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Shell booked $11 billion in writedowns on its gas business, mostly on its Australian Prelude floating LNG

Shell focused on turning around troubled Australian operations

MELBOURNE (Reuters) – Undaunted by hefty writedowns on its Australian gas assets, Royal Dutch Shell RDSa.L sees its liquefied natural gas business and “new energy” acquisitions Down Under as core to its long term plans, the Australian unit’s chairman said on Tuesday.

As Europe’s biggest oil company aims for net zero emissions from its operations by 2050 and plans a major restructuring, Shell still sees gas as a crucial part of the puzzle, with around a quarter of its gas assets in Australia. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell Resumes Work at Prelude Floating LNG Facility

Shell Resumes Work at Prelude Floating LNG Facility

Zacks Equity Research: September 8, 2020

Royal Dutch Shell plc RDS.A recently confirmed that it resumed activities at Prelude floating liquefied natural gas (LNG) facility offshore Western Australia. The facility remained offline since February due to engineering glitches. This suspension followed an order from Australia’s upstream regulator to perform additional work following three safety incidents that took place at the facility between September and January.

The closure of the Prelude plant depressed Australia’s LNG export volumes, which further took a hit from an extended shutdown of Train 2 at the Chevron Corporation CVX-regulated Gorgon LNG site due to technical snags stemming from fractured heat exchangers. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Australia’s $200 Billion LNG Boom Waylaid by Covid and Cracks

Australia’s $200 Billion LNG Boom Waylaid by Covid and Cracks

James Thornhill Sep 05 2020, 3:30 AM Sep 07 2020, 9:24 AM

EXTRACTS

(Bloomberg) — Cooks on strike and cracked equipment are among the latest maladies to undermine Australia’s $200 billion push to become the world’s biggest liquefied natural gas exporter.

More than a year after the completion of a decade-long LNG construction boom, two of the seven marquee projects haven’t been able to work right, the nation’s east coast urban centers face an impending gas shortage blamed partly on exports, and the government is receiving relatively meager tax revenues from fuel sales. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell Australia attempts to bring Prelude FLNG back online

Shell Australia attempts to bring Prelude FLNG back online

SUPERMAJOR Shell has begun the process of re-starting production from its fields connected to the Prelude Floating LNG vessel offshore Western Australia, however is facing difficulties eight months after the facility was shut down over engineering problems.

Paul Hunt: Senior Journalist: Oil & Gas, Policy. 07 Sept 2020

Shell Australia confirmed to Energy News that it had begun the process to produce gas from its Browse Basin fields 475 kilometres offshore Broome on Friday afternoon. 

“The process for hydrocarbon restart of Shell’s FLNG facility has commenced,” a Shell Australia spokesperson told Energy News on Friday.

“Once we have safely started up, we will be in a stronger position to talk about timing of production and cargo.”

However, according to one source on board the vessel the restart had some issues with “multiple trips” of the plant and two swivels inside the turret that moors the giant LNG facility in place. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

World’s largest floating LNG factory remains in shutdown — at just three years old

World’s largest floating LNG factory remains in shutdown — at just three years old

More than five times larger than the world’s biggest aircraft carrier, Prelude is the largest floating object ever built. (Supplied: Shell)

ABC KimberleyBy Ben Collins

Shell’s massive floating LNG factory off the Kimberley coast has been in shutdown since February and industry analysts are divided on whether the $12-17 billion facility has a future.

Prelude FLNG is the largest floating object ever built and billed as the solution to getting gas out of Australia’s most remote undersea gas fields. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell posts $18billion loss in second quarter

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Shell has posted losses of $18.1billion (£14bn) for the second quarter of 2020 as oil, LNG and gas prices remain depressed.

The energy major took an impairment charge of $16.8billion (£12.9bn) – $22.3bn pre-tax (£17.2bn) -as it wrote down the valuation of assets due to the downturn and Covid-19.

Shell’s second quarter results compare to a profit of $3.1bn (£2.39bn) in the same period last year,  while revenues have dropped to $32.5bn, compared to $60bn in Q1 2020 and $90.5bn Q2 2019. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Union Strike on Prelude FLNG

Sodexo to chopper ‘scabs’ in preparation for union strike

28 July 2020

Lego model of the Prelude FLNG at Shell House on Wellington Street, Perth.

CONTRACTOR Sodexo has made a last-ditch effort to prevent the impact of a union strike across Shell Australia’s Prelude floating LNG vessel offshore Western Australia, by helicoptering in alternative staff ahead of the protected action set to commence on Thursday.

The Australian Workers Union and Maritime Union of Australia, in a coalition known as the Offshore Alliance, have organised a strike, more commonly known as a ‘protected action’ when undertaken as part of enterprise bargaining, from this Thursday, of more than 60 caters, cooks, and cleaners across the Prelude FLNG. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell slashes valuation of oil and gas assets amid coronavirus crisis

Shell slashes valuation of oil and gas assets amid coronavirus crisis

By Mark Williamson: 1st JULY 2020

The company said yesterday it expected to cut the valuation of its integrated gas business by $8 – $9 billion, “primarily in Australia”. It said this would include a partial impairment of the giant Prelude floating liquefied natural gas facility.

ROYAL Dutch Shell has said it plans to slash the valuation of its oil and gas assets by up to $22 billion (£17.9bn) to reflect the expected impact of the Covid-19 coronavirus pandemic on demand and the wider economy. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Successive Shell CEO’s cannot say that they were not warned time and again about the Prelude experiment

By John Donovan

Successive Royal Dutch Shell CEO’s cannot say that they were not warned time and again in chilling terms about the Prelude “experiment”, the description used in a Forbes article published today.

The links below are to a series of articles, initially triggered by a well-placed whistleblower directly involved in the Prelude project. Includes articles by Mr Bill Campbell, the retired distinguished Shell Global Safety Consultant and another retired Shell guru with a track record of spotting potential pitfalls in major Shell projects. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell’s $12 Billion LNG Experiment Becomes A Big Headache

A series of recent events highlight the challenge Shell has ahead of it with Prelude, and plans for sister vessels which are supposed to follow.

Tim Treadgold Asia: June 23, 2020

The world’s biggest ship is on the way to becoming one of the oil industry’s biggest bloopers.

Prelude, a 600,000-ton monster which is five-times the size of the largest U.S. aircraft carrier, is designed to produce liquefied natural gas (LNG), and other petroleum liquids.

Installed atop a remote gasfield 300 miles off the north-west Australian coast, the 535-yard long Prelude is a bold experiment by the oil major, Royal Dutch Shell. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell’s Prelude floating LNG plant out of action for several months?

Australian LNG exports defy supply glut

Angela Macdonald-Smith
Angela Macdonald-Smith Senior Resources writer Updated Jun 5, 2020 – 12.20pm, first published at 10.55am

Australia’s exports of liquefied natural gas are holding at near-record levels, defying a global supply glut that has swamped the market, causing prices to crash and driving the cancellation of cargoes from the US.

LNG production from the country’s plants on the north-west and eastern coasts rose in the March quarter by 11 per cent from the year-earlier quarter to 19.9 million tonnes, and was only marginally below the record levels of the second half of 2019, according to the latest analysis from consultancy EnergyQuest, released on Friday. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell Prelude FLNG fiasco, late, expensive, dirty, unreliable and dangerous

Expert comments received in response to the BoilingCold article by Peter MilneNo winners from Shell’s $US17B Prelude floating LNG”

Comment from retired Shell International Global Safety Consultant, Bill Campbell:

It’s all rather depressing, most worrying aspect as implied in the article is the potential gas supply, or lack of it, from the homogeneous and shared reservoir with another operator bleeding off volumes.

The boilingcold.com.au journalist Peter Milne has given the most detailed analysis yet of the Prelude story, elements of both tragedy and farce.

COMMENT FROM “AN OLD SHELL E&P ENGINEERING SEA DOG”

As before I feel very sorry for the Aussies who are under extreme pressure to get this unit up and running.  I do not quite understand the journalist comment of “gas is running out”.  It is a shared reservoir therefore there will be an agreement for the total volumes in place and a regular review taking place to determine the remaining producible volumes and the agreed volume share for each operator.

The links below are to a series of articles, many triggered by a well-placed whistleblower directly involved in the pioneering Royal Dutch Shell Prelude project. Includes articles by Mr Bill Campbell above, the retired distinguished HSE Group Auditor of Shell International and another retired Shell guru with a track record of spotting potential pitfalls in major Shell projects.

The fears voiced by Bill Campbell about a loss of containment (see article link 3) have proven well-founded.

Ask the Australian National Offshore Petroleum and Environmental Management Authority.

ARTICLE: Voser wisely abandons an unstable ship: 28 December 2013

ARTICLE: Royal Dutch Shell Prelude to disaster?: 10 Jan 2014

ARTICLE: Shell Prelude FLNG: loss of containment of hydrocarbons almost inevitable: 21 Feb 2014

ARTICLE: What should frighten stiff Royal Dutch Shell shareholders: 15 March 2014

ARTICLE: Tales of the Unexpected and Royal Dutch Shell Prelude FLNG: 28 March 2014

ARTICLE: Prelude FLNG: A case of all your eggs in the one basket: 10 July 2014

ARTICLE: Prelude FLNG risks are on par with modern offshore oil and gas facilities say Shell – but are they?: 23 Sept 2014 read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

No winners from Shell’s $US17B Prelude floating LNG

Peter Milne  Peter Milne

Shell’s Prelude floating LNG facility off the WA coast was to be the first of many that would open up stranded gas reserves around the world thanks to the technical and project management prowess of Anglo-Dutch oil and gas giant Shell.It has not turned out that way.When the 488m-long giant arrived in Australia almost three years ago, Shell expected to receive cashflow from the Prelude in 2018.

While the Prelude did export LNG at about half its capacity for the second half of 2019, it is now idle.

Moored far off the Kimberley coast it is plagued with technical problems, dwindling gas reserves and safety processes condemned by the regulator despite Shell and its partners spending about $US19.3 billion ($A30.0 billion) to the end of 2019.

Neither Shell and its partners nor Australia have gained anything near what they expected from the giant experiment. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

OilPrice.com: The LNG Market Is “Imploding”

Nick Cunningham Oilprice.comApril 28, 2020

While everyone is understandably watching the meltdown in the crude oil market, the global market for natural gas is also cratering.

At least 20 cargoes of U.S. liquefied natural gas (LNG) have been cancelled by buyers in Asia and Europe, according to Reuters. The global pandemic and the unfolding economic crisis have slashed demand for gas worldwide. Cheniere Energy, one of the main exporters of U.S. LNG, has seen an estimated 10 cargoes cancelled by buyers halfway around the world, Reuters said. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Significant risk to the health and safety of persons at the Shell Prelude FLNG Facility

A TALE OF INSPECTORS AND INVESTIGATIONS INVOLVING DANGEROUS OCCURRENCES AT THE PRELUDE FLNG FACILITY (AND THE INTERVENTION OF COVID-19).

In a letter dated 16 March 2020 to the Australian National Offshore Petroleum and Environmental Management Authority (NOPSEMA), Shell Australia Pty Ltd sought an extension of time for compliance with NOPSEMA General Direction ID 780 in relation to dangerous occurrences at the Prelude FLNG Facility

NOPSEMA agreed in its reply letter dated 20 March to “revise the due date for Direction 2 to 31 May 2020 to provide additional time for Shell Australia Pty Ltd (Shell) to fully comply with the directions, due to extenuating circumstances associated with measures put in place to mitigate the spread of the COVID-19 virus. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

WSJ: Shell Sees Coronavirus Eroding Chinese Natural Gas Demand

Energy giant said it is redirecting shipments and looking for new buyers for LNG that was previously allotted to China read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.
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