26 April 2018
ROYAL Dutch Shell finance chief Jessica Uhl has hailed a big increase in profitability in the North Sea and underlined the oil and gas giant’s commitment to the area.
As Shell posted a 42% increase in first quarter profits to $5.3bn (£3.8bn) from $3.8bn, helped by the rise in oil and gas prices, Ms Uhl indicated the North Sea has played a big part in the growth story.
“We’re seeing a really fantastic performance from our assets in the North Sea,” she told reporters.
“It’s impressive what the team has been able to accomplish to really transform the return capability and the investment attractiveness.”
Ms Uhl added: “We have made some decisions to expand in the last couple of years and we continue to look at that as an important part of our business. We believe it is more competitive and offers better opportunities.”
The comments from the American executive provide a further sign there has been a big change in thinking about the North Sea at Shell, which will be welcomed in Scotland.
Shell appeared set to turn its back on the North Sea area amid the fall out from the sharp fall in the oil price between 2014 and 2016.
The company shed more than 1,000 North Sea jobs and sold off a raft of older fields. In January last year it sold a big portfolio accounting for around half its North Sea production to the independent Chrysaor for up to $3.8bn.
Read more: $3.8bn deal puts North Sea in focus
The disposals have left Shell focused on newer assets in areas such as West of Shetland, on which it can achieve higher returns using modern kit.
Cost cutting has provided a further boost to profitability.
Shell cheered the North Sea oil and gas industry in January by announcing plans to make hefty investment in revamping the giant Penguins field north of Scotland.
This was the first UK development approved by Shell for more than six years.
In February, chief executive Ben van Beurden said the decision to go ahead with Penguins was an important move for the firm, which saw much more running room in the area.
Read more: Shell reveals North Sea growth plans
He said yesterday Shell’s strong first quarter earnings were underpinned by higher oil and gas prices and the improved profitability of its exploration and production arm.
Ms Uhl noted the first quarter profit was the highest Shell has achieved since the third quarter of 2014, when oil was still selling for $100 per barrel plus.
The company got an average $60.66/bbl in the first quarter against $48.36/bbl in the same period last year.
Ms Uhl reiterated Shell’s intention to return $25 billion or more to investors through share buy backs by the end of 2020. The company held the first quarter dividend at 47 cents per share.
Shell employs around 1,500 people in its North Sea operations including 1100 based in Aberdeen.
In November 2016 Shell said it would close its accounts centre in Glasgow, putting nearly 400 posts at risk. The process is ongoing.
Royal Dutch Shell A shares closed down 26p at 2502.5p.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
