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Posts under ‘Prelude FLNG Project’

Shell Says Yes To Free Cash Flow, No To Debt

Callum Turcan: Nov 15, 2017

Summary

  • Royal Dutch Shell generates free cash flow in Q3.
  • Outlook for Q4, even in light of impending capex increase, looks bright due to Brent rallying.
  • Over $10 billion in net debt reduction since the end of Q3 2016.
  • Overview of Q3 results and what to expect going forward.

Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) has come a long way since it bottomed out in early-2016. Its latest earnings reportreinforced the notion that when Brent is trading in the $50s, Shell’s cash flow position becomes balanced. Cash flow neutrality is the key breakeven point for the industry in the current environment, as oil & gas giants need to show that they can cover capital expenditures and large dividends through organic means at realistic prices. Let’s check out how Royal Dutch Shell did in a low $50s Brent world, with an eye on organic cash inflows and outflows. FULL ARTICLE WITH CHARTS read more

Shell Prelude FLNG named as FieldComm Group 2017 Plant of the Year

06 November 2017

The Shell Prelude Floating Liquefied Natural Gas (FLNG) plant/ship of Royal Dutch Shell, which will be located in the Timor Sea off the North West coast of Australia, has been named as the FieldComm Group 2017 Plant of the Year.

Having recently completed the journey to its final destination, 200-km off the Australian mainland, it will be connected to Deepwater gas wells and is scheduled to begin regular operations in 2018. The 488m x 71m vessel’s 14 production facilities, rising eight stories above the deck will extract and process around 3.6 million tonnes per year of liquefied natural gas (LNG) during its 25-year lifespan. FULL ARTICLE

Chevron starts LNG output at Australia’s Wheatstone, first cargo expected in weeks

MELBOURNE, Oct 9 (Reuters) – Chevron Corp said on Monday it has started producing liquefied natural gas (LNG) at its Wheatstone project in Australia, slightly later than expected, and plans to ship its first cargo soon. The LNG market will be focused on how smoothly Wheatstone progresses following the troubled start-up at Chevron’s bigger Gorgon LNG project. Both projects are fed from natural gas fields offshore the state of Western Australia. “The first cargo is on track to be shipped in the coming weeks,” Chevron Corp said in a statement. It had originally hoped to start exporting from Wheatstone in middle of 2017. Wheatstone is the sixth out of eight projects in a $200 billion Australian LNG construction boom that is now in its final stretch. The two remaining ones are Royal Dutch Shell’s Prelude floating LNG project and Ichthys, led by Japan’s Inpex. FULL ARTICLE read more

Australia closing in on Qatar as world’s top LNG exporter

* Australia LNG exports tipped to rise to 74 mt in 2018-19

* Australia’s share of Japan, Korea LNG imports seen growing

* Iron ore price forecast raised to $64 for 2017

SYDNEY, Oct 6 (Reuters) – Australia expects to increase exports of liquefied natural gas (LNG) by 16 percent from mid-2018 as $180 billion in new projects hit their stride, nearly catching up with Qatar, the world’s top supplier.

Rising LNG exports coupled with higher prices for steel-making commodities and thermal coal should see Australia’s overall resource and energy export earnings increase 2 percent in the year to end-June 2018, to a record A$211 billion ($165 billion), the Department of Industry, Innovation and Science said on Friday. read more

Shell’s Floating LNG Endeavor Is About To Begin

Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B) is getting closer and closer to finally completing its Prelude FLNG project off the northwestern coast of Australia. FLNG stands for floating liquefied natural gas, a marine vessel that can commercialize gas finds that are too small to justify building a new onshore LNG facility to develop. Let’s dig in. FULL ARTICLE

SHELL STILL TRYING TO GET AWAY WITH MURDER – LITERALLY

Thurgood Marshall U.S. Courthouse, New York, New York

An important decision day for Esther Kiobel in the above U.S. Courthouse tomorrow, Tuesday 12 Sept 2017 in her epic attempt to bring Shell to Justice for complicity in the murder of her husband Dr. Barinem Kiobel, one of the  Ogoni Nine. She is seeking more than 100,000 Shell discovery documents stored in a secure US warehouse. 

“Who doesn’t love a good discovery fight? And this one involving Cravath, Swaine & Moore is a doozy, with ramifications that extend literally across the planet.”

By John Donovan

The text shown in red is an extract from an article by Jenna Greene from The Litigation Daily published in the US yesterday under the headline “Cravath in the Crosshairs”.

Cravath, Swaine & Moore are Shell’s lawyers. In 2013 they managed to torpedo on jurisdiction grounds a 2002 US lawsuit against Shell led by Esther Kiobel. After over a decade of litigation to stop the case from being heard, Cravath won a US Supreme Court decision in 2013 on that important point of law, without her charges against Shell  ever being considered. read more

Shell’s Prelude Officially Entered into Lloyd’s Register

By John Donovan

A report today by Seatrade Maritime News confirms that Shell’s massive FLNG facility Prelude has officially entered into Lloyd’s Register (LR) class. It also says that Prelude has arrived at its operating location in the Browse Basin, offshore northwest Australia (above) where it will be moored at a depth of 250m and will not be dry-docked for the first 25 years of its expected 50-year operational life. See their full article here from which the above extracts are taken. It lists the various parties involved in the huge project, including Lloyds Register. In December 2013, I published an article that should have set alarm bells ringing among all involved parties. Not one of them approached me seeking information. read more

Why Shell Prelude is such a risky gamble!

After all is said and done who would build a hotel and a heliport, and a dock, besides or within 100 metres of a hazardous substances plant. It would simply not be allowed on land. This is what makes Prelude so risky.

Comment from Bill Campbell on the article:

Shell’s ill-fated $14bn gamble on Titanic Prelude FLNG Barge

FLNG

If FLNG has a future remains to be seen. It is under any measure an outstanding technical achievement. My only concern is the misplaced statements by RDS and Shell Australia on the risks. Doomcaster and I are in agreement, there is and always will be during the commissioning and steady state operation a risk of leakage so we can say the probability side of the risk equation is well understood. Whether it be human failure or otherwise leaks are difficult to avoid. The best database for leaks in the World is the homogeneous population of over 200 North Sea installations covered in HSE data which confirms in 11 years of operation that leakage frequency has a mean time between failures of circa 3 days. My problem is with the huge inventory and congested space is that Shell seriously downplays the potential consequence side of the risk equation. Post Piper Alpha and post Seveso there are two principal risk reducers, reduced inventory (fuel) and lots of space seperating modules from each other, from human habitation, control rooms, admin blocks, and from storage tanks. After all is said and done who would build a hotel and a heliport, and a dock, besides or within 100 metres of a hazardous substances plant. It would simply not be allowed on land. This is what makes Prelude so risky. read more

Shell’s ill-fated $14bn gamble on Titanic Prelude FLNG Barge

The Prelude, which is 488m long, arrived in Australia last month © PA

By John Donovan

Shell’s Prelude barge has been described as the biggest floating structure ever built and is said to be 12 times the size of the Titanic. It is a comparison that for obvious reasons Shell does not use, although others do. There have been far more dire warnings about the dangers attached to Prelude than were made about the Titanic’s maiden voyage before it tragically sunk. Most have come from a well-placed insider on the Prelude project and subsequently from Bill Campbell, the retired HSE Group Auditor of Shell International. read more

Australia’s $180 bln LNG megaproject boom enters final stretch

By Sonali Paul

MELBOURNE, Aug 14 (Reuters) – The last massive component of Australia’s $180 billion liquefied natural gas construction boom arrived on Monday, stepping up a race between Anglo-Dutch giant Shell and Japan’s Inpex to start chilling gas for export in 2018. Company reputations are at stake, as well as first access to overlapping gas fields and Australia leapfrogging Qatar as the world’s largest exporter of LNG. Royal Dutch Shell’s $12.6 billion Prelude project – the world’s largest floating LNG (FLNG) facility – is also behind schedule. FULL ARTICLE read more

Retired Shell official accuses company of ‘more leaks than the White House’

Bill Campbell, retired HSE GROUP AUDITOR, Shell International, comments on Paddy Briggs damning conclusion about Shell FAT CATS

The Lonely Elephant

Prelude may or may not turn out to be a white elephant but certainly from the leaked transformation documents it would appear it will be in any case a lonely elephant. 20 some years in gestation it appears that mega FLNG projects are out. As for the fat cats Paddy if Shell continues to leak (Pernis et al), more leaks than the White House, the fat cats may not be around. Are they taking their eye of the ball – who is running the business, with all this transformation stuff and reported loss of common sense and experience I read about on this website from current employees, it makes you think. read more

Shell cannot say it was not warned about Prelude FLNG

Warning by Bill Campbell, retired HSE Group Auditor, Shell International: Hydrocarbon leaks on offshore installations are unavoidable!

The answer to the question, can offshore installations meet a zero tolerance standard for hydrocarbon leaks, is easily answered, they cannot! Keeping hydrocarbons in the box appears beyond the wit of man. 

The support for this rather pessimistic view is based on actual historic data from the North Sea. It should be noted that this key indicator is the number one, the foremost technical integrity measure recorded by the HSE offshore division in the UK. All operators also are required to have it as their top indicator and non-reporting of hydrocarbon leaks is an offence in Law. So there is a degree of confidence in the accuracy of this data.  read more

Alarming news today of potential fire and explosion on Shell North Sea platform

By John Donovan

History is repeating itself. Shell is in the news today over its  dangerous North Sea oil platform activities.

Nearly 20 years ago, Shell senior management ignored warnings by HSE Auditor Bill Campbell about the Touch Fuck All regime on the Brent Bravo platform and its potential impact on worker safety. Production and profits were the overriding consideration. Maintenance records were routinely falsified. Lives were put at risk.

Shell EP MD Malcolm Brinded promised to take action based on the scandalous state of affairs Mr Campbell’s team had discovered when he led the safety audit on the platform. The promises were not kept. As a result, platform workers subsequently lost their lives in what was judged by the Scottish legal authorities to be an avoidable accident on Brent Bravo. A record-breaking fine was imposed on Shell. read more

Alarm Bells: Shell Hydrocarbons continue getting out the box

ALARMING COMMENT POSTED BY RETIRED SHELL INTERNATIONAL HSE GROUP AUDITOR, BILL CAMPBELL

Hydrocarbons continue getting out the box

With a Fire breakout at Pernis and a leak at Singapore refinery, both incidents over the last few days, it seems loss of containment is a continuing serious issue both onshore as well as offshore.

Much has been written about FLNG suggesting Prelude for example simply just cannot afford leaks and fires because of the potential consequences – but can they be totally avoided, can they?

Can any offshore installation meet a zero tolerance standard for leaks? read more

Shell’s 88 page global transformation plans leaked to John Donovan

Embarrassingly for Shell, as the New York Times has reported this morning, I have a leaked copy of an 88 page Shell internal document setting out proposals for Shell’s global plans generally and in particular for the Netherlands, where several hundred more jobs are going to disappear. Part of a world-wide jobs upheaval at Shell. 

A few days ago, CEO Ben van Beurden, mindful of the prospect of a falling oil price, claimed that Shell “is getting fit for the $40s.” Now we have a detailed insight about the scope of proposed transformational change at Shell deemed essential to achieving that objective. Embarrassingly for Shell, as the New York Times has reported this morning, I have a leaked copy of an 88 page Shell internal document setting out proposals for Shell’s global plans generally and in particular for the Netherlands, where several hundred more jobs are going to disappear. read more

PRELUDE FLNG is a very risky business

BILL CAMPBELL

Bill Campbell, retired HSE Group Auditor, Shell International, comments on the UPI article “In Australia, Shell signals new era for LNG

For hazardous substances plants Size Matters, it’s crucial.

The size re surface deck area of the Prelude vessel wrt an onshore plant continues to be misstated, purposefully I assume. Even if the total deck of Prelude was used exclusively for the LNG process ignoring area taken up by Accomodation, Turret etc we have total of 3.6 Hectares. On average LNG land plants with equivalent throughputs are 20 times (not four times) on average larger than the 3.6 Hectares provided on the Prelude deck. As an example of this that you can check out easily on the web is that Woodside Energy has allocated 80 Hectares for its onshore Pluto LNG site and facilities or 22.2 times the total area of the Prelude deck. I took up the propaganda on size with Shell Australia a few years ago, they are the regular publisher of these alternative facts, asking them to clarify where in the world was there a LNG plant onshore occupying just 14 Hectares (4 times the Prelude total deck space). read more

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