News and information on Royal Dutch Shell Plc
Royal Dutch Shell has cut operating costs for some of its North Sea fields by 70 per cent since the price of crude crashed, the oil company said. Andy Brown, Shell’s head of upstream, said it was able to make “significant money in the North Sea at $50 [a barrel oil prices]” thanks to the reductions, which analysts said were among the steepest by any company. Mr Brown said he had been shocked by some of the inefficiencies Shell found when it reviewed operations worldwide after oil prices fell.
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: ON HOW TO REVAMP NIGERIA’S UPSTREAM AND DOWNSTREAM OIL & GAS SECTOR With recent reports that the President Muhammadu Buhari-led Federal Executive Council (FEC) had approved a whopping $1.5 billion to rehabilitate the epileptic Port Harcourt refinery, I consider it a national tragedy and a shame of a nation that Nigeria, despite its over fifty decades of oil and gas exploration and production activities, has been exporting its hugely produced crude oil and natural gas at commercial quantity, and then import ‘refined petroleum products’ at higher costs to satisfy domestic demands. The said move, according to the government, is to ensure that the obsolete Port-Harcourt refinery, which last benefitted from a Turn-Around Maintenance (TAM) work in 2000, comes back to life, while also supposedly contributing to the development of Nigeria’s oil sector. We Mobilize Others To Fight For Individual Causes As If Those Were Our Causes https://ndpc-zik.org/publications/on-who-to-revamp-nigeria-upstream-and-downstream-oil-and-gas-sector COMPLETE COMMENTS
: "Under the Hammer", again!https://www.reuters.com/article/us-tunisia-oil/tunisia-faces-exodus-of-western-oil-giants-idUSKBN2BI1XF
: Serica finally kicks-off development on Columbus, years after BG 'kicked them in the teeth'. https://www.upstreamonline.com/field-development/serica-energy-kicks-off-development-drilling-at-north-sea-field/2-1-982427
: https://www.egypttoday.com/Article/3/48093/Shell-to-develop-Phase-9B-of-WDDM-within-2-months
: I have mentioned before how the contaminated produced water from Shell's Western Delta Deep Marine gas fields, acquired during the takeover of BG Group, used to be tankered and dumped in the desert.Khaled Gad, Shell's Onshore and Offshore Asset Manager in Egypt, should be able to answer the question as to what now happens to the produced water from Shell's assets in Egypt.
: Selling off parts of the BG millstone. See: https://www.upstreamonline.com/lng/shell-completes-2-5bn-australian-lng-asset-sale/2-1-980042
: Further to Bogus Group's post, very little at BG Group was proven. The majority of their work was of low integrity and dissolved at the slightest scrutiny. This was to be expected with a 'do as I say, not do as I do' Line Management.
: https://trinidadexpress.com/business/local/shell-takes-biggest-hit/article_ca33aea4-73d5-11eb-8a6e-ff41b564d669.html It's surely been proven that BG proven reserves were not actually proven and that Shell did inherit a 'pig in the poke'. The statement “Our preference is to deal with these arrangements, not in a clandestine way but there is a deeper confidentiality to it. We have these arrangements all over the world. We need to ensure that we maintain a degree of confidentiality but what I will confirm is that hundreds of millions of US dollars converts to billions of TT dollars and we have confirmed that Trinidad will benefit to billions,”beggars belief.
: It is not clear why the once upon a time VP Developments, Brazil is now VP Subsurface Excellence, given that the Brazil Asset under her stewardship spent at least five years down a giant rabbit hole using a corrupt workflow that resulted in a significant overbooking of reserves.
: On this day in 2016 the fate of BG Group, an Internet Cafe and Cappuccino Lifestyle company was sealed. See: https://www.shell.com/about-us/what-we-do/combining-shell-and-bg-a-simpler-and-more-profitable-company.html https://www.theguardian.com/business/2016/jan/28/35bn-shell-takeover-approved-bg-shareholders
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on Jun 5th, 2017 at 13:46
In Aberdeen and Southern operations In the eighties and nineties low oil price periods were quickly reacted to by reducing operating costs mainly maintenance and inspection which equates roughly to 70 percent of OPEX expenditure in a steady state operation with no drilling ongoing.. It is relatively easy to do. That you suffer for these cuts further down the line with serious integrity issues is the reality of the situation where the Management team making the cuts have long since moved onwards and usually upwards. For example a major audit in 1999 found 20 temporary clamps fitted to corroding hydrocarbon pipes offshore. Nothing was done. By 2003 there was some 600 temporary clamps and the failure of one of them caused a major incident and two fatalities. To try and recover the irrecoverable situation Shell Expro expended some £800 m over the next 6 years, their data not mine.This criminal neglect of maintenance caused the premature abandonment of Brent facilities by 4 years or so.
Back to the article, there is ABSOLUTELY no way you can cut operating costs by 70 percent without slashing to the core maintenance and inspection, including testing activities, I just hope by some miracle we do not suffer for this in the future.