch oil major a strong position in the fast-growing liquefied-natural-gas market and lucrative deep-water blocks offshore Brazil, but investments that don’t fit within those core areas are likely to come under serious scrutiny as the company looks for cash to bring down its debt level.

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BG Group to leave its namesake tower downtown

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By Nancy SarnoffMay 10, 2016

About five years after signing on to be the lead tenant in a new downtown office tower, BG Group will be leaving its namesake building.

The British gas producer, recently acquired by Royal Dutch Shell, will move employees out of the building at 811 Main by year’s end, Shell spokeswoman Natalie Mazey said Tuesday.

Staff will be relocated into existing Shell space downtown and on the west side. Most of Shell’s downtown offices are in One Shell Plaza and 1000 Main.

The departure of BG from 811 Main comes as the latest in a series of hits to the city’s office market amid the oil bust.

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Big Oil Abandons $2.5 Billion in U.S. Arctic Drilling Rights

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Screen Shot 2016-05-10 at 08.42.36Jennifer A Dlouhy: May 10, 2016

Drillers forfeit millions of acres amid slump in oil prices

Royal Dutch Shell still holding on to one lease in Chukchi Sea

After plunking down more than $2.5 billion for drilling rights in U.S. Arctic waters, Royal Dutch Shell, ConocoPhillips and other companies have quietly relinquished claims they once hoped would net the next big oil discovery.

The pullout comes as crude oil prices have plummeted to less than half their June 2014 levels, forcing oil companies to slash spending. For Shell and ConocoPhillips, the decision to abandon Arctic acreage was formalized just before a May 1 due date to pay the U.S. government millions of dollars in rent to keep holdings in the Chukchi Sea north of Alaska.

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Shell to Sea Spokesperson Jailed for E300 fine as Millions roll in for Corrib Gas

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News Release – Issued by Shell to Sea – May 7th 2016 

Shell to Sea campaigner Maura Harrington was arrested in Belmullet on Friday afternoon and  jailed for 10 days in Mountjoy prison for the non-payment of a court fine of E300.

It is thought that the jailing relates to a 2012 protest attempting to block construction of the disputed development.

Ms. Harrington has continuously opposed the Corrib gas project due to health and safety concerns, environmental damage and the giveaway of Ireland’s natural resources to private corporations. [1]

The jailing comes on the same day as Vermillion Energy – who owns an 18.5% share in Corrib gas – released sales figures of $17million from Corrib from the first three months of 2016. [2] At this rate the Corrib partners – Shell, Statoil and Vermillion – stand to make sales of $7.35billion from Corrib over a 20 year field lifespan. [3]

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Shell to Sea activist Maura Harrington arrested over fine

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Shell to Sea activist Maura Harrington arrested over fine

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Mark Hilliard: 6 May 2016

Shell to Sea campaigner Maura Harrington has been arrested on foot of a warrant for the non-payment of a €300 court fine.

Ms Harrington, a spokesperson for the protest group, was arrested on Friday afternoon in Mayo and transported by gardaí to the Dochas women’s prison in Dublin where she is to serve a ten day sentence.

Speaking to the Irish Times, her brother Sean Harrington said he believes the offence which led to the imposition of the fine would have been a protest action at the Corrib plant in or around 2012, possibly using her car to block access to the facility.

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Shell to Sea activist Maura Harrington arrested in Mayo

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Friday 6 May 2016

SHELL TO SEA campaigner Maura Harrington has been arrested in Mayo and taken to Mountjoy Prison to serve time for an unpaid fine.

It is understood she was arrested this afternoon as she left a bank in Belmullet. She was taken to Belmullet garda station and then transported to the Dóchas Centre women’s prison at Mountjoy, where she is expected to spend ten days.

The activist was convicted last year in relation to the obstruction of a tunnel-boring machine at the Shell plant in Ballinaboy. A monetary penalty of €300 was imposed as part of her sentence, but she has refused to pay it.

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Not-so-Big Oil

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May 7th 2016

IT HAS been a grim decade for investors in international oil firms—among them, many of the world’s biggest pension funds. Even before oil prices started to fall in 2014, the supermajors threw money away on grandiose schemes: drilling in the Arctic and building giant gas terminals. Their returns have trailed those of other industry-leading firms by a huge margin since 2009.

In the past 18 months things have gone from bad to worse. The Boston Consulting Group, a consultancy, calls it the industry’s “worst peacetime crisis”. That is evident in first-quarter results released in the past week by Exxon Mobil and Chevron of America, and European rivals, Royal Dutch Shell, BP and Total, which bear the scars of a collapse in oil prices to below $30 a barrel in mid-February (see chart).

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Royal Dutch Shell Plc casts fresh doubt on B.C. LNG project due to funding

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Yadullah Hussain | May 5, 2016 6:37 PM ET

Royal Dutch Shell Plc. has cast doubts its liquefied natural gas export project in British Columbia will secure a final investment decision (FID) by the end of this year, further dashing the province ’s hopes of shipping LNG by 2020.

Shell’s LNG Canada in Kitimat is competing for funding dollars with two other company LNG projects, both in the United States, as well as with a chemicals plant in Pennsylvania, within the next 12 months, chief financial officer Simon Henry told investors during a conference call Wednesday.

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Shell cuts billions from spending plans

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Screen Shot 2016-04-20 at 13.50.03Robin Pagnamenta, Energy Editor: May 5 2016

Royal Dutch Shell has accelerated plans to shave billions more dollars from its capital spending this year, as it continues to digest its $54 billion acquisition of BG Group.

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More North Sea job cuts on the cards at Shell

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Screen Shot 2016-05-05 at 10.07.35BY MARK WILLIAMSON: Thursday 5 May 2016

ROYAL Dutch Shell’s finance chief, Simon Henry, has said there could be more job losses in its North Sea business amid the crude price plunge but the company has no plans to move activity from the Glasgow shared service centre where 450 people work.

As the oil and gas giant posted a 58 per cent fall in first quarter profits, to $1.6 billion (£1.1bn), Mr Henry said Shell wanted to take more cost out of its UK business despite shedding 500 North Sea jobs since the oil price started tumbling in 2014.

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Shell sees slower roll-out of floating LNG

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Mr Henry said Prelude “remains on track to deliver some material cash flow in 2018,” signalling the venture still has some way until start-up.

Angela Macdonald-Smith: Energy Reporter:May 5, 2016

Royal Dutch Shell acknowledges the roll-out of its floating LNG technology will occur much more slowly than anticipated a few years ago, leaving its ground-breaking Prelude venture in WA as potentially its sole FLNG venture for several years.

Shell had targeted a conveyor belt of huge FLNG vessels running of the production line in South Korea, being deployed at remote gas fields worldwide, with several in waters around Asia.

But three projects that could have used five new FLNG vessels have been halted in their tracks, leaving the $US12 billion Prelude venture Shell’s only one for the forseeable future. FLNG ventures planned by other companies in Australia have also fallen foul to cost and price issues.

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Shell’s BG Risk Starts to Pay as Output Added, Costs Slashed

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By Rakteem Katakey: May 4, 2016

Royal Dutch Shell Plc’s record $54 billion acquisition of BG Group Plc is starting to pay off as the assets give it higher production and cash flow, helping it beat analysts’ earnings estimates when it reported quarterly results Wednesday. 

While Europe’s biggest oil company benefits from BG’s assets, it’s cutting expenses quickly enough to ensure the takeover isn’t adding any new costs. Shell’s forecasts for capital spending and operating expenses this year are now at the same level they would have been even if it hadn’t bought BG, Chief Financial Officer Simon Henry said. A majority of the 16 percent increase in oil and gas output came from the acquisition.

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Shell finance chief refuses to rule out further North Sea job losses

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Screen Shot 2016-04-25 at 15.56.32Written by Phil Allan – 04/05/2016 12:34 pm

Shell’s finance chief has refused to rule out further job losses in the North Sea as the oil giant announced its earnings had dropped by $4billion dollars in the first quarter of 2016.

Chief financial officer Simon Henry said the voluntary redundancy packaged announced recently announced as a result of Shell’s acquisition of BG Group, may not be the last to affect the North Sea as the company continues to look at cut costs from its global operation.

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Shell cuts spending as profits fall

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The oil firm said it would reduce investment to $30bn from a planned $33bn, after coming under pressure from shareholders to cut costs.

Shell also said profits in the three months to March had fallen to $800m from $4.8bn a year earlier.

Oil prices have fallen sharply over the past 18 months.

On average, in the first three months of 2016 oil prices stood at about $35 a barrel, down from a peak of $115 a barrel in June 2014.

Excluding one-off items, Shell’s preferred measure of profit, earnings fell to $1.6bn from $3.8bn in the quarter.

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Shell profits tumble following BG merger

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By Jillian Ambrose4 MAY 2016 • 8:32AM

Shell posted a sharp fall in profits in its first set of results since merging with global gas giant BG Group, but nevertheless beat expectations against a backdrop of low oil prices.

The oil major reported first quarter profit of $455m, less than half the $942m posted in its results for the last three months of 2015 and a fraction of its $4.5bn for the same period last year.

On a cost of supplies basis, which the oil industry uses to account for fluctuations in the price of oil, Shell made $1.6bn over the first quarter of the year. This was better than analyst expectations of just over $1bn but still well below the $3.7bn in the first quarter of 2015.

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Shell cuts spending further after BG deal

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LONDON | BY RON BOUSSO AND KAROLIN SCHAPS:Wed May 4, 2016

Royal Dutch Shell (RDSa.L) on Wednesday cut its 2016 spending by another 10 percent after completing the $54 billion acquisition of BG Group, warning that low oil prices will continue to weigh.

In its first earnings results since the Feb. 15 deal that transformed it into the world’s top liquefied natural gas producer, Shell reported better-than-expected first-quarter results despite a 58 percent drop in profits.

Reflecting the deal, Shell said it sold 12.29 million tonnes of LNG in the first quarter, up 25 percent year on year. Shell’s overall oil and gas output rose 16 percent.

Shell, however, warned that low oil and gas prices, significant maintenance at production sites as well as “substantial redundancy and restructuring charges” will impact second-quarter earnings.

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Shell says Q1 oil and gas production rises 16 pct

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May 4, 2016

* First quarter 2016 unaudited results

* Cash flow from operating activities for Q1 2016 was $0.7 billion, which included negative working capital movements of $3.9 billion

* Total dividends distributed to shareholders in quarter were $3.7 billion, of which $1.5 billion were settled by issuing 65.7 million a shares under scrip dividend programme

* Gearing at end of Q1 2016 was 26.1% versus 12.4% at end of q1 2015

* Q1 2016 basic CCS earnings per share excluding identified items decreased by 63% versus Q1 2015.

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Shell Q1 earnings slump to $800m

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Royal Dutch Shell (LON:RDSA) has updated investors on its first-quarter performance this morning, unveiling a hefty drop in earnings, with the oil price rout weighing on the company’s results.

Highlights from Shell’s statement:

Following completion of the acquisition on February 15, 2016, BG Group plc (“BG”) has been consolidated within Royal Dutch Shell’s results. For all practical purposes, this includes February and March 2016, as the impact for the first half of February is deemed immaterial.

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Issues relating to Shell’s acquisition of BG Group Plc

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By John Donovan

Extract from an email received from a knowledgeable source who wishes to remain anonymous:

…your subscribers might be interested in the following:

The cost of Phase I in BG’s QGC LNG project was approximately £20bn. BG borrowed approximately 65% of this money by issuing Corporate Bonds to a level somewhere between £12Bn and £14Bn to fund this. Shell acquired this debt when it bought BG Group.

BG’s Western Delta Deep Marine gas fields in the western Nile Delta produce approximately 20,000BBL/Day of contaminated water. When the fields were operated by BG this water was driven by road tanker and dumped somewhere in the desert. Have Shell done anything to address this environmental issue?

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Shell’s blockbuster BG bid backfires as gas prices deflate

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Danny Fortson:    Published 1 May 2016

Nearly 300 staff gathered in the canteen of BG Group’s sprawling headquarters in Reading on Monday morning to hear what they had long been expecting: nearly all of them were being laid off or being forced to apply for new jobs.

Shell closed its blockbuster takeover of the gas giant in February. Huibert Vigeveno, a rising star within Shell charged with integrating the companies, announced that after an “office footprint review”, BG’s headquarters would shut.

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Profit fall leaves Shell struggling to justify BG deal

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Danny Fortson Published: 1 May 2016

Royal Dutch Shell is set to unveil a steep fall in profits this week, laying bare the challenge for chief executive Ben van Beurden to justify his £35bn takeover of rival BG.

Shell completed the blockbuster deal in February after investors voted it through. Despite counting six weeks of BG’s earnings, analysts expect Europe’s largest oil company to have earned just $1bn (£680m) in profits for the quarter. That compares with a surplus of $3.2bn for the same period a year ago.

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Gazprom and Shell address ongoing and future cooperation

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Screen Shot 2016-04-29 at 21.31.46Friday, Apr 29, 2016

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Ben van Beurden, Chief Executive Officer of Shell, took place in St. Petersburg today.

The parties addressed the prospects for collaboration between the companies under the Agreement of Strategic Cooperation. An emphasis was placed on a potential asset swap.

The meeting also reviewed the ongoing front-end engineering design (FEED) process for the third production train of the LNG plant within the Sakhalin II project.

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FT Energy Source: Saudi Reform

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By Ed Crooks: April 29, 2016

When Saudi Arabia’s oil minister raises an eyebrow, the world pays attention. So when the kingdom launched a hugely ambitious economic reform programme this week, it naturally attracted enormous interest.

The FT in an editorial praised what it described as “a bold bid to transform Saudi Arabia’s economy”, but highlighted the challenges Deputy Crown Prince Mohammed bin Salman would face in making his vision a reality. Simeon Kerr and Anjli Raval described the plans as “highly ambitious – some would say unrealistic”.

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Shell To Hire 1,000 Professionals This Year At Bengaluru Centre

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by Ayushman Baruah: 28 April 2016

At a time when global oil prices are falling and the energy sector is going through macro-economic challenges, global oil & gas company Shell on Wednesday (27 April) announced the launch of its information technology (IT) centre in Bengaluru. The centre is expected to recruit close to 1,000 professionals by the end of 2016 and several thousand by 2020.

About 900 offers have already been made for the IT centre. Shell’s total headcount in India stands at 4,300 employees spread across its Projects & Technology and IT Centres based in Bengaluru, as well as their Business Operations Centre in Chennai.

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Samsung Heavy loses $4.6-billion FLNG order from Shell on oil drop

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Screen Shot 2016-04-20 at 13.50.03By KYUNGHEE PARK on 4/28/2016

SUNGNAM, South Korea (Bloomberg) — Samsung Heavy Industries Co., the world’s third-largest shipbuilder, said an order to build three floating LNG production facilities was canceled after the energy development project was scrapped amid a plunge in oil prices.

The contract, valued at 5.27 trillion won ($4.6 billion), from Royal Dutch Shell was voided because of the current difficult market conditions, the Sungnam, South Korea-based company said in a regulatory filing Thursday. The shipbuilder won the deal in June on the condition that the project will start only after the client is ready to proceed.

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Shell cancels huge $4.6bn FLNG order at Samsung

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Shell starts jobs consultation with Australian employees

Screen Shot 2016-04-28 at 11.33.5828 April 2016

Oil major Shell said it has begun discussions with staff in Australia about job losses as part of plans to cut 10,000 roles globally.

The company previously announced the move following the merger with BG Group announced last year.

A spokesman for the company said: “Shell last week commenced conversations with employees about business efficiency and staffing levels – as a result of combining it with the previously BG-owned OGC – a process that will lead to job reductions.”

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Shell starts staff cut discussions with employees in Australia

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Business | Wed Apr 27, 2016 

Shell (RDSa.L) has started discussions with employees in Australia about job reductions, the company said on Wednesday, as part of plans to cut 10,300 jobs worldwide to lower costs.

“Shell last week commenced conversations with employees about business efficiency and staffing levels – as a result of combining it with the previously BG-owned QGC – a process that will lead to job reductions,” a spokesman said.

Shell is in the process of integrating assets it acquired as part of its $50 billion (£34.2 billion) takeover of gas producer BG Group, including BG’s Australian subsidiary QGC.

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Shell to axe jobs as cost-cuts hit home

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Shell last week informed local staff that it was starting a round of job cuts, with a large portion of workers within the company asked to re-apply for their current positions.

While no fixed target has been set, it is estimated that about 250 jobs around Australia are likely to go as a result of the changes.

The round of job cuts follows Shell’s recent takeover last year of BG Group. The redundancies will remove many of the overlapping roles inherited through the takeover.

Shell had already flagged that it would axe about 2800 jobs worldwide as a result of the BG takeover, as well as a further 7000 around the globe as part of its response to the plunge in oil and gas prices.

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