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Shell Denmark withdrawal, except for toxic Fredericia refinery?

COMMENT RECEIVED FROM A REGULAR CONTRIBUTOR ABOUT SHELL SELLING A MAJOR PART OF ITS DANISH DOWNSTREAM ASSETS

John 

On your site a few months back there was an article about contamination of the area of the Shell refinery in Fredericia which does not appear to have been included in the sale of the rest of the downstream portfolio. 

“Decade-old oil spills from tanks at the Shell Oil facility in Fredericia are still polluting the environment.”

Is there an issue of liability for clean-up costs? The Fredericia refinery is small, but processes much of the crude produced offshore Denmark (where Shell is the biggest shareholder in the DUC). read more

Shell sell’s its Danish Network of 315 Gasoline Stations

Screen Shot 2014-06-23 at 11.37.41March 17, 2015 /PRNewswire/ – Alimentation Couche-Tard Inc. (“Couche-Tard”) announces today that it has signed, through its wholly-owned indirect Danish subsidiary Statoil Fuel & Retail A/S, an agreement with A/S Dansk Shell to acquire its Retail, Commercial Fuels and Aviation businesses in Denmark.

Pending the customary regulatory approvals and closing conditions, the transaction is expected to close in the second half of Couche-Tard’s fiscal year 2016. The acquisition would be financed from Couche-Tard’s available cash and existing credit facilities. The parties have agreed not to disclose the purchase price for this acquisition. read more

Shell shelves Arrow LNG project in Queensland

Screen Shot 2014-06-23 at 11.37.41From an article by Angela Macdonald-Smith published 30 Jan 2015 by The Sydney Morning Herald under the headline:

“Shell shelves Arrow LNG project in Queensland”

Royal Dutch Shell has finally ditched plans for a new $US20 billion-plus liquefied natural gas project in Queensland,making it the latest casualty of the oil price slump.

Global chief executive Ben van Beurden said the proposed greenfield Arrow LNG project with PetroChina was “off the table”, while other ventures would be slowed as priority was given instead to Shell’s North American LNG projects.

The Arrow greenfield project is formally “cancelled,” Shell said in a presentation released for its fourth-quarter results in London which cited several ventures that were being deferred or abandoned in the wake of the collapse in oil prices. read more

Shell stokes up its fire sale

Screen Shot 2014-06-23 at 11.37.41Introduction by John Donovan

Bloomberg is reporting that Shell has agreed to sell its stake in the Bijupira and Salema fields in Brazil. This development is no doubt in response to the collapse in oil prices and is stoking up the fire sale instituted by CEO Ben van Beurden when Shell announced a profits warning a year ago.

Extract from Bloomberg article

Royal Dutch Shell Plc (RDSA), the second-largest oil operator in Brazil, is selling a stake in one of its oil-producing projects in the country to HRT Participacoes em Petroleo SA (HRTP3), two people with knowledge of the matter said.

HRT, based in Rio de Janeiro, agreed to buy Shell’s 80 percent stake in the Bijupira and Salema fields, an offshore venture that started production in 2003, the people said, asking not to be identified because the deal hasn’t been made public. HRT will boost production to more than 30,000 barrels a day with the purchase, one of the people said. read more

Idemitsu Showa Shell merger talks could trigger more consolidation

Screen Shot 2014-12-22 at 21.10.24Reuters article published Tuesday 23 December 2014 under the headline: Japanese refining merger talks could spur more consolidation

It seems that the forecast wave of mergers in the oil industry arising from the collapse in oil prices has kicked off in Japan. Also fits in with Shell’s fire sale strategy. 

Extracts

Consolidation looks to have kicked off with Japan’s No. 2 refiner Idemitsu seeking to buy No. 5 Showa Shell in a 500 billion yen ($4.2 billion) deal that would bring them close to industry leader JX Holdings.

The combined company would have annual sales of about 8 trillion yen, making it the second biggest after the leader JX Holdings and control about 30 percent of Japan’s gasoline market. JX has 33 percent of Japan’s oil market.

Consolidation is further supported by the crash in oil, which has seen prices almost halve since June, resulting in falling stock prices for energy firms and reduced asset values, offering opportunities to cash rich investors. read more

Why Shell Is Selling Its Norwegian Downstream Business

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Screen Shot 2014-06-23 at 11.37.41Royal Dutch Shell has decided to sell off of its Norwegian downstream business to Finland’s ST1 in order to improve profitability and achieve its divestment targets

By: MICHEAL KAUFMAN
Published: Dec 18, 2014 at 5:21 pm EST

Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) has decided to sell its Norwegian downstream business comprising commercial fuels, retail and logistics businesses. The company is planning to sell the stake to ST1, a fuel company in Finland. No further details have been disclosed so far.

A Retail Brand License Agreement is also expected to be part of the deal. This particular agreement would make sure that the Shell brand remains highly visible in the Norwegian market through a distributor. The deal is yet to be approved by regulatory authorities and is expected to be confirmed next year. Shell will also run its Norwegian aviation business in a 50-50 joint venture with with ST1, which already operates Shell pumps in Sweden and in Finland. read more

Shell agrees sale of downstream businesses in Norway

Screen Shot 2014-06-23 at 11.37.41Shell has signed an agreement with ST1 for the sale of its retail, commercial fuels and supply and distribution logistics businesses in Norway. In addition, Shell’s aviation business in Norway will become a 50-50 joint venture with ST1.

The sale is subject to regulatory approval and is expected to be completed in 2015.

The transaction includes a Retail Brand Licence Agreement which will ensure that Shell’s brand remains highly visible in Norway and that high-quality Shell fuels and lubricants products, and the euroShell loyalty card scheme, will continue to be available to customers in the country. read more

Oil price slump: fire sale of Shell assets gathers pace

Screen Shot 2014-11-20 at 15.07.17*Royal Dutch Shell Plc has sold a $600 million stake in a Nigerian oil lease as part of its plan to sell off $15bn worth of assets around the world. The fire sale no doubt has added momentum in view of the collapse in the price of oil. Shell has already disposed of under-performing assets in Australia, the USA and in the North Sea. Bloomberg News has reported that Shell may close its Draugen oil field in the Norwegian Sea a decade earlier than intended because of rising costs and the slump in oil prices. According to a Wall Street Journal report, Shell is claiming that it has sold its stake in a set of oil wells and processing plants in the Niger Delta because the company has struggled with oil theft and other security issues. Guess a fire sale is better than Nigerians ending up being hanged for protesting against decades of Shell’s plunder and pollution in Nigeria, exploiting a succession of corrupt regimes.
read more

Royal Dutch Shell News 15 Oct 2014

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By John Donovan

WHISTLEBLOWER ALLEGES ROYAL DUTCH SHELL TAX EVASION IN NIGERIA 

A former manager of Shell Production Development Company in Nigeria has accused Shell of massive tax evasion. He also alleges that the Nigeria Economic and Financial Crimes Commission demanded a bribe from him as part of a related cover-up plan for Shell. The whistleblower also claims that his safety is in jeopardy. All strangely reminiscent of allegations surrounding the Corrib gas project in Ireland. MORE INFORMATION HERE.

SHELL FIRE SALE OF NIGERIAN ASSETS

A consortium led by Aiteo Group has won the auction for Shell oil block OML 29 in Nigeria, with a bid of N434b. The total cost of the acquisition is said to be $2.7 billion, allowing for working capital. MORE INFORMATION read more

Royal Dutch Shell News Monday 29 Sept 2014

Screen Shot 2014-09-29 at 14.02.38By John Donovan

A selection of current news articles about Royal Dutch Shell from around the globe:

Oil price fixing

According to a Bloomberg article published by energyvoice.com, the UK is considering whether to criminalize manipulation of the world’s most-traded crude-futures market.

Extract

The UK is toughening the rules after the rigging of Libor and related gauges resulted in $6.5 billion in fines for at least 10 companies. European Union antitrust authorities raided the offices of companies including BP Plc, Royal Dutch Shell Plc and Statoil ASA in May 2013 amid allegations of collusion and price manipulation in crude, refined products and biofuels markets. read more

Royal Dutch Shell News 23 Sept 2014

Screen Shot 2014-09-23 at 17.42.13By John Donovan

Nigeria

FROM THE DAILY MAIL

Shell has overhauled its security procedures in Nigeria to prevent oil theft that is costing it hundreds of millions of pounds. The Anglo-Dutch oil giant said it had stopped paying private security contractors to monitor its pipelines and oil facilities. 

Carbon Pricing

Forbes.com has published an article purportedly authored by Ben van Beurden, CEO of Royal Dutch Shell Plc.

Why This ‘Big Oil’ CEO Believes In Applying A Price To Carbon

Extract read more

Royal Dutch Shell Fire Sale Continues

Screen Shot 2014-06-23 at 11.37.41According to a Financial Times article, “Royal Dutch Shell has revived plans to dispose of its European liquefied petroleum gas business four years after a second failed attempt to sell the assets.” 

Shell has already disposed of under-performing assets around the globe, including Australia,  the USA and in the North Sea. The latest move is part of the $15 billion fire sale announced by the incoming new CEO Ben van Beurden earlier this year, following the surprise issuance of a Shell profits warning that shook the markets. read more

Royal Dutch Shell Retreat from Nigeria

Screen Shot 2014-02-10 at 16.29.29The FT states: “Shell’s phlegmatic chief executive Ben van Beurden will need to hold his nose when he takes the money…” and in a related article, describes Shell’s actions as a “retreat from the Niger Delta” (triggered in part by militancy, violence and bunkering).

Screen Shot 2014-08-28 at 08.53.45By John Donovan

The global firesale of Shell assets continues with the sale of four oil fields in Nigeria for $5 billion

The FT states: Shell’s phlegmatic chief executive Ben van Beurden will need to hold his nose when he takes the money… and in a related article, describes Shell’s actions as a “retreat from the Niger Delta” (apparently triggered in part by militancy, violence and bunkering). 

Extract from latter article: 

“…a militant uprising in the Niger Delta last decade led to severe supply disruptions, and though the worst of the violence has subsided, criminal gangs continue to cause havoc, siphoning off huge volumes of oil from the pipelines that criss-cross the delta.” read more

Roundup of Royal Dutch Shell News 16 August 2014

Screen Shot 2014-06-23 at 11.37.41SHELL’S USA FIRE SALE

The New York Times reports that the Blackstone Group, a private equity company, is paying Royal Dutch Shell $1.2 billion for a stake comprising more than 107,000 net acres in Louisiana. MORE

A related article by BusinessReport.com features a quote from Marvin Odum, president of Royal Dutch Shell’s U.S. division, Shell Oil Company. Marvin said in a statement: “We are adding highly attractive exploration acreage, where we have impressive well results in the Utica, and divesting our more mature, Pinedale and Haynesville dry gas positions.” MORE read more

Royal Dutch Shell News Roundup Monday 11 Aug 2014

Screen Shot 2014-02-10 at 16.29.29Rejection in Australia, Oil Spill Fire in Nigeria, Fire sale in the USA, Asbestos lawsuit in the UK

By John Donovan

AUSTRALIA

The Australian reports that a fortnight after Woodside Petroleum shareholders scuttled a $2.7 billion plan to remove Royal Dutch Shell from the company’s share register, Woodside has bought a 40% stake in a joint venture deep water exploration project off west Africa.

NORTH AMERICA

According to the FT, Shell is preparing to dispose of its 50 per cent stake in a Louisiana gasfield to Blackstone for $1.2bn, as the oil and gas group retreats from one of its souring investments in North America. Private equity group, Blackstone, is named as the likely purchaser.  The article contains reference to the “fix or divest” policy of Royal Dutch Shell CEO, Ben van Beurden in relation to Shell’s under performing North American upstream business. read more

Reflections on the notorious Kashagan ‘Cash All Gone” project 

By John Donovan

In view of the recent shattering news from the jinxed Kashagan project…

Production at Kazakhstan’s Kashagan Oil Field Halted Until 2016

…it is interesting to reflect back on the situation as it was in 2007, reported in this Reuters article by Tom Bergin.

It seems that not much has changed.

It also explains why Royal Dutch Shell ended up issuing a profits warning and launching a fire sale of assets, following a succession of disastrous projects mired by incompetence.  read more

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