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Posts from ‘December, 2015’

Shell chief executive Ben van Beurden needs a Christmas miracle

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By GEOFF HO: Dec 27, 2015

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With the price of oil languishing below $40 per barrel Ben van Beurden needs a miracle

Screen Shot 2015-12-28 at 20.29.12With the price of oil languishing below $40 per barrel he requires prices to start rising in order to save his £47billion takeover of BG Group. When Van Beurden announced the deal in April, a number of Shell’s investors had doubts because of the valuations involved. Those doubts have since become full-blown fears, as the oil price has fallen through the floor.

To be fair to Shell, there is merit to the deal. BG will provide it with quality assets and enough free cash flow to reinforce its under-pressure dividend. It has also identified billions of cost savings. However, the takeover is predicated on the oil price being at $60 to $70 a barrel and the slump has completely changed the economics of the BG deal. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Royal Dutch Shell: Cheap Oil Makes BG Group Path Slippery

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Ahead of the final vote for the deal, crude oil prices have dropped significantly, presenting one last threat to the merger – by far, the biggest one of all the hurdles it has faced. Further declines in oil prices could be a deal breaker for Shell and BG.

By Mushhood Khan on Dec 28, 2015 at 6:46 am EST

Royal Dutch Shell plc (ADR) (NYSE:RDS.A), one of the largest integrated oil companies in the world, has been in pursuit of UK-based BG Group plc (OTCMKTS:BRGYY) for its valuable LNG assets and its deepwater acreage. Announced in April this year, the $70 billion deal is the biggest of its kind in the energy sector in more than a decade.

Completion of such a grand deal faces several challenges; companies might not be able to meet the conditions of merger, antitrust laws may pose legal hindrances, shareholders might vote against it, or the change in core business conditions might make the deal unviable over the course of time. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Royal Dutch Shell Terminates Rig Contract with Transocean

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By Mushhood Khan on Dec 28, 2015 at 9:07 am EST

Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has terminated its rig contract with Transocean for the harsh environment semi-submersible rig, Polar Pioneer. The contract was initially scheduled to expire in 2017, but was rescinded today i.e. December 28. Transocean said in a press release that it would be compensated “for the early termination through a lump-sum payment.”

The contract for the Polar Pioneer rig was awarded to Transocean in 2013 at a $620,000 day-rate. The Polar Pioneer rig was a part of Shell’s controversial drilling project in the Arctic Ocean. It was used in the Burger J prospect in the Chukchi Sea, 70 miles from the village of Wainwright. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Oil Prices Could Collapse To $20

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By Tyler Durden

Extracts from extracts…

Could oil prices collapse to $20? 

The short answer is ‘yes.’

We believe that crude oil prices could fall further unless global oil production is reduced. As shown in Table 2, we estimate that the global oil market could be oversupplied by roughly 920,000 bpd in 2016. The key assumptions are year-over-year growth in global demand of 1.2 million bpd, Saudi Arabia, Iraq and Libya hold production at current levels, Iran ramps up production at moderate pace over the course of the year and the U.S. rig count remains at current levels. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Brent, U.S. crude oil prices battle for premium in weakening market conditions

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SINGAPORE | BY HENNING GLOYSTEINMarkets | Mon Dec 28, 2015 2:53am EST

International Brent and U.S. crude oil futures battled for a premium on Monday but both benchmarks fell in a market in which there is no end in sight for oversupply that has brought down prices by two-thirds since the downturn began in mid-2014.

The international crude oil futures benchmark Brent was trading at $37.58 a barrel at 0739 GMT, down 31 cents from its last settlement. U.S. West Texas Intermediate (WTI) futures were down 47 cents at $37.63 per barrel. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

ALEX BRUMMER: Shell-BG deal no longer makes economic or industrial sense and should be rejected by long term investors

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ALEX BRUMMER FOR THE DAILY MAIL26 December 2015 

Unlike the Kraft Cadbury takeover in 2010-11, which stretched over the Christmas holiday, the Shell bid for BG is unlikely to have families choking on their ‘Fruit & Nut’ bars.

Indeed, many people won’t even have a clue as to what BG Group – once the exploration arm of British Gas – actually does.

The only time the confusingly named group attracted public attention in recent times was when in late 2014 its board, out of touch with the public mood, proposed to hand new chief executive Helge Lund a £25million pay packet. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Concern over Shell gas flow delay

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Concern over Shell gas flow delay

Saturday, 26th December, 2015

A MAYO TD has expressed concern over the delay in issuing the final regulatory approval to Shell E&P Ireland that will enable the company to start producing gas from the Corrib Gas Field in north Mayo.

Deputy Michelle Mulherin said it is the interest of the State to have gas flowing and she called on Energy Minister Alex White to ensure the assessment process be given additional resources and expedited.

She argued: “From an international point of view it doesn’t send out a great message, especially as we continue to press hard to attract further foreign direct investment into this country. The last thing the country wants is to be seen as ‘the poster boy for frustration’ by people in industry and trade who could be put off in investing here. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Will Royal Dutch Shell Plc’s Dividend Be Slashed In 2016?

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By Alan Oscroft – Thursday, 24 December, 2015

When the oil price slumped, the saving grace for BP and Royal Dutch Shell (LSE: RDSB) was dividends – both had the ability to keep paying dividends from other sources should earnings fall for a few years.

Royal Dutch Shell shares have fallen by 42% since their recent peak in May 2014, but that’s been offset to some extent by a 5.7% dividend yield last year and there’s a massive 7.7% expected for 2015. It’s still not a great overall performance, but compared to the way some smaller non-dividend oil stocks have fared, it’s almost heavenly. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Jim Armitage: Shell has too much to lose for this BG deal not to happen

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Screen Shot 2015-12-23 at 09.03.45“For Shell to have a reputation for reneging on such a significant handshake as this due to a short-term collapse in the oil price would be disastrous. For better or worse, this deal will happen.”

JIM ARMITAGE: Wed, 23 Dec 2015

Sleigh bells have been heard over BG and Shell as their shares staged a modest Santa Claus rally.

The jumps were a tentative suggestion Shell’s takeover of the former British Gas exploration arm will go ahead despite the doubters.

In case you’ve been in space with Major Tim, I should explain the deal’s critics say it makes no sense at current bombed-out oil prices.

Yesterday afternoon, Shell issued its offer documents including a welter of mathematical claims aimed at assuaging such fears. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell’s BG Yard Sale: Everything Must Go

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Screen Shot 2015-12-23 at 09.03.45By HELEN THOMAS: Dec. 23, 2015 7:05 a.m. ET

Misery loves company. Royal Dutch Shell will probably get a bit of both.

Shareholders, many of whom also own BG stock, are probably better off holding their noses and voting for a deal rather than forcing Shell to walk (and potentially management heads to roll).

More cost and investment cutbacks are inevitable.

FULL ARTICLE

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Royal Dutch Shell makes deeper cuts

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By Daniel J. Graeber: Dec. 23, 2015

THE HAGUE, Netherlands, Dec. 23 (UPI) — With the company expecting improved efficiency after merging with BG Group, Royal Dutch Shell said it plans to cut spending for next year more than expected.

Shell published a prospectus and circular related to its $7 billion tie-up with BG Group, one of the largest mergers of its kind since Exxon and Mobil joined in the 1990s.

“The combination with BG is a strong platform to refocus the company, to create a simpler and more competitive Shell,” Shell Chief Executive Ben van Beurden said in a statement. “At the same time, Shell is pulling multiple levers to manage through the current oil price downturn.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell/BG needs Downstream like a hole in the head

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Screen Shot 2015-12-23 at 09.03.45Above is a comment by retired Shell executive Paddy Briggs posted on an article published 23 Dec 2015 by The Independent: “The many reasons why Shell’s deal with BG will happen in 2016

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Big investors walk as fears increase over Shell-BG deal

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Screen Shot 2015-12-23 at 09.03.45Robin PagnamentaDecember 23 2015

Two of the biggest shareholders in BG Group have sold nearly £300 million of shares in recent weeks, in a sign of rising unease over its proposed £36 billion takeover by Royal Dutch Shell.

Axa Investment Management has sold 18.4 million BG Group shares worth £168 million, cutting its stake by nearly two thirds since October. Wellington Management, an American hedge fund, has sold 11.82 million shares, worth more than £108 million and a third of its holding, since September 30.  read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

The many reasons why Shell’s deal with BG will happen in 2016

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How idiotic would its board look if it ditched its current bride at the altar, only to see her hook up with a rival in a few months’ time?

Jim Armitage: Wednesday 23 Dec 2015

It will be the first big test of 2016: will Shell press on with its takeover of BG when the oil price is stubbornly below $40 a barrel? Today, it gave a clear “yes” by publishing its full merger documentation and posting the paperwork out to shareholders. If it was not planning to press on with the deal, it would have found some excuse why not to do so.

The documents rap out a series of reasons why the current bombed-out oil price is not relevant to the logic of integrating these two vast companies. The deal will bring so many efficiencies, Shell promises, that its hallowed dividend will be safer, bringing in more cashflow to pay into the divi pot at as low as $50 a barrel. Few people really think crude is likely to stay below that for decades to come. And, as far as the value of the combined assets goes, it can breakeven at the low $60s, Shell adds. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell to take axe to spending, jobs after $US53b BG Group takeover

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BG Group’s Queensland Curtis LNG project will be owned by Shell after the takeover.

Angela Macdonald-Smith: Energy Reporter: 23 Dec 2015

Oil giant Royal Dutch Shell has told shareholders the $US53 billion takeover of BG Group will act as a “springboard to change and reshape” the group, and outlined plans for job and spending cuts, as well as $US30 billion of asset sales that look certain to affect the business in Australia.

In a prospectus issued overnight for the takeover, which is heading for completion early next year, Shell cut expected capital expenditure for the merged group by $US2 billion to about $US33 billion, down 30 per cent from 2014 levels. It also slashed another $US1 billion from Shell’s own capex budget this year, dropping it to $US29 billion. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

£106m fees bonanza from Shell’s £36bn takeover of BG Group

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David Cumming, head of equities at Standard Life Investments, has criticised the deal and urged Shell chief executive Ben van Beurden to pay the £500million break fee to scrap it or renegotiate terms. 

By LAURA CHESTERS FOR THE DAILY MAIL: Wed 23 Dec 2015

Investment bankers and advisers will cash in on a multi-million-pound fee bonanza from Royal Dutch Shell’s £36billion takeover of BG Group.

Documents published yesterday revealed that £106millio in fees will be shared by advisors including Bank of America Merrill Lynch, Goldman Sachs and Rothschild.

The deal split the City after tumbling oil prices raised concerns it was too expensive and could affect Shell’s ability to pay a dividend. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com
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