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Posts Tagged ‘Oil’

Is energy industry ready to join open source world?

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By David Hunn: August 26, 2016

Landmark, a technology unit of the energy services company Halliburton, is betting that it is, unveiling a cloud-computing platform last week that will allow companies to collaborate on developing software to process the massive volumes of data they collect on everything from geology to seismology to chemistry to drilling to flows of oil and gas. The idea is that easy and open access to the code on which the platform is based will lead to faster and better analysis of the data and ultimately to innovations that allow the industry to extract more oil and gas at lower costs.

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Why I’ve sold all of my Shell and BP shares, by manager of £543 million

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Screen Shot 2016-07-29 at 16.46.22Bailey concluded his comments with the remark that the Shell dividend is uncovered. That means the company is not generating enough cash to pay the dividend itself.

David Thorpe 25 Aug 2016

Stephen Bailey, who runs the Liontrust Macro Equity Income fund has revealed the reasons why he has sold all of his shares in Shell and BP.

He began selling his Shell shares about a year ago, and completed the sale, ‘during the month of August’ 2016.

Bailey commented, ‘A year ago we had 9 per cent of the fund in oil, now it’s zero. You have to look at the macro view on this, and be very concerned about the oil market. The big suppliers in the market can no longer be controlled by OPEC, the Saudis recently announced an initiative called project 2030 which is aimed at boosting other areas of the economy, and they are doing that because they expect to receive less revenue from fossil fuels in the future.’  

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Can OPEC save BP plc and Royal Dutch Shell plc?

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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.

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Oil major debt climbs to record high as crude prices continue to wallow

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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.

Exxon Mobil, Royal Dutch Shell, BP and Chevron hold a combined net debt of $184bn (£138bn) — more than double their debt levels in 2014, according to analysis by the Wall Street Journal.

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.

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Largest Oil Companies’ Debts Hit Record High

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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.”

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Idemitsu founding family crosses a line with the Saudis

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HIROFUMI MATSUO, Nikkei senior staff writer

TOKYO — Idemitsu Kosan‘s founding family is treading on treacherous ground as it attempts to block a planned merger with Showa Shell Sekiyu.

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.

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Nigeria: Rethinking NNPC’s Oil Search in the North

Screen Shot 2016-08-23 at 11.21.47The 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.

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Royal Dutch Shell, Chevron Corporation: Is it Time to Leave Nigeria?

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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.

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Anger in the Delta keeps oil majors quiet – and Nigeria’s crude offline

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By Libby George and Ulf Laessing | LONDON/LAGOS

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.

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Can we still be sure of Shell?

Screen Shot 2016-08-19 at 09.42.13By 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.

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Exxon, Motiva refineries continue reduced operations amid floods

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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.

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Nigeria recorded 1,600 cases of pipeline vandalism in eight months – Kachikwu

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By Daily Post Staff on August 18, 2016

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, says Nigeria has recorded 1,600 cases of pipeline vandalism since January.

Kachikwu made the disclosure at the 2016 Annual Conference of National Association of Energy Correspondents with the theme, “Low Oil Price: Impact and the Way Forward”, in Lagos on Thursday.

The minister also said that the country recorded over 3,000 pipeline vandalism cases from 2010 to 2015.

He said that the impact of attacks on oil and gas pipelines was that there was no money to fund the 2016 budget.

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Shell advises JPMorgan to sell $1bn NZ oil portfolio

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BRIDGET CARTERMergers & Acquisitions Editor, Sydney

GRETCHEN FRIEMANNMergers & 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.

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Cash flow problems at Shell?

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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.

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Large cruise ship voyage through Arctic ice rekindles rows

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Screen Shot 2016-08-13 at 21.48.04Terry MacalisterSaturday 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.

FULL ARTICLE

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Motiva Convent refinery HCU surrounded by high water: sources

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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.

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Motiva Convent refinery fire out, HCU heavily damaged -sources

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Screen Shot 2016-08-11 at 22.04.57By 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.

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Fire causes evacuation of Motiva refinery in Louisiana

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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.

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Shell’s “ballooning” debt could put 7.5% dividend at risk, analyst says

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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.

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Shell International Finance B.V. and Royal Dutch Shell plc: Publication of Prospectus

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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.

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Shell Calls Force Majeure on Nigeria Gas Supply After Leak

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Screen Shot 2016-08-05 at 09.29.20By Paul Burkhardt and Elisha Bala-Gbogbo: August 10, 2016

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.

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Workers claim stocks running out on strike hit Shell platform

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Screen Shot 2016-08-04 at 09.47.49Screen Shot 2016-07-29 at 16.46.22Written 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.

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Crude Slump Sees Oil Majors’ Debt Burden Double to $138 Billion

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Screen Shot 2016-07-29 at 16.46.22“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.

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Carson residents push for quicker payout of settlement in contamination case

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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.

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Shell Returns To Unalaska

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Shell Returns To Unalaska

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Screen Shot 2016-08-06 at 15.52.57By 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.”

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Is Royal Dutch Shell plc’s dividend living on borrowed time?

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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.

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North Sea oil workers strike over jobs and pay

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Andrew Ward, Energy Editor: August 4, 2016

Screen Shot 2016-07-29 at 16.46.22Hundreds 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.

Seven platforms operated by Royal Dutch Shell are affected by the 48-hour stoppage involving employees of its maintenance contractor, Wood Group.

The strike has exposed rising anger among the North Sea workforce…

FULL FT ARTICLE

RELATED

Bryce Elder Shell slips as concern shifts to debt pile

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Offshore workers strike talks end without agreement

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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.

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Nigerian oil targeted by hard-line militants

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Terror-fed pandemonium broke out in the Christian-populated south of Nigeria when a renowned grouping that calls itself Niger Delta Avengers once again took to arms and destroyed several oil wells and installations. There is a grim feeling of déjà vu taking us back to 2006-2009 when militants of this region inhabited by some 20 million people revolted against the federal government demanding at least some control over local natural resources.

The previous hostilities in Niger Delta ended seven years ago with a payoff by the government in Abuja, the national capital. Central authorities consented to a comprehensive amnesty for the rebels, launched a job-training vocational program and employed the yesterday’s ‘bombists’ as guardians of the oil infrastructure they used to blast. Actually, it amounted to a monthly ’stipend’ (at that time worth some $400) paid to the fighters to pacify them and buy out peace and tranquillity in the troubled region.

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Shell share price: Analysts flag concerns over group’s debt pile

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by Mary MorleyTuesday, 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.

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Shell slips as concern shifts to debt pile

Screen Shot 2016-08-01 at 21.59.50Bryce 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.

FULL ARTICLE

Shell quiz: when is a stake ‘held for sale’ on sale?

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  • The Australian
  • 12:00AM August 2, 2016

BRIDGET CARTERMergers & Acquisitions Editor: Sydney

GRETCHEN FRIEMANNMergers & 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”.

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Unknown Militants Attack Shell Pipeline In Niger Delta

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Screen Shot 2016-06-30 at 18.15.43By 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.”

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Suspected militants attack Shell affiliated pipeline in Nigeria’s Delta

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Screen Shot 2016-07-29 at 16.46.22Mon 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.

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How Exxon Mobil, Royal Dutch Shell, BP Are Affected by Low Oil Prices

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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.

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Gorgon full output delayed until mid-2017

Screen Shot 2016-07-31 at 18.30.44Brian Robins: August 1 2016

A series of commissioning problems has delayed the timing of when Chevron Corp expects the giant Gorgon gas export project to be in full production, until well into 2017.

Since it began to bring the initial stage of the project on stream, it has encountered a series of problems that have forced it to halt processing from time to time, and it has now told analysts the first unit is operating at only a little over two-thirds of its rated capacity.

Production was halted for two months soon after the initial exports of gas, forcing Chevron to push back towards mid-2017 when it expects the project to be fully operational, from earlier this year.

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Oil Giants Find There’s Nowhere to Hide From Doomsday Market

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By Joe CarrollJuly 29, 2016 — 1:02 PM BST: Updated on July 30, 2016 — 5:01 AM BST

Exxon Mobil Corp. and Royal Dutch Shell Plc this week reported their lowest quarterly profits since 1999 and 2005, respectively. Chevron Corp.’s third straight loss marked the longest slump in 27 years, and BP Plc lodged its lowest refining margins in six years.

Welcome to year two of a supply overhang so persistent it’s upsetting industry expectations that the market would return to a state of balance between production and demand. It’s left analysts befuddled and investors running to the doorways as the crude market threatened to tip into yet another bear market, dashing hopes that a slump that began in mid 2014 would show signs of abating.

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This Is Why Oil Firms Suffered Another Awful Earnings Season

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Screen Shot 2016-07-30 at 15.00.46BKatie Fehrenbacher: JULY 29, 2016

Analysts expected the oil giants’ cost cutting to help more.

Many of the world’s biggest oil companies continue to feel the pain as low oil prices continue to undercut profits and lead to shuttered projects and layoffs.

Exxon, Royal Dutch Shell, Statoil, BP, and Chevron announced dismal earnings this week, missing expectations and showing how slashing spending and pulling back isn’t yet enough in a world where oil has dropped from a high of $115-per-barrel in 2014 to a low of $27-per-barrel in January of this year.

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Unions to stage 48-hour strike on Shell’s North Sea assets

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Written by Niamh Burns – 29/07/2016 7:59 am

Unions will stage a 48-hour strike next week as industrial action continues on seven Shell assets in the North sea.

Both RMT and Unite members voted in support of action for the first time in more than a generation.

Around 400 workers are taking part in a continuous overtime ban, while tools were also downed on Tuesday this week, followed by two three hour stoppages yesterday.

Wood Group is currently making changes to is contracts with workers on Shell installations after renewing its contract with the oil major earlier this week.

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Shell Announces Fort Sumter Discovery In Gulf Of Mexico

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JUL 28, 2016, 08:00 ET

HOUSTON, July 28, 2016 /PRNewswire/ — Shell today announced a new exploration discovery in the deep water U.S. Gulf of Mexico. The initial estimated recoverable resources for the Fort Sumter well are more than 125 million barrels of oil equivalent (boe). Further appraisal drilling and planned wells in adjacent structures could considerably increase recoverable potential in the vicinity of the Fort Sumter well.

“The Fort Sumter discovery builds upon Shell’s global deep-water leadership. Its proximity to our nearby discoveries in the area, and to highly prospective acreage to the southeast, makes Fort Sumter particularly significant,” said Ceri Powell, Executive Vice President Exploration. “These successes demonstrate there is still running room in the producing basins of our heartlands where large, high-value discoveries have the potential to further strengthen our deep-water competitiveness.”

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Shell’s Debt Nears Edge of Comfort Zone as Rout Boosts Borrowing

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Net debt increased to a record $75 billion at the end of June from $70 billion three months earlier, Shell said Thursday as it reported a slump in second-quarter earnings. Additional borrowing drove up the ratio of net debt to capital, or gearing, to 28.1 percent — more than double the year-earlier level.

“We’re close to the maximum level and it could go up still with the oil price where it is,” Chief Financial Officer Simon Henry said on a conference call. “Thirty percent is an upper limit to where we can describe our position as comfortable.”

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Royal Dutch Shell may have to slash its dividend – analysts Share

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17:00 28 Jul 2016

Investors in Royal Dutch Shell PLC (LON:RDSB) should be steeling themselves for an eventual cut in their dividend payouts, according to analysts.

In half-year results on Thursday, the Anglo-Dutch company held its interim dividend steady, at 47 cents, despite underlying earnings for the quarter falling 72% to US$1bn.

Its gas and downstream businesses fuelled earnings, more than outweighing a US$2bn loss in the upstream division, which faced one-off charges of US$649mln.

But shares in the group fell 53.5p, or 2.5%, to 2051.5p.

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Shell focusing on ‘lasting changes’

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THE HAGUE, Netherlands, July 28 (UPI) — Lower crude oil prices continue to present problems for the industry and Shell is now focused on retooling efforts, the chief executive officer said.

“We are making significant and lasting changes to Shell’s working practices and cost structure,” CEO Ben van Buerden said in a statement.

Shell, moving through the year after a merger with British energy company BG Group, said net income during the second quarter fell more than 70 percent to $1.18 billion. The company attributed the decline in part to some of the fiscal pressures from its $7 billion tie-up with BG Group, weak industry conditions and tougher tax regimes.

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Shell misses expectations with 70 percent earnings plunge

Screen Shot 2016-07-28 at 08.37.58By REUTERS: PUBLISHED: 08:16, 28 July 2016

By Karolin Schaps and Dmitry Zhdannikov

LONDON, July 28 (Reuters) – Royal Dutch Shell reported a more than 70 percent fall in quarterly profit on Thursday, well below analyst estimates, blaming weak oil prices, poor refining profits and higher charges resulting from its $54 billion acquisition of BG Group.

Shell’s current cost of supplies — its definition of net income — came to $1 billion in the second quarter, compared with analyst expectations of $2.2 billion and $3.8 billion achieved the same time last year.

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Shell profit falls 93% amid low oil prices

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The quarter was the first full one that included BG Group PLC, which Shell bought in a roughly $50 billion acquisition that completed in February.

“Downstream and integrated gas businesses contributed strongly to the results, alongside Shell’s self-help program. However, lower oil prices continue to be a significant challenge across the business, particularly in the upstream,” said Shell Chief Executive Ben van Beurden.

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Shell pays out more than $700,000 to settle civil prosecution over fuel reward cards

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Written by Reporter – 27/07/2016 11:50 am

Shell Oil Products has agreed to pay more than $700,000 to settle a civil prosecution over gift cards and fuel reward cards.

The company settled the dispute in which is admitted no liability.

The case had been filed in Alameda County in the US state of California.

Prosecutors had alleged there was multiple consumer protection and advertising violations related to the cards.

They said it included not allowing the redemption of gift cards with a balance under $10 as required by state law.

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Oil Workers Strike Over Shell’s Proposed Cuts

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By SELINA WILLIAMSJuly 26, 2016 9:47 a.m. ET

LONDON—About 400 workers at seven Royal Dutch Shell PLC oil and gas platforms in the U.K. North Sea began a 24-hour strike early Tuesday in a dispute over proposed cuts of up to 30% on pay and allowances, the Unite union said in a news release.

The strike will be followed by a series of other stoppages over the following weeks, Unite said.

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Hundreds of North Sea workers down tools on Shell oil rigs

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Screen Shot 2016-07-26 at 16.45.26Jillian Ambrose26 JULY 2016 • 1:26PM

Around 400 North Sea oil workers have downed tools on Shell oil rigs in the sector’s first spate of industrial action in 28 years.

The 24-hour strike began at 6.30am on Tuesday alongside an ongoing refusal to work overtime and will be followed by further stoppages in the weeks to come, trade union Unite warned.

Offshore oil workers employed by Wood Group to work on Shell’s giant Brent oilfield platforms voted overwhelmingly in favour of strike action earlier this month, after talks over plans to bring in longer hours and lower pay broke down.

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Solano County District attorney announces settlement with Shell

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POSTED: 07/25/16, 5:59 PM PDT

Solano County District Attorney Krishna Abrams, announced Monday that Equilon Enterprises LLC, dba Shell Oil Products US (“Shell”) has entered into a stipulated judgment to resolve consumer protection and advertising violations related to Shell gift cards and fuel rewards cards.

Solano was joined by Alameda, Monterey, Napa, Santa Clara, and Santa Cruz in bringing this consumer protection action. Under the terms of the stipulated judgment, Shell agreed to pay $762,500 in civil penalties, costs, and restitution, and to injunctive provisions to ensure future compliance.

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Shell Philippines files for $629 million IPO, eyes November listing

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MANILA | BY NEIL JEROME MORALES AND ENRICO DELA CRUZBusiness | Tue Jul 26, 2016 5:08am EDT

Pilipinas Shell Petroleum Corp has filed for an initial public offering (IPO) of shares that may raise as much as 29.7 billion pesos ($629 million) in one of the Philippines’ largest stock market listings.

The unit of Royal Dutch Shell Plc (RDSa.L) plans to launch the IPO in October involving up to 330 million primary and secondary shares at up to 90 pesos per share, with a listing on the Philippine Stock Exchange tentatively set for Nov. 10.

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