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Posts from ‘December, 2015’

Big Oil braced for global warming while it fought regulations

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Screen Shot 2015-10-26 at 21.23.40As many of the world’s major oil companies — including Exxon, Mobil and Shell — joined a multimillion-dollar industry effort to stave off new regulations to address climate change, they were quietly safeguarding billion-dollar infrastructure projects from rising sea levels, warming temperatures and increasing storm severity.


A few weeks before seminal climate change talks in Kyoto back in 1997, Mobil Oil took out a bluntly worded advertisement in the New York Times and Washington Post.

“Let’s face it: The science of climate change is too uncertain to mandate a plan of action that could plunge economies into turmoil,” the ad said. “Scientists cannot predict with certainty if temperatures will increase, by how much and where changes will occur.”

One year earlier, though, engineers at Mobil Oil were concerned enough about climate change to design and build a collection of exploration and production facilities along the Nova Scotia coast that made structural allowances for rising temperatures and sea levels. read more

The merger no longer makes economic sense?

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Screen Shot 2015-12-28 at 09.10.45Screen Shot 2015-12-23 at 09.03.45While oil prices teetered on the brink of a new fall, Royal Dutch Shell announced in April that it wanted to buy BG Group.

As the year wore on, some investors became restive.

At the time the deal was outlined, the financial logic of the takeover was underpinned by an assumption that oil prices would be about $67 a barrel.

They are now well below $40.

At that level, say some shareholders, the merger no longer makes economic sense. read more

BG Group: Shell just needs to make the math work

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Royal Dutch Shell/BG Group – $82 billion

In April, Royal Dutch Shell RYDAF -0.98% decided to take advantage of the drop in the values of fellow oil companies and buy BG Group.

It’s unclear how wise that decision was. read more

Corrib Gas Controversy: Minister White’s Christmas Message to the People of Mayo & the High Court

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Gives High Court the two-fingered salute. Uses Christmas to sign off on Corrib gas despite pending judicial review of EPA licence.

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Screen Shot 2015-12-30 at 16.57.3531 Dec 2015

In an extraordinary, near clandestine decision in the middle of the Christmas holiday period, Alex White signed off on the final consent needed by Shell to operate the Corrib gas refinery at Ballinaboy.

This is despite the fact that proceedings are now before the High Court challenging the project’s pollution licence. On 14 December 2015, Judge Richard Humphries granted, in its entirety, an application for Judicial Review of Shell’s Corrib gas EPA licence to four Mayo residents. read more

Shell Opens Natural Gas Wells Off Irish Coast

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A wall of steel protects the workers at the entrance to the Corrib gas terminal site, which opened on Wednesday in Bellanaboy Bridge, Ireland. Credit Paul McErlane/Bloomberg News

LONDON — Two decades after being discovered, natural gas began flowing on Wednesday from wells off Ireland’s northwest coast. Royal Dutch Shell, the oil company, said it had begun producing gas from undersea wells, part of an effort for Ireland to produce more of its own resources.

Opening the taps in the Corrib field, more than 50 miles offshore, is a breakthrough for the oil and gas industry in Ireland, which had mostly disappointing results in recent years while encountering resistance from environmental groups. read more

Shell producing Irish natural gas after decade of project delays

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December 30, 2015 | By Collin Eaton

HOUSTON — Royal Dutch Shell has started extracting natural gas off the coast of Ireland after more than a decade of project delays and an estimated $3.1 billion in unexpected cost overruns.

The Anglo-Dutch oil major on Wednesday said it aims to pump enough gas from the Corrib gas field to quench as much as 60 percent of Ireland’s demand for gas. It’s the latest move by Shell to cement its place among the world’s biggest gas suppliers, coming eight months after the company agreed to a $53 billion deal to buy British liquefied natural gas firm BG Group. read more

Natural gas begins flowing from controversial Corrib field

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Peter Murtagh: 30 Dec 2015

Natural gas is flowing into the national supply grid from the Corrib gas field off Co Mayo for the first time since it was discovered in 1996.

One of six wellheads, drilled in 350m of water 84km off the west coast, was opened on Wednesday by the field developer, Shell E&P Ireland.

This started gas flowing through a 20 inch diameter off-shore pipeline to an 8.3km-long on-shore pipeline, which includes a 4.9km tunnel beneath Sruwaddacon Bay, the longest in Ireland.

It continues from there into the company’s reception terminal at Ballanaboy, near Belmullet in Co Mayo. read more

Ireland’s Corrib Field Now Producing Natural Gas

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Screen Shot 2015-12-30 at 16.57.35By SARAH KENT: Dec. 30, 2015 2:59 p.m. ET

LONDON—After nearly two decades of development, one of Ireland’s largest-ever energy projects is now producing natural gas, Royal Dutch Shell PLC said Wednesday.

…the Anglo-Dutch firm’s plans to build an onshore pipeline to transport the Corrib field’s gas to a terminal it would construct at Bellanaboy in County Mayo met with fierce local opposition. The concerns surrounding the safety of the pipeline and its effects on the environment, led to delays and increased costs… read more

Desperate measures for a desperate Corrib project

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Screen Shot 2015-12-30 at 16.57.35New Release – Issued by Shell to Sea – December 30th 2015 – For immediate release

—  Minister White slips consent to Shell during Christmas period —

Shell to Sea have called the granting by Alex White of consent to operate the Corrib Gas pipeline – desperate and disgraceful. Permission was granted despite Shell’s EPA consent to operate the Corrib Gas refinery currently being admitted for hearing before the High Court. [1]

Shell to Sea is of the view that Shell possibly had contractual obligations which required that Corrib gas flow before end 2015 so they once again snapped their fingers at government to do the needful – in this instance the government of ‘law and order’ has shown itself no different to Fianna Fáil. read more

Royal Dutch Shell Looks To Curtail Capital Spending On Current Down Cycle In Global Oil Prices

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Screen Shot 2015-11-20 at 08.55.47Trefis Team Contributor: DEC 30, 2015 

Oil & Gas companies across the globe are choosing to curtail capital expenditures even though it might mean the loss of growth in future production. Royal Dutch Shell Plc. is also adopting this strategy and recently announced that it is revising its capital spending estimates for 2016. This announcement is the latest in a spate of cost cutting decisions the company has taken in the wake of the extended period of low crude oil prices. We believe that this is the right way forward for Royal Dutch Shell in the near term, and these measures will be beneficial in maintaining the company’s cash profit margins till oil prices begin to recover in the long run. read more

Shell’s flimsy payout promise: Oil prices would have to bounce back to about $60-a-barrel for BG merger to make any economic sense, says ALEX BRUMMER

Screen Shot 2015-12-30 at 09.11.22If one were Shell and BG directors clutching at straws, seeking to force through a £47billion merger forged in the midst of a dramatic correction in oil prices, you might breathe a sigh of relief at a 2 per cent rebound in Brent crude to $37 a barrel in latest trading.

The very idea, however, that the proponents of one of the UK’s biggest ever mergers is relying on the hope and the prayer of a recovery in crude prices to about $60 to make any economic sense of the combination is illustration of the flimsiness of this deal.  read more

Is BP plc Set To Outperform Royal Dutch Shell Plc In 2016?

Screen Shot 2015-12-30 at 09.00.45By Rupert Hargreaves – Tuesday, 29 December, 2015

If you’re looking to invest in the oil sector next year, Royal Dutch Shell (LSE: RDSB) and BP (LSE: BP) should be on your hit list.

The two oil giants have many advantages over their smaller peers, such as strong balance sheets, integrated operations and some of the lowest production costs in the business. Indeed, it doesn’t make sense to buy into the smaller producers such as Tullow Oil, Premier or Enquest when shares in Shell and BP are both on offer.  read more

Shell gets final approval to operate Corrib gas pipeline

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Protests came to a head in the summer of 2005 when five local men were jailed for breaching a court injunction not to interfere with the construction of the gas pipeline. The ‘Rossport Five’ were released after serving 94 days in prison.

Tuesday 29 December 2015 19.20

The Minister for Communications, Energy and Natural Resources has given final approval to Shell to operate the Corrib gas pipeline and terminal in Co Mayo.

In a statement this evening, Alex White confirmed that he had given consent to the pipeline subject to 20 conditions relating to environmental management, operation, control and monitoring.

It is expected the first gas could be brought ashore as soon as tomorrow.

Shell applied for ministerial consent to operate the pipeline and the onshore terminal last August. read more

Shell granted permission for Corrib gas project

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Tue, Dec 29, 2015

Minister for Energy Alex White has given final approval for the Corrib gas project, almost 20 years after the discovery of the gas field off the Mayo coastline.

Mr White has issued Shell E&P Ireland with consent to operate the Corrib natural gas pipeline, linking the subsea gas facilities 83km offshore to the onshore refinery at Ballinaboy.

The consent is subject to 20 conditions relating to “environmental management, operation, control and monitoring”, Mr White said in a statement. read more

Donovan/Royal Dutch Shell: The Good Old Days

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Bruce Forsyth (above) as a rather camp cowboy: Video Link

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By John Donovan

There was a time, from the early 1980’s into the 1990’s when our company Don Marketing, had a great relationship with Shell.

We devised a host of successful forecourt petrol sales promotions involving a distribution of several hundred million game cards. 

The games caught the imagination of the public and the news media. 

A 30-minute video compilation from over 30 years ago features some of our games for Shell, such as Shell Make Money, which boosted petrol sales by 30% not only in the UK but also in other countries.  read more

Further doubts over Shell/BG deal

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Screen Shot 2015-12-23 at 09.03.45…the deal doesn’t make financial sense unless Brent crude is sustained at around $60 a barrel.

By Mark Robinson: 29 December 2015

Midway through December, Chinese anti-trust regulators granted unconditional clearance to the proposed £47bn merger between BG Group

(BG.) Royal Dutch Shell (RDSB). The decision effectively removed the final regulatory hurdle, although the deal is still subject to shareholder approval at meetings that are expected to be convened on 27 and 28 January 2016, respectively.

With anti-trust strictures no longer an issue, you would imagine that final approval would amount to a formality, but some industry analysts have questioned whether the terms of the offer still represent fair value in light of reduced assumptions on energy prices through 2016. Spot prices for Brent crude are down by a third since the proposal was announced back in April, so it’s perhaps understandable that there are gathering reservations about the deal. read more

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

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

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

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

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

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

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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

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

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

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

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.


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

Shell/BG needs Downstream like a hole in the head

Screen Shot 2015-12-23 at 13.33.20RETIRED SHELL EXECUTIVE PADDY BRIGGS SAYS:

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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

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

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

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

£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. 


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

Shell says BG takeover works with oil price in low $60s

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Royal Dutch Shell’s (RDSa.L) proposed $53 billion takeover of rival BG Group (BG.L) will work even if future oil prices are in the low $60s a barrel, it said on Tuesday in announcing another $5 billion cut in spending next year to weather low oil prices. The company previously said the break-even oil price for the deal was $65 a barrel.

Publishing its prospectus for shareholders on Tuesday, Shell set Feb. 15 as the completion date for the deal, the largest in the energy sector in a decade and one that helped make 2015 a record-breaking year for mergers and acquisitions. read more

Shell’s slick take on BG merger cannot hide a poor deal

Major Shell, BG shareholder expresses support for $53 billion merger

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Deals | Tue Dec 22, 2015 12:09pm EST: LONDON

Top 10 Royal Dutch Shell RDsa.L and BG Group (BG.L) shareholder Aberdeen Asset Management (ADN.L) said on Tuesday it supported Shell’s proposed $53 billion acquisition of its smaller British rival.

“We’re supportive of the deal from a strategic perspective. It makes a lot of sense to put the two companies together,” Ben Ritchie, senior investment manager at Aberdeen Asset Management, told Reuters.

Shell said on Tuesday it planned to complete the proposed takeover by Feb. 15 if the deal is approved by both sets of shareholders at meetings due to be held at the end of January, and outlined plans for further spending cuts next year in the face of low oil prices. read more

Shell plans to complete BG merger by Feb. 15, cuts spending plan

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Royal Dutch Shell (RDSa.L) said on Tuesday it planned to complete its proposed $53 billion takeover of BG Group (BG.L) by Feb. 15, outlining plans for further spending cuts next year in the face of low oil prices.

Shell also lowered the capital spending plan for next year for the combined group by $2 billion to $33 billion, saying it would bolster its ability to weather the industry’s downturn and to maintain dividend payments. read more

Shell vows BG purchase will ‘reshape’ it

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Tuesday 22 Dec 2015

Royal Dutch Shell has vowed that its £35.6bn acquisition of rival BG Group will benefit the combined company in what may prove a “prolonged downturn” in the oil price.

Chad Holiday, the chairman of Shell, said:

This is an important moment for Shell. The Board is unanimous in its recommendation on this transaction. Our industry has entered what could be a prolonged oil price downturn. The Board is confident that the financials of the group will be further strengthened by this transaction. This should improve Shell’s ability to cover both dividends and investments. The result will be a more competitive and stronger company, for both sets of shareholders, in today’s volatile oil price world. read more

UK awash with oil as tankers forced to turn around

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Unseasonably warm winter weather has left the UK with its highest October stockpiles of oil for the past five years, according to Government figures

By John Ficenec, and Agency: 2:46PM GMT 22 Dec 2015

Record high temperatures in December have left the UK with the highest stocks of oil for five years as Europe-bound fuel tankers are forced into mid-Atlantic U-turns.

An unseasonably balmy period means the UK is on track for the warmest December in more than 100 years, and stocks of oil and gas are piling up as households turn down the heating.

Oil stocks in the UK have risen to almost 15m tonnes, which is 9pc above the same stage last year, according to the latest figures released by the Department for Energy and Climate Change. read more

Shell calls for stronger regulation to avoid Middle East oil price distortion

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Screen Shot 2015-11-20 at 08.55.47Anthony McAuleyDecember 22, 2015

Royal Dutch Shell is lobbying to reform regional oil trading after a series of price squeezes, particularly by Chinese state oil firms.

In a highly unusual move, Royal Dutch Shell has called for greater regulation of the market to improve transparency and avoid price distortion.

Now, Shell is following up its public call with behind-the-scenes efforts to gather support for change, particularly from the regional state oil firms.

“There need to be safeguards to prevent the risk of distortion, and to ensure the Dubai benchmark price mirrors true market supply and demand fundamentals,” a Shell spokesman said. “Due to some of the unique characteristics of the Dubai market, it is susceptible to and can be heavily influenced by a market participant amassing a large portion of the available three crudes deliverable in that month.” read more

$70 billion deal between Royal Dutch Shell plc and BG Group plc may be in danger

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Royal Dutch Shell-BG Group Deal: Succumbed to Pressures?

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According to various market participants, the merger does not make sense at low oil prices and so they are urging Shell to pay a termination-fee of $750 million to BG Group and walk out of the deal.

By Mushhood Khan on Dec 22, 2015

Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has just entered the last stage of closing one of the biggest energy deals this year. Yesterday, the oil giant announced that BG Group would file a request for approval in the High Court, following the consent by China’s Ministry of Commerce (MOFCOM) coupled with the unanimous decision of the boards of directors. Subsequently, the energy companies will publish scheme documents for their shareholders and set up a shareholders’ meeting. The companies are expected to release documents today. read more

Oil price falls to 11-year low with global glut expected to deepen in 2016

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Screen Shot 2015-12-22 at 09.00.18Larry ElliottTuesday 22 December 2015 

The investment bank Goldman Sachs has said that it could take a drop to as little as $20 a barrel for supply to adjust to demand.

However, Shell said on Monday that it is pressing ahead with its $60bn takeover of BG Group despite doubts among some shareholders about the deal’s viability given the falling oil price.


RELATED: Oil producers prepare for prices to halve to $20 a barrel

Shell’s £40bn takeover of BG Group edges closer despite tumbling oil price and shareholder discontent

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Tumbling oil prices and shareholder discontent have not prevented Royal Dutch Shell’s £40billion takeover of BG Group entering the final stages.

The deal could complete in February after BG applied to the High Court to hold the shareholder meetings to vote on it in the new year.

The tie-up has been unpopular with some investors and experts who argue it does not make sense when the oil price is so low. 

The price of Brent crude plummeted to an 11-year low yesterday as excess supply continued to flood the market. 

Oil production is running close to record highs and Brent futures fell by as much as 2 per cent to a low of just above $36 a barrel, their weakest since July 2004. read more

Shell shareholders move to back £35bn takeover of BG

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David HellierTuesday 22 December 2015 

Some of the largest shareholders in Royal Dutch Shell, the giant petroleum and energy group, are expected to publicly back the company’s $53bn (£35bn) takeover of BG amid concern the deal could be sabotaged by those who want it scrapped. read more

Oil Prices Slump to 11-Year Lows in Asia and Europe

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LONDON — Oil prices hit 11-year lows in Asia and Europe on Monday, as a glut of crude on world markets and the recent global climate accord continue to depress fossil-fuel prices.

Brent crude oil, the international benchmark, settled at $36.51 a barrel on Monday in Europe.

Analysts say there is little to restrain continued price declines in the near term. Prices are down about 15 percent so far in December, after an OPEC meeting failed to produce measures to restrain record-high production. That meeting was quickly followed by the United Nations climate accord in Paris, which aims to reduce the world’s reliance on oil and other carbon-emitting fuels. read more

Shell-BG Deal Not Yet in the Bag Amid Fears of Further Oil Slump

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“..if there’s another sharp spike down in oil prices — crack through $30 towards $25 — there has to be a pain threshold beyond which the board would have to turn around.”

By Rakteem Katakey: December 21, 2015 -2.42PM GMT

Royal Dutch Shell Plc is on the brink of pulling off its biggest acquisition. Yet the widening discount of target BG Group Plc to the offer price shows that a further steep drop in oil prices could still put the deal in doubt.

BG traded 12.5 percent below Shell’s bid price on Dec. 18, the biggest discount since early September, compared with a 6.4 percent gap on Dec. 4. While BG shares soared when news of the deal broke eight months ago, they’ve since tumbled more than 20 percent as oil prices slumped.

If benchmark Brent crude sinks to the mid-$20s a barrel, the transaction may fall through, said Philip Lawlor, a strategist at Smith & Williamson Investment Management LLP in London, which owns shares in both Shell and BG. Trz Trading BV’s Niels Lammerts Van Bueren said it “all depends on the oil price.” read more

Shell and BG Shareholders to Vote on Deal at End of January

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The takeover, valued at about $70 billion when it was announced in April, has come under scrutiny as crude prices slumped below $40 a barrel amid a global oversupply.

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By Amanda Jordan: December 21, 2015

Shareholders of Royal Dutch Shell Plc and BG Group Plc are expected to vote on Jan. 27 and Jan. 28 on the companies’ planned combination announced eight months ago.

Shell and BG plan to publish shareholder documents as soon as Tuesday, the companies said Monday in a regulatory statement. In BG’s case, votes in favor must represent at least 75 percent of the total value of BG shares. Shell requires 50 percent backing.

Shell, Europe’s biggest oil company, won Chinese antitrust approval for its purchase of Reading, England-based BG this month, clearing the last regulatory hurdle for the deal. read more


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London Rising Tide protesters outside the Royal Courts of Justice to highlight Shell’s devastating pollution in Nigeria 

To whom this may concern, 

I am writing an e-mail to you to let you know how disgusting and disgraceful company is, I am referring to the oil spills in Nigeria where your carelessness has affected the lives of the local people there…….I know that it is of little concern for your company who care nothing but making profit. It is also annoying to know individuals are powerless to make a difference and your continuation of lying of cleaning the oil spills or even repairing the pipes which are leaking this hazardous poison (oil) into mother earth. read more

Shell To Sea JR Legal Fund

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Four local residents have initiated a legal challenge to the Environmental Protection Agency’s decision granting Shell E&P Ireland an INDUSTRIAL EMISSIONS LICENCE P0738-03 for the Corrib gas refinery in Co Mayo.


In proceedings before the High Court, four residents argue THAT the decision to grant the license is flawed and should be set aside.

The action, against the EPA and the State, has been brought by Martin and Maura Harrington, and Monica Muller and Peter Sweetman.  read more

Royal Dutch Shell presses ahead with BG tie-up despite oil price fears

Shell shareholders expected to vote on BG deal on January 27-28

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Royal Dutch Shell (RDSa.L) said shareholder meetings to approve its acquisition of BG Group Plc (BG.L) are expected to take place on Jan. 27 and Jan. 28.

BG will on Monday seek the High Court’s nod to hold shareholder meetings for the deal, which was announced on April 8 and is the biggest in the sector in a decade.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Sunil Nair)


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