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Posts under ‘Brazil’

Shell divests its interest in Comgas for a headline of US$380 million

HOUSTON, Oct. 10, 2017 /PRNewswire/ — Shell Gas BV, Shell Brazil Holding BV and Integral Investments BV (“Shell”) today announce they have signed an agreement with Cosan Ltd. to execute an existing Put Option Agreement, which allows Shell to sell all of its 16.8% interest in Companhia de Gas de São Paulo (“Comgás”) to Cosan Ltd. Under the agreement, Shell will exchange its ~21.8 million common shares in Comgás for Cosan S.A. Indústria e Comércio (“Cosan SA”) shares plus cash. read more

Puerto Rico’s Colonial Legacy Doomed It To Dirty Electricity — And Now Darkness

A class-action lawsuit filed in 2015 accused PREPA of more than $1 billion in fraud, claiming it had taken kickbacks from oil suppliers including Brazil’s Petrobras and Royal Dutch Shell.

By Alexander C. Kaufman: 28 Sept 2017

Puerto Rico plunged into darkness last week after the second major hurricane in a month crippled its aging, debt-laden electric utility. The island is projected to be without power for six months or more, as people swelter and lifesaving medical equipment saps generators in what House Speaker Paul Ryan declared “a humanitarian crisis” on Tuesday.

But it’s not just old, storm-vulnerable transmission lines that need to be replaced.

Forty-seven percent of the power the troubled Puerto Rico Electric Power Authority generates is from burning oil ― one of the most polluting and least efficient sources of electricity. An additional 51 percent of Puerto Rico’s energy blend comes from a mix of coal and natural gas. Just 2 percent was drawn from renewable sources last year. read more

Brazil’s Raízen trying to cut sugar production costs -CEO

RIO DE JANEIRO, Sept 15 (Reuters) – Brazil’s Raízen, the world’s largest sugar producer, is trying to cut production costs to remain profitable amid depressed international prices, Chief Executive Luis Henrique Guimarães said on Friday.

Raízen, a 50-50 joint venture between Cosan SA Indústria e Comércio and Royal Dutch Shell Plc, plans to crush up to 63 million tonnes of cane in the current crop season, more than 10 percent of total Brazilian cane output.

(Reporting by Rodrigo Viga Gaier; Writing by Marcelo Teixeira; Editing by Paul Simao) read more

Shell to invest $2 billion per year in Brazil through 2020

SEPTEMBER 14, 2017 / 5:25 PM

SAO PAULO (Reuters) – The Brazilian unit of Royal Dutch Shell PLC will invest $2 billion per year in the country through 2020, Flávio Rodrigues, the unit’s director of government relations and regulatory affairs, said at an industry event on Thursday.

The investment plan does not include potential bids for oil exploration areas, he said, which the government will auction off in September and October.

On average, the oil company produced 325,000 barrels of oil equivalent per day (boepd) in the first quarter, Rodrigues added.  read more

Royal Dutch Shell sees Brazilian counterpart as natural partner

Dutch supermajor signed a memorandum of understanding to strengthen cooperation for deepwater activity.

Shell said a memorandum of understanding with a Brazilian company is symbolic of a true partnership for deep waters. Photo courtesy of Royal Dutch Shell.

By Daniel J. Graeber: Sept. 12, 2017

Sept. 12 (UPI) — Royal Dutch Shell said it formed a “true partnership of spirit” with a Brazilian company working in tough conditions in the country’s deep waters.

Shell said it signed a memorandum of understanding with Petroleo Brasileiro, the Brazilian company known also as Petrobras, meant to strengthen cooperation in deep waters.

“In true partnership spirit between two of the world’s largest energy companies, Shell will benefit from technical solutions, contract management expertise and cost efficient initiatives Petrobras applies to Brazil’s pre and post-salt projects,” Shell’s statement read. “Shell will share with Petrobras its global deep water experience, especially on cost efficiency efforts and use of technology.” read more

Shell and Petrobras sign technical cooperation agreement to strengthen deep water partnership

NEWS PROVIDED BY: Shell Oil CompanySep 11, 2017, 14:14 ET

RIO DE JANEIRO, Sept. 11, 2017 /PRNewswire/ — Royal Dutch Shell and Petrobras signed last week in The Hague, Netherlands, a Memorandum of Understanding (MoU) to establish a long-term mutual collaboration in developing pre-salt fields in Brazil.

In true partnership spirit between two of the world’s largest energy companies, Shell will benefit from technical solutions, contract management expertise and cost efficient initiatives Petrobras applies to Brazil’s pre and post-salt projects. Shell will share with Petrobras its global deep water experience, especially on cost efficiency efforts and use of technology. read more

Brazil’s Cosan sees better ethanol returns as prices improve

AUGUST 10, 2017 / 5:02 PM

By Marcelo Teixeira

SAO PAULO, Aug 10 (Reuters) – Cosan SA Indústria e Comércio expects ethanol sales to yield better returns than sugar across some Brazilian states, a factor that may prompt one of the country’s largest energy and infrastructure companies to fine-tune its current output mix.

Raízen Energia, a 50-50 joint venture between Cosan and Royal Dutch Shell Plc that is the world’s No. 1 sugar producer, could adjust the amount of sugar and ethanol it produces if price conditions for the biofuel improves, Cosan’s investor relations head Paula Kovarsky said on a conference call on Thursday.

Raízen earmarked 57 percent of cane to sugar production in the second quarter, higher than the 55 percent it did a year ago. Simultaneously, Raízen has reduced sugar hedging on an annual basis on hopes of a mid-term recovery in international prices, she added. read more

Shell sees Brazil R&D investment this year at $38 mln

Shell sees Brazil R&D investment this year at $38 mln

SAO PAULO, Aug 9 (Reuters) – The Brazilian unit of Royal Dutch Shell Plc estimates it will invest around 120 million reais ($38 million) in research and development in the country this year, said André Araújo, head of Shell Brazil unit, on Wednesday.

(Reporting by Marta Nogueira and Alexandra Alper; Editing by Chizu Nomiyama)

SOURCE

Shell shifts focus to chemicals, refining: Financieele Dagblad

Anglo-Dutch energy giant Royal Dutch/Shell is shifting its focus toward downstream operations like refining and chemicals and away from traditional upstream activities like exploring for oil and gas, the Financieele Dagblad said on Wednesday.

This shift is likely to become even clearer when the company publishes its second quarter figures on Thursday, the paper said.

Shell’s investment in exploration slumped to $157m in the first quarter of 2017 from an annual quarterly average of between $500m to $600m in recent years, the paper points out.  This is partly due to the group’s recent acquisition of the BG Group which has large deep-sea reserves off the coast of Brazil. read more

Shell Purchases Deep-Water Production And Storage Vessel

HOUSTON, ­­­­­­­July 11, 2017 /CNW/ — Shell Offshore, Inc. announces today that its affiliate, Shell E and P Offshore Services B.V., will exercise a contractual right to purchase the Turritella floating, production, storage and offloading (FPSO) vessel from SBM Offshore.  The vessel is contracted for the Stones deep-water development in the Gulf of Mexico, which began production last year.  Shell and SBM will work over the next several months to achieve a safe, smooth transition of the vessel operations. read more

Market Realist Royal Dutch Shell articles 30 May 2017

Visit this webpage to view eleven Shell related articles, all by Michelle Rey, published by Market Realist on 30 May 2017.

Shell’s Brazilian Deep-Water Portfolio

Analyst Ratings for Shell: Why Most Rate It a ‘Buy’

How Shell’s Dividend Outflows Have Trended

Has Shell’s Leverage Trend Reversed?

Are Shell’s Cash Flows Getting Revitalized?

In Which Segment Has Shell’s Capex Plunged?

Shell’s Segmental Earnings in 1Q17: Upstream Swings to Profit

Shell’s Upstream Portfolio: Is it Poised to Grow?

How Shell’s Downstream Portfolio Is Evolving

How Widespread Are Shell’s Refined Product Markets?

The Surge of Shell’s Chemical Margin Markers in 1Q17 read more

Shell, partners start deepwater production at new FPSO in Brazil

Published 29 May 2017

Shell and partners have commenced deep-water production at the FPSO P-66 in Lula South, in the Brazilian pre-salt of the Santos Basin.

Shell holds 25% stake in the consortium while Brazilian oil firm Petrobras is the operator of the Lula oil field located in the BM-S-11 block with 65% stake.

The remainder stake of 10% is held by Galp through its subsidiary Petrogal Brasil.

P-66 is currently positioned in water depth of 2,150m and has the ability to process up to 150,000-barrels of oil and 6-million cubic meters of natural gas per day, stated Shell. read more

Shell Starts Production At New FPSO In Pre-Salt Brazilian Field

By Zainab Calcuttawala – May 26, 2017, 10:00 PM CDT

Royal Dutch Shell’s Brazilian subsidiary BG E&P Brasil and partners began production in a deepwater field in the Santos Basin on Friday, according to a new report by World Oil.

The floating production storage and offloading vessel (FPSO) P-66 sits at a depth of 2,150 meters and can extract 150,000 barrels of oil and six million cubic meters of natural gas per day. The vessel is the first in a series commissioned by Petrobras to exploit the BM-S-11 block within a consortium. read more

Nigeria: Shell Profit Up By U.S.$2.2 Billion, to Invest U.S.$25 Billion in Nigeria, Others


Houston, U.S.A. — The net profit of Royal Dutch Shell more than doubled in the first three months of 2017, surpasing predictions by analysts as rebounding oil prices and refining gains helped to boost the company’s revenue.

The company’s first quarter 2017 financial results released yesterday showed that net income attributable to shareholders in the quarter, based on a current cost of supplies (CCS), rose by $2.2 billion.

CCS is a number similar to the net income that US oil companies report. read more

Royal Dutch Shell sees profits jump as oil price rises

4 May 2017

The Anglo-Dutch giant said profits on a current cost of supply measure – which strips out price fluctuations – jumped to $3.4bn (£2.6bn) from $1bn last year.

A 55% rise in oil prices in the first quarter of 2017 compared with a year earlier was the main driver of profits.

Shell joins rivals BP, Exxon Mobil, Chevron and Total in reporting better-than-expected results.

More than $1bn in cost savings and budget cuts made over the past three years from cost-cuts and assets sales have also helped to increase cash flow and boost profits. read more

Q&A: Shell cuts costs on major deep-water projects

By Collin Eaton: Business Reporter, Houston Chronicle: May 3, 2017

The recovery in energy prices won’t produce a mad rush into deep-water fields anytime soon, but drillers are still spending billions this year on more cost-efficient projects that can outlast cheap oil, says the executive who leads Shell’s deep-water business.

Over the next two years, Royal Dutch Shell plans to spend up to $14 billion developing new and existing deep-water projects in places like the Gulf of Mexico and Brazil, but it’s trying to keep costs nailed down with myriad initiatives that have, for example, reduced its offshore staff by nearly a third. read more

3 big questions hanging over Royal Dutch Shell plc

The Motley Fool: 3 big questions hanging over Royal Dutch Shell plc

By The Motley Fool  Feb 14, 2017

A stagnating oil price has seen investor appetite for Royal Dutch Shell(LSE: RDSB) seep away from recent multi-year highs.

The crude colossus saw its share price strike its highest since November 2014 a month ago, but fresh fundamental fears have seen Shell — like many of its London-quoted peers — retrace more recently.

Shale producers returning

Arguably the biggest driver behind Shell’s decline has been a steady build in the US rig count.

With drillers across the Atlantic becoming ever-more-comfortable with oil prices anchored around the $50 per barrel mark, the number of units in operation has been steadily increasing since the autumn. read more

Shell is ‘ripe to deliver’ and 2017 is an inflection year – broker

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Jamie Ashcroft: 01 Dec 2016

Royal Dutch Shell Plc’s (LON:RDSB) portfolio is ‘ripe to deliver’, according to JP Morgan, which rates the stock as ‘overweight’ and sees 2017 as an inflection year for the oil supermajor.

JP Morgan analyst Christyan Malek says investors should buy ahead of further capex cuts and free cash flow uplift.

In a note Malek said: “the recent Brazil field trip left us incrementally positive on scope to cut capex further in 2017-18 as economies of scale on cost improve and internal efficiencies take effect. read more

Shell studying acquisitions in the green energy sector

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screen-shot-2016-11-09-at-19-58-01Written by Reporter – 30/11/2016 2:02 pm

Shell said it is studying acquisitions in the green energy sector.

It comes amid shareholder pressure to look at a strategy beyond fossil fuels.

The oil major currently has a market value of $200billion and produces 2% of the world’s oil and gas.

Chief executive Ben Van Beurden said: “The idea you can just be a very clever observer and step in when the moment is right, forget about it.

“I am convinced that in this space we will play an active role, a leafing role and we will plan acquisitions in it.” read more

Shell to invest $10 billion as Brazil expands private role in oil industry

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screen-shot-2016-11-09-at-19-58-01Royal Dutch Shell Plc (RDSa.L) will invest $10 billion (8 billion pounds) in Brazil over five years now that the country has increased opportunities for foreign companies in its oil industry, its chief executive officer said on Thursday.

Already the largest foreign investor in Brazil, Shell is particularly encouraged by recent legislation that increases the role of private oil companies in the tapping of vast off-shore oil deposits in the subsalt layer, Chief Executive Officer Ben van Beurden said. read more

Shell Plans to Invest $10 Billion in Brazil Over Next Five Years

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By PAUL KIERNAN: Nov. 10, 2016 1:51 p.m. ET

Shell plans to invest $10 billion in the South American nation over the next five years, Wael Sawan, the company’s executive vice president for deep water, said in an interview this week. That would come on top of the more than $30 billion in capital the company says it has deployed in Brazil, where it operates 5,500 energy stations and acquired a large number of oil-and-gas assets earlier this year via its takeover of BG Group PLC.

FULL ARTICLE read more

Big Oil Slowly Adapts to a Warming World

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By CLIFFORD KRAUSSNOV. 3, 2016

In a warming world, Big Oil doesn’t look quite so big anymore.

A global glut of oil and natural gas has sent prices tumbling over the last two years, and profits are evaporating. Improving auto fuel efficiency standards threaten to depress oil consumption eventually, and fleets of electric vehicles are gradually emerging in China and a few other important markets.

Perhaps most troubling for oil companies over the long term is the goal — agreed to last December by virtually every country in the world at a climate conference in Paris — of staving off a rise in average global temperatures of more than 2 degrees Celsius above preindustrial levels. read more

BRIEF-Brazil’s Cosan, Shell negotiate new Raizen ownership deal – paper

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screen-shot-2016-10-20-at-23-00-27Brazil’s Cosan SA and Royal-Dutch Shell are in advanced talks to define the ownership of their joint venture Raizen formed in 2011, according to a story published in the Valor Economico newspaper on Friday

* A new accord between the two stakeholders of the 50-50 joint venture Raizen has not be formalized

* Cosan did not comment on the report and Shell is in its quiet period ahead of earnings, the paper said

* The current accord between the parners gives both sides the right to buyout the other after the 10th and 15th year from the formation of Raizen read more

Shell Pledges More Investments In Brazil

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Royal Dutch Shell CEO tells President Temer the country is expected to be one of the top investment focuses for the multinational in the coming years. 

Beurden stated that Shell’s partnership with Petrobras in the pre-salt projects remain a priority for the multinational, despite the negative news in the international media about the corruption scandal in the Brazilian company.

By Lise Alves on September 28, 2016

SÃO PAULO, BRAZIL – Reiterating that there is a favorable investment climate in Brazil, the president of petroleum giant Royal Dutch Shell, Ben Van Beurden, told Brazil’s President Michel Temer of the company’s interest in maintaining and increasing investments in the country.

“We have plans for a future together. We came here to talk about the confidence we have in the country and some points that can be improved,” Beurden told journalists after attending meetings with President Temer and Petrobras CEO, Pedro Parente on Tuesday. read more

Shell Divests Gulf Of Mexico Assets For $425 Million Plus Royalty Interests

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Screen Shot 2016-08-29 at 22.18.50AUG 29, 2016, 15:27 ET

HOUSTON, Aug. 29, 2016 /PRNewswire/ — Royal Dutch Shell plc, through its affiliate Shell Offshore Inc. (Shell), today announces it has an agreement to sell 100 percent of its record title interest in Gulf of Mexico Green Canyon Blocks 114, 158, 202 and 248, referred to as the Brutus/Glider assets, to EnVen Energy Corporation, through its affiliate EnVen Energy Ventures, LLC.  In line with Shell’s global divestment plans, this transaction includes $425 million in cash.  read more

Doesn’t this all seem rather improper?

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GRAY, LOUISIANA (PRWEB) JULY 20, 2016

Danos announces the hiring of Tom Broom as executive account manager. In this role, Broom will be responsible for overseeing and maintaining Danos’ long-term relationship with Shell.

“Tom is a perfect fit for Danos, said Executive Vice President Paul Danos. “His experience in the industry and long career with Shell make him the ideal person to oversee this relationship that has endured for 45 years.”

In 2015, Broom retired from Shell after a 35-year-career, most recently serving as director of coastal issues for Shell Exploration & Production Company. In that role he served as the inaugural director of a 25-person international team focused on collaborating with internal and external stakeholders on coastal management issues. Prior to that position he oversaw workforce development and construction risk mitigation and managed operations training for the United States, Canada and Brazil. He also supervised the daily operations of Shell’s Robert Training and Conference Center, the company’s primary operations training facility. read more

Getting Ready for Another Round of Commodity Market Downturn

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By Staff Writer on Jul 18, 2016 at 7:30 am EST

Crude oil prices have dropped below the $50 per barrel mark yet again after hitting their highest level in 2016 last month. US crude benchmark, West Texas Intermediate (WTI) is trading at $45.97 per barrel while Brent is trading at $47.69 per barrel in European Markets today. The global crude oil benchmark reached as high as $52.51 per barrel earlier in June.

Although oil prices have recovered some momentum after touching 12-year lows of $27 per barrel earlier in 2016, it still has a lot of ground to gain before reaching summer-2014 levels. Oil market showed some positive gains in June when oil prices crossed the psychological barrier of $50 per barrel. However, it was short-lived as it is currently trading below $48 per barrel. read more

Exclusive – Shell CEO warns Brexit could slow $30 billion asset sale plan

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Screen Shot 2016-06-30 at 18.15.43By Ron Bousso and Freya Berry: 08/07 11:41 CET

LONDON (Reuters) – Royal Dutch Shell’s chief executive, Ben van Beurden, has told investors that Britain’s decision to exit the European Union could slow its $30 billion (23 billion pounds) asset sale plan, especially in the North Sea which had struggled to attract buyers for years.

The comment, made during an investor and analyst event at the Wimbledon tennis tournament this week, came as Shell mandated Bank of America Merrill Lynch to find buyers for several key assets in the North Sea, including its stake in the lucrative Buzzard oilfield, hoping the sale would raise at least $2 billion. read more

Shell’s Ambitious Plan To Topple Exxon

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By Rakesh Upadhyay – Jun 22, 2016, 5:17 PM CDT

Ben Van Beurden, Chief Executive Officer of Royal Dutch Shell has laid out an ambitious plan to overtake ExxonMobil as the number one oil company in the world.

Prior to the 1990s, Shell was the leader in total shareholder returns, however, its rivals went on a deal-making spree to gain the lead, while Shell shied away from making any acquisitions. Now, Mr. Beurden believes that Shell will be able to regain its lost glory post the acquisition of the BG group. read more

Shell works to simplify organization to compete with independents

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By Mella McEwen [email protected]: 22 June 2016

Too big. Too rigid. Not nimble enough.

Those are reasons why integrated oil companies could have a difficult time competing with independents in the unconventional shale plays that have led to a resurgence in the nation’s oil and gas industry.

Royal Dutch Shell, however, disagrees with that reasoning and this week held an event to reaffirm its commitment to the shales business, including its holdings in the Permian Basin.

Shell officials discussed how its recent $70 billion acquisition of the BG Group has impacted its outlook. The event was a mixer at Shell’s Drilling Automation & Remote Technology (DART) Center located on its Houston campus and was webcast and available by telephone. read more

Shell caps spending for rest of the decade as belt tightening continues

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By Jon Yeomans7 JUNE 2016 • 9:33AM

Oil giant Shell is targeting yet more cost savings as it looks to pay down debt and protect its dividend in an era of lower oil prices.

The Anglo Dutch giant said today capital spending would be in the range of $25-$30bn a year to 2020. For 2016 it will be $29bn, down from a forecast “trending toward” $30bn, which was itself down from an earlier projection of $33bn.

The company said this spending could go even lower if oil prices sink below their current levels, but crucially would not go higher if oil surges. Crude has stabilised at around $50 a barrel, after hitting a 12-year low of $28 a barrel in January. It was trading at more than $100 two years ago.  read more

Shell to exit up to 10 countries after BG deal

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LONDON | BY RON BOUSSO AND KAROLIN SCHAPS: Tue Jun 7, 2016

Royal Dutch Shell (RDSa.L) will exit oil and gas operations in up to 10 countries in a drive to deepen cost cuts and narrow its focus following its $54 billion acquisition of BG Group.

Presenting its strategy following the close of that deal in February, the Anglo-Dutch company outlined plans to target annual spending of $25 billion to $30 billion until the end of the decade.

It lowered its planned 2016 capex to $29 billion in a third cut from an initial $35 billion.

Shell also raised its target for savings from the integration of BG to $4.5 billion, up $1 billion from previous guidance.

Chief Executive Officer Ben van Beurden hopes the new cuts will help boost Shell’s shares, which have underperformed rivals since the BG deal was announced in April 2015. read more

Shell Plans Oil-Asset Sale in Gabon, Says President

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By DREW HINSHAW in Kigali, Rwanda, and SARAH KENT in London: May 12, 2016

Royal Dutch Shell PLC is looking to sell oil blocks in Gabon, the country’s president said, as the company’s mammoth divestment plan threatens a Central African nation already hard hit by crashing crude prices.

Shell is in the process of selling off $30 billion of assets in the wake of its roughly $50 billion acquisition of BG Group PLC earlier this year. The deal gives the Anglo-Dutch oil major a strong position in the fast-growing liquefied-natural-gas market and lucrative deep-water blocks offshore Brazil, but investments that don’t fit within those core areas are likely to come under serious scrutiny as the company looks for cash to bring down its debt level. read more

Shell moving some jobs from New Orleans to Houston

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By Jennifer Larino, NOLA.com | The Times-Picayune: 18 APRIL 2016

Shell will relocate some jobs from New Orleans to Houston as it moves forward with plans to cut its global workforce by 10,000 employees and contractors. The company started cutting jobs last year in response to low oil prices.

Details are sparse on how the global cuts affect the roughly 1,900 workers based in One Shell Square in downtown New Orleans. Shell says it does not provide layoff counts by region. Workers close to the situation have reported that jobs may be moving to Houston in addition to cuts. They asked not to be named to protect their jobs. read more

Shell under pressure to reduce spending

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Markets | Fri Apr 8, 2016 3:05am EDT

By Ron Bousso

LONDON, April 8 Royal Dutch Shell is under pressure from shareholders to cut annual spending below $30 billion after buying BG Group to ensure it can maintain its dividend given the slow oil price recovery.

Shell and other large oil companies slashed budgets, scrapped huge projects and cut tens of thousands of jobs last year in the face of a slump in oil prices from a June 2014 peak of nearly $116 a barrel to below $40.

Shell reduced spending by $8.4 billion to $28.9 billion last year and for the first time in more than three decades global capital spending in the oil and gas industry, known as capex, is set to fall for a second year in a row. read more

Shell delivers more Brazil deep-water production from Parque das Conchas

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HOUSTON, Mar 14, 2016 (PR Newswire Europe via COMTEX) — Third phase of major deep-water project delivered, optimizing production capacity

HOUSTON, March 14, 2016 /PRNewswire/ — Shell and its joint venture announce the start of oil production from the third phase of the deep-water Parque das Conchas (BC-10) development in Brazil’s Campos Basin. Production for this final phase of the project is expected to add up to 20,000 barrels of oil equivalent per day (boe/d), at peak production, from fields that have already produced more than 100-million barrels since 2009. read more

An oilman’s $7 billion refresher course in the economics of drilling and climate change

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To many analysts, it looked like Odum was pushed into leaving.

Steven Mufson March 11, 2016

Marvin Odum, president of Shell Oil, was attending a meeting of the parent company’s executive committee in Singapore when word trickled in that an exploration well drilled in Alaska’s Chukchi Sea — the crowning step in a multi-year $7 billion quest — was a dry hole.

Maybe not bone dry. In a recent interview, Odum wouldn’t say. But in the oil business glossary, a dry hole is one that can’t pay off commercially, and Shell’s hole definitely qualified. The parent company, Royal Dutch Shell, abruptly dropped any further drilling — a setback for the industry, though a relief for environmentalists.

For years, they had fought a vigorous, litigious and politically intense battle over the Chukchi. Meanwhile Shell, lured by potentially rich rewards, had overcome a couple of embarrassing rig mishaps at sea and patiently navigated the courts and the Obama administration’s permitting process. Now, geology had rendered its verdict. read more

Shell says to start new exploration phase in BC-10 Brazil field

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Screen Shot 2016-02-17 at 08.47.47RIO DE JANEIRO: TUE Mar 8, 2016

Royal Dutch Shell will start in coming days a new exploration phase in the BC-10 project off the coast of Brazil, where it has already invested more than $1 billion, the company’s chief executive in the country said in a presentation.

Shell wants to keep investing in Brazil as the country has viable oil reserves despite recent market uncertainties, Shell Brazil CEO Andre Araujo said. read more

Petrobras cancels sale of stake in Brazil offshore oilfields

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RIO DE JANEIRO: Tue Mar 1, 2016 

Brazil’s Petroleo Brasileiro SA (PETR4.SA) has cancelled an agreement to sell to a local oil firm its 20 percent stake in two offshore oil fields it operates with Shell, the state-led oil company said in a securities filing on Monday.

Petrobras gave no reason for the cancellation of the sale of the stake in the Bijupirá and Salema fields in the Campos basin to PetroRio PRIO3.SA.

Royal Dutch Shell Plc (RDSa.L), which owns 80 percent of the two fields, announced two weeks ago it was cancelling a planned sale of its share to PetroRio, then known as HRT, and gave no explanation for the move. read more

Shell Sees Opportunity In Brazil

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Screen Shot 2016-02-17 at 08.47.47By Dex Dunford: Wed, 17 February 2016

Hot on the heels of their $52-billion takeover of BG Group going into effect last month, Shell appears poised to make big moves in Brazil.

Already the second largest oil and gas producer in Brazil, Shell has set its sights even higher. The only thing that stands in its way is state-owned Petrobras.

Ben van Beurden, CEO of Royal Dutch Shell, made his feelings on the matter very clear this week when he said that Petrobras should cede some of its drilling rights to private firms. read more

Brazil’s Petro Rio says Shell backs out of Campos Basin deal

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SAO PAULO: Tue Feb 16, 2016

Brazilian oil and gas company Petro Rio SA PRIO3.SA said on Tuesday that Royal Dutch Shell (RDSa.L) had canceled an agreement to sell offshore assets in the Campos Basin for an undisclosed sum.

Europe’s largest oil company, which gained approval last month to take over BG Group BG.L, had agreed in January 2015 to sell its 80 percent stake in the Bijupirá and Salema fields, along with a drill ship, to Petro Rio, known then as HRT.

(Reporting by Gustavo Bonato and Brad Haynes; Editing by David Goodman) read more

Shell hails benefits of £36bn BG takeover

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The mega-deal – creating the biggest trader of liquefied natural gas – came into force after shareholders waved through the tie-up at the end of January.

Chief executive Ben van Beurden said it marked an “important moment for Shell”, which would bolster its cash flow and “significantly boost” its reserves and production.

The impact of the deal – coupled with the low oil price – will lead to 10,000 job losses, with Shell already cutting 7,500 staff, while a further 2,500 positions are expected to be lost now the deal is complete. Shell also looks set to offload $30bn of assets. read more

North Sea has a big future, says Shell after BG takeover

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Screen Shot 2016-01-20 at 08.29.05Robin Pagnamenta James Hider Energy Editor: February 16, 2016

Royal Dutch Shell reiterated its confidence in the North Sea oil industry yesterday as it sealed a £35 billion acquisition of its rival BG Group and promised a rapid boost in output from Brazil.

Writing exclusively for The Times on the first day after completing the merger, Ben van Beurden, Shell’s chief executive, promised to retain many of BG’s existing assets in the North Sea, where high costs and plunging oil prices have fuelled deep unease about job losses and future investment… read more

Shell Oil CEO Says Petrobras Should Step Aside In Brazil

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Ben van Beurden, Chief Executive Officer of Royal Dutch Shell, said in Brazil on Feb. 15 that the government should allow for more foreign investment in the country’s lucrative off-shore oil fields without having to partner with beleaguered oil major Petrobras.

By Contributor: Kenneth Rapoza: 15 Feb 2016

Brazil’s government-owned oil giant, Petrobras, should cede some of its drilling rights to foreign firms, Royal Dutch Shell Oil CEO Ben van Beurden was quoted saying in Estado de Sao Paulo newspaper on Monday.

The Shell Oil man is arguing for greater private investment in Brazil’s precious off-shore oil fields in the Atlantic Ocean, rather than current rules that require 50% ownership by Petrobras. In theory, such a move would entice private oil firms to explore for more oil and keep it for themselves, rather than having to share half of it with Petrobras. That wouldn’t eliminate government royalties, of course, but it would give foreign firms like Shell the incentive to explore and develop deep water oil fields on their own. read more

Shell expects its Brazil output to quadruple by 2020: CEO

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RIO DE JANEIRO | BY JEB BLOUNT AND MARTA NOGUEIRA: Mon Feb 15, 2016

Royal Dutch Shell (RDSa.L), Europe’s largest oil company, expects to make robust investments in Brazil’s offshore resources, hoping to quadruple oil and gas output there by the end of the decade, its chief executive officer said on Monday.

CEO Ben van Beurden spoke in Brazil shortly after Shell’s $52 billion takeover of BG Group Plc BG.L, approved in late January, took effect.

Thanks to BG’s large portfolio of assets in Brazil and Shell’s decision to buy 20 percent of the giant Libra offshore project in 2013, Brazil will be a key area for the Anglo-Dutch company as it focuses on liquefied natural gas and deepwater oil production, van Beurden said. read more

Shell completes BG takeover

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Written by Niamh Forrest – 15/02/2016

Shell has completed its $68.2billion merger with BG Group which will now be delisted from the London Stock Exchange.

The oil major said it follows the sanction of scheme at a hearing held four days ago and the delivery of the court order to the Registrar of Companies today.

Shell well issued 1,523,804,425 Shell A shares and 3,745,486,731 Shell B shares.

Chief executive Ben Van Beurden said: “This is an important moment for Shell.

“It significantly boosts our reserves and production and will bring a large injection to our cash flow. read more

Shell faces $30bn battle to sell assets after BG takeover

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Shell completes its much-anticipated takeover of BG Group on Monday, facing a fresh battle to dispose of $30bn of assets in the next three years as the oil market downturn drags on.

The £35bn mega merger was proposed before the full brunt of the oil market’s 70pc collapse slashed value across the sector, and Shell is under pressure to push through the disposals to maintain shareholder dividends even as profits plummet.

Shell’s reported its sharpest decline in income in 13 years for 2015 as sales collapsed by 97pc to cut profits by 56pc compared to the year before.

But with the oil rout wiping value from across the embattled oil and gas sector analysts say Shell will struggle to spin-off assets at the price it once expected to. read more

Royal Dutch Shell – BG Group Merger Almost Complete

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By Muhammad Ali Khawar on Feb 12, 2016 at 1:58 pm EST

The biggest energy deal of 2015, between Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) and BG Group, is just three days away from its closing. On Monday, the two European energy giants will merge to form one of the biggest companies in the global oil and gas industry.

Today is the last trading day for BG Group on the London Stock Exchange. The company would be delisted from the Stock Exchange, effective February 15.

Though $70 billion may seem a lot to many people in the low oil environment, Bidness Etc believes the benefits of the merger are likely to outweigh its costs in the long-run. read more

Oil market spiral threatens to prick global debt bubble, warns BIS

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By Ambrose Evans-Pritchard6:33PM GMT 05 Feb 2016

The global oil industry is caught in a self-feeding downward spiral as falling prices cause producers to boost output even further in a scramble to service $3 trillion of dollar debt, the world’s top watchdog has warned.

The Bank for International Settlements fears that a perverse dynamic is at work where energy companies in Brazil, Russia, China and parts of the US shale belt are increasing production in defiance of normal market logic, leading to a bad “feedback-loop” that is sucking the whole sector into a destructive vortex. read more

Oilmageddon

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Katy Barnato: 5 FEB 2016

The global economy seems trapped in a “death spiral” that could lead to further weakness in oil prices, recession and a serious equity bear market, Citi strategists have warned.

Some analysts — including those at Citi — have turned bearish on the world economy this year, following an equity rout in January and weaker economic data out of China and the U.S.

“The world appears to be trapped in a circular reference death spiral,” Citi strategists led by Jonathan Stubbs said in a report on Thursday. read more

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