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Shell shuts down Shearwater, Nelson platforms amid Forties closure

Oil major Shell said today that it had suspended production on two of its North Sea platforms due to the Forties pipeline shutdown.

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Owner Ineos has said it will take “weeks rather than days” to fix the leak, which was detected during a routine inspection at Netherley last week.

The 235-mile pipeline system links more than 80 North Sea field to the UK mainland and the Ineos site in Grangemouth. It delivers almost 40% of the UK’s North Sea oil and gas production.

Ineos completed a deal to buy the system from BP for up to £190million ($250million) at the end of October. read more

Shell hopes to make investment decision on Penguins ‘shortly’

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Steve Phimister, upstream vice president for the UK and Ireland at Shell, said the company had delivered on its plans for the current year and paid tribute to staff members.

Highlights from the year included the sale of a package of North Sea assets to Chrysaor and the arrival of the Brent Delta platform in Hartlepool for scrapping.

Shell hopes to make a final investment decision (FID) on redeveloping the Penguins area “shortly”.

Mr Phimister said Penguins was on track to be the “first cab out of the rank” next year. read more

Shell, Deloitte say North Sea needs to ‘kick on’ with collaboration quest

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Nick Clark, Deloitte director, consulting, said the sector had been forced to adopt collaboration having gone through “a year of wait and see”.

Mr Clark was speaking at Oil and Gas UK’s breakfast briefing event at the Aberdeen Exhibition and Conference Centre.

Oil and Gas UK (OGUK) and Deloitte used the event to launch their 2017 UKCS Upstream Supply Chain Collaboration Survey.

A total of 95% of operators and suppliers said collaboration was an integral part of their day-to-day business, up from 86% in 2016. read more

Shell Midstream buying pipelines, terminals for $825m

Houston’s Shell Midstream Partners is going on a buying spree, acquiring $825 million worth of pipelines and terminals from its Royal Dutch Shell parent.

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The deals designed to beef up the three-year-old Shell Midstream business give the Houston pipelines firm more ownership in Gulf Coast and Gulf of Mexico pipelines, as well as a slew of terminals from the Houston area to Washington state.

The drop-down acquisitions from the parent Shell and other Shell subsidiaries give Shell Midstream majority ownership of the Mars and Odyssey oil pipelines in the Gulf of Mexico. Shell Midstream already owned 49 percent stakes in the pipelines and the deal ups those stakes to at least 71 percent. read more

Shell coffee collaboration brewing on biofuel to help power London buses

Oil giant Shell has announced that it is working in collaboration with bio-bean and the coffee drinkers of London to power some of the city’s buses.

The B20 biofuel is partly made from waste coffee grounds and has been added to the London bus fuel supply chain without any great need for vehicle modification.

The fuel provides a cleaner, sustainable energy solution which will lower bus emissions in the UK capitol.

The average Londoner drinks 2.3 cups of coffee a day, producing over 200,000cubic tonnes of waste a year, much of which would otherwise end in landfill with the potential to emit 126million kg of CO24.

Arthur Kay, bio-bean’s founder, said: “Our Coffee Logs have already become the fuel of choice for households looking for a high-performance, sustainable way to heat their homes – and now, with the support of Shell, bio-bean and Argent Energy have created thousands of litres of coffee-derived B20 biodiesel which will help power London buses for the first time. It’s a great example of what can be done when we start to reimagine waste as an untapped resource.” read more

Shell standing down emergency response over Gulf fire

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Shell has stood down its emergency response activities over a fire on its Enchilada platform in the Gulf of Mexico.

On Saturday an assessment team confirmed the isolation of the platform from the 30-inch gas export pipeline which was thought to be at the centre of the blaze which broke out last week.

The team also found no presence of ‘uncontained’ hydrocarbons.

The supermajor is in the process of developing a plan for repairing the damaged portions of the asset and re-deploying personnel. read more

‘No timeline’ for resuming operations of Shell’s stricken Enchilada rig

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Shell has no timeline for restarting normal operations on a platform which was shut down in the US Gulf of Mexico due to a fire, a news report said.

“Though the structure is visibly sound, crews will continue to determine the integrity of the platform and formulate a plan for damage repair,” the oil major told Reuters.

Shell added there was no oil in the water as a result of the incident.

The fire on the Enchilada facility involved a 30-inch gas export pipeline.

All 46 personnel working at the Enchilada facility were safely evacuated. Two Shell employees were injured. Both have been treated and released from the hospital. read more

Q3 round-up: BP ready to ‘flex’, Shell a good bet to reach divestment target

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Oil majors BP and Shell are closing in on realising key objectives for production and fundraising, an analyst has said.

Speaking after the dust settled on the latest round of quarterly results updates, Iain Armstrong of Brewin Dolphin said Shell should have no problem reaching its divestment target of £23billion for 2016-18.

Shell chief financial officer Jessica Uhl said £15billion worth of asset sales could be chalked up to the divestment programme, which was put in place to help balance the books following the merger with BG Group. read more

New North Sea field investment opportunities ‘on the horizon’, Shell boss says

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Opportunities for new North Sea field investment are “beginning to appear on the horizon”, according to Shell UK’s commercial manager Ben Taylor.

The upstream commercial lead for the supermajor’s North Sea operations admitted that there are still many “challenges” facing the industry.

He cited the balancing act of juggling decommissioning older assets with maximising the remaining North Sea reserves as one such test for the sector.

But he said there should be optimism that a change of perception from within industry culture should lead to signs of renewed activity.

Speaking at a business breakfast in Aberdeen, Mr Taylor said: “When you talk across industry there’s an opportunity now for new field investment beginning to appear on the horizon. read more

Shell partially downmans Brent Bravo due to weather

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Oil major Shell has taken 60 people off the Brent Bravo platform in the North Sea.

The firm said that “poor weather” was impacting delivery of diesel.

This resulted in a partial downmanning as a “precautionary measure”, the operator said.

A spokesperson for Shell UK said: “Shell UK can confirm that 60 personnel from the Brent Bravo platform have returned to shore as a precautionary measure.

“Poor weather has impacted the delivery of diesel and we are working to reinstate supplies as soon as possible, weather permitting.” read more

BP, Shell, Statoil join commodity trading digital venture

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The venture, which also includes commodity traders and banks, will be managed and operated as an independent entity.

The venture partners are BP, Shell and Statoil, trading houses Gunvor, Koch Supply & Trading, and Mercuria, and banks ABN Amro, ING and Societe Generale.

They intend to create a secure, platform to manage physical energy transactions from trade entry to final settlement. read more

Shell completes onshore sell-off

Shell today completed its sale of Gabon onshore interests for $628million.

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The deal is the latest in a string of divestments as the oil major zeroes in on its target of $30billion worth of divestments.

The deal with Assala Energy will see the new owner assume debt of $285million.

The transaction will result in a total post-tax impairment for Shell of $151million. Of this impairment, $53million was taken in Q1 2017, $98million will be taken in Q3 2017 with a final reconciliation to be reflected in Q4 2017.

The terms also dictate Assala Energy will make additional payments up to a maximum of $150million depending on production performance and commodity prices. A total of 430 employees have transferred to Assala-Energy. read more

Shell completes North Sea sale, creates new basin heavyweight

Shell this morning finalised its $3.8billion North Sea deal with Harbour Energy-backed Chrysaor Holdings.

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The package of assets consists of Shell’s interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Area, the Greater Armada cluster, Everest, Lomond and Erskine, plus a 10% stake in Schiehallion

The deal includes an initial consideration of $3billion and a payment of up to $600m between 2018-2021 subject to commodity price, with potential further payments of up to $180m for future discoveries.

The transaction was backed by private equity fund EIG Global Energy Partners, through its Harbour Energy joint venture with Asian commodity group Noble. read more

Clock ticking down on deadline for Shell Springboard entries

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Entrants will be competing for a green cash pot containing £350,000, with the national winner to receive £150,000.

A further five regional winners will each get £40,000 of no-strings attached funding.

They will also be given access to academics and investors whose advice can help grow their enterprises.

The cut-off date for applications falls on November 6.

Former winners include Edinburgh-based tidal energy technology developer Nova Innovation. read more

Shell submits new plans for Fram field development

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Shell is targeting first gas from the field, which lies 136miles east of Aberdeen, in the second quarter of 2020.

The company intends to develop the gas and gas condensate field via a tie-back to the Shearwater platform 20 miles away.

The submission of the plans comes about two months after Shell chief executive Ben van Beurden said the company was committed to the North Sea, despite agreeing to sell a package of assets in the basin to Chrysaor earlier this year. read more

Shell to offload Norwegian pipeline and part of gas plant

The oil major has entered into an agreement to sell its 9% share of the Polarled gas pipeline which connects Statoil’s Aasta Hansteen field in the Norwegian North Sea with the Nyhamna gas processing plant.

Shell plans to sell the stake to CapeOmega AS, which is owned by European acquisition fund HitecVision.

The deal also includes £% of the 15.03% stake in the Nyhamna gas plant, one of the largest of its kind on the Norwegian continental shelf.

The transaction is expected to be completed by 2017, subject to approval by the Ministry of Petroleum and Energy and the Ministry of Finance. read more

Shell switches on to ‘rapid recharge’ for electric vehicles

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Shell has announced the opening of Shell Recharge – the new on-forecourt Electric Vehicle (EV) rapid charging service.

Shell Recharge is now available at Shell Holloway (London), Shell Whyteleafe (Surrey) and Shell Derby, and will be launched at a further seven locations within Greater London and Reading by the end of the year.

Jane Lindsay-Green, Shell UK Future Fuels Manager, said: “Shell Recharge provides Electric Vehicle drivers with a convenient way to charge their cars on-the-go. read more

Shell served improvement notice over gas leak blunder

Offshore workers were exposed to the risk of fire and explosion after blunder led to a gas leak on a southern North Sea installation.

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The uncontrolled release took place on the Barque PB, a normally unmanned platform, on July 19.

Around 138kg of flammable hydrocarbon gas was released from pipework connected to the vessel V2000, according to the Health and Safety Executive.

A subsequent probe found that flammable gas had been used to leak test the pipework instead of inert nitrogen gas – which was available.

Failings were found in the arrangements for the effective planning, organising and control for the reinstatement of the pipework. read more

Shell cancels Thai sale, hits $25bn in divestments

Shell today confirmed a U-turn on the planned sale of its Shell Integrated Gas Thailand Pte. Limited (SIGT).

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It comes as the firm revealed it had hit $25billion worth of investments. The oil major is targeting $30billion worth of investments by the end of 2018.

A spokesperson said: “Royal Dutch Shell announces today that its subsidiary, BG Asia Pacific Holdings Pte Limited, and KUFPEC Thailand Holdings Pte Limited, a subsidiary of Kuwait Foreign Petroleum Exploration Company (KUFPEC), have mutually agreed to cancel the Sale & Purchase Agreement for the share sale of Shell Integrated Gas Thailand Pte. Limited (SIGT) and Thai Energy Co Limited (TEC). read more

Shell’s Ben van Beurden: Oil vs Uber in the battle of reputations

In a throwaway comment, Ben van Beurden found himself front and centre on the national media’s radar. “It wasn’t a planned remark, it just came out,” he said.

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But it wasn’t oil price, or strategy that landed him prime time interviews.

Instead, it was the comment that his next car would be electric.

“It wasn’t a planned remark, it just came out,” he said.

“But it shows how charismatic renewables and electricity is at the moment, much more charismatic than gas and definitely much more charismatic than oil.”

A perception that oil and gas have a shrinking role to play is one the industry needs to address head-on. read more

Oil majors among top contributors to greenhouse emissions, report says

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More than half of global industrial emissions can be traced back to just 25 corporate and state producing entities, the report says.

China, India and Russia’s coal industries and major oil and gas players like Saudi Aramco, Gazprom, ExxonMobil, BP and Shell are among those named in the paper from CDP, formerly the Carbon Disclosure Project.

The research found that 100 active fossil fuel producers were linked to 71% of global industrial greenhouse gases since 1988. read more

Shell’s Steve Phimister appointed to Oil & Gas UK Board

by – 26/04/2017 3:42 pm

Steve Phimister, who also oversaw the £3billion sale of assets to Chrysaor earlier this year, takes up the position as he enters his new role as vice president of Shell’s UK & Ireland upstream business unit.

Phimister will be taking the place of his Shell upstream predecessor Paul Goodfellow on Oil & Gas UK’s board of directors with immediate effect.

“The Maximising Economic Recovery Strategy and the steps we have taken as an industry to improve efficiency are bearing fruit

“I look forward to shaping the next steps with industry partners as we seek to become a globally competitive basin.” read more

Shell hit with prohibition notice on Brent Charlie

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The Health and Safety Executive (HSE) said Shell had failed to put appropriate controls in place to protect workers from dangerous gases in one of the platform’s legs.

HSE said the company had identified the risks of exposure to hydrogen sulphide and hydrocarbon gas while accessing the column C1 leg.

But Shell did not adequately describe how control measures would be “organised, controlled, monitored or reviewed”, according to HSE.

The prohibition notice was served early in February. read more

Union boss hits out over Shell boss’s bumper pay deal

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The huge increase was revealed in the Anglo-Dutch energy giant’s latest annual report, published yesterday.

Mr van Beurden, who took over as chief executive at the start of 2014, received a £9million-plus boost to his pension in his first year – taking total remuneration to £19.5million – followed by a pay package worth about £4million in 2015.

The big payouts coincide with a severe downturn in the oil and gas industry. Shell has already shed more than 1,000 jobs in its North Sea operations alone. read more

BP slashes CEO Bob Dudley’s pay packet by 40%

Written by Alan Shields – 06/04/2017 11:55 am

The 40% reduction, revealed today in the supermajor’s 2016 annual report, comes after a number of cost-cutting changes, including a 25 per cent reduction in bonuses handed out for hitting targets.

Dudley’s maximum payout under the firm’s long-term incentive plan is to drop from a seven times to five times his basic annual salary of $1.9million.

Last year, around 59% of shareholders opposed Dudley’s $19.4 million pay and benefits package, including his pension. read more

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