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Shell, Total look to expand terminals and power plants in new markets

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Written by Reporter – 13/06/2016 6:00 am

Oil majors Shell and Total are said to be considering building terminals and power plants in new markets.

The move comes after companies have invested billions in plants to help produce liquefied natural gas (LNG) in place such as the US and Australia.

Laurent Vivier, president for the gas division of Total, said the company was ready to go downstream “as much as it takes” to unlock gas demand.

He said: “We need to be present in downstream ourselves, to create demand and unlock bottlenecks along the chain including regasification, pipeline and power plants.”

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Coming wave of gas puts focus on finding new shores

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Screen Shot 2016-06-06 at 10.26.15LONDON | BY RON BOUSSO AND OLEG VUKMANOVIC: Sun Jun 12, 2016

Energy giants such as Royal Dutch Shell and Total are looking to build terminals and power plants in new markets to soak up the industry’s rapidly burgeoning supply.

Companies have invested billions in plants to produce liquefied natural gas (LNG) in places such as Australia and the United States.

But gas demand growth is slowing, prices are down and the LNG volumes companies are set to produce will exceed those even major buyers such as China and Japan can absorb.

That has turned attention to the downstream market and opportunities to create new markets from Ivory Coast to remote Indonesian islands by building gas-fired power plants, pipelines, regasification and storage terminals.

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Waiting for Big Oil to clean up its act

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Screen Shot 2016-06-11 at 22.29.07By Jillian Ambrose

11 JUNE 2016 • 7:22PM

“The world is going to have to continue using fossil fuels, whether they like it or not.” There’s little disguising the defiance in the words of Exxonmobil chief Rex Tillerson.

In a Dallas concert hall, less than six months after the historic global climate deal in Paris, the long-standing leader of the world’s largest listed oil company locked horns with shareholders in an increasingly familiar battle for Big Oil.

For years, placard-wielding green activists have raised warnings that echo the financial collapse: a “carbon bubble” could leave markets reeling as trillions of dollars’ worth of existing fossil fuel assets become worthless in a low-carbon world.

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Royal Dutch Shell Set to sink?

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By Royston Wild – Saturday, 11 June, 2016

The possibility of protracted earnings pain also makes Royal Dutch Shell (LSE: RDSB) a gamble too far, in my opinion.

At face value, charging oil prices may be at odds with my bearish take on the state of the market. Indeed, the Brent index surged above the $52 per barrel marker for the first time since October this week, helped by supply disruptions in Nigeria and a weaker US dollar.

However, the long-term outlook for crude values remains on thin ice, in my opinion. Production from OPEC and Russia continues to blast higher, while patchy economic growth means that bloated inventory levels are likely to persist, a situation that could send black gold prices sinking again.

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Shell Gas Director Says World Isn’t Oversupplied With LNG Yet

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By Lynn Doan: June 10, 2016 – 10.52 PM BST

Screen Shot 2016-06-06 at 10.26.15For months, banks including Citigroup Inc. have talked about a massive oversupply in the global market for liquefied natural gas. The head of natural gas at Royal Dutch Shell Plc, one of the world’s biggest producers of the fuel, would beg to differ.

“There isn’t really yet the kind of oversupply that people talk about,” Maarten Wetselaar, Shell’s integrated gas and new energies director, said on Friday in an interview in Palo Alto, California. For proof, he said, look at Europe, where natural gas demand gained last year and LNG imports from overseas were little changed.

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Shell’s Legal Offshoring a Sign of Things to Come

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Facing an era of lower oil prices, Shell announced plans on June 7 to cut company costs and become more efficient…

Sue Reisinger, Corporate Counsel: June 10, 2016

The announcement by Royal Dutch Shell that it plans to open an offshore legal operations center illustrates a growing trend, according to industry experts.

Facing an era of lower oil prices, Shell announced plans on June 7 to cut company costs and become more efficient. Part of those plans includes opening an offshore legal center, as have a few other companies and several major law firms. Shell legal director Donny Ching told the Law Society Gazette in London that the move would relate to “some specific parts of our work where it makes sense to consolidate services, increase efficiencies and reduce costs.”

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Bad news for fossil fuels

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By Ed Crooks: June 10. 2016

Two of the most widely respected energy analysts – BP’s economics team and the International Energy Agency – published reports this week, and both brought bad news for fossil fuel producers. They differed, however, in the focus of their gloomy perspectives. For BP, publishing its 65th annual Statistical Review of World Energy, it was coal that came off worst. As Spencer Dale, BP’s chief economist, put it in his presentation, “2015 was undoubtedly an annus horribilis for coal”. The shift to natural gas for power generation in the US gathered pace, and there was a second consecutive year of declining consumption in China.

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Britain to shed a quarter of its oil jobs since price fell – industry

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Friday 10 June 2016

Screen Shot 2016-05-21 at 10.18.28LONDON (Reuters) – As many as 120,000 oil workers will have lost their jobs in Britain by the end of the year compared to mid-2014 when oil prices started declining and unleashed sector-wide cost cuts, the industry’s lobby group said on Friday.

Britain’s oil industry and indirectly related jobs like supply chain and services are estimated to fall to 330,000 by the end of the year, down from 450,000 in 2014, Oil and Gas UK said in a report.

Major British oil industry employers like Royal Dutch Shell (RDSa.L), BP (BP.L) and Chevron (CVX.N) have all announced substantial job cuts in order to rein in costs as revenues have been hit hard by weak oil prices.

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Niger Delta Avengers blow up another Shell facility

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Chrisantus Obi-Ezechukwu: Friday, 10th June 2016

Screen Shot 2016-05-21 at 10.18.28New militant group, Niger Delta Avengers, last night blew up another oil facility belonging to Shell Petroleum Development Company (SPDC).

The facility is said to be around Ogidigben, Warri South West Local in Delta State.

It was learnt that the incident occurred after 8p.m.

“The incident occurred along the Chanomi Creek around Ogidigben area. We got reports from our field office that a loud explosion was heard at the location, which was followed by a huge ball of fire,” a source said.

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Shell makes $4bn North Sea investment pledge

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Written by Energy reporter – 10/06/2016 7:56 am

Royal Dutch Shell said its spending plans will include a cash injection of around $4billion for the North Sea.

The investment drive will be rolled out between this year and 2018 and is understood to be line with its previous expenditure in the region.

The energy giant announced on Tuesday that it would scale down global investment and pinpoint further savings as it grapples with lower oil prices.

Paul Goodfellow, Shell’s vice president for Upstream in UK & Ireland, told the Press Association that it will “include significant investments with our partners West of Shetland in the Clair and Schiehallion projects in which Shell has a 28% and 55% share respectively.”

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Leak reportedly shuts Nigeria’s Trans Niger Pipeline

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Jun 9 2016, 17:26 ET | By: Carl Surran, SA News Editor

Nigeria’s Trans Niger Pipeline, one of two major pipelines that carries the Bonny Light crude grade for export, was shut down yesterday after a leak was found, Upstream reports.

Royal Dutch Shell (RDS.A, RDS.B), one of TNP’s partners, confirmed that the pipeline had shut down but declined to comment further; the other partners are Total (NYSE:TOT), Eni (NYSE:E) and Nigerian National Petroleum Corp.

The shutdown comes just as repairs were completed on the Nembe Creek Trunk Line that also moves Nigeria’s major export grade.

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Aranguren also in the spotlight as he refuses to sell Shell stock

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Thursday, June 9, 2016

The sworn declarations of the assets belonging to the officials of the Mauricio Macri presidency (presented last Thursday at the Anti-Corruption Office) reveal varying degrees of wealth among a total of of over 430 million pesos but no item had more impact than the 16 million pesos worth of shares retained in Shell by Energy and Mining Minister Juan José Aranguren because it also represents a conflict of interest.

But Aranguren (with a 38-year career in Shell, whose local branch he headed for 12 years until last December when he joined Macri’s Cabinet) has no plans to shed the shares. Ministry spokesmen hastened to defend the situation of controlling the oil industry while owning shares in one of its companies by arguing: “The only restriction imposed by the law is that the minister cannot take specific decisions concerning Shell as a company previously employing him.”

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Argentine energy minister hit by Shell shares controversy

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By: Associated Press | Published: June 9, 2016 9:40 AM

Argentina’s government is defending its energy minister who is facing growing criticism for continuing to own shares in Royal Dutch Shell, where he was an executive of the local branch.

Juan Jose Aranguren became energy minister in December. He reported about $1.1 million in Shell’s class A shares in a wealth statement that was released this week.

Cabinet chief Marcos Pena said Wednesday that ”the law is very clear” and there is no conflict of interest.

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North Sea oil: The £30bn break-up

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Kiran Stacey and Alan Livsey

Screen Shot 2016-05-21 at 10.18.28The Pioneering Spirit, a catamaran the length of five jumbo jets, will next year sidle up to Royal Dutch Shell’s Brent Delta oil platform in the North Sea, 115 miles north-east of the Shetland Islands.

In doing so, the ship will have undertaken the heaviest lift ever attempted in the North Sea. More significantly it will also have begun what is expected to be a wave of decommissioning across the North Sea, as oil companies struggling with low prices shut down production and pack up one of the UK’s most successful industries of the past 50 years.

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Boom Town…Shell commits to build cracker plant in Beaver County

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Jun 8, 2016By Christian Morrow

After four years of will-they-or-won’t-they, Royal Dutch Shell has announced it will construct a multi-billion-dollar ethane cracker plant at the site of the former Horsehead zinc smelter in Center and Potter townships, Beaver County.

Project will employ thousands

The company announced it was going forward with the project June 7, much to the delight of Allegheny County Executive Rich Fitzgerald who released a statement thanking Shell and congratulating everyone involved in the process, from Governor Tom Wolf to the Marcellus Shale Coalition.

“The project is monumental; the building of this plant will be equivalent to the construction of 25 stadiums,” said Fitzgerald.

“This announcement accelerates our growth to a next level and will provide even more opportunities for our young people. This multi-billion investment will bring economic growth to our region now and for generations to come, and we thank Shell for their decision to invest here.”

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What Caused Royal Dutch Shell’s Shares To Soar

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Arie Goren: Jun. 9, 2016 6:14 AM ET

Screen Shot 2016-05-21 at 10.18.28Summary

  • In its Tuesday, June 7, investor meeting, Shell offered a very encouraging update on the company’s strategy, which sets a clear course for stronger returns and free cash flow.
  • Oil prices have shown a significant rebound in the last five months. As such, we can expect much better results for Shell’s upstream operations in the forward quarters.
  • Investing in a supermajor integrated oil & gas company like Royal Dutch Shell will give investors a significant price appreciation when oil prices recover along very generous dividend yielding 7.1%.
  • In my view, we can learn from the company’s new strategy that the dividend is sustainable.

Shares of Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) soared in the last two days after its Chief Executive Officer Ben van Beurden provided on Tuesday, June 7, an update on the company’s strategy, that according to the company, sets a clear course for stronger returns and free cash flow. Shares of RDS.A have increased 6.43% in the last two days and shares of RDS.B have risen 6.58%.

Since the beginning of the year, RDS.A’s stock is already up 15.7% while the S&P 500 Index has increased 3.7% and the NASDAQ Composite Index has lost 0.7%. However, since the beginning of 2012, RDS.A’s stock has lost 27.5%. In this period, the S&P 500 Index has increased 68.5% and the Nasdaq Composite Index has risen 91%.

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Shell relinquishes Canadian Arctic drilling rights

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Screen Shot 2016-05-21 at 10.18.28By Mike De Souza in News, Energy | June 8th 2016

One of the planet’s largest oil companies has just walked away from a large swath of oil and gas reserves in the Canadian Arctic. But it says it hasn’t given up altogether on the prospects of drilling for the fossil fuels in the pristine waters of the North.

Royal Dutch Shell announced it was relinquishing 30 of its oil and gas leases around Lancaster Sound – a region of the Arctic Ocean that the government and local Inuit groups have long tried to protect as a vital habitat for threatened mammals such as narwhals, beluga whales and polar bears.

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Companies charged with workplace breaches following Corrib gas death

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Edwin McGreal: Belmullet: 08 JUNE 2016

Two companies have been sent forward to the Circuit Criminal Court in Castlebar on charges following a workplace accident which resulted in the death of a man working on the Corrib gas tunnel in 2013.

Twenty-six year old Lars Wagner was killed, in September 2013, while he was working on the construction of a tunnel for the Corrib gas project.

Mr Wagner, a German native, was working on boring a tunnel to carry the project’s gas pipeline under Sruwaddacon Bay to the Corrib gas refinery at Bellenaboy.

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Shell to end longtime sponsorship with Houston Open

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By Associated Press:
June 8 at 7:20 PM

HOUSTON — Shell Oil Co. has decided not to extend its title sponsorship of the Houston Open after next year, ending the third-longest running title sponsorship on the PGA Tour.

Steve Timms, president and chief executive of the Houston Golf Association, said Shell’s decision to leave after 2017 was a function of its business environment and that the company wants to stay involved in some capacity.

“We’re proud as heck of what will be 26 years of a long-running sponsorship,” Timms said Wednesday. “This will present some opportunities for us. We’re confident in our property. We’re in a big market and we feel good about it.”

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Shell ‘fracked’ well in field that spilled oil into Gulf

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NEW ORLEANS — Fracking chemicals were used on at least one of the four Shell oil wells in an offshore field that leaked nearly 90,000 gallons of oil into the Gulf of Mexico last month, but those chemicals were likely long gone before the spill, federal regulators tell WWL-TV.

The government approved the use of a “frac pack” on Well No. 8 in Shell’s Glider Field, about 95 miles south of Port Fourchon, La., on Feb. 12, 2015, according to summaries of drilling permits archived on the federal Bureau of Safety and Environmental Enforcement website.

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Shell Follows Total in Buying Iranian Crude After Sanctions End

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  • Vessel with 1 million-barrel crude cargo booked for Europe

  • Total was first oil major to buy Iranian crude for region

Screen Shot 2016-06-08 at 19.11.36By Rupert Rowling, Angelina Rascouet and Julian Lee: June 8, 2016

Royal Dutch Shell Plc is set to ship a cargo of Iranian crude to Europe next month, becoming the second major oil company in the region after Total SA to resume oil trade after some sanctions on the Persian nation’s nuclear program were lifted in January.

Shell booked the Delta Hellas tanker to carry one million barrels of Iranian crude to Europe, loading July 1, according to lists of charters compiled by Bloomberg. Shell declined to comment on the booking.

Among oil majors, Total was the first to resume purchases of Iranian crude after the French oil company chartered a cargo in February. The first shipment to arrive in Europe was for the independent Spanish refiner Cia. Espanola de Petroleos, which unloaded on March 6.

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Shell signals retreat from North Sea amid further cost cutting

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Screen Shot 2016-05-21 at 10.18.28By MARK WILLIAMSON: 8 June 2016

ROYAL Dutch Shell has given a further signal it will retreat from the North Sea as the company said it will continue with deep cuts in spending amid the crude price plunge.

Chief executive Ben van Beurden said the oil and gas giant will focus investment on the kind of big fields which will generate high returns over the long term and which the company has made clear are in short supply in the North Sea.

Shell is investing heavily in two giant fields West of Shetland with BP, which are due to come onstream in coming months and could be in production for years, but has nothing similar in the pipeline.

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Shell resumes Iranian oil purchases

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Wed Jun 8, 2016 10:00am EDT

Royal Dutch Shell has resumed purchases of Iranian crude, becoming the second major oil firm after Total to restart trade with Tehran after the lifting of sanctions, trading sources said and ship tracking data showed.

Iran has been trying to claw back its market share since international sanctions were lifted in January and regaining a major buyer such as Shell will further aid its cause.

Shell declined to comment.

According to shipping data, Shell fixed Suezmax tanker Delta Hellas to bring 130,000 tonnes of Iranian crude from Kharg Island on July 8 to continental Europe.

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Royal Dutch Shell Carries Out Repair Works in Nigeria Despite Security Threats

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By Micheal KaufmanJun 8, 2016 at 10:50 am EST

Although Royal Dutch Shell plc (ADR) (NYSE:RDS.A) is carrying out repair-work at two sites in Nigeria, the company said it could not “operate or repair” the facilities in the Niger Delta if its employees are not safe. The militant group, Niger Delta Avengers, has attacked Shell’s Nigerian facilities thrice in the past five months.

Attacks

First, the militants attacked Shell Forcados terminal and an under-water pipeline in February. The pipeline links offshore port with the onshore crude oil storage tanks. This was the first time that the group carried out an attack in public.

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Shell to move away from growth in natural gas business

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By IAN BICKIS: The Canadian Press: Tues., June 7, 2016

CALGARY—Royal Dutch Shell says it’s shifting away from growing its liquefied natural gas business, a move that raises fresh doubts about the future of its proposed LNG Canada project in Kitimat, B.C.

The company said Tuesday the pace of new investment in LNG will slow as it moderates growth and prioritizes cash flow generation and returns on existing projects.

Shell said while its integrated gas business was previously a “growth priority,” it has now reached a critical mass after completing the acquisition of gas giant BG Group in February.

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Shell cuts cost for the rest of the decade after takeover

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By DAVID SHANDPUBLISHED: 00:03, Wed, Jun 8, 2016

The company set out its plans to create a “world class investment case” for shareholders following its £35billion takeover of fellow FTSE 100 oil and gas giant BG Group, which will include more asset sales and cost-cutting.

In its presentation to investors, Shell said it would squeeze an extra $1billion (£690million) in savings from the BG deal from an earlier $3.5billion forecast.

It aims to sell 10 per cent of its oil and gas production by exiting operations in up to 10 countries.

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Shell-Operated Nigeria Pipeline Said to Be Under Repair

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Screen Shot 2016-06-07 at 23.34.38Javier Blas: June 7, 2016

Repair work on a key Nigerian crude oil pipeline operated by Royal Dutch Shell Plc is ongoing under very tight security, according to a person familiar with the operations.

The repairs were being carried out in two different sites of the Forcados export pipeline, which was hit by explosions in February and again last week, said the person, who asked not to be named because of security concerns. Earlier Chief Financial Officer Simon Henry said the company had to withdraw repair crews last week after a second attack against the 48-inch Forcados pipeline that links onshore storage tanks with an offshore port.

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Royal Dutch Shell’s High-Wire Act

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By PAUL J. DAVIES: June 7, 2016 11:48 a.m. ET

For Royal Dutch Shell , austerity is tricky. The Anglo-Dutch oil and gas group is doing almost everything it can to make its finances work. The trouble for investors is that it still may not be enough.

Shell has found more cost savings more quickly from its takeover of BG Group and is slashing its investment plans back to almost the minimum needed to keep producing. But without a recovery in oil and gas prices it will struggle to balance its long-term prospects with near-term promises.

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Shell to build Pennsylvania plastics plant in bid for market share

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HOUSTON, JUNE 7 | BY ERNEST SCHEYDER: Tue Jun 7, 2016

Royal Dutch Shell Plc said on Tuesday it will build a chemical plant in Pennsylvania, planning to use an inexpensive and abundant supply of natural gas to make plastics for the northern United States.

The multibillion-dollar plant’s construction will bring an infusion of cash and jobs to northern Appalachia, an area hard-hit by the collapse in the coal and steel industries. Personal and small business income in the region is roughly 25 percent lower than the rest of the United States.

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Shell’s Big Find

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Screen Shot 2016-06-06 at 10.26.15By Chris Hughes: June 7, 2016

Shell is learning not to waste a crisis.

The Anglo-Dutch oil major is pulling on every lever to deal with the consequences of agreeing a takeover of rival BG Group just before the oil price collapsed last year. Shareholders can only hope that the zeal it now shows for running a tight ship will endure once the company is on a surer footing.

The $54 billion cash-and-shares purchase of BG was completed in the first quarter, just as the oil price hit rock bottom. As of March 31, Shell’s net borrowings had shot up from $27 billion to $70 billion. Operating cash flow on a 12-month rolling basis was $23 billion — too low for a company then targeting $33 billion of annual capital expenditure and accustomed to paying $10 billion of cash dividends annually, even allowing for a contribution from BG. No wonder analysts have been penciling in dividend cuts.

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Shell’s bonus for City as drilling for savings yields extra $1 billion

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RUSSELL LYNCH: 7 June 2016

Royal Dutch Shell boss Ben van Beurden delivered a $1 billion (£688 million) present to the City today as he pumped up more savings from the oil major’s $54 billion mega-merger with rival BG Group.

The shares rose almost 3%, or 48p, to 1749p as the cost-cutting drive, which has stepped up a gear since the deal completed in January, now promises $4.5 billion in savings by 2018. 

That compares with the $3.5 billion previously estimated.

The latest savings will not involve further job cuts on top of the extra 2200 announced two weeks ago by the firm, which took the total number of jobs shed through the merger to at least 12,500. 

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Shell asset sales on track, no plans for ‘Baby Shell’ IPO: CEO

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Holly Ellyatt | Stephen Sedgwick: 7 June 2016

Royal Dutch Shell‘s plans to sell off assets and pull out of up to 10 countries are on track, the oil major’s chief executive told CNBC on Tuesday, putting to bed rumors of a spin-off of non-core assets into a “Baby Shell.”

On the company’s capital markets day in London, Shell in a statement said that it was taking action to deliver on lower costs, lower spending. asset sales and “profitable new projects.”

In terms of asset sales, the company confirmed these were expected to total $30 billion for the 2016-2018 period.

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Shell Deepens Spending Cuts, Promises More Savings From BG

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By Rakteem Katakey and Ryan Chilcote: June 7, 2016

Royal Dutch Shell Plc cut spending plans further and promised increased savings following its record purchase of BG Group Plc, as Europe’s largest oil company continues to adjust to the slump in energy prices.

Shell will spend $29 billion this year, it said Tuesday. That compares with a May forecast for capital expenditure “trending toward” $30 billion, which was itself down from an earlier projection of $33 billion. Synergies from the BG acquisition will provide $4.5 billion in savings in 2018, up from an earlier estimate of $3.5 billion.

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Shell aims for steeper cost cuts after BG takeover

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Kiran Stacey, Energy Correspondent: June 7, 2016 8.03am

Royal Dutch Shell is aiming to make steeper cost cuts than previously planned as a result of its £35bn takeover of rival BG Group, the company has said.

The international oil company gave investors an update on its long-term strategy on Tuesday, in which it tried to reassure the market about the amount of debt it has taken on as a result of the purchase, which was completed in February.

FULL FT ARTICLE

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Shell caps spending for rest of the decade as belt tightening continues

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By Jon Yeomans7 JUNE 2016 • 9:33AM

Oil giant Shell is targeting yet more cost savings as it looks to pay down debt and protect its dividend in an era of lower oil prices.

The Anglo Dutch giant said today capital spending would be in the range of $25-$30bn a year to 2020. For 2016 it will be $29bn, down from a forecast “trending toward” $30bn, which was itself down from an earlier projection of $33bn.

The company said this spending could go even lower if oil prices sink below their current levels, but crucially would not go higher if oil surges. Crude has stabilised at around $50 a barrel, after hitting a 12-year low of $28 a barrel in January. It was trading at more than $100 two years ago. 

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Shell to exit up to 10 countries after BG deal

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LONDON | BY RON BOUSSO AND KAROLIN SCHAPS: Tue Jun 7, 2016

Royal Dutch Shell (RDSa.L) will exit oil and gas operations in up to 10 countries in a drive to deepen cost cuts and narrow its focus following its $54 billion acquisition of BG Group.

Presenting its strategy following the close of that deal in February, the Anglo-Dutch company outlined plans to target annual spending of $25 billion to $30 billion until the end of the decade.

It lowered its planned 2016 capex to $29 billion in a third cut from an initial $35 billion.

Shell also raised its target for savings from the integration of BG to $4.5 billion, up $1 billion from previous guidance.

Chief Executive Officer Ben van Beurden hopes the new cuts will help boost Shell’s shares, which have underperformed rivals since the BG deal was announced in April 2015.

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FT: Shell’s asset disposal plans face delay

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By: Carl Surran, SA News Editor: Jun 6, 2016

Royal Dutch Shell’s (RDS.A, RDS.B) $30B asset disposal plan put in place after its takeover of BG Group likely will drag on beyond 2018 if oil prices remain depressed, Financial Times reports.

Shell is planning to sell off a large chunk of its portfolio because the BG deal significantly increases the combined group’s debt load, but people involved in the sale process tell FT that while that timeline is still in place, the deadline could be pushed back if Shell cannot secure what it thinks the assets are worth.

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Will Royal Dutch Shell plc survive the oil crisis?

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By Peter Stephens – Monday, 6 June, 2016

With the price of oil having risen from $28 per barrel earlier this year to around $50 per barrel, many investors may feel as though the worst is now over. Certainly, such a rapid gain in the price of any asset indicates a step change in investor sentiment and looking ahead, the price of oil could rise yet further. However, with there being a major imbalance between the supply of and demand for oil, its price could easily come under further pressure in the short-to-medium term.

In such a situation, it may be prudent for investors to hold shares in oil stocks with sound financial backgrounds. One such company is Shell (LSE: RDSB), with it having a strong balance sheet and excellent cash flow. In fact, evidence of Shell’s financial strength can be seen in its acquisition of BG Group during the oil crisis. This indicates that Shell is very confident in its ability to survive a low-oil-price environment. And with it having a debt-to-equity ratio of just 41% even after the acquisition of BG, it seems capable of making further acquisitions in future.

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Shell share price: Group set to unveil deeper cost cuts

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by Tsveta Zikolova

Monday, 06 Jun 2016, 09:25 BST

Royal Dutch Shell (LON:RDSA) is set to lay out plans for deeper cost cuts and a potential delay in its asset sale programme when it updates investors on its strategy tomorrow, The Sunday Times has revealed. The update will come as the group’s chief executive Ben van Beurden is under increasing pressure to justify the £35-billion acquisition of BG Group which completed earlier this year.

Shell’s share price has advanced in London this morning, having gained 1.55 percent to 1,702.00p as of 08:54 BST, and outperforming the benchmark FTSE 100 index which currently stands 0.73 percent higher at 6,254.90 points. The Anglo-Dutch group’s shares have lost some 10 percent of their value over the past year, but are up more than 11 percent in the year-to-date.

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Shell hit with notice from Norwegian safety body for Draugen

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Written by Niamh Burns – 03/06/2016 11:01 am

The Norwegian Petroleum Safety Authority (PSA) has given Shell a number of improvement notices after an audit was carried out on the management of the oil major’s working environment on the Draugen field.

The safety body said the objective of the activity was to assess Shell’s competence and resources for safeguarding the company’s administration and management of logisitics.

A number of non-conformities were identified in connection with personnel lifts and register of at-risk employees.

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Can This Troubled LNG Project Still Deliver for Chevron, ExxonMobil, and Royal Dutch Shell?

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By Jay Yao: Jun 4, 2016

Australia’s Gorgon LNG is one of the largest liquefied natural gas projects in the world. When complete, the Gorgon is expected to produce 15.6 million metric tons of LNG a year and last for 40 years. For Australia, the Gorgon was supposed to add hundreds of billions of dollars to Australia’s GDP and employ thousands of people. For the companies that invested, Gorgon was supposed to be one of the cornerstones of their LNG portfolios and deliver long-lasting shareholder value.

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Chevron, Shell: Will Nigerian Crude Production Come to a Halt?

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By Micheal KaufmanJun 4, 2016 at 10:50 am EST

The Nigerian government’s problems are only expected to worsen; the militant group, Niger Delta Avengers, has vowed again to bring the country’s crude oil production to “zero.” In the past few months, the group has attacked oil and gas facilities of foreign energy companies, including Chevron, Shell, and Eni, in a bid to force them to leave the southern region of the Niger Delta. The militants want international oil companies to end oil pollution in the country and give a higher share of crude sale revenue to the locals.

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Niger Delta Avengers Attacks: Oil Production Grounded In Bayelsa As Agip, Aiteo, Shut Down 140,000bpd

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BY SAHARA REPORTERS, NEW YORK: JUN 05, 2016

The attacks by the militant group Niger Delta Avengers (NDA) on oil installations in Bayelsa State have effectively grounded the operations of Agip, Aiteo and Shell, with production outages by Agip and Aiteo alone now put at 140,000 barrels daily as from May 2016.

At $48 per barrel, an estimated $6.72 million daily is lost by the two operators due to the attacks on oil export pipelines being operated by those two companies.

Aiteo, operator of the Nembe Creek Trunk Line, which conveys crude to the Bonny export terminal, came under attack by the NDA on May 28, and spokesman Shola Omole said the line has been shut down.

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Shell News Stories from Australia

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Angela Macdonald-SmithEnergy Reporter: June 6, 2016

Screen Shot 2016-05-21 at 10.18.28Shell Australia chairman points to LNG as costly option for NSW, Vic gas

NSW and Victoria may have to consider importing LNG from Queensland or Papua New Guinea if the states don’t act to get onshore gas out of the ground, even though it would be a costly solution to the current stalemate, Shell Australia chairman Andrew Smith has suggested.

Mr Smith told the APPEA oil and gas industry conference in Brisbane on Monday that the time has come to “think creatively” about how best to serve local gas customers to ensure they have adequate and reliable supplies.

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Report suggests Shell may be about to reveal more cost-cutting

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Screen Shot 2016-05-21 at 10.18.28Written by Keith Findlay – 06/06/2016 7:09 am

Oil giant Shell may be about to announce further cost cutting and a possible delay to its plans to offload assets, a report said yesterday.

Chief executive Ben van Beurden is under “increasing pressure” to justify the firm’s £35billion takeover of BG Group in the middle of a severe oil and gas industry slump, it added.

Shell is holding a capital markets day for investors tomorrow and it is thought it may update on its sale plans and fresh cost-cutting then.

Last month, Shell chief financial officer Simon Henry said cost levels in the North Sea needed to come down “substantially”.

Action already taken to integrate BG within Shell’s operations, including job cuts, were “probably about it for now” but he did not rule out further headcount reductions.

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Shell poised for deep cuts as BG casts shadow

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Danny Fortson: June 5 2016, 12:01am, The Sunday Times

Shell could show fresh signs of financial strain from its takeover of rival BG this week as it lays out plans for deeper cost-cuts and a potential delay in the mammoth asset sale launched by the oil giant to help pay for the £35bn deal.

Chief executive Ben van Beurden is under increasing pressure to justify the blockbuster acquisition, which he pulled off despite the plunging oil price.

Crude closed on Friday at $49 a barrel, less than half its 2014 high.

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Shell confirms signs of leak in Forcados export pipeline after attacks

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Business | Fri Jun 3, 2016 7:18pm BST

Shell Petroleum Development Company of Nigeria Ltd on Friday confirmed signs of a leak in the 48 inch Forcados export pipeline at a location between shoreline and the Forcados terminal in the western Niger Delta.

Its statement came after a reported attack on the pipeline in the early hours of Friday.

“We are yet to fully evaluate the potential impact and damage to the pipeline resulting from this latest incident. We have however mobilized appropriate oil spill response measures,” Shell said in a statement.

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Shell confirms Avengers’ attacks on Forcados pipelines, suspends oil exports indefinitely

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June 3, 2016Samuel Ogundipe

The Shell Petroleum Development Company Limited, the Nigerian subsidiary of Dutch oil giant, Royal Dutch Shell, on Friday confirmed militants’ claims that a major damage was done to its oil installations in Delta State in the early hours of Friday, saying the attack had forced it to shut down crude exports indefinitely.

The statement corroborates earlier statements by the Niger Delta Avengers, a new militant group that has claimed responsibility for a series of attacks on oil installations, in renewed hostilities across the oil-rich region.

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Niger Delta Avengers claims responsibility for overnight attacks on Shell installations in Forçados

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June 3, 2016Samuel Ogundipe

The Niger Delta Avengers in the early hours of Friday claimed responsibility for another catastrophic attack on an oil facility owned by Shell Petroleum Development Company (SDPC) in Delta State, saying it had issued a prior warning to the oil giant to desist from carrying out any repair activities in the area.

“At 3:00 am today @NDAvengers blow (sic) up the SPDC Forcados 48″ export line. We warned SPDC not to go ahead with repair works but they refused.”

The attack followed a series of bombings that rocked Chevron, Agip and NNPC oil and gas installations across the Niger Delta in the last few days.

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Nigeria finally starts clean up of oil pollution

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Maggie Fick in Lagos: 2 June 2016

The Nigerian government is finally starting a long delayed clean up of the area which first brought the neglect of the country’s oil-producing communities into the global spotlight.

Millions of barrels of oil have been spilt since oil was discovered in the southerly Niger Delta region in 1956, with much of the environmental destruction occurring in an area known as Ogoniland. Over the decades there have been thousands of spills, many as the result of oil theft and sabotage, but activists say companies including Royal Dutch Shell have consistently failed to prevent or clean up spills.

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