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Posts Tagged ‘BG Group’

Shell defends divestment efforts, but cancels sale in Thailand

Subsidiaries of Shell and the Kuwait Foreign Petroleum Exploration Co. said they mutually agreed to cancel the multilmillion dollar sale of shares in Shell Integrated Gas Thailand Pte. Ltd., known also as SIGT, and Thai Energy Co Limited, or TEC. Shell said the latter two would continue to support Thai partners in development of the Bongkot field. “SIGT also intends to participate in the forthcoming licensing round for the extension of the Bongkot concession,” Shell’s announcement read. FULL ARTICLE read more

Shell takes cautious approach to green energy transition

by Andrew Ward, Energy Editor: 1 Oct 2017

Mr van Beurden, chief executive of Shell, allows himself only the briefest self-congratulation. “All the milestones, we are either ahead or on track,” he tells the Financial Times, referring to targets set at the time of the takeover. “But you are never done in this industry because everything is always in continuous decline.” The Dutchman is talking about the relentless pressure to find new resources… FULL ARTICLE

Shell/Petrobras: a partnership of corrupt oil giants

The Brazilian Petrobras Scandal: The Brazilian oil giant Petrobras is the largest company in the Southern Hemisphere. On November 14, 2014, a series of police raids netted politicians and Petrobras bigwigs who had paid $2 billion in bribes… Now we have news that Petrobras is linking up with Royal Dutch Shell, which is currently mired in a billion dollar scandal: OPL 245…

Shell and Petrobras sign technical cooperation agreement to strengthen deep water partnership

Posting on Shell Blog by Bogus Group

Shell MoU with Petrobras and their partnership to share experience on cost efficiency and use of technology.

Déjà vu springs to mind (Daily Telegraph 01 March 2012) on BG Group finance of $1.8bn from Brazilian Development Bank to fund interests offshore Brazil (was this the same interests that Chapman demanded his cohorts in Brazil disclose over estimated reserves?).

Daily Telegraph 14 May 2013 also noted Chris Finlayson rhetoric to “keep up the pace with huge discoveries” and focusing on “value over volume”, leaving the company “lean and agile”. read more

Shell’s defence of big oil is too hopeful

Despite growing evidence that the oil era is grinding to an ugly and disruptive halt, Shell remains optimistic. On Sept. 8, the company updated its two core strategic models – labeled Mountains and Oceans – which both come to similar conclusions about the future of crude and liquid hydrocarbon fuels. Although peak demand will happen sometime after 2030, and governments will keep intervening to cut carbon emissions, oil could still account for more than a fifth of all energy even by 2060. This matters to Shell investors. Its $50 billion takeover of BG Group in January 2016 made it the largest shipper of gas amongst its peers. However, oil remains core to its profitability. If oil has a future, it makes sense for Shell to keep investing in it. The problem is that Shell’s projections could easily be proven wrong. FULL ARTICLE read more

Shell Is Nothing Short Of Exemplary

Earnings Forecast Focus: Sep. 5, 2017 6:49 PM ET

Summary

  • Shell CEO Ben van Beurden’s “lower forever” quote was aimed at operating costs and overall company culture. It does not reflect the CEO’s oil price outlook.
  • The company’s operational excellence has been nothing short of exemplary.
  • Scrip dividend will be removed when gearing is down to 20% from the current 25%.
  • At the current rate, it should take no more than twelve months to reduce the gearing to 20%.
  • Obviously, the dividend is safe. More importantly, this is an opportunity to buy a company with excellent leadership.
  • read more

    Exclusive: Shell’s CEO – Oil slide is “biggest blessing”

    Written by

    Ben van Beurden’s rise to the top coincided with the oil price riding the crest of a wave.

    But for a man who assumed Shell’s chief executive role just months before it all came crashing down, he sums up the last three years as “a blessing”.

    “Less than a year into my new role, the oil price started going down and it’s been quite a journey, but if I look back on it I think this is probably the biggest blessing that I’ve had,” he said.

    “It has done two things. First of all it provided a tremendous amount of focus on the things that needed doing. I mean, there’s nothing like a crisis to focus on cost efficiency. read more

    Exclusive Interview: Ben van Beurden – No North Sea retreat

    Written by

    Ben van Beurden hailed the region’s “tremendous” progress.

    His commitment to the region comes after it sold more than half of its North Sea oil and gas fields for $3.8billion to Chrysaor.

    The sell-off included interests in the fields Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine, and a 10% stake in Schiehallion.

    Mr van Beurden insisted the shift in assets was about breathing new life into the portfolio Shell ring-fenced to keep.

    Speaking exclusively to Energy Voice from his Hague office, he said: “The North Sea has improved tremendously. “It’s one thing to say, look at what Shell’s selling. read more

    What You Missed in Royal Dutch Shell plc’s Quarterly Report

    What Shell looks like now

    There’s no question about how Royal Dutch Shell makes money. It is one of the world’s largest oil and natural gas drillers, with a large footprint in liquified natural gas. Oil and gas have been the driving force, broadly speaking, throughout all of the company’s over 100-years of existence. Investor questions generally focus on what management is doing to support and grow its core operations. FULL ARTICLE

    Another North Sea Storm for Shell

    UPDATED WITH ARTICLE COMMENTS RECEIVED SINCE PUBLICATION, INCLUDING FROM BILL CAMPBELL

    By John Donovan

    It is getting on to 20 years since Shell safety expert Bill Campbell led an HSE audit team which exposed a “Touch Fuck All” culture in relation to maintenance and safety issues on Shell’s Brent Bravo platform. After two decades of promises by Shell to give safety the highest priority, Shell has just been ordered to shut down its North Sea Armada platform on similar grounds. This follows weeks after the issuance of a prohibition notice by HSE inspectors in relation to Brent Charlie. (See links below).  read more

    Eternal Shame of Shell over North Sea Platform Safeguards

    Posting by Bill Campbell, Retired HSE Group Auditor, Shell International

    In the 25 years following Piper Alpha (commemorations were held in Aberdeen a few weeks ago) the man who presided over a potential Piper Alpha rerun was Chris Finlayson. Although he blamed Brinded it is Finlayson who had the line accountability for health and safety offshore when in September 2003 two men died when an estimated 6800 cubic metres of gas flooded a into an enclosed support column on Brent Bravo.

    Lord Cullen, who was passed all the documentation from the Shell internal technical report into this near catastrophe was under no allusions. The lives of 156 workers could have been put a jeopardy if the gas had ignited. His safety case system had failed and it had almost led to a repeat. read more

    Shell suffering legacy of BG Group negligence in maintaining safety critical equipment

    Shell suffering legacy of BG Group negligence in maintaining safety critical equipment

    Opinion from a contributor to our Shell Blog

    A media article has revealed that Shell is already suffering from the legacy of BG Group negligence in maintaining safety critical equipment.

    The HSE have issued an improvement notice for failing to install gas detection equipment on the Lomond Platform, despite recommendations from two separate studies.

    A second improvement notice was issued for failing to test a High Integrity Protection System (HIPS) since 2014, despite the associated Performance Standard requirement to test annually.

    It could be assumed that Finlayson encouraged the infamous Brent TFA during his tenure at the helm of BG to maximise production volumes (an obsession with executives), at the expense of safety system testing. That assumption would not be entirely accurate, the same culture was evident in BG Group long before. Previous failures of a HIPS testing regime had been exposed at another BG operational location, yet despite this no one was held accountable. Maybe if they had been the ‘management team’ in question would not have been implanted in Aberdeen in 2012. read more

    Leaked Shell Transformation Plans: Part 4


    By John Donovan

    Published below is a further multi-page segment from Shell’s leaked internal document mentioned in a Reuters/New York Times article published on Monday: Shell Plans 400 Job Cuts at Dutch Projects and Technology Department. The plans are much greater in scope than suggested by the headline. Their implementation will result in a managerial jobs upheaval and significant job cuts as a consequence of the acquisition of BG Group and the decline in oil prices. This time I have left in the page numbers, which appear at the foot of each page and sometimes interrupt paragraphs. read more

    Shell’s 88 page global transformation plans leaked to John Donovan

    Embarrassingly for Shell, as the New York Times has reported this morning, I have a leaked copy of an 88 page Shell internal document setting out proposals for Shell’s global plans generally and in particular for the Netherlands, where several hundred more jobs are going to disappear. Part of a world-wide jobs upheaval at Shell. 

    A few days ago, CEO Ben van Beurden, mindful of the prospect of a falling oil price, claimed that Shell “is getting fit for the $40s.” Now we have a detailed insight about the scope of proposed transformational change at Shell deemed essential to achieving that objective. Embarrassingly for Shell, as the New York Times has reported this morning, I have a leaked copy of an 88 page Shell internal document setting out proposals for Shell’s global plans generally and in particular for the Netherlands, where several hundred more jobs are going to disappear. read more

    Shell CEO Ben Van Beurden says his next car will be an electric Mercedes S500e

    Jul 28 2017 at 9:03 AM

    When the boss of Europe’s biggest listed oil company says his next car will be electric, it says a lot about the future of fossil fuels. Royal Dutch Shell responded to the worst oil-price crash in a generation with its $US54 billion ($68 billion) takeover of BG Group, betting that demand for natural gas will rise as the world shifts to cleaner-burning fuels. Now chief executive officer Ben Van Beurden says the next thing he’ll buy is a car that doesn’t depend on either oil or gas to run. Van Beurden will switch from a diesel car to a plug-in Mercedes-Benz S500e in September, a company spokesman said. Chief financial officer Jessica Uhl already drives a BMW i3 electric car. FULL ARTICLE read more

    Shell profits surge as Van Beurden puts focus on ‘discipline’

    By Press Association: 

    Royal Dutch Shell has reported a large rise in second quarter profits after the energy giant was boosted by higher oil and gas prices. The firm said adjusted earnings rose from $1.05bn (£800m) to $3.6bn, an increase of 245pc, as chief executive Ben van Beurden said he was making progress on “reshaping the company”. “Cash generation has been resilient over four consecutive quarters, at an average oil price of just under $50 per barrel,” Mr Van Beurden said. “The external price environment and energy sector developments mean we will remain very disciplined, with an absolute focus on the four levers within our control, namely capital efficiency, costs, new project delivery, and divestments. “I am confident that we are on track to deliver a world-class investment to our shareholders.” The figures were flattered by a disastrous second quarter in 2016, when it was stung by depressed crude prices and costs linked to its takeover of BG Group. FULL ARTICLE read more

    Shell Profits Triple on Stronger Refining, Oil Prices

    Shell CEO Ben van Beurden

    LONDON — Royal Dutch Shell more than tripled its profits in the second quarter to beat forecasts boosted by strong refining operations and a rise in oil prices. The Anglo-Dutch oil and gas company also reported a huge recovery in cash flow to $12.2 billion and a drop in debt as its cost reduction efforts in recent years paid off. It has sold some $25 billion of assets since acquiring BG Group last year. The strong results came despite a dip in oil and gas production versus the previous quarter as a result of reduced output from a facility in Qatar. “The external price environment and energy sector developments mean we will remain very disciplined, with an absolute focus on the four levers within our control,” Chief Executive Ben van Beurden said. READ MORE read more

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