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

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Screen Shot 2016-02-07 at 09.14.51* 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 in decades, boards have adopted contrasting strategies to lead them out of the crisis.

Crude prices have tumbled around 70 percent over the past 18 months to around $35 a barrel, leading to five of the world’s top oil companies reporting sharp declines in profits in recent days.

Executives at energy firms face a tough balancing act: they must cut spending to stay financially afloat while preserving the production infrastructure and capacity that will allow them to compete and grow when the market recovers.

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Shell pushes back investment decision on Canadian LNG project

Screen Shot 2016-02-05 at 11.12.10VANCOUVER | 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 lowest annual income in over a decade and said it would take further steps to cut costs to cope with weak oil prices if needed.

LNG Canada, located on British Columbia’s rugged northern coastline, is one of the frontrunners in a now slowing race to build Canada’s first LNG export terminal. It has already been granted its key environmental permits.

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S&P downgrades Shell to A+/A-1; keeps door open to further downgrade

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Commodities | Mon Feb 1, 2016 9:28pm GMT

Credit ratings agency Standard and Poors on Monday downgraded oil major Royal Dutch Shell Plc to A+/A-1 from AA-/A-1+ and put its long-term credit rating on creditwatch negative citing sliding oil prices.

S&P said Shell’s one-notch downgrade, driven by weaker forecasts for its credit metrics over 2016-2018 and slower profit improvements, excluded the ratings impact of its BG Group Plc acquisition.

Shell had said it was prepared for a downgrade as a result of the BG deal.

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Shell/BG vote is a bet on oil prices bouncing back

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Screen Shot 2016-01-13 at 08.05.25By Andy Critchlow January 27, 2016

Shell Chief Executive Ben van Beurden can breathe easier after shareholders backed his big gamble on oil prices rebounding. Only 17 percent of investors voted against his $50 billion takeover of BG Group on Jan. 27. Cost savings estimated at $3.5 billion will help assuage some worries, and paying partly in shares insulates some of the market effect, but the $60 oil Van Buerden says is needed for the deal to create economic value still looks far away.

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Shell re-opens Nigeria’s Trans Niger Pipeline shut since Nov

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Screen Shot 2015-11-20 at 08.55.47Shell re-opens Nigeria’s Trans Niger Pipeline shut since Nov

LONDON Jan 25 (Reuters) – Royal Dutch Shell said on Monday that is had re-opened a key oil pipeline in Nigeria that had been shut since late November.

The Trans Niger Pipeline, or TNP, which carries Bonny Light crude oil to the export terminal had re-opened “in recent days,” a Shell spokeswoman said by email.

The pipeline remained closed while the company investigated an incident on Nov. 22 in which four contractors died during an operation to remove crude oil theft points.

The closure of the pipeline had led to loading delays of up to 10 days, according to traders.

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Oil plumbs new lows below $27 as rout persists

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U.S. oil is now flowing unfettered to Europe for the first time, “so it’s a battle royale.”

Markets | Wed Jan 20, 2016: 3:29pm EST: New York

U.S. oil prices crashed below $27 dollars a barrel on Wednesday for the first time since 2003, caught in a broad slump across world financial markets with traders also worried that the crude supply glut could last longer.

Oil has fallen more than 25 percent so far this year, the steepest such slide since the financial crisis, piling more pain on oil drillers and producing nations alike. Yet they keep pumping more oil into an oversupplied market.

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Shell ditches major Abu Dhabi gas field project

Screen Shot 2016-01-18 at 14.07.39By Ron Bousso: Commodities | Mon Jan 18, 2016 12:07pm GMT

Royal Dutch Shell said on Monday it had decided to exit the multi-billion dollar plan to jointly develop the Bab sour gas field in Abu Dhabi, citing the downturn in the oil market.

The Anglo-Dutch company said that “following a careful and thorough evaluation of technical challenges and costs” it will stop further joint work on the project with the Abu Dhabi National Oil Co. (ADNOC).

Shell won in 2013 a tender that was valued at the time at $10 billion to develop over a 30-year venture the complex sour gas field that involves treating potentially deadly gasses.

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Shell CEO says oil giant would be hit by Brexit

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Stocks | Sun Jan 17, 2016 12:09pm GMT

London: The chief executive of one of the world’s biggest firms Royal Dutch Shell (RDSa.L) warned on Sunday that the oil and gas company would be negatively impacted were Britons to back leaving the European Union in a referendum.

Prime Minister David Cameron is renegotiating his country’s membership of the 28-member trading bloc and could reach a deal with EU partners at a summit next month, paving the way for a public vote as soon as June.

Chief Executive Ben van Beurden told the Sunday Times newspaper that the Anglo-Dutch firm, which is currently seeking shareholder approval for its bid to acquire Britain’s BG Group (BG.L), could suffer were Britain to leave the bloc.

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Oil plummets to $29, dragging world stocks lower

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NEW YORK | BY HERBERT LASHMarkets | Fri Jan 15, 2016 4:51pm EST

Oil prices plummeted to $29 a barrel on Friday on the likely resumption soon of Iranian oil exports into an already flooded market as international sanctions against Iran are lifted, dragging equity indices around the world sharply lower.

Skittish investors snapped up gold and other safe-haven assets amid fears of a global economic slowdown, coupled with concerns about a potential credit default as lower commodity prices make payments by creditors in emerging markets difficult.

Major stock indices in Europe closed down more than 2 percent, while Wall Street stock indexes tumbled even more. Global crude benchmark Brent settled below $29 a barrel, capping a 13 percent decline for the week.

“We’re seeing the final capitulation,” said Tina Byles Williams, chief investment officer at FIS Group in Philadelphia, which oversees about $4.4 billion in assets under management.

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Shell denies Iranian report of Tehran visit

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Jan 16 2016

Royal Dutch Shell on Saturday denied a report in Iranian media that it had sent representatives to Iran ahead of the expected lifting of international sanctions.

Iran’s Mehr news agency had earlier reported that Shell and French oil major Total had sent executives to Tehran, and were due to meet officials from the National Iranian Oil Company (NIOC) and National Iranian Tanker Company (NITC) on Sunday.

International sanctions on Iran were expected to be lifted on Saturday under the terms of a nuclear deal agreed last year, and Iran freed four U.S. prisoners. Iran has pledged to ramp up its oil production shortly after sanctions are lifted.

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Shell names top exec to head BG during complex integration

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LONDON | BY RON BOUSSO: Deals | Thu Jan 14, 2016 10:38am EST

Royal Dutch Shell’s top executive planning the integration of BG Group will become transitional CEO of BG after expected completion of the $48 billion acquisition next month, company sources said.

The appointment of Dutchman Huibert Vigeveno to oversee the complex merger of the two global businesses comes as no surprise.

Vigeveno was appointed last August to spearhead the joint Shell-BG integration committee along with BG’s Sinead Lynch, and had previously headed Shell’s operations in China and had also worked for the Anglo-Dutch company in Brazil, two key markets for the combined group.

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Shell-BG deal wins more support, but concerns persist

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By Ron Bousso and Karolin Schaps

LONDON, Jan 14 Two weeks before shareholders are due to vote on Royal Dutch Shell $48 billion bid for BG Group, more investors have come out in support of the deal, despite lingering concerns about the effect of falling oil prices on the sector.

The bid has already won the backing of several major shareholders and advisory groups, with only a handful of investors publicly arguing against its merits even as oil prices have dropped below $30 a barrel for the first time in 12 years.

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British shareholder advisory firm recommends voting for Shell-BG deal

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Jan 14, 2016

British shareholder advisory firm PIRC on Thursday recommended investors vote in favour of Royal Dutch Shell’s $48 billion acquisition of BG Group later this month.

“The rationale for the proposed acquisition has been clearly disclosed and does not raise any concerns,” PIRC said in a note to investors.

(Reporting by Ron Bousso; Editing by Mark Potter)

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Amid oil price plunge, price-setting Brent supported by Shell sales to Asia

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LONDON | BY ALEX LAWLERWed Jan 13, 2016: 12:51pm EST

As oil prices fall to new multi-year lows on a global glut, the structure of the niche but crucial benchmark Brent market has shown counter-intuitive signs of tighter supplies and strengthening.

The reason, according to some in the market, was an unusual accumulation of British Forties crude oil cargoes by Royal Dutch Shell, and the expected shipment of many of these out of Europe to South Korea and China.

Shell may have bought more than half of the Forties cargoes loading in January, according to estimates from North Sea crude traders. Price differentials for Forties, which is the largest of the four North Sea crudes that underpins the dated Brent physical benchmark, rose.

“I think it has to do with Shell’s position,” said a North Sea trader with another company, referring to the strengthening in Forties differentials seen during late December. “Lack of Forties availability.”

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Shell’s BG bid dealt blow with first shareholder dissent

Screen Shot 2016-01-08 at 21.15.50Standard Life Investment’s announcement came on the same day influential shareholder advisory firm Institutional Shareholder Services (ISS) endorsed the deal, saying the downturn in oil markets did not detract from its strategic benefits.

The first public sign of dissent from a key investor was unlikely to scupper Chief Executive Ben van Beurden’s drive to win the required shareholder support in a Jan. 27 vote.

Few investors or analysts have openly challenged the deal’s strategic benefits for Shell, which will become the world’s top liquefied natural gas trader and a major offshore oil producer.

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Shell sees BG deal working with oil at $50 for two years: sources

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Screen Shot 2015-12-23 at 09.03.45LONDON | BY RON BOUSSO AND EMILIANO MELLINO: Deals | Thu Jan 7, 2016 1:58pm EST

Royal Dutch Shell has told investors its purchase of BG can work even if oil prices average $50 a barrel for two years, its lowest estimate to date as it seeks to secure shareholder support for the $51 billion deal amid plunging crude markets.

The Anglo-Dutch group is confident investors will back the deal at a Jan. 27 meeting, even though crude prices are languishing near 12 year lows around $32 a barrel and it faces a cut to its credit ratings due to higher debts, sources with knowledge of its meetings with analysts and investors said.

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Brent, U.S. crude oil prices battle for premium in weakening market conditions

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SINGAPORE | BY HENNING GLOYSTEINMarkets | Mon Dec 28, 2015 2:53am EST

International Brent and U.S. crude oil futures battled for a premium on Monday but both benchmarks fell in a market in which there is no end in sight for oversupply that has brought down prices by two-thirds since the downturn began in mid-2014.

The international crude oil futures benchmark Brent was trading at $37.58 a barrel at 0739 GMT, down 31 cents from its last settlement. U.S. West Texas Intermediate (WTI) futures were down 47 cents at $37.63 per barrel.

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Shell says BG takeover works with oil price in low $60s

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LONDON | BY RON BOUSSO AND KAROLIN SCHAPS: Deals| Wed Dec 23, 2015

Royal Dutch Shell’s (RDSa.L) proposed $53 billion takeover of rival BG Group (BG.L) will work even if future oil prices are in the low $60s a barrel, it said on Tuesday in announcing another $5 billion cut in spending next year to weather low oil prices. The company previously said the break-even oil price for the deal was $65 a barrel.

Publishing its prospectus for shareholders on Tuesday, Shell set Feb. 15 as the completion date for the deal, the largest in the energy sector in a decade and one that helped make 2015 a record-breaking year for mergers and acquisitions.

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Major Shell, BG shareholder expresses support for $53 billion merger

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Deals | Tue Dec 22, 2015 12:09pm EST: LONDON

Top 10 Royal Dutch Shell RDsa.L and BG Group (BG.L) shareholder Aberdeen Asset Management (ADN.L) said on Tuesday it supported Shell’s proposed $53 billion acquisition of its smaller British rival.

“We’re supportive of the deal from a strategic perspective. It makes a lot of sense to put the two companies together,” Ben Ritchie, senior investment manager at Aberdeen Asset Management, told Reuters.

Shell said on Tuesday it planned to complete the proposed takeover by Feb. 15 if the deal is approved by both sets of shareholders at meetings due to be held at the end of January, and outlined plans for further spending cuts next year in the face of low oil prices.

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Shell plans to complete BG merger by Feb. 15, cuts spending plan

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LONDON | BY RON BOUSSO AND KAROLIN SCHAPS: Tue Dec 22, 2015 12:09 EST

Royal Dutch Shell (RDSa.L) said on Tuesday it planned to complete its proposed $53 billion takeover of BG Group (BG.L) by Feb. 15, outlining plans for further spending cuts next year in the face of low oil prices.

Shell also lowered the capital spending plan for next year for the combined group by $2 billion to $33 billion, saying it would bolster its ability to weather the industry’s downturn and to maintain dividend payments.

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Shell shareholders expected to vote on BG deal on January 27-28

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Royal Dutch Shell (RDSa.L) said shareholder meetings to approve its acquisition of BG Group Plc (BG.L) are expected to take place on Jan. 27 and Jan. 28.

BG will on Monday seek the High Court’s nod to hold shareholder meetings for the deal, which was announced on April 8 and is the biggest in the sector in a decade.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Sunil Nair)

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Shell could face ‘tens of billions in damages’ over Nigeria spills

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Court rules Royal Dutch Shell can be held liable for oil spills at its subsidiary in Nigeria

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Screen Shot 2015-11-20 at 08.55.47By Reuters: 1:34PM GMT 18 Dec 2015

A Dutch appeals court has ruled that Royal Dutch Shell can be held liable for oil spills at its subsidiary in Nigeria, potentially opening the way for other compensation claims against the multinational.

Judges in The Hague ordered Shell to make available to the court documents that might shed light on the cause of the oil spills and whether leading managers were aware of them.

A lower Dutch court in 2013 had found that Shell’s Dutch-based parent company could not be held liable for leakages of oil at its Nigerian subsidiary.

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Dutch appeals court says Shell may be held liable for oil spills in Nigeria

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Nigerian farmers affected by oil pollution get green light to pursue case against Anglo–Dutch multinational as judges order release of key documents

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Friends of the Earth activists hold a banner supporting civil action taken by Nigerian farmers whose livelihoods were affected by leaking pipelines in the oil-rich Niger delta. Photograph: Peter Dejong/AP

Reuters: Friday 18 December 2015 13.33 GMT

A Dutch appeals court ruled on Friday that Royal Dutch Shell can be held liable for oil spills at its subsidiary in Nigeria, potentially opening the way for other compensation claims against the multinational.

Judges in The Hague ordered Shell to make available to the court documents that might shed light on the cause of the oil spills and whether leading managers were aware of them.

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Dutch court says Royal Dutch Shell can be liable for Nigeria spills

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Screen Shot 2015-12-18 at 08.01.07By Thomas Escritt: FRIDAY, 18 DEC 2015

THE HAGUE (Reuters) – A Dutch appeals court ruled on Friday that Royal Dutch Shell can be held liable for oil spills at its subsidiary in Nigeria, potentially opening the way for other compensation claims against the multinational.

Judges in The Hague ordered Shell to make available to the court documents that might shed light on the cause of the oil spills and whether leading managers were aware of them.

Friday’s ruling overturned a finding by a lower Dutch court in 2013 that Shell’s Dutch-based parent company could not be held liable for spills at its Nigerian subsidiary.

The legal dispute dates back to 2008 when four Nigerian farmers and campaign group Friends of the Earth filed suit against the oil company in the Netherlands, where its global headquarters is based.

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Shell Philippines says will exhaustively challenge 53.14 billion peso tax claim

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MANILA | BY NEIL JEROME MORALES: Fri Dec 18, 2015

The Philippine unit of Royal Dutch Shell (RDSa.L) will exhaust all legal means, including international arbitration, to challenge a 53.14 billion peso (£751.8 million) tax claim against its Malampaya natural gas project, a company official said on Friday.

Shell Philippines Exploration B.V, is the operator of Malampaya in the southwestern Philippines, along with partners, Chevron Malampaya LLC, a unit of the U.S. energy firm (CVX.N) and the Philippines’ state-owned PNOC Exploration Corp.

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Shell calls for tougher regulation of Dubai oil benchmark

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Screen Shot 2015-11-20 at 08.55.47HOUSTON/BENGALURU | BY LIZ HAMPTON AND ANKUSH SHARMA: Thu Dec 17, 2015

Royal Dutch Shell PLC on Thursday called for tougher regulation of the Dubai crude benchmark, the Middle East’s most important oil-pricing mechanism, after record trade volumes skewed prices.

Industry players have been calling on pricing agency Platts to review its Dubai assessment, saying record trading by Chinese state companies in August during the Market-on-Close process pushed liquidity to the limit and disrupted Dubai’s relationship with other global benchmarks. The Dubai marker sets the prices for more than 12 million barrels per day of Middle Eastern and Russian crude exports to Asia.

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Oil price slide unlikely to scuttle Shell’s takeover of BG

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…rejection of the takeover could entail losses all round, making it more painful for those with shares in both companies. BG shares would likely collapse…

LONDON | BY RON BOUSSO, KAROLIN SCHAPS AND SINEAD CRUISE: Thu Dec 17, 2015

Royal Dutch Shell’s takeover of BG Group may look less attractive after the slide in oil prices but the fact the same investors own nearly half of both firms means the deal is still likely to go through.

Investors holding about 43 percent of Shell’s shares also hold 53 percent of BG, according to Reuters data. For example, Blackrock, Franklin Mutual Advisers and Norges together hold more than 12 percent of Shell and nearly 7.5 percent of BG.

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Shell sees reduction of about 2,800 jobs after BG deal

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Reductions are in addition to previously announced plans to reduce Shell’s headcount and contractor positions by 7,500 globally.

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Markets | Mon Dec 14, 2015 5:35am EST

* Shell updates on its intentions for Shell-BG combination 

* Expectation is that BG’s business would be integrated into Shell’s businesses

* With regards to office footprint rationalisation in UK, Shell will, following deal completion, undertake a comprehensive review during course of 2016

* Deal remains on track for completion in early 2016.

* Expects BG restructuring will be required to achieve expected benefits of recommended combination

* Reductions are in addition to previously announced plans to reduce Shell’s headcount and contractor positions by 7,500 globally.

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Shell says China clears merger with BG

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BEIJING: Deals | Mon Dec 14, 2015 2:23am EST

China has given unconditional clearance to a proposed merger between Royal Dutch Shell (RDSa.L) and BG Group (BG.L), clearing the final key regulatory hurdle for the $70-billion tie-up, Shell said on Monday.

The clearance means the pre-conditional approval process is complete, the Anglo-Dutch company said in a statement.

Prior to the approval, industry sources told Reuters that Chinese authorities were pressing Shell to sweeten long-term gas supply contracts as the world’s top energy consumer faces a large surplus of the supplies as a demand boom at home falters.

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EU drops Shell, BP, Statoil from ethanol benchmark investigation

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Screen Shot 2015-12-07 at 20.10.17Reuters – Mon, 7 Dec 2015 17:58 GMT

By Philip Blenkinsop and Foo Yun Chee

BRUSSELS, Dec 7 (Reuters) – EU antitrust regulators have dropped Shell, BP, and Statoil from an investigation into suspected rigging of ethanol benchmarks, focusing instead on three producers of the biofuel.

The European Commission said on Monday it had opened a formal antitrust investigation into the actions of Spanish company Abengoa SA, Belgium’s Alcogroup SA and Lantmännen ek för of Sweden.

In April, EU antitrust regulators raided several bioenthanol companies and at the same time stepped up a two-year investigation into biofuel price benchmarks. In 2013, it searched the offices of BP, Shell and Statoil too.

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Shell seeks $7 bln credit facility ahead of BG deal -sources

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LONDON | BY RON BOUSSO: Bonds | Thu Dec 3, 2015

Dec 3 Royal Dutch Shell is seeking to secure a $7 billion credit facility in north America as back-up for its $70 billion acquisition of BG Group, sources said on Thursday.

U.S. bank JP Morgan Chase is arranging the facility, which will involve up to 20 banks and institutional investors, according to sources close to the matter.

The facility will be used as a “back-up” for funds already raised to finance the deal, according to one source.

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Markets | Thu Dec 3, 2015 1:11am EST

  • Deal still needs approval from China
  • Shell says deal on track to be completed in early 2016
  • Australia imposes condition to prevent tax disputes 

By Sonali Paul

MELBOURNE, Dec 3 Royal Dutch Shell on Thursday won approval from Australia’s Foreign Investment Review Board for the company’s proposed $70 billion takeover of BG Group Plc, leaving China as the last regulatory hurdle to the deal.

The approval included an unusual condition designed to prevent disputes with the Australian Taxation Office (ATO) with the merged group, amid Australia’s push to clamp down on profit shifting and tax avoidance by multinationals.

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Shell expects Brazil offshore unitization accord by early 2016

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Screen Shot 2015-11-20 at 08.55.47RIO DE JANEIRO: Wed Dec 2, 2015

Royal Dutch Shell Plc expects to sign an agreement to join up, or unitize, its Parque das Conchas offshore fields Brazil‘s Campos Basin with an area owned by Brazil’s government by early next year, the local-unit president said on Wednesday.

Part of the oil and gas resources in Parque das Conchas extend into an un-leased area of Brazil’s Subsalt Polygon, an area under government administration, and under Brazilian law the resource must be developed jointly by Shell, its partners India’s ONGC and Qatar Petroleum, and the government.

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Green Agenda Risks $2 Trillion Worth Of Energy Projects

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Mexico’s Petroleos Mexicanos and Royal Dutch Shell stand to lose roughly $77 billion in projects

By Steve Birr: Daily Caller News Foundation

If world leaders agree on a 2 degree Celsius warming limit at the Paris climate summit, $2 trillion in new coal and petroleum projects risk being killed, according to a new report.

The London based Carbon Tracker Initiative (CTI) environmental think tank says that efforts by world governments will negatively impact the energy industry and warns investors that coal, oil and gas will be hit hardest. Mexico’s Petroleos Mexicanos and Royal Dutch Shell stand to lose roughly $77 billion in projects, while ExxonMobil would lose about $73 billion, according to Reuters.

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Cosan chairman: No plans to part ways with Shell on Raízen venture

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Screen Shot 2015-11-20 at 08.55.47By Marcelo Teixeira:Thu Nov 26, 2015 6:47pm GMT

SAO PAULO Nov 26 (Reuters) – Brazilian energy and transportation group Cosan SA Industria e Comercio has no plans to part ways with Royal Dutch Shell on their Raízen joint venture, the world’s largest cane processor, Cosan Chairman Rubens Ometto said on Thursday.

Asked by Reuters to comment on a local newspaper report that Shell, the oil major, would exercise a contractual option to buy out Cosan’s stake in Raízen, Ometto said the story was completely unfounded.

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UK scraps one billion pound carbon capture technology scheme

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Screen Shot 2015-11-20 at 08.55.47“Without that funding, we no longer see a future for the Peterhead project in the near term,” a spokesman for Shell said.

LONDON | BY SUSANNA TWIDALE: Wed Nov 25, 2015

Britain has scrapped plans to spend up to 1 billion pounds ($1.5 billion) to help commercialize the technology for capturing carbon dioxide emissions from power plants and storing them underground, the government said on Wednesday, putting two major projects at risk of being canceled.

The announcement comes just days before negotiators from more than 190 countries are due to meet in Paris to thrash out a global deal to cut greenhouse gas emissions blamed for rising temperatures.

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Shell fined by Scottish court for 2011 North Sea oil spill

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“Despite being responsible for the worst North Sea spill in a decade, the level of the fine is literally a drop in the ocean when compared to the billions earned by Shell annually…” Screen Shot 2015-11-21 at 00.19.03

LONDON: Business News | Tue Nov 24, 2015 2:42pm GMT

Oil major Royal Dutch Shell (RDSa.L) was handed a 22,500 pound fine by a local Scottish court on Tuesday for a 2011 oil spill in the North Sea that was the largest in more than a decade.

A subsea pipeline leak from Shell’s Gannet Alpha field spilled more than 200 tonnes of oil into the central North Sea in August 2011. Aberdeen Sheriff Court imposed the fine after Shell pleaded guilty in the case.

The oil major has accepted the charge and said it had since carried out a review of its North Sea pipeline system and had applied lessons learned across its British operations.

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Shell Canada fined $825,000 for Sarnia refinery pollution

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CALGARY, ALBERTA

Nov 24 The Ontario government on Tuesday ordered Shell Canada, a wholly owned subsidiary of Royal Dutch Shell, to pay C$825,000 ($620,487.36) in fines for discharging a contaminating odour from its Sarnia refinery in 2013.

In a statement, the Ontario Ministry for Environment and Climate Change said Shell had pleaded guilty to one offense of permitting a discharge of an odour containing mercaptan, a foul-smelling gas.

The Shell Sarnia Manufacturing Centre is located in Corunna, Ontario, and on Jan. 11, 2013, employees discovered a leak from a line containing mercaptan, which flowed into an on-site ditch that empties into the refinery’s storm sewer system.

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In Shell-BG review, China wants concessions on huge gas deals

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LONDON/BEIJING | BY RON BOUSSO, DMITRY ZHDANNIKOV AND CHEN AIZHU: Deals | Thu Nov 19, 2015

Chinese regulators vetting Royal Dutch Shell’s (RDSa.L) proposed merger with BG Group (BG.L) are pressing the Anglo-Dutch company to sweeten long-term gas supply contracts in a move that could cast new doubt over the near-term benefits of the $70 billion tie-up.

For China, the opportunity to re-negotiate existing liquefied natural gas (LNG) supply contracts with Shell, which combined with BG would supply around 30 percent of its imports by 2017, comes at an ideal time because the world’s top energy consumer faces a large surfeit over the next five years.

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Shell to decide on Ormen Lange subsea compression in 2016

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Screen Shot 2015-09-17 at 07.55.40STAVANGER, NORWAY: Business News | Thu Nov 19, 2015

Shell plans to decide next year whether to resume installing subsea compressors at its giant Ormen Lange field offshore Norway, a company’s senior executive said on Thursday, after stopping the project last year to save costs.

“We still expect in the course of 2016 that we will get to a point where we can see whether we can sanction a good development there or not,” Mark Wildon, a vice-president at Shell Norway, told Reuters on the sidelines of an energy conference.

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Safety risks prompt Dutch court to order cuts at Groningen gas field

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Screen Shot 2015-11-18 at 09.13.40Sectors | Wed Nov 18, 2015 4:33pm IST

By Anthony Deutsch and Toby Sterling

A Dutch court on Wednesday ordered more cuts in gas production at Groningen, Europe’s largest gas field, saying the government had given too little consideration to the stronger and more frequent earthquakes extraction had caused.

Output at the field, the world’s 10th largest, will now be capped at 27 billion cubic metres (bcm) per year from 33 bcm, the court said, adding that the government had failed to sufficiently weigh public safety risks.

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Australia watchdog clears Shell’s $70 billion bid for BG Group

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MELBOURNE | BY SONALI PAULBusiness News | Thu Nov 19, 2015 

Royal Dutch Shell (RDSa.L) cleared a major hurdle to its $70 billion (46 billion pounds) takeover of BG Group (BG.L) on Thursday, winning a green light from Australia’s competition watchdog, which said the deal would not change the dynamics of the domestic market.

The acquisition will make Shell the world’s top liquefied natural gas (LNG) trader, although it still needs approval from China and Australia’s Foreign Investment Review Board to go ahead as planned in early 2016.

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Shell plans to retain four senior BG executives after merger – memo

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Business News | London Mon Nov 16, 2015

Royal Dutch Shell plans to retain four members of BG Group’s executive team after the companies’ planned merger next year, according to an internal memo seen by Reuters on Monday.

The memo indicates that the planned $70 billion takeover of BG by Shell remains on track. Shell this month sought to ease investor concerns over the deal by announcing costs cuts and benefits that would make it work despite lower oil prices.

According to the Shell document, BG’s Chief Operating Officer Sami Iskander will become executive vice president for joint ventures. Executive Vice President for Global Energy Marketing and Shipping Steve Hill will be named executive vice president for gas and energy marketing and trading while BG General Counsel Tom Melbye Eide will become general counsel for upstream.

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US oil settles down $1.01, or 2.42%, at $40.74 a barrel

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Oil fell over 2 percent on Friday, extending the week’s loss to the largest in eight months, pressured by swelling storage of crude on both land and sea.

U.S. crude traded slightly above $40 a barrel while benchmark Brent was less than $2 from setting new 6½-year lows. The slump widened to oil products with U.S. gasoline tumbling to 10-month lows.

Oil prices have fallen in seven of the last eight sessions, with losses accelerating after U.S. government data on Thursday affirmed a seventh weekly rise in U.S. crude inventories that took stockpiles near April’s record highs.

The International Energy Agency (IEA) added to the bearish sentiment on Friday, saying there was a record 3 billion barrels of crude and oil products in tanks worldwide.

Options trading has spiked with a soaring number of options taken to sell crude if prices fall to $40 or even $25.

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Japan’s Idemitsu Kosan to take over smaller refiner Showa Shell in $4 billion deal

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By Reuters | 12 Nov, 2015

TOKYO: Japan’s Idemitsu Kosan Co agreed on Wednesday to take over smaller refiner Showa Shell Sekiyu in a deal worth about $4 billion that will create Japan’s second-biggest refiner by capacity.

The refiners are finalising the terms of the deal and expect the combined company to start operating between October next year and April 2017, they said in a statement.

A person familiar with the deal said Idemitsu would buy shares in Showa Shell in a tender offer that could be worth as much as 500 billion yen ($4.1 billion).

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Keystone rejection tied to climate inaction frustration-Shell CEO

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Markets | Fri Nov 6, 2015 3:38pm EST

By Mike De Souza

Nov 6 (Reuters) – The U.S. rejection of the proposed Keystone XL pipeline was driven in part by protesters who are increasingly frustrated with inaction on climate change, Royal Dutch Shell Plc Chief Executive Ben van Beurden said on Friday.

Speaking at the launch of Shell’s new carbon capture and storage project in Alberta, the first Canadian project of its kind in the oil sands industry, van Beurden said anti-fossil-fuel movements are growing because of anxiety and resentment about a failure to reduce greenhouse gas emissions.

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Shell Canada says Keystone XL was already in uncertainty window

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Shell Canada says Keystone XL was already in uncertainty window

Screen Shot 2015-10-28 at 08.03.29CALGARY: Fri Nov 6, 2015

Royal Dutch Shell PLc said on Friday there are at least three other possible pipeline alternatives to TransCanada Corp’s Keystone XL project, which was rejected by U.S. President Barack Obama, and Shell would like to see at least one approved.

“So Keystone has been on for seven years now, so of course, it’s brought into the uncertainty window,” Lorraine Mitchelmore, president of Shell’s Canadian unit, told reporters in Calgary.

(Reporting by Mike De Souza in Calgary; Editing by Chizu Nomiyama)

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Shell Canada carbon capture likely last to get Alberta subsidies

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Screen Shot 2015-09-17 at 07.55.40CALGARY, ALBERTA | BY MIKE DE SOUZACommodities | Thu Nov 5, 2015 9:01pm GMT

Royal Dutch Shell’s launch on Friday of Canada’s first oil sands project to capture and bury carbon emissions – assisted by generous public subsidies – will likely be the last to get such funding, the Alberta government said this week.

The left-leaning New Democratic government of the energy-rich Western Canadian province, home to the country’s controversial oil sands, said it no longer plans to fund future efforts using the technology.

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BUZZ-BG up more than 1 pct as Shell backs deal

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Commodities | Tue Nov 3, 2015 10:17am GMT

** BG Group and Shell outperform the FTSE 100 in the wake of Shell’s recommitment to its planned $70 bln takeover of its smaller rival

** Shell announces plans for further benefits & cost cuts aimed at making deal work with oil at mid-$60s/barrel & says it now expects synergies to increase by $1 bln to $3.5 bln for combination

** BG up 1.3 pct, 3rd top gainer on FTSE-100 with c.40 pct of its 30-day avg volume traded through in first 2 hrs

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Shell sees $70 billion BG deal working even with $60s/barrel oil

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Tue Nov 3, 2015 3:02am EST: LONDON

Royal Dutch Shell (RDSa.L) on Tuesday again sought to assuage investor concerns over its planned $70 billion takeover of BG Group (BG.L) as it announced plans for further synergies and cost cuts aimed at making the deal work with oil prices in the mid-$60s a barrel.

The Anglo-Dutch group, which hopes to complete the deal early next year, said it now expected synergies to increase by $1 billion to $3.5 billion for the combination which will make Shell a leader in liquefied natural gas (LNG) and offshore oil production in Brazil.

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