Royal Dutch Shell plc .com Rotating Header Image

Posts under ‘Reuters’

Shell cuts spending further after BG deal

Screen Shot 2016-05-04 at 08.26.29

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.

read more

Shell says Q1 oil and gas production rises 16 pct

Screen Shot 2016-05-04 at 08.14.46

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.

read more

Shell starts staff cut discussions with employees in Australia

Screen Shot 2016-04-27 at 14.47.13

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.

read more

Shell to close BG head quarters near London by year end

Screen Shot 2016-04-25 at 15.57.20

As part of the 10,300 job cuts it has already announced, 2,800 will come from the integration of BG and 7,500 from its existing staff and direct contractor base.

Business | Mon Apr 25, 2016 

Royal Dutch Shell (RDSa.L) will close the head office of BG Group, the gas producer it agreed to acquire for $50 billion in February, by the end of the year, it said on Monday, as part of a plan to save costs and cut 10,300 jobs worldwide.

The oil major will also offer voluntary redundancy packages to staff at the BG headquarters in Reading, near London, and to Shell staff in the UK.

This follows a similar announcement made to Dutch staff earlier this month.

The oil company is under intense pressure to rein in costs as a slump in oil prices has hit its profits.

read more

Investors look beyond Big Oil’s worst quarter yet

Screen Shot 2016-04-24 at 09.52.33

LONDON | BY KAROLIN SCHAPS AND RON BOUSSO: Sun Apr 24, 2016

The world’s top oil companies are set to report their worst quarterly results yet in the current downturn but a recent recovery in crude prices is raising hopes the market has bottomed out.

An ever intensifying oil supply glut took global prices to a near 13-year low of $27.10 a barrel on Jan. 20, exacerbating pressure on oil producers already grappling with a more than 70 percent slide in prices since mid-2014.

“The 1Q16 reporting period looks set to be even worse than what we thought was already an especially ugly 4Q15,” said Jason Gammel, equity analyst at Jefferies.

read more

Oil washout

Screen Shot 2016-04-22 at 21.42.31Ed Crooks: 22 April 2016

They wanted a freeze, but all they got was a wash-out. The 18 oil-producing countries that met in Doha on Sunday were supposed to finalise an agreement to hold production at January’s levels, but instead the meeting broke up in acrimony and recriminations. John Kemp at Reuters suggested Saudi Arabia was turning the “oil weapon” on its rival Iran.

The FT’s Roula Khalaf wrote that the failure of the talks highlighted the rise of Mohammed bin Salman, Saudi Arabia’s 30 year-old deputy crown prince. His growing influence and the waning authority of veteran oil minister Ali al-Naimi add a new element of unpredictability to Saudi policy.  Bloomberg Business Week had a long and fascinating interview with Prince Mohammed. As President Barack Obama visited Saudi Arabia, David Gardner wrote that the kingdom’s 70-year bargain with the US, promising security in return for a steady flow of oil, was becoming frayed.

read more

Shell sidesteps electric bandwagon with petrol-powered concept car

Screen Shot 2016-04-22 at 11.55.13

BEIJING | BY JAKE SPRING: Fri Apr 22, 2016

Royal Dutch Shell PLC (RDSa.L) unveiled a high-efficiency petrol-burning concept car in China on Friday, to show the world’s biggest electric vehicle (EV) market that there is a lot of mileage left in conventional internal combustion engines.

Shell, one of the largest producers of automotive fuel, said it could take decades before EVs help arrest a rise in exhaust emissions, and that its concept car – which it has no intention of mass producing – demonstrates what can be done now.

read more

Shell defies order to halt production at Nigeria facility – officials

Screen Shot 2016-04-20 at 20.29.28

YENAGOA, NIGERIA | BY TIFE OWOLABI: Wed Apr 20, 2016

Royal Dutch Shell has failed to halt production at the Gbaran Ubie oil and gas facility in southern Nigeria, contravening a court order for the site to be sealed and raising the prospect of legal action, state government officials said on Wednesday.

A Reuters reporter spoke to workers at the plant who also said production had continued.

A Shell (RDSa.L) spokesman declined to comment.

The facility, in the oil-rich southern Niger Delta region, supplies the Bonny liquefied natural gas (LNG) export terminal and also helps generate electricity, which is scarce in Africa’s top oil producer and most populous nation.

read more

Shell starts voluntary redundancy process for Dutch staff

Screen Shot 2016-04-20 at 13.51.59

Wed Apr 20, 2016

Shell said it had started a voluntary severance process in the Netherlands as part of a plan to cut around 10,300 jobs worldwide.

The oil company is under pressure to rein in costs as a slump in oil prices has hit its profits.

“Shell can confirm it has introduced a selective voluntary severance programme in The Netherlands,” a spokesman said.

The programme could be rolled out elsewhere and staff would be notified before external announcements are made, he said.

Shell has around 11,000 directly employed staff in the Netherlands.

read more

Exclusive: How ChemChina tried to gatecrash Shell’s BG mega-deal

Screen Shot 2016-04-19 at 19.42.41

Screen Shot 2016-04-19 at 19.44.25

Screen Shot 2016-03-15 at 10.28.52LONDON | BY DMITRY ZHDANNIKOV, FREYA BERRY AND RON BOUSSO: Business | Tue Apr 19, 2016

Chemical giant ChemChina approached BG Group with a possible bid late last year, just as Royal Dutch Shell was preparing to close a $52 billion deal to buy the British energy company, seven banking and industry sources with knowledge of the matter said.

Working with investment bank HSBC (HSBA.L), China’s most acquisitive company of the past year flew a delegation to Britain in December and approached BG Chairman Andrew Gould with plans for a full cash bid, two sources close to ChemChina said.

Shell and HSBC declined to comment. ChemChina did not immediately respond to requests for comment. Reuters could not reach Gould for comment.

That trip was eight months after Shell announced the energy sector’s largest deal in a decade and just weeks before the BG purchase received final anti-trust and shareholder clearances.

read more

Shell says theft from its Nigerian oil pipeline network fell in 2015

Screen Shot 2016-04-18 at 14.12.45

Business | Mon Apr 18, 2016 9:02am BST

Theft of crude oil from the pipeline network of Shell’s Nigerian subsidiary fell to 25,000 barrels per day (bpd) in 2015, the company said on Monday, roughly 32 percent less than the previous year.

The number of sabotage-related spills on the SPDC network also declined to 93 in 2015, compared with 139 the previous year, Shell said in its annual sustainability report.

It attributed the decrease to divestments in the Niger Delta and increased surveillance and security by the Nigerian government, but said theft and sabotage were still responsible for around 85 percent of spills from SPDC operations.

read more

Shell CEO says may sell some North Sea assets to improve portfolio

Screen Shot 2016-04-12 at 11.13.29

PERTH | BY SONALI PAUL: Tue Apr 12, 2016

Royal Dutch Shell could sell some of its older, lower grade North Sea assets to improve the quality of its portfolio, CEO Ben van Beurden said on Tuesday, part of a two-year program to help finance its purchase of gas major BG Group.

After completing the $52 billion acquisition of BG in February, Shell said it would sell $30 billion in assets between 2016 and 2018 to help finance the deal and to maintain its dividend following a sharp drop in oil prices since mid-2014.

read more

Shell under pressure to reduce spending

Screen Shot 2016-04-08 at 09.28.45

Markets | Fri Apr 8, 2016 3:05am EDT

By Ron Bousso

LONDON, April 8 Royal Dutch Shell is under pressure from shareholders to cut annual spending below $30 billion after buying BG Group to ensure it can maintain its dividend given the slow oil price recovery.

Shell and other large oil companies slashed budgets, scrapped huge projects and cut tens of thousands of jobs last year in the face of a slump in oil prices from a June 2014 peak of nearly $116 a barrel to below $40.

Shell reduced spending by $8.4 billion to $28.9 billion last year and for the first time in more than three decades global capital spending in the oil and gas industry, known as capex, is set to fall for a second year in a row.

read more

Shell’s top Brent trader leaving company – sources

Screen Shot 2016-04-07 at 12.25.53

Business | Thu Apr 7, 2016 11:47am BST

The head of European oil trading at oil major Royal Dutch Shell (RDSa.L), Stany Schrans, will leave the company later this year, two industry sources told Reuters.

Shell declined to comment.

Bloomberg was first to report the departure.

The sources said Schrans, who has worked for Shell for more than 15 years, was leaving due to personal reasons.

Shell has one of the biggest oil trading desks in the world and is one of the most powerful players in the benchmark Brent market, for which Schrans was responsible.

read more

Shell pulls out of Arctic-focused exploration oil licensing round in Norway

Screen Shot 2016-04-04 at 18.25.54

Business | Mon Apr 4, 2016 3:01pm BST

Oil major Royal Dutch Shell (RDSa.L) has pulled its application from Norway’s Arctic-focused oil licensing round, the firm said on Monday, in a blow to the Nordic country’s ambitions to explore for oil and gas in its northern offshore areas.

“The decision is part of an optimisation of Shell’s global portfolio following the acquisition of BG and a persistently low oil price,” the company’s Norwegian unit said in a statement. “Norway remains one of our core areas.”

read more

Sideways moves

Screen Shot 2016-04-03 at 17.07.11

By Ed Crooks: April 1, 2016

Oil prices went sideways all week, with Brent crude edging up above $40 on Thursday.  Hedge funds have made record bets on rising crude prices, but everyone is still watching prospects for the scheduled meeting of Opec and non-Opec oil producers in Doha, Qatar on April 17. Qatar’s oil minister said 12 countries had so far agreed to attend, including most Opec members and Russia. Reuters provided a useful factbox on the countries that could be present at the meeting.  Ecuador is one of the Opec members trying to persuade non-member countries to join in a commitment to freeze production.

read more

Shell says Dutch investigators visit Shell HQ in Nigeria oil probe

Screen Shot 2016-03-30 at 13.11.52“Representatives of the Dutch Financial Intelligence and Investigation Service and the Dutch Public Prosecutor recently visited Shell at its headquarters, ” a spokesman said.

“The visit was related to OPL 245, an offshore block in Nigeria that was the subject of a series of long-standing disputes with the Federal Government of Nigeria.”

Shell is cooperating with the authorities and is looking into the allegations, the spokesman said.

(Reporting by Ron Bousso. Editing by Jane Merriman)

read more

Italian prosecutors probe Shell over Nigeria oil deal – source

Screen Shot 2016-03-30 at 13.05.44

Milan prosecutors opened a corruption probe into Eni in 2014 in a case relating to a $1.3 billion acquisition of Nigeria’s OPL-245 offshore oil block in 2011 by the Italian company and Shell.

They later placed under investigation Eni’s Chief Executive Claudio Descalzi and another top manager at the company. The probe has now been widened to Shell, the source said, confirming a report in Corriere della Sera daily on Wednesday.

Shell declined to comment. Eni has denied any wrongdoing in the case.

read more

Shell says no changes in plans to expand Russian Sakhalin-2 LNG plant

Screen Shot 2016-03-24 at 14.53.47Thu Mar 24, 2016

MOSCOW, March 24 (Reuters) – There are no changes in plans to expand Russia’s Sakhalin-2 liquefied natural gas plant, operated by Royal Dutch Shell and Gazprom, Olivier Lazare, head of Shell’s operations in Russia, said on Thursday.

Gazprom and Shell plan to expand their plant on the Pacific island of Sakhalin, where Japan’s Mitsui and Mitsubishi are also shareholders, to add a further 5.4 million tonnes of annual capacity in 2021.

(Reporting by Vladimir Soldatkin; Writing by Maria Kiselyova; Editing by Alexander Winning)

read more

Indonesia says Inpex, Shell to invest in Masela onshore LNG project

Screen Shot 2016-03-24 at 08.35.19

JAKARTA, Markets | Thu Mar 24, 2016

Japanese oil firm Inpex Corp and Royal Dutch Shell are expected to invest in the construction of Indonesia’s onshore Masela liquefied natural gas plant, an energy regulator official said on Thursday.

“Inpex and Shell have no plan to withdraw from the Masela block. They will stay, but they need time to redo their plan for onshore,” said Amien Sunaryadi, head of Indonesia’s upstream oil and gas regulator, SKKMigas.

Indonesia’s president on Wednesday rejected Inpex and Shell’s proposal to build the world’s largest floating liquefied natural gas plant in the country’s east, saying an onshore plant would benefit its economy more.

read more

Statoil Fuels and Retails wins EU okay for Shell deal

Screen Shot 2016-03-24 at 08.14.19Business | Wed Mar 23, 2016

Statoil Fuel and Retail gained European Union antitrust approval on Wednesday for its acquisition of Shell’s (RDSa.L) Danish retail and wholesale fuels business after agreeing to sell some businesses to allay competition concerns.

The European Commission had been concerned that the deal could have led to Danish consumers paying more for their fuel, diesel, gasoline and light heating oil.

Statoil Fuel and Retail, which operates in Denmark under the Statoil brand and is controlled by Canadian company Alimentation Couche-Tard (ATDb.TO), received the EU green light after pledging to sell 205 petrol stations and Shell’s commercial fuels business.

read more

Indonesia decides against Inpex floating LNG project, wants to stay onshore

Screen Shot 2016-03-23 at 11.07.01

Screen Shot 2016-03-15 at 10.34.57* President says onshore plan to bring more economic benefits

* Unclear if Inpex, Shell will be involved in new plan

* Onshore facility to be built in eastern province of Maluku 

By Agustinus Beo Da Costa and Fergus Jensen

JAKARTA, March 23 Indonesia’s president on Wednesday rejected Inpex Corp and Royal Dutch Shell’s proposal to build the world’s largest floating liquefied natural gas plant in the country’s east, saying an onshore plant would benefit its economy more.

The announcement is a blow to the two energy firms, as well as to Indonesia’s energy regulator (SKKMigas), which warned last week that rejecting the $15 billion plan to process gas from the Masela field offshore would lead to delays and job cuts.

read more

Exclusive: After Motiva split, Saudi Aramco aims to buy more U.S. refineries – sources

Screen Shot 2016-03-18 at 21.04.31Ending an often rocky nearly 20-year relationship, Shell (RDSa.L) and Saudi Aramco [SDABO.UL] announced on Wednesday plans to break up Motiva Enterprises LLC [MOTIV.UL] after almost two decades, dividing its assets and leaving Aramco with one plant, the nation’s largest crude oil refinery, in Port Arthur, Texas.

Officials from Saudi Refining, the downstream arm of Aramco, told employees following the announcement that the state-owned firm was intent on buying more assets once the Motiva break-up is finished, according to five people who attended the briefing and asked not to be identified due to the sensitivity of the issue.

read more

US oil closes above $40 for first time since Dec. 3

Screen Shot 2016-02-24 at 17.06.42

US oil closes above $40 for first time since Dec. 3

Screen Shot 2016-03-17 at 22.17.45

17 March 2016

Oil prices hit 2016 highs on Thursday, with U.S. crude closing over $40, on optimism that major producers will strike an output freeze deal next month amid soaring gasoline demand in the United States.

A weaker dollar after a Federal Reserve policy decision on Wednesday that indicated two U.S. rate hikes this year instead of four also drew oil buyers using currencies such as the euro.

OPEC kingpin Saudi Arabia and non-OPEC producers led by Russia will meet on April 17 in the Qatar capital Doha, increasing the likelihood of the first global supply deal in 15 years.

read more

FACTBOX-Motiva: How Saudi Aramco, Shell plan to divide up the assets

Screen Shot 2016-03-17 at 08.54.11Under the terms of a non-binding letter of intent, distribution terminals, retail assets, branded and commercial customer agreements will be divided by geography to ensure each partner has “an integrated and robust business,” a statement said.

Below are how the companies have split up the assets:

SHELL:

* 230,000 barrel-per-day Convent refinery located in St. James Parish, Louisiana;

* 235,000 bpd Norco refinery located in St. Charles Parish, Louisiana, where Shell already operates a chemicals plant;

read more

Saudi Aramco, Shell plan to break up Motiva, divide up assets

Screen Shot 2016-03-16 at 22.47.16

“However, it is now time for the partners to pursue their independent downstream goals.”

Under the terms of a non-binding letter of intent, the Saudi state oil giant will take over the Port Arthur, Texas, refinery, the biggest in the United States, retain 26 distribution terminals as well as the Motiva name, according to a statement.

It will also have an exclusive license to use the Shell brand for gasoline and diesel sales in Texas, the majority of the Mississippi Valley, the Southeast and Mid-Atlantic markets, it said.

read more

Shell names Lazard to advise on $30 billion asset sales

Screen Shot 2016-03-11 at 11.23.44

LONDON | BY FREYA BERRY AND RON BOUSSO:

Business | Fri Mar 11, 2016 11:14am GMT

Royal Dutch Shell has appointed investment bank Lazard to advise it on a $30 billion (£21 billion) asset sale programme following its acquisition of BG Group last month, several banking and industry sources said on Friday.

The Anglo-Dutch company has also picked Bank of America Merrill Lynch and Morgan Stanley to work on proposed sales of assets, according to the sources, noting that more banks could yet be added to the line-up.

read more

Shell CEO van Beurden’s remuneration fell in 2015

Screen Shot 2016-03-10 at 09.03.17

LONDON: Business | Thu Mar 10, 2016

Royal Dutch Shell (RDSa.L) Chief Executive Ben van Beurden’s total direct remuneration fell 8 percent last year to 5.135 million euros ($5.63 million), the company said in its annual report.

His total package, including pension and tax equalisation, was 5.576 million euros, down from 24.198 million euros in the previous year, mainly due to a significant fall in van Beurden’s pension which was positively affected in 2014 by promotion to chief executive.

read more

Shell says to start new exploration phase in BC-10 Brazil field

Screen Shot 2016-02-24 at 17.06.42

Screen Shot 2016-03-08 at 22.34.18

Screen Shot 2016-02-17 at 08.47.47RIO DE JANEIRO: TUE Mar 8, 2016

Royal Dutch Shell will start in coming days a new exploration phase in the BC-10 project off the coast of Brazil, where it has already invested more than $1 billion, the company’s chief executive in the country said in a presentation.

Shell wants to keep investing in Brazil as the country has viable oil reserves despite recent market uncertainties, Shell Brazil CEO Andre Araujo said.

read more

South Africa to start shale gas exploration in next year

Screen Shot 2016-03-08 at 22.28.58

Royal Dutch Shell, Falcon Oil & Gas and Bundu Gas & Oil are among five companies which have applied for exploration licenses being reviewed by South Africa’s Petroleum Agency, the regulator said on Tuesday.

The Petroleum Agency will submit its recommendations to the government by early May. The ministry of mineral resources will make the final decision on granting licenses.

“One area of real opportunity for South Africa is the exploration of shale gas,” a statement from cabinet ministers responsible for the economy said.

read more

Shell repays Iran 1.77 bln euros debt for oil deliveries

Screen Shot 2016-03-07 at 21.30.18

By Ron Bousso

LONDON, March 7 Royal Dutch Shell has paid 1.77 billion euros ($1.94 billion) it owed the National Iranian Oil Company, settling debts after sanctions against the country were lifted in January.

The outstanding debt to Iran was a result of Iranian oil deliveries which Shell had been unable to pay for due to sanctions that were imposed on the country over its nuclear programme.

The Anglo-Dutch company resumed talks with Tehran on the debt after most Western sanctions were lifted in January as part of a deal with world powers. The payments were made over the past three weeks in euros as dollar transactions are still under U.S. sanctions.

read more

Standard Life fund arm raises governance concerns at VW, Shell

Screen Shot 2016-03-02 at 18.26.28Business | Wed Mar 2, 2016 

The investment arm of British insurer Standard Life (SL.L) said on Wednesday it would step up its engagement with management at Volkswagen VOWG_P.DE and Royal Dutch Shell RDSA.L over certain concerns it has regarding corporate governance.

In its annual governance and stewardship report Standard Life Investments said it continued to be worried about a lack of independence on the German carmaker’s supervisory board and board committees following the appointment of former Chief Financial Officer Hans Dieter Poetsche as chairman of the Supervisory Board, in the wake of the firm’s emissions scandal.

read more

Petrobras cancels sale of stake in Brazil offshore oilfields

Screen Shot 2016-03-01 at 10.54.14

RIO DE JANEIRO: Tue Mar 1, 2016 

Brazil’s Petroleo Brasileiro SA (PETR4.SA) has cancelled an agreement to sell to a local oil firm its 20 percent stake in two offshore oil fields it operates with Shell, the state-led oil company said in a securities filing on Monday.

Petrobras gave no reason for the cancellation of the sale of the stake in the Bijupirá and Salema fields in the Campos basin to PetroRio PRIO3.SA.

Royal Dutch Shell Plc (RDSa.L), which owns 80 percent of the two fields, announced two weeks ago it was cancelling a planned sale of its share to PetroRio, then known as HRT, and gave no explanation for the move.

read more

Are BP and Royal Dutch Shell Refinery Segments in Trouble?

Screen Shot 2016-02-26 at 16.41.24

By Muhammad Ali Khawar on Feb 26, 2016

The oil and gas companies have been severely hit by a more than 70% crash in crude oil prices over the past one and a half year. Their only saving grace, however, is the high refinery margin. In 2015, the falling revenue of oil giants from the upstream segment — the likes of Exxon Mobil Corporation (NYSE:XOM), Shell, and BP — was offset by the high margins from the refinery segment.

Bidness Etc here discusses whether in 2016, the energy companies will continue to enjoy the oil refinery boom, or the glut in the downstream segment would weigh down the energy companies’ performance.

read more

Alaska failure not behind exit – Shell’s outgoing U.S. chief

Screen Shot 2016-02-25 at 08.45.58

Royal Dutch Shell’s (RDSa.L) costly flameout in Alaska last year was “a huge disappointment,” but did not push top North American executive Marvin Odum to exit the company, he said.

Odum made the comments hours after the company announced he would leave next month after 34 years.

“This should not be interpreted as, ‘Alaska didn’t work, so Marvin’s leaving,” Odum, 57, said in an interview.

Instead, he said he decided it was time to move on after heading Shell Oil Co, the Anglo-Dutch company’s U.S arm, since 2008. He later became head of exploration and production operations in the Americas as well.

read more

Shell replaces U.S. chief, splits unconventionals unit

Screen Shot 2016-02-24 at 23.17.20

HOUSTON | BY KRISTEN HAYS AND RON BOUSSO: Wed Feb 24, 2016 3:42pm EST

Royal Dutch Shell’s U.S. head Marvin Odum will step down after the company abandoned a troubled drilling project offshore Alaska, and the global oil company said on Wednesday it will split up its U.S. shale and Canadian oil sands unit.

Stung by a 70 percent slide in crude prices since mid-2014, Shell this month reported its lowest annual income in more than a decade and pledged further cost saving measures.

The Anglo-Dutch company said on Wednesday its shale resources unit would become part of the global upstream business led by Andy Brown, and its Athabasca Oil Sands Project and Scotford Upgrader in Canada would be folded into the global downstream unit, headed by John Abbott.

read more

Royal Dutch Shell says U.S. Country Chair, Marvin Odum, to leave Shell

Screen Shot 2016-02-24 at 17.37.33

Feb 24 Shell

* Royal Dutch Shell (Shell) today announced that after a 34-year career with the company, unconventional resources director and U.S. Country chair, Marvin Odum, will leave Shell at the end of March, 2016. 

* As a result of these changes, the unconventional resources directorate will cease to exist

* Marvin Odum will be replaced as U.S. Country chair and President of Shell Oil Company by Bruce Culpepper

* Athabasca oil sands project and Scotford upgrader in Canada will join global downstream organisation under downstream director, John Abbott

read more

Bulgaria signs deal with Shell for deepwater oil and gas exploration

Screen Shot 2016-01-07 at 22.31.30

Screen Shot 2016-02-23 at 14.10.00

Screen Shot 2016-02-17 at 08.47.47Markets | Tuesday Feb 23, 2016 

Bulgaria sealed a deal with Royal Dutch Shell on Tuesday to explore for oil and gas in an offshore block in the Black Sea in a bid to end its almost total dependence on Russian natural gas.

Shell won a tender for a five-year permit for deepwater exploration at the 1-14 Silistar block that covers 7,000 square km in September and pledged to invest 18.6 million euros ($20.5 million) in seismic surveys.

“The licence that we have been awarded today allows us to evaluate the potential for oil and gas in offshore Bulgaria. This process can be quite a long process and with much uncertainty,” said Eileen Wilkinson, regional director at Shell International Exploration and Production, after the signing.

read more

Brazil’s Petro Rio says Shell backs out of Campos Basin deal

Screen Shot 2016-02-16 at 14.02.04

SAO PAULO: Tue Feb 16, 2016

Brazilian oil and gas company Petro Rio SA PRIO3.SA said on Tuesday that Royal Dutch Shell (RDSa.L) had canceled an agreement to sell offshore assets in the Campos Basin for an undisclosed sum.

Europe’s largest oil company, which gained approval last month to take over BG Group BG.L, had agreed in January 2015 to sell its 80 percent stake in the Bijupirá and Salema fields, along with a drill ship, to Petro Rio, known then as HRT.

(Reporting by Gustavo Bonato and Brad Haynes; Editing by David Goodman)

read more

Shell expects its Brazil output to quadruple by 2020: CEO

Screen Shot 2016-02-15 at 20.28.18

RIO DE JANEIRO | BY JEB BLOUNT AND MARTA NOGUEIRA: Mon Feb 15, 2016

Royal Dutch Shell (RDSa.L), Europe’s largest oil company, expects to make robust investments in Brazil’s offshore resources, hoping to quadruple oil and gas output there by the end of the decade, its chief executive officer said on Monday.

CEO Ben van Beurden spoke in Brazil shortly after Shell’s $52 billion takeover of BG Group Plc BG.L, approved in late January, took effect.

Thanks to BG’s large portfolio of assets in Brazil and Shell’s decision to buy 20 percent of the giant Libra offshore project in 2013, Brazil will be a key area for the Anglo-Dutch company as it focuses on liquefied natural gas and deepwater oil production, van Beurden said.

read more

Shell pursues transition plan after sealing $53 billion BG deal

Screen Shot 2016-02-15 at 14.14.10

LONDO | BY RON BOUSSO: Monday Feb 15, 2016

Royal Dutch Shell (RDSa.L) on Monday sealed the $53 billion (36 billion pounds) acquisition of British rival BG Group to form the world’s top liquefied natural gas company, even as slumping oil prices cast a shadow on the upcoming years of transition.

The success or otherwise of the complex merger will define the legacy of Shell Chief Executive Ben van Beurden, seeking to transform Shell into a more specialized group focused on the rapidly growing LNG market and deepwater oil production.

read more

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

Screen Shot 2016-02-07 at 09.16.30

Screen Shot 2016-02-07 at 09.10.14

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.

read more

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.

read more

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

Screen Shot 2016-02-01 at 22.29.21

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.

read more

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

Screen Shot 2016-01-07 at 22.31.30Screen Shot 2016-01-28 at 08.18.02

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.

read more

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

Screen Shot 2016-01-07 at 22.31.30

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.

read more

Oil plumbs new lows below $27 as rout persists

Screen Shot 2016-01-07 at 22.31.30

Screen Shot 2016-01-16 at 10.15.56

Screen Shot 2016-01-20 at 22.31.17

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.

read more

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.

read more

Shell CEO says oil giant would be hit by Brexit

Screen Shot 2016-01-17 at 13.20.38

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.

read more

Oil plummets to $29, dragging world stocks lower

Screen Shot 2016-01-07 at 22.31.30

Screen Shot 2016-01-16 at 18.30.19

Screen Shot 2016-01-16 at 18.35.42

Screen Shot 2016-01-16 at 10.15.56

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.

read more

%d bloggers like this: