Posts under ‘Shell’
By Ian Pierce – Thursday, 25 August, 2016
Oil majors must long for the halcyon days when a sustained period of low crude prices could be expected to send OPEC riding to the rescue with sweeping production cuts and a promise to boost global prices. Now, two years into a global supply glut that shows few signs of lifting, do oil majors need an OPEC to finally take action?
BP (LSE: BP) wouldn’t say no to the help. Interim results released last month saw underlying replacement cost profits, its preferred metric of profitability, slump 67% year-on-year. Add in a $2bn statutory loss for the period and net debt leaping to $30.9bn and worries have rightly begun to proliferate that dividends will be slashed sooner rather than later.
Billy Bambrough is City A.M.’s deputy news editor. Wednesday 24 August 2016
Some of the biggest global oil majors are being weighed down by record levels of debt.
The drop in the oil price has been blamed for the soaring debt levels. The price of a barrel of oil remains less than half of what it was in the summer of 2014.
The enduring low oil price and soaring debt levels have caused some investors to question whether the majors will be able to fork out for new investments and dividends in coming quarters.
By SELINA WILLIAMS and BRADLEY OLSON: Aug. 24, 2016
Executives at BP, Shell, Exxon and Chevron have assured investors that they will generate enough cash in 2017 to pay for new investments and dividends, but some shareholders are skeptical. In the first half of 2015, the companies fell short of that goal by $40 billion, according to a Wall Street Journal analysis of their numbers.
“Eventually something will give,” said Michael Hulme, manager of the $550 million Carmignac Commodities Fund, which holds stakes in Shell and Exxon. “These companies won’t be able to maintain the current dividends at $50 to $60 oil—it’s unsustainable.”
HIROFUMI MATSUO, Nikkei senior staff writer
The family’s opposition to the deal, struck last November, has baffled the rest of the Japanese oil industry and apparently riled Saudi Arabia, the world’s largest oil exporter. The future of Japan’s second-largest oil distributor hangs in the balance.
Speculation about Saudi anger has swirled in the Japanese oil sector since the family’s stance came to light in late June. Saudi Arabian Oil Co., better known as Saudi Aramco, the kingdom’s state oil company, is Showa Shell’s No. 2 shareholder, after Royal Dutch Shell. The Saudi company intends to retain a stake in the new entity created through the Idemitsu-Showa Shell merger. Under the proposal, Idemitsu would buy Showa Shell shares held by Royal Dutch Shell.
The Niger Delta, which largely dominates the oil-rich Gulf of Guinea, did not join the league of other oil-producing regions in the United Kingdom’s North Sea, United States’ Gulf of Mexico and the Middle East’s Persian Gulf through the efforts of the federal government or the Nigerian National Petroleum Corporation (NNPC).
It was the private sector-led initiative that catapulted the Niger Delta to its current influential position in the global energy dynamics.
The NNPC, which started as the Nigerian National Oil Corporation (NNOC), established by Decree No. 18 of 1971 before the NNPC Decree of 1977 was promulgated, did not initiate the search for crude oil in Nigeria.
Bidness Etc discusses how militant groups are affecting operations of foreign energy companies in Nigeria
By Staff Writer on Aug 22, 2016
Royal Dutch Shell plc (ADR) (NYSE:RDS.A), Chevron, and other energy companies are losing hope in the Nigerian government as the safety conditions of the country are not showing signs of improvement. Although on Saturday, the Niger Delta Avengers (NDA) agreed on a ceasefire, the emergence of other militant groups along with low probability of a deal between the officials and the groups anytime soon has raised doubt about the country’s oil and gas sector recovery.
By Prabhat Sakya – Monday, 22 August, 2016
Royal Dutch Shell (LSE:RDSB) is a £75bn company listed on the FTSE 100. It explores for, produces and refines both oil and gas products and has a long and proud dividend history. In February 2016 it acquired gas firm BG, meaning it now produces more gas than oil. So far, so straightforward.
But it has been hit hard by falling commodity prices, as both the value of oil and gas have tumbled over the past year.
Shell was hugely profitable
Currently Shell pays out a 6.1% dividend yield. That’s a high income, and it gives the company strong appeal to dividend investors. The question is, how sustainable is that yield?
Written by Mark Lammey – 22/08/2016 7:47 am
Shell’s New Zealand boss has reportedly said business was proceeding “as usual” amid reports the company was planning to divest its entire $1billion-plus portfolio in the country.
Australian media reports said late last week that JP Morgan had been hired to offload Shell’s assets, which were placed under review by the oil giant in December.
But Rob Jager told New Zealand media outlets the company was still looking at a range of options and that it was “business as usual”.
Oil companies and even Nigerian officials are losing faith in a deal anytime soon with militants who have slashed the nation’s oil output, casting doubt on a production recovery in what is typically Africa’s largest oil exporter.
In the six months since the first major attack on Nigeria’s oil – a sophisticated bombing of the subsea Forcados pipeline – dozens of attacks have pushed outages to more than 700,000 barrels per day (bpd), the highest in seven years.
Shell is preparing to sell all or some of its New Zealand operations, which carry an estimated value of more than $1 billion.break
Following inquiries by the ODT, Shell New Zealand country chairman Rob Jager confirmed speculation this week that investment bank giant JPMorgan had been appointed to support any sales process.
“Shell continues to explore a range of options for some or all of Shell’s assets in New Zealand. JP Morgan has been appointed to support this process,” Mr Jager said in a brief note, being unavailable for an interview.
By Kevin Godbold – Friday, 19 August, 2016
Our investing forefathers used to trot out the maxim ‘never sell Shell’. Years ago, Shell was a fast-growing business in a fast-growing market, so holding on to Shell shares indefinitely made more sense back then than it does now.
Today, Royal Dutch Shell (LSE: RDSB) is a mature business in a mature market and its fortunes tend to ebb and flow with the undulations of wider macroeconomic cycles. Adopting a long-term buy-and-hold strategy for Shell now seems inappropriate.
By Michael Bradwell: August 17, 2016
A subsidiary of Royal Dutch Shell plans to build a 94-mile pipeline to carry ethane to the cracker plant Shell is preparing to build in Beaver County.
According to a statement released Wednesday by Shell spokesman Ray Fisher, the pipeline will carry ethane produced by natural gas drilling companies in the tri-state area.
The project will be built by Shell Pipeline Co. LP, and will be located in Southwestern Pennsylvania and extend into West Virginia and Ohio.
Thu Aug 18, 2016 5:18pm EDT
Exxon Mobil Corp and Motiva Enterprises refineries continued to operate at reduced levels amidst flood waters in southern Louisiana, sources familiar with operations at each refinery said on Thursday.
An Exxon spokeswoman said the Baton Rouge Complex, which includes a 502,500 bpd refinery, continued to operate on Thursday, but declined to discuss the level of production or the status of specific units. The Baton Rouge refinery is the fourth largest in the United States.
BRIDGET CARTER: Mergers & Acquisitions Editor, Sydney
GRETCHEN FRIEMANN: Mergers & Acquisitions Editor, Sydney
19 August 2016
Shell has called on investment bank JPMorgan to offload its $1 billion-plus portfolio of oil exploration and production assets in New Zealand, with some analysts questioning whether Australian players will express interest in the offering.
It comes as part of a global selldown by the oil and gas giant, which signalled a retreat from various markets, amid a $US30bn ($39bn) global asset sale plan following its $US50bn takeover of BG Group.
By Roland Head – Wednesday, 17 August, 2016
Oil and gas giants Royal Dutch Shell (LSE: RDSB) and (LSE: BP) have been among the top performers in the FTSE 100 so far this year. Shell stock is worth 31% more than at the start of January, while BP is up 23%.
But these gains don’t seem to reflect the weak state of the oil market or both companies’ rapidly-growing debt piles. Are investors turning a blind eye to the risk of a dividend cut in pursuit of the 7% yields available on both stocks?
Cash flow problems at Shell?
Shell’s interim results showed that the firm’s net debt has rocketed from $25.9bn one year ago to $75.1bn today. Much of this is due to the BG acquisition. I expect Shell to be able to refinance a lot of BG’s debt at much lower interest rates than those paid by BG.
Jon Asmundsson: August 15, 2016
When the sun rose over the Caribbean Sea on July 25, the Maran Gas Apollonia was churning toward the new Panama Canal with a shipment of U.S. liquefied natural gas that it had loaded at Cheniere Energy’s Sabine Pass terminal in Louisiana. Tugs guided the 90,434-ton tanker into the first of the Panama Canal’s new Agua Clara Locks. The gates closed, and water filled the first chamber. That night the vessel passed through Gatun Lake and the new Cocoli Locks and entered the Pacific Ocean, becoming the first LNG tanker to transit the expanded shipping lane that opened in June. Built in 2014, the Royal Dutch Shell-chartered tanker is about 13 meters (43 feet) wider than the largest ships the old locks could handle. The expansion opens the Panama Canal to about 90 percent of the world’s LNG fleet, up from less than 10 percent, allowing these football-field-size tankers to shave 11 days and one-third the cost of the typical round trip to Asia. In July the U.S. Department of Energy predicted 550 tankers could be crossing each year by 2021. —
With the recent shutdown of pipeline owned by the energy giant in Nigeria coupled with the pipeline outages and militants attacks, we forecast a crude price rally
By Staff Writer on Aug 14, 2016 at 6:34 am EST
Following a string of attacks on its oil facilities combined with pipeline outages in Nigeria, Royal Dutch Shell (ADR) (NYSE:RDS.A) has finally declared a force majeure on Bonny Light crude oil. Citing statement by the company on Friday, Reuters reported that the Nembe Creek Trunk Line (NCTL) was shut down after a leakage by Aiteo, the pipeline’s operator. Aiteo was unavailable to comment on the matter.
Natasha Obank, spokesperson for the company stated: “The pipeline has been shut down for a joint investigation visit into the cause of the leak and repairs.”
Terry Macalister: Saturday 13 August 2016 07.00 BST
Arguments around the Arctic have more recently centred on oil company drilling such as Shell’s controversial and now abandoned attempts to explore off the coast of Alaska and new plans to open up the Norwegian far north.
But the increasing scope for industrialising the region as the ice melts has also triggered geopolitical tensions and talk of a new cold war because the legal status of who owns what up there is uncertain.
Fri Aug 12, 2016 3:06pm EDT
The fire-damaged hydrocracking unit at Motiva Enterprises’ [MOTIV.UL] 235,000 barrel per day (bpd) Convent, Louisiana, refinery was surrounded by high water on Friday from heavy rains overnight, sources familiar with plant operations said.
A Motiva spokeswoman on Friday did not discuss high water at the refinery in a email reply to questions from Reuters.
“Although the weather is challenging, the refinery is running and making product,” said Motiva spokeswoman Angela Goodwin.
By Erwin Seba and Liz Hampton | HOUSTON: Thu Aug 11, 2016 6:41pm EDT
A blaze broke out on Thursday at Motiva Enterprises [MOTIV.UL] 235,000 barrel per day (bpd) Convent, Louisiana refinery, heavily damaging the structure of the heavy oil hydrocracker before being extinguished in the afternoon, sources familiar with plant operations said.
Motiva confirmed that the fire was extinguished and said there were no injuries.
Initial assessments by Motiva indicated that repairs to 45,000 bpd HCU, called the H-Oil unit, are expected to take between one and four months, the sources said. Little damage was seen to the unit’s reactors, they said.
Fire causes evacuation of Motiva refinery in Louisiana
Aug 11 2016, 16:39 ET | By: Carl Surran, SA News Editor
A large fire at the 235K bbl/day Motiva Enterprises refinery in Louisiana today forced workers to evacuate, causing a key distillation unit to shut and boosting prices of oil products.
The fire, which reportedly started in the 45K bbl/day heavy oil hydrocracker unit, is still burning but is now under control; it is not yet known what caused the fire or how long it would take to repair any damage, which could take months to fix if the fire damaged the reactors.
1:57 PM. CDT August 11, 2016
CONVENT, La. – A major fire rocked the Shell Motiva oil refinery in Convent, Louisiana shortly before 11 a.m. Thursday. According to a Motiva spokesperson, “Motiva’s Convent Refinery experienced a fire involving one of its units.” A large amount of fire and plumes of black smoke could be seen for miles in the area.
The general manager of the Motiva plant said that no one at the plant, either Motiva employees or contract workers – a total of about 1,400 people – were injured as a result of the fire. He also said that there was no explosion.
Exclusive: Iraq, oil companies agree to restart investment, boost output
Iraq has reached agreement with BP, Shell and Lukoil to restart stalled investment in oil fields the firms are developing, allowing projects that were halted this year to resume and crude production to increase in 2017, Iraqi oil officials said.
The agreements, reached in July and August, effectively delay to the second half of the year projects that the three companies had planned to carry out in the first half, which had been suspended because of low oil prices.
Aug 10 2016, 14:57 ET | By: Carl Surran, SA News Editor
Royal Dutch Shell’s (RDS.A, RDS.B) 7.5% dividend could be at risk because of its “ballooning” debt, says Raymond James analyst Jean-Pierre Dmirdjian, adding that the concerns outweigh the longer-term appeal of the company’s transformation story.
The analyst says his fair value of ~$27/share makes Shell seem like a potential buy, but it is “too soon to be charmed by the reshaping plan” announced in June.
James notes the “unsupportive oil price environment [which] puts a strain on cash flow” and makes debt reduction an increasing priority; the firm reiterates its Market Perform rating on the stock.
Aug 10, 2016, 11:25 ET from Shell International Finance BV and Royal Dutch Shell plc
LONDON, August 10, 2016 /PRNewswire/ —
The following prospectus has been approved by the UK Listing Authority and is available for viewing:
Information Memorandum dated 9 August 2016 relating to the Multi-Currency Debt Securities Programme of Shell International Finance B.V. (as Issuer) and Royal Dutch Shell plc (as Issuer and as Guarantor) (NYSE: RDS.A)(NYSE: RDS.B).
To view the full document and the documents incorporated by reference, please paste the following URLs into the address bar of your browser.
Royal Dutch Shell Plc said its local unit has declared force majeure on supplies to a liquefied natural gas plant in Nigeria because of a leak in a pipeline as the OPEC member suffers from militant attacks on energy infrastructure that are hurting exports.
“The pipeline has been shut down for a joint investigation visit into the cause of the leak and repairs,” Natasha Obank, a Shell spokeswoman, said in a statement. The leak occurred on the Eastern Gas Gathering System, or EGGS-1, pipeline which supplies the bulk of Shell’s gas to the Nigeria LNG plant on Bonny Island. Some supply continues through other pipelines, Shell said.
Written by Niamh Burns – 08/08/2016 2:43 pm
Stocks including fresh water are said to be running out on a North Sea platform hit by strike action.
Oil major Shell said stocks are “running low” as a result of a supply vessel being unable to offload due to the bad weather over the weekend.
However, workers have attributed the low stocks on the Gannet platform to the current industrial action.
Some have claimed laundry services have been shut since the weekend and they have been told to re-use towels and take shorter showers and re-wear clothes due to depleted water levels.
Written by Niamh Burns – 08/08/2016 12:56 pm
Oil major Shell has completed improvement notices from the Health and Safety Executive (HSE) after an incident led to the loss of containment of more than 800kg of gasoline.
The North Sea operator was hit with a notice which said it had “failed to demonstrate” that it had established a “safe operating pressure” for the loading of gasoline to ships.
The notice at the time added: “Despite evidence of repeated swivel joint seal failures on loading arms at Breafoot Bay and in particular the failure of the middle seal of the triple swivel joint on loading arm 3 during single pump loading on 21st April 2016, which led to the loss of containment of 825kg of gasoline.”
Andrew Ward, Energy Editor: August 7, 2016
Extracts relating to Shell…
This balancing act is especially tricky for Shell as disposals are crucial to reduce debts after its £35bn takeover of BG Group, completed in February.
“Shell is going to have to be flexible on price if it is to move forward with some of these deals,” said one energy banker. “They cannot just sit back and wait for oil prices to come back.”
“On the debt, it may go up before it comes back down,” Shell Chief Financial Officer Simon Henry told investors last week. “And the major factor is the oil price.”
By Javier Blas: August 5, 2016
When commodity prices crashed in late 2014, oil executives could look at their mining counterparts with a sense of superiority.
Back then, the world’s biggest oil companies enjoyed relatively strong balance sheets, with little borrowing relative to the value of their assets. Miners entered the slump in a very different state and some of the world’s largest — Rio Tinto Plc, Anglo American Plc and Glencore Plc — had to reduce dividends and employ draconian spending cuts to bring their debt under control.
By Sandy Mazza, Daily Breeze: 5 August 2016
Carson officials signaled an end this week to a six-year court battle with two multinational corporations accused of secretly leaving a massive waste-oil dump buried just feet beneath 285 homes in the Carousel tract neighborhood for decades.
City leaders, who joined the lawsuit in 2012 to support residents seeking compensation for physical and emotional problems from longtime exposure to petrochemicals, agreed Tuesday to drop their complaint and approve settlements offered by Shell Oil Co. and Dole Food Co. totaling $120 million.
Shell Returns To Unalaska
By ZOE SOBEL: Saturday 6 August 2016
Shell is back in Unalaska. Dutch Harbor was a staging area for Shell’s unsuccessful search for oil in the Arctic Ocean last year. This week, three ships — the Aiviq, the Dino Chouest, and the Ross Chouest — associated with Shell’s Arctic efforts arrived in Unalaska on a mission to remove the last signs of that effort.
A Shell representative says the vessels are “tasked with retrieving more than 50 anchors from the Chukchi and Beaufort Seas” and “completing required environmental science monitoring and reporting.”
UPDATED: POSTINGS ON SHELL BLOG FRIDAY 5 AUGUST 2016
Dutchdude 2016/08/05 at 3:03 pm
A few weeks ago there were some posts about Shell pocketing the tax relief of those taking the severance package. I had expected a bit more comments on this? Is the principle of tax not that it goes to the government? Since when do we allow companies to impose their own tax? Apart from the unfairness to the employees who worked for this and made sacrifices, it feels incorrect and arrogant. Tax should go to the government and tax relief to the person who is entitled to it. It should not be allowed to be taken away by unscrupulous HR staff. If there is a reader here who works for the government tax department please raise this with your employer (UK, Holland, …). I bet that each severance employee rather pays tax to his government than to Shell.
By Harvey Jones – Friday, 5 August, 2016
All good things come to an end, and I’m afraid this old saying is increasingly likely to apply to today’s sky-high dividend paid by Royal Dutch Shell (LSE: RDSB).
Unsure of Shell
The oil major has a proud record of raising its dividend every year since the Second World War, but that record surely can’t last much longer. Shell faces a different type of global threat these days as the after-effects of the financial crisis continue to rumble on (or even intensify), and the oil price plunges once again.
By Jimitota Onoyume: AUGUST 5, 2016
PORT HARCOURT— Environmental Rights Action/Friends of the Earth of Nigeria has called on the Federal Government not to include Shell Petroleum Development Company, SPDC, in any body constituted to oversee the clean up exercise in Ogoni, Rivers State.
Executive Director of the organisation, Dr Godwin Ojo, in his opening remark at a colloquium, yesterday, in Port Harcourt, to commemorate the 5th anniversary of the release of the recommendations of United Nations Environment Programme, UNEP, on Ogoni-land, said that the alleged insistence by the oil company to sit on the Governing Council and Steering Board was worrisome.
Over the past 10 years, the oil industry has changed dramatically. Technological advances have helped reduce the cost of extracting oil from unconventional sources significantly, and as oil prices have plunged over the past two years, shale oil producers have ploughed more time and resources into pushing costs even lower.
As a result of this unrelenting drive to reduce costs and improve efficiency, it’s estimated that the majority of US shale fields can break even with oil at $60 a barrel. Scott Sheffield, the outgoing chief of Pioneer Natural Resources claims that Pioneer’s pre-tax production costs have fallen to $2.25 a barrel.
Andrew Ward, Energy Editor: August 4, 2016
Hundreds of workers on North Sea oil and gas rigs downed tools on Thursday in an escalation of a dispute which has highlighted mounting economic pressure on the UK offshore energy industry.
The strike has exposed rising anger among the North Sea workforce…
RELATEDBryce Elder Shell slips as concern shifts to debt pile
Mr Smith cited the immigration legacy of Australian gold rush towns like Bendigo. Picture: Gary Ramage.
Shell Australia chairman Andrew Smith has called for greater levels of immigration to bolster population growth, saying industry has failed to advocate for immigration policy that will help the economy.
“Often-hysterical debate has surrounded Australian immigration in the new millennium,” Mr Smith told a Melbourne Mining Club lunch.
Markets | Wed Aug 3, 2016 11:53pm EDT
* Idemitsu family buys small stake in Showa Shell
* Purchase raises prospect of possibly expensive tender offer
* Fears grow that move may derail deal
* Shares in Showa Shell down 8 pct, Idemitsu down 7 pct
By Makiko Yamazaki and Chang-Ran Kim
TOKYO, Aug 4 A move by Idemitsu Kosan Co Ltd’s founding family to block management’s plan to acquire smaller rival Showa Shell Sekiyu KK sent shares in the Japanese refiners tumbling on Thursday as concerns grew that the family might well succeed.
Unite and the RMT union are representing about 350 workers involved in a dispute over pay and conditions with oil services company Wood Group.
Some workers claim they are facing cuts of up to 30%. Wood Group denies this.
The Aberdeen-based firm provides maintenance and construction to Shell and signed a three-year extension to its contract earlier this year.
Unite said the unions offered to suspend industrial action if Wood Group removed the current proposal for changes to pay and conditions in full, to allow further talks.
Idemitsu Kosan Co. founding family descendant Shosuke Idemitsu has begun buying up shares in rival Japanese oil refiner Showa Shell Sekiyu KK in a bid to block a proposed merger between the two companies.
The Idemitsu founder’s son purchased 400,000 Showa Shell shares and may buy more until his namesake company gives up on the deal, according to a statement distributed to reporters in Tokyo on Wednesday. Showa Shell rose as much as 12 percent to 1,014 yen, the biggest intraday gain in more than a year, and closed 3.8 percent higher. Idemitsu fell 3.9 percent to 1,984 yen.
by Mary Morley: Tuesday, 02 Aug 2016, 10:38 BST
The latest fall in oil prices has revived concerns about Royal Dutch Shell’s (LON:RDSA) debt pile, analysts at RBC have said. The comments follow the oil major’s second-quarter results last week when the Anglo-Dutch group posted a hefty drop in profits.
Shell’s share price has fallen into negative territory in today’s session, tracking crude lower. As of 10:09 BST, the shares were changing hands 1.85 percent in the red at 1,853.50p, underperforming the benchmark FTSE 100 index which currently stands 0.77 percent lower at 6,642.68 points. The group’s shares have been little changed over the past year, and are up by more than a fifth in the year-to-date.
Bryce Elder: August 1, 2016 6:40 pm
With oil at three-month lows, concerns about Royal Dutch Shell ’s debt burden left it among Monday’s biggest fallers.
RBC said that while investors had become more comfortable with Shell’s purchase of BG, the weak oil price had shifted attention to Shell’s $75bn of net debt and its reliance on disposals.
- The Australian
- 12:00AM August 2, 2016
BRIDGET CARTER: Mergers & Acquisitions Editor: Sydney
GRETCHEN FRIEMANN: Mergers & Acquisitions Editor: Sydney
It’s unlike the CFO of an oil major to be imprecise when it comes to accounting classifications of assets.
Unless maybe he doesn’t mind causing a bit of mischief for a joint venture partner with whom relationships have been less than rosy of late.
Shell finance director Simon Henry set the hares running last week during a second-quarter earnings call when he declared the company’s 13.3 per cent stake in Woodside Petroleum had been reclassified first as “held available for sale” and then “held as an asset for sale”.
By Lincoln Brown – Aug 01, 2016, 1:30 PM CDT
No one has claimed responsibility for an attack on a Shell pipeline in the early morning hours in the Niger Delta region on Sunday.
The attack came at about 1:00 AM local time on the Trans Ramos Pipeline near Odimodi—a pipeline owned by Shell Petroleum Development Company.
According to resident Godspower Gbenekama, residents heard a loud explosion and found an oil spill. There have been no reports of any injuries in the incident.
Another resident, who spoke on condition of anonymity, said that this was not the first time militants had hit the pipeline, stating: “Precisely on the 22nd of this month, there was a failed attempt to attack the same facility, hence we were expecting that security in the area would have been tightened, but we are really disappointed that they succeeded this time.”
Mon Aug 1, 2016 6:24am EDT
Suspected militants have attacked an oil pipeline operated by a local affiliate of Shell in Nigeria’s restive southern Niger Delta region, locals and a community group said on Monday.
Militants have attacked oil and gas facilities in the OPEC member’s energy hub over the last few months, cutting the country’s crude production — which stood at 2.2 million barrels per day (bpd) at the start of the year — by around 700,000 bpd.
Nobody has claimed responsibility for a blast at the Trans Ramos Pipeline near Odimodi, operated by Shell’s joint venture SPDC, which locals said happened in the early hours of Sunday shortly after 1:00 a.m. (08:00 EDT). Shell said the line was closed for repairs.
By Muhammad Ali Khawar on Aug 1, 2016 at 7:57 am EST
Just when you thought oil prices will rebound they got even worse. The last few weeks have been quite eventful for the oil and gas industry, with companies releasing their second-quarter earnings. The quarter hasn’t been as rewarding for integrated oil and gas majors.
The decline in crude oil price has persisted for quite a while now. West Texas Intermediate was down 0.50% at $41.40 per barrel, while Brent Crude was down 0.32% at $43.39 per barrel, earlier today.
By AFP: PUBLISHED: 22:14, 31 July 2016
Nigerian militants on Sunday blew up a crude pipeline operated by Anglo-Dutch oil giant Shell in the restive oil-producing south, residents said.
“The incident occurred at about 1:00 am near Odimodi community in Delta State with the velocity of the blast shaking apartments in the community amidst a huge ball of fire,” said local resident Endoro Newworld.
“The trunk line known as Trans Ramos belongs to the Shell Petroleum Development Company (SPDC), he said.
- BRADLEY OLSON, SELINA WILLIAMS
- The Wall Street Journal
- 12:00AM August 1, 2016
The world’s biggest oil companies posted losses or steep declines in profit for the second quarter, and now face a daunting remainder of the year as crude prices retreat to about $US41 a barrel.
ExxonMobil on Friday reported its quarterly profit fell 60 per cent to the lowest level since 1999, while Chevron disclosed its biggest quarterly loss since 2001. The results capped a bad week for big Western oil companies: BP and Royal Dutch Shell earlier posted earnings that disappointed investors.