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Posts under ‘Gas’

As Big Oil shrinks, boards plot different paths out of crisis

* Companies seek to safeguard growth for when market recovers * U.S. firms abandon deepwater projects for shale oil fields * Britain’s BP bets on Egyptian gas, Shell on major acquisition By Ron Bousso and Terry Wade LONDON/HOUSTON, Feb 7 As oil and gas companies cut ever-deeper into the bone to weather their worst downturn […]

Royal Dutch Shell plc and BG Group plc merger

By Brett Owens: Forbes.com: 6 Feb 2016 The Royal Dutch Shell plc ADR (RDS.A) and BG Group plc ADR (BRGYY) merger, which looked liked such a win-win for everyone has grown a bit complicated as the deal nears completion. The premium has shrunk, as have the benefits of the merger with prices under $90 a […]

BG Group in ‘excellent’ shape for Shell’s £35bn takeover

BG GROUP said it was in “excellent” shape ahead of a £35billion takeover by former rival Shell as it ramped up production and drove down costs in the face of sliding oil prices. The FTSE 100 oil and gas group reported a surge in output in Australia and Brazil – key growth markets identified by […]

BG signs off with $3bn flourish before Shell’s bittersweet takeover

Marcus Leroux: February 7, 2016 BG Group has returned to profit in “bittersweet” valedictory results on the eve of its takeover by Royal Dutch Shell. A pre-tax profit of $3 billion compared with a writedown-inflicted loss of $1.1 billion in 2014. During the year BG started the $20 billion Queensland Curtis liquefied natural gas project in […]

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

By Ambrose Evans-Pritchard: 6:33PM 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 […]

Shell massively expands natural gas business – just as sector tanks

Terry Macalister Energy editor: Friday 5 February 2016 13.43 GMT Shell is about to massively increase its exposure to the liquefied natural gas (LNG) market just as profits in the sector dive, according to new figures from BG. BG – the former international exploration and production arm of British Gas, which will become part of Shell in […]

Corporate earthquakes

By Ed Crooks: February 5, 2016 Earnings reports from the largest listed oil companies have this week given a series of seismograph readings on the upheaval in the crude market. The implications for investors, employees and suppliers are grim. Worse, those earnings were all recorded in a period when oil and gas prices were significantly […]

BG Group posts profit ahead of Shell takeover

By Tara Cunningham, Business Reporter: 9:16AM GMT 05 Feb 2016 In its final results ahead of its landmark merger with Shell, BG Group has reported a pre-tax profit of $2.98bn, compared with a $2.3bn loss the previous year. FTSE 100-listed BG is due to be absorbed into the Anglo-Dutch giant by the middle of the month […]

Shell to cut 10,000 jobs as profits plunge by 80 per cent

Tom Bawden Environment Editor: 5 FEB 2016 Shell yesterday confirmed plans to cut 10,000 jobs now that its takeover of rival BG Group is set to go through, and raised the prospect of further redundancies, as it reported an  80 per cent slump in profits to a 13-year low. Two days after BP announced its […]

Shell pushes back investment decision on Canadian LNG project

VANCOUVER | BY JULIE GORDON: 4 FEB 2016 British Columbia’s ambitions to become North America’s next major liquefied natural gas exporter took another hit on Thursday, as Royal Dutch Shell pushed back a final investment decision (FID) on its LNG Canada project to late 2016. The delay came as Europe’s largest oil company reported its […]

Shell’s Profit Down 56 Percent on Depressed Oil Prices

Shell’s Profit Down 56 Percent on Depressed Oil Prices By STANLEY REED: FEB. 4, 2016 LONDON — Royal Dutch Shell became the latest big energy company to file a damage report on the impact of depressed oil prices on Thursday, saying that its adjusted profit fell 56 percent in the fourth quarter of 2015 compared to […]

Shell Profits Plunge By 80% Amid Oil Slump

Shell is pressing ahead with a £36bn ($52bn) merger with exploration group BG. It has said 10,000 jobs will go across the two companies as a result. The deal has been approved by shareholders and will complete later this month. The industry has been hammered by the collapse in the world energy market which has […]

Shell confirms 10,000 job cuts and a steep profits fall

Royal Dutch Shell has confirmed it is cutting 10,000 jobs amid its steepest fall in annual profits for 13 years. It made $1.8bn (£1.23bn) for the fourth quarter of the year, compared with a $4.2bn profit for the same period the year before. Full-year 2015 earnings, excluding identified items, were $10.7bn, compared with $22.6 billion […]

Shell Corrib firm gets €70m cash injection

Shell Corrib firm gets €70m cash injection Gas began flowing from the field only in the past few weeks – 11 years behind schedule. By John Mulligan: 4 FEB 2016 Oil giant Shell injected €70m into its Irish unit that’s behind the Corrib gas project in recent months as the field prepared to begin delivering […]

Shell Needs To Divest Assets In Order To Afford BG Deal

By Andy Tully: 2 FEB 2016 Royal Dutch Shell is selling even more assets as it tries to cope with the persistent fall in the price of oil and its controversially expensive merger with BG group, approved last week by the shareholders of both companies. In a statement Monday in London, the Anglo-Dutch oil giant […]

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

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 […]

Is the BG-Shell deal offering value to investors? Why we must adopt new world thinking to navigate oil price peaks and troughs

by Tony Manwaring – 2 February 2016 5:55am Before the invention of the marine chronometer in the 1750s, choppy waters and treacherous currents prevented the calculation of longitude when at sea. Sailors charting a route were forced to rely upon dead reckoning to set their course. Today’s captains of industry coping with similarly volatile conditions are often accused […]

S&P Lowers Shell’s Rating, Puts Other Oil Majors on Watch

David Marino: Bloomberg.com: 1 February 2016 Standard & Poor’s lowered its rating on Royal Dutch Shell Plc and sees a significant likelihood of downgrades for several Europe-based integrated oil and gas majors in the next weeks. “We lowered our ratings on Royal Dutch Shell Plc to ’A+/A-1’ from ’AA-/A-1+’ and placed the long-term rating on […]

Now gas joins oil on the way down

Shareholders in Royal Dutch Shell waved through the oil giant’s controversial £36bn takeover of BG Group last week despite concerns that the 40% plunge in the oil price since the deal was announced last year meant the chief executive, Ben van Beurden, was vastly overpaying. The Dutchman’s bet that the crude price will double from […]

Shell shares won’t run better just because BG’s been added to the tank

Shell shares won’t run better just because BG’s been added to the tank By Ian McVeigh: 31 Jan 2016 Shell’s bid for BG received an 83pc vote in favour from its shareholders. For some time it has been apparent that Shell was irrevocably set on this course in spite of the collapse of the oil price. […]

Pension funds at risk as BP and Shell’s near £10bn profits slump sparks dividend payouts fears

By JON REES FOR THE MAIL ON SUNDAY: 31 January 2016 Britain’s biggest oil groups will this week report a near £10billion slump in profits as the calamitous effect of the low oil price takes its toll on the blue chip giants. Both BP and Shell are expected to see their full-year profits for 2015 slashed […]

Did Shell Shareholders Just Seal Their Fate?

Alex Dumortier: (TMFAleph1): Jan 29, 2016 at 1:08PM U.S. stocks are higher in early afternoon trading on Friday, with the Dow Jones Industrial Average (DJINDICES:^DJI) and the S&P 500 (SNPINDEX:^GSPC) up 1.76% and 1.72%, respectively, at 1 p.m. EST. Royal Dutch Shell plc’s ADRs (NYSE: RDS-A), up 0.58%, are underperforming the broad market, but are roughly in […]

Final approval for Shell mega-merger as BG Group shareholders vote in favour of the £36bn deal

By LAURA CHESTERS FOR THE DAILY MAIL: 29 JAN 2016 One of the largest takeovers in history finally got the go-ahead yesterday after BG Group shareholders followed those at Royal Dutch Shell in approving the £36billion deal. At a meeting in London, 99.53 per cent of BG shareholders voted in favour, a day after 83 […]

Final green light for Shell-BG takeover

By Jillian Ambrose: 2:19PM GMT 28 Jan 2016 BG Group shareholders have voted through Shell’s £40bn takeover bid by an overwhelming majority. The widely expected final nod for the landmark energy merger was voted through with 99.55pc of BG investors in favour, ending a controversial nine month campaign by Shell to cement its new strategic direction. […]

9 Billion Barrels Of Crude At Risk In Massive Nigerian Oil Shakeup

9 Billion Barrels Of Crude At Risk In Massive Nigerian Oil Shakeup By Julianne Geiger: 27 January 2016  Supermajors Shell and Italian Eni could be facing the loss of one of the biggest offshore oil exploration blocks in Nigeria, putting an estimated 9 billion barrels of crude oil at risk. As the new Nigerian government launches […]

Shell gets green light for merger with BG Group to create world’s biggest liquefied gas trader

By LAURA CHESTERS FOR DAILY MAIL: 28 JAN 2016 Royal Dutch Shell’s mega-merger with gas giant BG Group looked set to be approved yesterday, creating the world’s biggest liquefied gas trader and boosting bankers’ bonuses. The £35billion deal got the go-ahead from Shell investors yesterday with 83 per cent of those voting backing the deal. […]

Will 2016 Be Royal Dutch Shell’s Worst Year Yet?

There is a lot of pessimism regarding shares of Royal Dutch Shell (NYSE:RDS-A) (NYSE:RDS-B). Despite strong cash flow results behind its less-than-stellar earnings results, shares of Shell have been sinking faster than its Arctic drilling rigs (too soon?). Over the past 18 months, the company has lost more than half of its market capitalization while […]

Why the Shell-BG mega-deal was risky for the City as well as the oil giants

By Ashley Armstrong: 7:17PM GMT 27 Jan 2016 It has taken nearly 10 months, five competition regulators and 40 approvals from other global authorities. But Shell’s chief executive Ben van Beurden’s white-knuckle ride is finally drawing to a close. On Wedensday, van Beurden won overwhelming support for the £40bn takeover from his shareholders. However, his celebrations […]

Shell Needs to Repay Investors Who Backed Its Biggest Ever Wager

By Rakteem Katakey: Bloomberg.com: 27 JAN 2016 – 5.06 PM GMT Royal Dutch Shell Plc is under pressure to reward the faith of the more than 80 percent of shareholders who shrugged off the risks from slumping oil prices to back its record acquisition of BG Group Plc.  That won’t be easy: the rout in crude […]

Shell shareholders vote for BG Group takeover despite opposition

Terry Macalister Energy editor: Wednesday 27 January 2016 14.25 GMT At a specially convened general meeting in The Hague on Wednesday, 83% of Shell shareholders voted for the acquisition, despite claims that the Anglo Dutch group was paying too much for its rival during a period of collapsing oil prices. The reputation of Ben van Beurden, the […]

Shell Shareholders Approve Acquisition of BG Group

Shell Shareholders Approve Acquisition of BG Group By STANLEY REED: JAN. 27, 2016 LONDON — In one of the first major deals struck as oil prices plummeted, Royal Dutch Shell shareholders on Wednesday approved the acquisition of the BG Group, the Britain-based oil and gas producer, for about $50 billion. Analysts had expected major oil companies […]

Shell shareholders vote in favour of £40bn BG takeover

By Jillian Ambrose: 12:35PM GMT 27 Jan 2016 Shell shareholders have given the nod to the £40bn takeover of BG Group by a strong majority. The 83pc vote in favour of the plans paves the way for the creation of Britain’s largest public company, pending a separate vote by BG shareholders on Thursday which is widely […]

Shell shareholders approve $50 billion BG takeover

THE HAGUE | BY KAROLIN SCHAPS: Wed Jan 27, 2016 1:56pm GMT Royal Dutch Shell (RDSa.L) shareholders approved its $50 billion takeover of BG Group (BG.L) on Wednesday, clearing the last main hurdle to creating the biggest liquefied natural gas (LNG) trader in the world. BG shareholders are also expected to approve one of the biggest […]

Shell shareholders back takeover of BG Group

Investors in Royal Dutch Shell on Wednesday gave a green light to the group’s £35bn takeover bid for rival producer BG Group, making it a near certainty that the biggest energy deal in more than a decade will go ahead. However, a sizeable minority, some 17 per cent, were opposed.

Blundering Shell E&P Ireland Director John Egan Resigns

By John Donovan I am aware of speculation over the claimed resignation of John Egan, as a director of Shell E&P Ireland. It is, in fact, true. The proof is provided below. For a number of years, Egan has been the Communications supremo at Shell E&P Ireland, the main partner in the Corrib Gas Project, which has […]

Corrib Gas: Was it worth it? Yes.

Corrib Gas: Was it worth it? Yes. Brendan Cafferty: 27 JAN 2016 As the gas starts to flow a member of the pro gas lobby reflects on the controversy Who is to blame for the delay? The gas was due ashore in 2002 at a cost of €800 million. It finally arrives at the start […]

Investors brace for BG merger vote

by Veselin Valchev: Tuesday, 26 Jan 2016, 08:42 GMT Royal Dutch Shell Plc (LON:RDSA) shareholders are due to vote on the £31 billion acquisition of smaller energy rival BG Group tomorrow, and all uncertainty in regards to the vote’s success seem to have evaporated. A slew of highly influential investors and advisers have publicly backed the […]

Corrib gas a ‘template’ for ‘how not to undertake a development’

Lorna Siggins: 26 JAN 2016 The Corrib gas project is a template for “how not to undertake a development”, according to a new planning approach published by the British Institution of Civil Engineers. Although the gas project has secured its final Government approval from Minister for Energy Alex White, the prospect of further legal challenges […]

Oil price falls again as Shell shareholders prepare to vote on mega-merger with BG Group

The price tumbled as much as 3 per cent during trading yesterday when it emerged Iraq had produced a record high of oil and may even raise output further. The news comes as the market is already braced for more supply from Iran after sanctions were lifted.  Tankers have begun to leave Iran’s ports and […]

After The Big Short, here’s The Big Long: Shell-BG

By Nancy Hulgrave: 26 JAN 2016 “The Big Short” landed in UK movie theaters this weekend. The film adaptation of Michael Lewis’ best-selling novel tells the story of Wall Street outsiders who made a fortune predicting the subprime mortgage crisis and subsequent financial crash. If you watch the film — and you’re not too busy […]

Does the Shell/BG Group Deal Make Sense With Oil at These Levels?

On April 8, 2015, Royal Dutch Shell (NYSE:RDS-B) announced the terms of an agreement to buy BG Group for 383 pence in cash (or $5.51 per share) and 0.4454 Shell B Shares. If shareholders of both companies approve the deal when they vote on Jan. 28 and 29, the combined company will become the largest publicly […]

Shell’s BG Arbitrage Fades as Investors Look Set to Back Deal

By Rakteem Katakey and Ryan Chilcote: Bloomberg.com: 25 JAN 2016 Royal Dutch Shell Plc is on the brink of completing its biggest acquisition as shareholders look set to back its purchase of BG Group Plc. Risks to the deal completing have almost disappeared. The discount of BG’s shares to the offer price narrowed to a record low of 2.2 […]

Shareholder green light expected for Shell BG merger

MARTIN FLANAGAN: Monday 25 January 2016 Major investors are expected to back Shell’s troubled £36 billion takeover of rival BG Group this week despite reservations that the plunging oil price has made the deal less attractive than when first unveiled last year. David Cumming, head of equities at Edinburgh-based Standard Life Investments, has been one […]

20 years after gas discovery, Corrib opens in north Mayo

Lorna Siggins: 24 JAN 2016 The €3.5 billion Corrib gas development is due to be opened by Minister of State for Natural Resources Joe McHugh on Monday, almost 20 years after the gas discovery was reported off the north Mayo coast. Taoiseach Enda Kenny had been earmarked for the invitation-only event, but will be at […]

Shell’s white elephant?

Sunday 24 January 2016 09.00 GMT Oil workers in Aberdeen will be watching events in the Hague this coming Wednesday as closely as anyone. They will be hoping that some miracle occurs so that Dutch and other international investors in Shell suddenly swing against the £35bn merger with rival BG that is coming up for a […]

Shell’s plan to take over BG is still in the pipeline

Sunday 24 January 2016 08.59 GMT It’s nine months since Shell announced it was buying BG Group in an agreed £47bn deal and almost everything has changed. Back in April, the oil price appeared to be recovering from its fall below $50 a barrel but the price has since plunged below $30. The International Energy Agency […]

Shareholders smile on Shell-BG tie-up

Dominic O’Connell Published: 24 January 2016 ROYAL DUTCH SHELL is expected to seal its takeover of rival oil and gas producer BG this week, with shareholders of both companies likely to vote in favour of the tie-up. The deal, the largest in oil and gas for a decade, will create a British giant, bringing together […]

Shell-BG deal set to get the green light this week

By GEOFF HO: Sun, Jan 24, 2016 Since the Anglo-Dutch oil giant unveiled its recommended takeover offer for BG last April, the price of crude oil has continued its descent and is now 41 per cent lower than when the deal was announced. On Friday the price of Brent crude oil closed at $31.18 (£21.86). The […]

BG investors should approve the Shell takeover even as the oil price languishes

By Joanne Hart for The Mail on Sunday: 24 JAN 2016 It is crunch time for investors in BG Group. Last April, it unveiled a recommended £47billion takeover by Royal Dutch Shell. This week, more than nine months later, both firms are asking shareholders to approve the deal. It has been an eventful gestation period. […]

Shell confident of backing for BG takeover as crucial vote looms

By Jillian Ambrose, Ben Martin: 7:00PM GMT 23 Jan 2016 A host of the world’s largest investors are expected to back Shell’s troubled multi-billion pound takeover of BG Group this week. Shell and BG shareholders will vote on Wednesday and Thursday to approve the deal, which has been called into question by the plunge in the […]

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