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Posts Tagged ‘Iraq’

Will Shell’s Gas Gamble Pay Off?

By Cyril Widdershoven – Sep 16, 2017, 6:00 PM CDT

Supermajor Royal Dutch Shell has decided to divest its Iraqi oil assets in a move to focus on its future in natural gas. The industry giant is seemingly breaking from its oil heritage to head full speed into the “Golden Age of Gas.” Shell’s decision to leave Iraq’s upstream oil assets is not without risk, however, as the market for natural gas is even more oversupplied than it is for crude oil.

Reuters reported the move first, based on a letter from the Iraqi ministry of oil, followed by a confirmation from Shell. The Dutch heavyweight indicated to the press that its oil asset divestment in Iraq is in line with its strategy to focus more on natural gas and downstream activities. read more

Shell set to draw line under a century of Iraqi oil

Ron Bousso: SEPTEMBER 13, 2017

LONDON (Reuters) – Royal Dutch Shell is set to end a century of oil production in Iraq by withdrawing from two of the Arab state’s flagship fields to focus on more profitable gas development.

Shell’s retreat highlights the challenges foreign operators face with low-margin oil contracts in Iraq, an OPEC member that sits on some of the world’s biggest oil reserves and wants to boost production after years of conflict hindered development.

The Anglo-Dutch firm said on Wednesday it had agreed with Iraq’s oil ministry to relinquish operations at Majnoon field to the government after unfavorable changes to fiscal terms. The announcement confirmed an earlier Reuters report. read more

Shell says to focus on Basra gas in Iraq after Majnoon exit

SEPTEMBER 13, 2017 / 7:52 AM

LONDON (Reuters) – Oil major Royal Dutch/Shell said on Wednesday it would focus its efforts on the development and growth of the Basra Gas Company in Iraq after handing over operations of the Majnoon oil venture back to the Iraqi government.

On Tuesday, Reuters reported that Shell Iraq has started preparations to finalize the exit of Shell from Majnoon, one of the largest fields in the country.

“In May 2017, the ministry of oil in Iraq applied the performance penalty and remuneration factor on the Shell operated venture, the Majnoon oil field, which had a significant impact on its commerciality,” a Shell spokesman said. read more

Shell Considering Dumping Its Iraqi Oil Fields

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By Julianne Geiger – Nov 28, 2016, 2:24 PM CST

Royal Dutch Shell is considering exiting its positions in Iraqi oil fields, according to industry sources cited by Reuters.

Shell, which declined to comment, is the world’s top liquefied natural gas producer, and is only exiting its oil field assets in Iraq, not its gas field assets. Iraq accounted for 4.4 percent of Shell’s total oil and gas production in 2015.

The fields in question are the Majnoon field, in which Shell holds a 45 percent interest, and the West Qurna field. Majnoon produces an average of 200,000 barrels per day, according to Shell’s website. read more

OPEC makes last-ditch bid to save oil deal as tensions grow

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By Rania El Gamal and Alex Lawler | VIENNA

OPEC was trying on Monday to rescue a deal to limit oil output as tensions grew among the producer group and non-OPEC member Russia, with top exporter Saudi Arabia saying markets would rebalance even without an agreement.

OPEC experts started a meeting in Vienna at 0900 GMT and were due to make recommendations to their ministers on how exactly the Organization of the Petroleum Exporting Countries should reduce production when it meets on Nov. 30. read more

Exclusive: Saudis threaten to raise oil output again as sparring with Iran returns

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By Rania El Gamal and Alex Lawler | DUBAI/LONDON

Old disputes between Saudi Arabia and rival Iran resurfaced at a meeting of OPEC experts last week, with Riyadh threatening to raise oil output steeply to bring prices down if Tehran refuses to limit its supply, OPEC sources say.

Clashes between the two OPEC heavyweights, which are fighting proxy wars in Syria and Yemen, have become frequent in recent years.

Tensions subsided, however, in recent months after Saudi Arabia agreed to support a global oil supply limiting pact, thus raising the prospect that OPEC would take steps to boost oil prices. read more

Shell, Vitol boost UAE storage to handle Iraqi crude-sources

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By REUTERSPUBLISHED: 14:40, 31 October 2016

By Rania El Gamal

DUBAI, Oct 31 (Reuters) – Royal Dutch Shell and trading house Vitol are stepping up their operations in the port of Fujairah to store Iraqi crude as production from the OPEC member rises, industry sources said.

Iraq is OPEC’s second largest producer after Saudi Arabia and its output has almost doubled since the start of the decade at 4.7 million barrels per day (bpd).

With a target of 5.5-6 million bpd by 2020, Iraq wants to be exempt from the cartel’s bid to boost oil prices with production cuts to reduce a global surplus. read more

Now could be the perfect time to sell Royal Dutch Shell plc

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By Royston Wild – Friday, 7 October, 2016

Stakeholders in fossil fuel goliath Royal Dutch Shell (LSE: RDSB) could be forgiven for breaking out the bubbly following the company’s recent share price detonation.

Shell saw its value gallop 28% higher during the third quarter, and the firm’s meteoric ascent may not be finished yet — indeed, the stock is within striking distance of July’s quarterly peak of £21.48 per share, the loftiest level since May 2015.

But while many momentum investors may be tempted to plough in, I reckon now could provide a terrific opportunity for investors to cash out. read more

Iraq’s OPEC revolt shows Saudi-Iran oil deal fragility

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Iraq’s OPEC revolt shows Saudi-Iran oil deal fragility

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By Rania El Gamal and Alex Lawler | ALGIERS

For years, debates in the OPEC conference room were dominated by clashes between top producer Saudi Arabia and arch-rival Iran.

But as the two managed to find a rare compromise on Wednesday – with Riyadh softening its stance towards Tehran – a third OPEC superpower emerged.

Iraq overtook Iran as the group’s second-largest producer several years ago but kept its OPEC agenda fairly low-profile. On Wednesday, Baghdad finally made its presence felt. read more

Oil drops below $46

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By Ed Crooks: September 16, 2016

The more positive mood in crude prices last week always looked fragile, based as it was on nebulous talk about a possible Opec production freeze and volatile US data that were heavily influenced by storm Hermine at the beginning of the month.

That vulnerability was exposed this week. Brent crude, which briefly hit $50 per barrel on September 8, dropped below $46 on Friday.

As prices fell, analysts took differing views on the outlook. Bloomberg focused on the chance of a rebound, as markets started to focus on the growing risk of shortages. On the other hand, the FT’s Neil Hume pointed out that there was still more crude production capacity set to come on stream as a result of the investment binge of 2011-14 – not least the much delayed Kashagan field in Kazakhstan – meaning that prices could remain depressed in the short term. read more

Shell Sells Gulf Of Mexico Asset, But Faces A Tough Road Ahead

Screen Shot 2016-08-31 at 23.13.17Sarfaraz A. Khan: Aug. 31, 2016 3:20 PM ET

Summary

  • Royal Dutch Shell has agreed to sell its Brutus/Glider assets in the U.S. GoM to EnVen Energy for $425 million in cash.
  • The asset sale is a small step in the right direction which will improve Shell’s cash reserves.
  • The company, however, has made little progress toward achieving its target of selling $6Bn to $8Bn assets this year and $30Bn by 2018.

Royal Dutch Shell (RDS.A, RDS.B) has recently agreed to sell its Brutus/Glider assets in the U.S. Gulf of Mexico to Houston-based EnVen Energy for $425 million in cash. Shell was pumping 25,000 barrels of oil per day from these offshore properties, which was equivalent to 5.8% of the oil giant’s Gulf of Mexico production or less than 1% of its total production.

The asset sale is a small step in the right direction which will improve Shell’s cash reserves which stood at $15.2 billion at the end of June. Shell intends to sell $6 billion to $8 billion of assets this year. Overall, the company aims to dispose $30 billion of assets, spread in 5 to 10 countries and representing 10% of its production, by 2018. That will allow the company to reduce its debt which has ballooned following the $53 billion takeover of BG Group. read more

Exclusive: Iraq, oil companies agree to restart investment, boost output

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Exclusive: Iraq, oil companies agree to restart investment, boost output

BAGHDAD/BASRA – | BY AHMED RASHEED AND AREF MOHAMMED: Business | Thu Aug 11, 2016 7:05am EDT

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. read more

Iraq Inquiry Shows Oil Was a Consideration for U.K. Before War

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British officials held talks with BP and Shell about Iraqi oil

Blair said high oil price was his big “domestic worry”

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By Javier BlasJuly 6, 2016 — 4:27 PM BST

The U.K. government held talks with Royal Dutch Shell Plc and BP Plc to ensure British energy companies were “well-placed to pick up contracts in the aftermath” of the invasion of Iraq, according to declassified documents released as part of an official inquiry.

Although the report, overseen by former civil servant John Chilcot, doesn’t explicitly say oil played a role in the war, documents publish on Wednesday show British officials discussed how to obtain “substantial business for U.K. companies” in the energy sector. read more

Indonesia’s Pertamina picks Shell to process Iraqi crude -official

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By Wilda Asmarini: Markets | Wed Jun 29, 2016 

Indonesia’s Pertamina has selected Shell to process a million barrels per month of Iraqi crude at a Singapore refinery, a senior official at the state-owned company said on Wednesday.

The quest for oil-processing capacity abroad is partly spurred by a lack of investor interest in building domestic refineries because of unfavourable investment conditions set by the government.

“We’ve selected Shell because they are the most competitive,” said Daniel Purba, senior vice president of Pertamina’s Integrated Supply Chain unit. read more

Shell reduces ex-pat workforce on Manjoon oilfield

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Written by Reporter – 23/05/2016 2:28 pm

Oil major Shell is said to be reducing its workforce at the Majnoon oilfield in Southern Iraq as the country continues to manage a number of financial pressures.

The field has an estimated recoverable reserves of almost 13 billion barrels.

It has managed to provide significant financial funds for the Iraqi government in recent years since exporting began.

According to reports, the expatriate workforce has been reduced from 400 to 200 workers.

A Shell spokesman said the move had been taken in “light of the economic challenges” facing the region. read more

Shell cutting back manpower sharply at Iraq’s Majnoon oilfield

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Anthony McAuleyMay 21, 2016

Royal Dutch Shell is cutting its workforce sharply at the Majnoon oilfield near Basra in southern Iraq as the government’s financial woes deepen.

Majnoon is one of the five “supergiant” (containing more than 5 billion barrels) oilfields located in southern Iraq, with estimated recoverable reserves of nearly 13 billion barrels, and it has been a major provider of additional funds for the Iraqi government since it started exporting two years ago.

The field employed more than 3,000 at peak construction – three-quarters of whom were Iraqis. But the expatriate workforce had dwindled to 400 amid cutbacks as the government has struggled with both the collapse in oil prices over the past 18 months and the costs of the war with militants in the west of the country. read more

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