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Posts under ‘Royal Dutch Shell Firesale’

Rio Tinto recruits three energy executives to board

Euronews/Reuters: Rio Tinto recruits three energy executives to board, including Simon Henry

By Karolin Schaps: REUTERS 10/02/201

LONDON (Reuters) – Rio Tinto has appointed three former senior managers from the energy industry to its board as non-executive directors, including Shell’s departing CFO Simon Henry, the mining company said on Friday.

Henry, who is stepping down as Chief Financial Officer at Shell after seven years on March 9, will join Rio Tinto on July 1. Former Centrica chief executive Sam Laidlaw and ex-Sasol CEO David Constable will take up their non-executive posts immediately, Rio Tinto said.

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What Shell Could Unload Next As Part Of Its $30B Divestiture Program

By Claire Poole: CONTRIBUTOR: 31 JAN 2017

Royal Dutch Shell plc (NSYE:RDS.A) has been on a divestiture spree after its debt-laden $50 billion purchase of BG Group plc last year, the latest being its sale of some of its oil and gas properties in the North Sea to private equity-backed Chrysaor Holdings Ltd. for $3.8 billion as well as its stake in a Thailand field to Kuwait Petroleum Corp. for $900 million. The sales — which follow the recent unloading of assets in Saudi Arabia, Japan and Australia  – are nudging it toward 40% of the $30 billion divestiture goal it hopes to reach by the end of next year. What could be next?

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Shell Sells $4.7 Billion of Fields as Disposal Push Accelerated

Royal Dutch Shell Plc, looking to pare debt swollen by last year’s acquisition of BG Group Plc, accelerated its drive to shed assets on Tuesday by agreeing to the sale of fields in the North Sea and Thailand for as much as $4.7 billion.

The disposals include the sale of about half the company’s North Sea oil and gas assets for as much as $3.8 billion to Chrysaor Holdings Ltd., Shell said. Earlier Tuesday, the company agreed to sell its stake in an offshore Thai gas field to a unit of Kuwait Petroleum Corp. for $900 million.

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Downstream keeps cash flowing to protect Shell’s dividend

EXTRACT

The latest disposal came on Sunday with the $820m sale of Shell’s stake in a Saudi Arabian petrochemicals joint venture to Saudi Basic Industries. This followed a $1.4bn withdrawal last month from the Showa Shell refining joint-venture in Japan. A further break-up is being negotiated with Saudi Aramco over their Motiva US refining JV.

Shell oil workers in Gabon begin “unlimited” strike on Thursday

Royal Dutch Shell workers in Gabon began an “unlimited” strike on Thursday at all the company’s operations in the Central African OPEC member country, the workers’ union wrote in a letter to employees.

Shell is in advanced talks to sell its Gabon assets, which one source estimated could be worth $700 million, leaving workers worried about layoffs or being moved to new locations, the union said.

The national union of petroleum employees (ONEP) said the strike “will cover all of Shell Gabon’s operations (Libreville, Port-Gentil, Gamba Rabi, Koula and Toucan)”.

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Shell in talks over Gabon sale as seeks to hit divestment target

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By Ron Bousso | LONDON

Royal Dutch Shell is in advanced talks with a party interested in buying its onshore operations in Gabon as part of a $30 billion divestment plan following its purchase of BG Group, which was completed in February..

Shell had informed its staff of the discussions on Thursday, a spokesman for the firm told Reuters on Friday.

The oil and gas group, which plans to exit operations in 5 to 10 countries, has made relatively slow progress in its divestments as uncertainty over oil’s outlook has dampened buyer enthusiasm for deals at the prices it is targeting. So far this year, Shell has sold or agreed to sell around $6 billion of assets.

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Royal Dutch Shell – Additional Divestments In Order To Sustain The Dividend

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Oct. 21, 2016 10:17 AM ET

Summary

  • Shell is announcing further divestments, this time selling part of its shale operations in Canada.
  • These moves do little to address the giant debt load, although they allow for cash flow neutrality this year.
  • Asset sales, resulting in smaller operations, combined with shareholder dilution hurt the long term potential as management stubbornly tries to preserve the dividend.

Royal Dutch Shell (RDS.A) announced another round of divestments in order to keep leverage under control, even as oil prices have rebounded a bit in recent times. These modest divestments are countercyclical and hurt production quite a bit in relation to the proceeds. At best cash outflows come to a standstill this year following these moves, although they result in a smaller business going forward, while investors see dilution of the shareholder base in order to sustain the unsustainable dividend.

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Shell Sells Malaysia Offshore Fields

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12 October 2016

Royal Dutch Shell is reportedly selling its participation in various offshore fields in Malaysia, according to media sources.

The supermajor has allegedly signed a deal with Hibiscus Petroleum to sell its 50% stake in the 2011 North Sabah Enhanced Oil Recovery production sharing contract (PSC), which includes four fields and associated infrastructure.

“This is a significant milestone for Hibiscus Petroleum. When we created Hibiscus Petroleum, this was our goal, to invest in Malaysia and to apply our knowledge and experience to create value in our own backyard,” Hibiscus Petroleum Managing Director, Kenneth Pereira, said.

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Royal Dutch Shell: An Unsustainable Dividend

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Jesse Moore: Sept 15, 2016

Summary

  • Shell is funding its dividend and capital expense programs through a combination of debt and asset sales.
  • Those assets are operating, economic assets that provide long-term value to the company under its assumptions.
  • Shell has one year of leeway at current prices to fund its dividend after that rising debt will put too much pressure on the companies balance sheet.
  • Since I have a negative outlook on prices till at least 2018, I expect a Shell dividend cut in the first half of 2017.
  • Adding to the long list of resource companies with debt-funded dividends, we have Royal Dutch Shell (RDS.A, RDS.B). With a current yield of nearly 8%, and assuming you knew nothing about oil and gas, you could reasonably conclude this company is in peak operating condition. Unfortunately for investors, that story would be far from true.

Capital Expense – Free Cash Gap Growing

Many Shell investors focus on the stability of the dividend as a hallmark of the stock. Those investors are seemingly immune to what the balance sheet, cash flow statement tell us. As the company has pushed towards gas and is being pushed by its investors towards renewables, the capital expense bills have piled up. Throughout the oil downturn, Shell has hardly reduced capital expense in line with free cash flow – a result of long-term project planning that cannot be reined in.

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Shell leaves refinery business in Denmark

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By Daniel J. Graeber     |   Sept. 15, 2016 at 8:36 AM

COPENHAGEN, Denmark, Sept. 15 (UPI) — For about $80 million in capital, Royal Dutch Shell said Thursday it was keeping its upstream Danish interests in check, but unloading a refinery operation.

Shell said it reached an agreement with a Danish company to sell its refinery operations, which includes the Fredericia refinery that has the capacity to handle 70,000 barrels of product per day. The Dutch supermajor said its exploration and production interests in Denmark would not be impacted by the transaction.

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Shell’s U.S. oilfield sale may bode well for disposal program

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…analysts also say further deals may prove harder to clinch

Aug 30 2016, 11:47 ET | By: Carl Surran, SA News Editor

Analysts say Royal Dutch Shell’s (RDS.A, RDS.B) first oilfield sale after its BG Group acquisition bodes well for its sale talks in the North Sea, Gabon and New Zealand, signaling that buyers will meet the company’s expectations on value.

The $425M sale of the Brutus/Glider fields has an implied oil price of ~$60/bbl, more than $10/bbl above current prices, according to UBS analysts who say “we may now be entering a period where both buyer and seller can see acceptable relative value, unlocking the A&D [acquisition and divestiture] market.”

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Shell share price: Private equity-backed firms eye group’s North Sea assets

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Screen Shot 2016-08-29 at 22.18.50Anglo-Dutch oil major agrees to offload certain assets in Gulf of Mexico

by Tsveta ZikolovaTuesday, 30 Aug 2016, 09:00 BST

Investment companies backed by some of the world’s biggest private equity groups have expressed interest in Royal Dutch Shell’s (LON:RDSA) North Sea assets, the Financial Times has reported. The Anglo-Dutch oil major has unveiled plans to sell some $30 billion worth of assets across its global portfolio over the next three years or so is it looks to shore up its balance sheet in the wake of its acquisition of BG Group which completed earlier this year.

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Shell takes cash offer for Gulf of Mexico assets

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By Daniel J. Graeber: Aug 30, 2016

HOUSTON, Aug. 30 (UPI) — In a deal that included $425 million in cash, Royal Dutch Shell said it sold off its entire stake in assets held in the U.S. waters of the Gulf of Mexico.

Shell said the sale of the 100 percent stake of three blocks known collectively as the Brutus/Glider assets to EnVen Energy Corp. was in line with the company’s divestment strategy. In July, the company’s chief executive officer, Ben van Buerden, said “significant and lasting changes” were underway as lower crude oil prices continued to present problems for the industry.

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Shell eyes $40bn non-core asset spin-off to cut its huge debt pile

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By Tara Cunningham, business reporter: 14 MAY 2016

Oil giant Royal Dutch Shell is eyeing a possible $40bn spin-off of non-core assets around the globe as it grapples with a $70bn debt pile following a takeover of BG Group earlier this year. 

Chief financial officer Simon Henry told analysts last week that a float of Shell’s non-core assets is “very much on the agenda”.  

The comments were made after the Anglo-Dutch multinational announced its intention to sell off assets totalling $30bn over the next three years in an attempt to protect its dividend, after the merger with BG left it with a stretched balance sheet.

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Shell standing above its peers

Screen Shot 2015-04-13 at 16.04.38Article by Daniel J. Graeber published 13 April 2015 by UPI

Shell standing above its peers

LONDON, April 13 (UPI) — Shell’s grab of energy giant BG Group and a legal victory for frontier work offshore Alaska leaves rivals in the dust, though environmentalist are unimpressed.

The board of directors at Shell and BG group issued a joint statement last week saying they’ve reached an agreement for the Dutch acquisition of its British rival.

A weekend editorial from The Telegraph newspaper in London said the grab is an “audacious” move in a “new wave of oil industry consolidation” that’s greeted a slump in oil prices that’s lasted nearly a year. The deal, valued at around $70 billion, is among the largest acquisitions since the Exxon Mobil merger was completed in 1999.

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Shell expected to slash jobs and spending

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By LAURA CHESTERS FOR THE DAILY MAIL

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Royal Dutch Shell is planning a £20bn sell-off of assets to create a leaner oil giant after its £47bn swoop for rival BG Group.

Shell has snapped up BG to expand its liquefied natural gas business and Brazilian deepwater wells but the deal also creates a sprawling £200bn behemoth that will need to be cut down to size.

Shell’s chief executive Ben van Beurden said he ‘will reshape the combined portfolio’ to create a ‘more focused company in a volatile oil price world’.

The Anglo-Dutch giant is expected to slash jobs and spending and confirmed the deal will enable £670m of operational savings, £1bn of exploration savings and a total cut in spending to less than £27bn. But fears it has paid too much for its rival spooked investors and it shed £4.6bn in value as shares slumped almost 9 per cent to close down 189p at 2019.5p.

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Nigeria: Shell completes $1.7 billion sale of Nigerian assets to Aiteo

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Screen Shot 2014-06-23 at 11.37.41Shell completes $1.7 billion sale of Nigerian assets to Aiteo

ABUJA (Reuters) – Oil major Shell said on Wendesday it completed the sale of its 30 percent stake in the Nigerian oil block 29 and the Nembe Creek trunk line to Aiteo Eastern Exploration and Production Co for $1.7 billion.

Total and Eni’s Nigerian arms also assigned their interests of 10 percent and 5 percent, respectively, to Aiteo, which ended up with a 45 percent interest in total for both assets.

(Reporting By Julia Payne; Editing by Tim Cocks)

© Thomson Reuters 2015 All rights reserved

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Shell Denmark withdrawal, except for toxic Fredericia refinery?

COMMENT RECEIVED FROM A REGULAR CONTRIBUTOR ABOUT SHELL SELLING A MAJOR PART OF ITS DANISH DOWNSTREAM ASSETS

John 

On your site a few months back there was an article about contamination of the area of the Shell refinery in Fredericia which does not appear to have been included in the sale of the rest of the downstream portfolio. 

“Decade-old oil spills from tanks at the Shell Oil facility in Fredericia are still polluting the environment.”

Is there an issue of liability for clean-up costs? The Fredericia refinery is small, but processes much of the crude produced offshore Denmark (where Shell is the biggest shareholder in the DUC).

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Shell sell’s its Danish Network of 315 Gasoline Stations

Screen Shot 2014-06-23 at 11.37.41March 17, 2015 /PRNewswire/ – Alimentation Couche-Tard Inc. (“Couche-Tard”) announces today that it has signed, through its wholly-owned indirect Danish subsidiary Statoil Fuel & Retail A/S, an agreement with A/S Dansk Shell to acquire its Retail, Commercial Fuels and Aviation businesses in Denmark.

Pending the customary regulatory approvals and closing conditions, the transaction is expected to close in the second half of Couche-Tard’s fiscal year 2016. The acquisition would be financed from Couche-Tard’s available cash and existing credit facilities. The parties have agreed not to disclose the purchase price for this acquisition.

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Shell shelves Arrow LNG project in Queensland

Screen Shot 2014-06-23 at 11.37.41From an article by Angela Macdonald-Smith published 30 Jan 2015 by The Sydney Morning Herald under the headline:

“Shell shelves Arrow LNG project in Queensland”

Royal Dutch Shell has finally ditched plans for a new $US20 billion-plus liquefied natural gas project in Queensland,making it the latest casualty of the oil price slump.

Global chief executive Ben van Beurden said the proposed greenfield Arrow LNG project with PetroChina was “off the table”, while other ventures would be slowed as priority was given instead to Shell’s North American LNG projects.

The Arrow greenfield project is formally “cancelled,” Shell said in a presentation released for its fourth-quarter results in London which cited several ventures that were being deferred or abandoned in the wake of the collapse in oil prices.

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Shell stokes up its fire sale

Screen Shot 2014-06-23 at 11.37.41Introduction by John Donovan

Bloomberg is reporting that Shell has agreed to sell its stake in the Bijupira and Salema fields in Brazil. This development is no doubt in response to the collapse in oil prices and is stoking up the fire sale instituted by CEO Ben van Beurden when Shell announced a profits warning a year ago.

Extract from Bloomberg article

Royal Dutch Shell Plc (RDSA), the second-largest oil operator in Brazil, is selling a stake in one of its oil-producing projects in the country to HRT Participacoes em Petroleo SA (HRTP3), two people with knowledge of the matter said.

HRT, based in Rio de Janeiro, agreed to buy Shell’s 80 percent stake in the Bijupira and Salema fields, an offshore venture that started production in 2003, the people said, asking not to be identified because the deal hasn’t been made public. HRT will boost production to more than 30,000 barrels a day with the purchase, one of the people said.

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Idemitsu Showa Shell merger talks could trigger more consolidation

Screen Shot 2014-12-22 at 21.10.24Reuters article published Tuesday 23 December 2014 under the headline: Japanese refining merger talks could spur more consolidation

It seems that the forecast wave of mergers in the oil industry arising from the collapse in oil prices has kicked off in Japan. Also fits in with Shell’s fire sale strategy. 

Extracts

Consolidation looks to have kicked off with Japan’s No. 2 refiner Idemitsu seeking to buy No. 5 Showa Shell in a 500 billion yen ($4.2 billion) deal that would bring them close to industry leader JX Holdings.

The combined company would have annual sales of about 8 trillion yen, making it the second biggest after the leader JX Holdings and control about 30 percent of Japan’s gasoline market. JX has 33 percent of Japan’s oil market.

Consolidation is further supported by the crash in oil, which has seen prices almost halve since June, resulting in falling stock prices for energy firms and reduced asset values, offering opportunities to cash rich investors.

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Why Shell Is Selling Its Norwegian Downstream Business

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Screen Shot 2014-06-23 at 11.37.41Royal Dutch Shell has decided to sell off of its Norwegian downstream business to Finland’s ST1 in order to improve profitability and achieve its divestment targets

By: MICHEAL KAUFMAN
Published: Dec 18, 2014 at 5:21 pm EST

Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) has decided to sell its Norwegian downstream business comprising commercial fuels, retail and logistics businesses. The company is planning to sell the stake to ST1, a fuel company in Finland. No further details have been disclosed so far.

A Retail Brand License Agreement is also expected to be part of the deal. This particular agreement would make sure that the Shell brand remains highly visible in the Norwegian market through a distributor. The deal is yet to be approved by regulatory authorities and is expected to be confirmed next year. Shell will also run its Norwegian aviation business in a 50-50 joint venture with with ST1, which already operates Shell pumps in Sweden and in Finland.

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Shell agrees sale of downstream businesses in Norway

Screen Shot 2014-06-23 at 11.37.41Shell has signed an agreement with ST1 for the sale of its retail, commercial fuels and supply and distribution logistics businesses in Norway. In addition, Shell’s aviation business in Norway will become a 50-50 joint venture with ST1.

The sale is subject to regulatory approval and is expected to be completed in 2015.

The transaction includes a Retail Brand Licence Agreement which will ensure that Shell’s brand remains highly visible in Norway and that high-quality Shell fuels and lubricants products, and the euroShell loyalty card scheme, will continue to be available to customers in the country.

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Oil price slump: fire sale of Shell assets gathers pace

Screen Shot 2014-11-20 at 15.07.17*Royal Dutch Shell Plc has sold a $600 million stake in a Nigerian oil lease as part of its plan to sell off $15bn worth of assets around the world. The fire sale no doubt has added momentum in view of the collapse in the price of oil. Shell has already disposed of under-performing assets in Australia, the USA and in the North Sea. Bloomberg News has reported that Shell may close its Draugen oil field in the Norwegian Sea a decade earlier than intended because of rising costs and the slump in oil prices. According to a Wall Street Journal report, Shell is claiming that it has sold its stake in a set of oil wells and processing plants in the Niger Delta because the company has struggled with oil theft and other security issues. Guess a fire sale is better than Nigerians ending up being hanged for protesting against decades of Shell’s plunder and pollution in Nigeria, exploiting a succession of corrupt regimes.

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Royal Dutch Shell News 15 Oct 2014

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By John Donovan

WHISTLEBLOWER ALLEGES ROYAL DUTCH SHELL TAX EVASION IN NIGERIA 

A former manager of Shell Production Development Company in Nigeria has accused Shell of massive tax evasion. He also alleges that the Nigeria Economic and Financial Crimes Commission demanded a bribe from him as part of a related cover-up plan for Shell. The whistleblower also claims that his safety is in jeopardy. All strangely reminiscent of allegations surrounding the Corrib gas project in Ireland. MORE INFORMATION HERE.

SHELL FIRE SALE OF NIGERIAN ASSETS

A consortium led by Aiteo Group has won the auction for Shell oil block OML 29 in Nigeria, with a bid of N434b. The total cost of the acquisition is said to be $2.7 billion, allowing for working capital. MORE INFORMATION

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Royal Dutch Shell News Monday 29 Sept 2014

Screen Shot 2014-09-29 at 14.02.38By John Donovan

A selection of current news articles about Royal Dutch Shell from around the globe:

Oil price fixing

According to a Bloomberg article published by energyvoice.com, the UK is considering whether to criminalize manipulation of the world’s most-traded crude-futures market.

Extract

The UK is toughening the rules after the rigging of Libor and related gauges resulted in $6.5 billion in fines for at least 10 companies. European Union antitrust authorities raided the offices of companies including BP Plc, Royal Dutch Shell Plc and Statoil ASA in May 2013 amid allegations of collusion and price manipulation in crude, refined products and biofuels markets.

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Royal Dutch Shell News 23 Sept 2014

Screen Shot 2014-09-23 at 17.42.13By John Donovan

Nigeria

FROM THE DAILY MAIL

Shell has overhauled its security procedures in Nigeria to prevent oil theft that is costing it hundreds of millions of pounds. The Anglo-Dutch oil giant said it had stopped paying private security contractors to monitor its pipelines and oil facilities. 

Carbon Pricing

Forbes.com has published an article purportedly authored by Ben van Beurden, CEO of Royal Dutch Shell Plc.

Why This ‘Big Oil’ CEO Believes In Applying A Price To Carbon

Extract

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Royal Dutch Shell Fire Sale Continues

Screen Shot 2014-06-23 at 11.37.41According to a Financial Times article, “Royal Dutch Shell has revived plans to dispose of its European liquefied petroleum gas business four years after a second failed attempt to sell the assets.” 

Shell has already disposed of under-performing assets around the globe, including Australia,  the USA and in the North Sea. The latest move is part of the $15 billion fire sale announced by the incoming new CEO Ben van Beurden earlier this year, following the surprise issuance of a Shell profits warning that shook the markets.

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Royal Dutch Shell Retreat from Nigeria

Screen Shot 2014-02-10 at 16.29.29The FT states: “Shell’s phlegmatic chief executive Ben van Beurden will need to hold his nose when he takes the money…” and in a related article, describes Shell’s actions as a “retreat from the Niger Delta” (triggered in part by militancy, violence and bunkering).

Screen Shot 2014-08-28 at 08.53.45By John Donovan

The global firesale of Shell assets continues with the sale of four oil fields in Nigeria for $5 billion

The FT states: Shell’s phlegmatic chief executive Ben van Beurden will need to hold his nose when he takes the money… and in a related article, describes Shell’s actions as a “retreat from the Niger Delta” (apparently triggered in part by militancy, violence and bunkering). 

Extract from latter article: 

“…a militant uprising in the Niger Delta last decade led to severe supply disruptions, and though the worst of the violence has subsided, criminal gangs continue to cause havoc, siphoning off huge volumes of oil from the pipelines that criss-cross the delta.”

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Roundup of Royal Dutch Shell News 16 August 2014

Screen Shot 2014-06-23 at 11.37.41SHELL’S USA FIRE SALE

The New York Times reports that the Blackstone Group, a private equity company, is paying Royal Dutch Shell $1.2 billion for a stake comprising more than 107,000 net acres in Louisiana. MORE

A related article by BusinessReport.com features a quote from Marvin Odum, president of Royal Dutch Shell’s U.S. division, Shell Oil Company. Marvin said in a statement: “We are adding highly attractive exploration acreage, where we have impressive well results in the Utica, and divesting our more mature, Pinedale and Haynesville dry gas positions.” MORE

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Royal Dutch Shell News Roundup Monday 11 Aug 2014

Screen Shot 2014-02-10 at 16.29.29Rejection in Australia, Oil Spill Fire in Nigeria, Fire sale in the USA, Asbestos lawsuit in the UK

By John Donovan

AUSTRALIA

The Australian reports that a fortnight after Woodside Petroleum shareholders scuttled a $2.7 billion plan to remove Royal Dutch Shell from the company’s share register, Woodside has bought a 40% stake in a joint venture deep water exploration project off west Africa.

NORTH AMERICA

According to the FT, Shell is preparing to dispose of its 50 per cent stake in a Louisiana gasfield to Blackstone for $1.2bn, as the oil and gas group retreats from one of its souring investments in North America. Private equity group, Blackstone, is named as the likely purchaser.  The article contains reference to the “fix or divest” policy of Royal Dutch Shell CEO, Ben van Beurden in relation to Shell’s under performing North American upstream business.

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Reflections on the notorious Kashagan ‘Cash All Gone” project 

By John Donovan

In view of the recent shattering news from the jinxed Kashagan project…

Production at Kazakhstan’s Kashagan Oil Field Halted Until 2016

…it is interesting to reflect back on the situation as it was in 2007, reported in this Reuters article by Tom Bergin.

It seems that not much has changed.

It also explains why Royal Dutch Shell ended up issuing a profits warning and launching a fire sale of assets, following a succession of disastrous projects mired by incompetence. 

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New infrastructure players to help UK North Sea in twilight years

Screen Shot 2014-06-23 at 11.37.41Extract from a Reuters article by CLAIRE MILHENCH published 1 July 2014

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One Reason Why I Wouldn’t Buy Royal Dutch Shell plc Today

Screen Shot 2014-06-23 at 11.37.41Extracts from a Motley Fool article by Royston Wild published 26 June 2014 

Shell has spun off a multitude of upstream and downstream assets in recent years in order to build its dividend and share repurchase-supporting cash pile and reduce its exposure to non-core assets. The oil giant also offloaded its Australian Geelong refinery and almost 900 pump stations in Australia to Vitol for $2.6bn back in February, and follows other downstream sales including that of its liquefied petroleum gas (LPG) operations in the Philippines late last year. The business has also offloaded upstream assets from the UK to Egypt and across Scandinavia over the past 12 months. The effect of this severe asset cutting caused total output during January-March to drop 9% to 3.3 million barrels of oil equivalent per day, and the company has hinted at further divestments to come.

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Are Asset Sales the Answer for Royal Dutch Shell plc?

Screen Shot 2014-06-23 at 11.37.41Extracts from a Motley Fool article by Arjun Sreekumar published 23 June 2014

On Monday, Shell announced the sale of a 19% stake in Woodside Petroleum, a deal that is expected to raise $5 billion. On Wednesday, the company announced that it had filed a registration statement with the U.S. Securities and Exchange Commission related to the proposed IPO of its pipeline subsidiary, which could raise up to $750 million. Due largely to ill-timed investments in U.S. shale, continued security issues at its Nigerian operations, and its beleaguered drilling program in Alaska’s Chukchi Sea, Shell’s return on capital employed, or ROCE, averaged under 15% from 2008 to 2012. Sales of under performing downstream and upstream North American assets are providing much-needed cash and should help the company gradually improve its return on capital. Overall, the combination of asset sales, reduced spending, and higher cash flow should allow Shell to grow its dividend at a stronger pace over the next few years, assuming commodity prices remain high and assuming that the oil giant can bring new projects online on time and on budget.

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Shell Sells Eagle Ford Assets as Part of Global Repositioning

Screen Shot 2014-06-23 at 11.37.41Extract from an Industrial Info Resources article by John Egan published 23 June 2014

Royal Dutch Shell plc is selling its acreage in the Eagle Ford Shale to Sanchez Energy Corporation for about $639 million, continuing the super-major’s asset sales and portfolio repositioning. Shell bought that acreage a few years back for an estimated $1 billion. Last summer, the super-major took a $2.1 billion write-down on the value of its Eagle Ford assets.

FULL ARTICLE

Making Shell more palatable as an acquisition target?

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Screen Shot 2014-06-18 at 19.42.34From a regular contributor

I think the Ho Ho line may be one of the assets being sold as part of the IPO announced today.

http://royaldutchshellgroup.com/2014/03/08/shell-says-ho-ho-pipeline-shut-after-leak-in-texas/ 

Document filed with United States Securities and Exchange Commission 18 June 2014

On another subject completely….the Chinese have done a large scale LNG deal with BP and at the same time announced that their cooperation with Shell will continue. Shell promotes itself as the big LNG player, so why is this LNG deal going to BP? In spite of all the spin, Shell and CNOOC agreeing to continue cooperation is hardly an earth shattering event, so why does it justify so much coverage?

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Shell to sell most of stake in Australia’s Woodside for $5.7 billion

Screen Shot 2014-06-17 at 08.37.28Extracts from a Reuters article by Sonali Paul published Tuesday 17 June 2014

(Reuters) – Royal Dutch Shell launched a long-anticipated sale of most of its stake in Australia’s Woodside Petroleum Ltd on Tuesday, looking to reap about $5.7 billion as it moves to focus on developing its own gas assets in Australia. The selldown, which reduces Shell’s holding to 4.5 percent from 23.1 percent, removes uncertainty that has weighed on Woodside’s share price since Shell sold a third of its stake in 2010 and flagged it was not a long term holder.  The sale, which came the week Woodside’s stock hit a three-year high, had been expected this year after Shell Chief Executive Ben van Beurden took the helm in January outlining plans to sell $15 billion worth of assets.

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Essar to sell UK’s second-biggest refinery

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Screen Shot 2013-12-22 at 19.09.52Extract from a Financial Times article James Crabtree in Mumbai published 12 June 2014

India’s Essar Group plans to sell the British oil refinery it bought from Royal Dutch Shell for $350m in 2011, as the struggling conglomerate attempts to reduce debts and refocus on its core Indian business. “The truth is they should never have bought Stanlow, but Shell sold it on the cheap…”

FULL ARTICLE

Screen Shot 2013-11-13 at 07.38.22Extract from Reuters EU Mergers & Takeovers Report published 12 June 2014

— Kuwaiti state oil group Kuwait Petroleum Corp to acquire Italian petroleum product companies Shell Italia SpA and Shell Italia Aviazione Srl from energy company Royal Dutch Shell (approved June 12)

FULL ARTICLE

Shell announces sale of Eagle Ford acreage, South Texas

Screen Shot 2013-12-22 at 19.09.5221 May 2014

Royal Dutch Shell plc (“Shell”) announced today it has agreed to sell its 100 percent working interest in approximately 106,000 net acres in Dimmit, LaSalle, and Webb Counties, Texas to Sanchez Energy Corporation for approximately $0.639 billion, subject to closing.

The sale includes approximately 176 operated producing wells and associated field facilities and infrastructure. Net production in Q1 2014 was approximately 24,000 barrels of oil equivalent per day, with approximately 60 percent crude and natural gas liquids.

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Here’s Why Royal Dutch Shell is Walking a Dangerous Tightrope

Screen Shot 2013-12-22 at 19.09.52Extracts from an article by Bob Ciura published 14 April 2014 by The Motley Fool

Heading into 2014, new Chief Executive Officer Ben van Beurden set rigorous capital discipline as his firm’s top priority. Over the past few years, Shell was led on an ambitious growth strategy that involved several high-profile resource acquisitions. Many of those decisions turned out to be ill-advised… Essentially, returns from new projects unimpressed, and cost over-runs were eroding margins. In response to dwindling returns and spiking costs, Royal Dutch Shell has embarked on a series of asset disposals this year, particularly on the downstream side of the business.

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Oil Theft in Nigeria Continues to Plague Shell

Screen Shot 2013-12-22 at 19.09.52Extract from an article by Arjun Sreekumar published on 28 March 2014 by The Motlet Fool under the headline: “Oil Theft in Nigeria Continues to Plague This Company”

Though one could argue that Shell, which has been operating in Nigeria for decades, should have sold its sabotage-prone Niger Delta assets long ago, at least the company is finally taking the necessary steps to address the situation. Its decision is shaped by Shell’s new “fix or divest” strategy, which seeks to either improve or unload underperforming businesses. The move should pan out to be a good one. Not only will it reduce the company’s exposure to continuing security concerns in Nigeria, it will generate much-needed cash to meet its $15 billion divestment target.

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Shell Gas to Focus on Larger Projects as It Cuts Spending

Screen Shot 2013-12-22 at 19.09.52Extract from an article by Eric Yep published 25 March 2014 by The Wall Street Journal

SEOUL— Royal Dutch Shell PLC’s global gas division will focus on large ventures where it has more control while it is likely to continue trimming some holdings and unprofitable investments as part of a program of cost-cutting and asset sales, a senior gas executive with the company said. “We typically like projects that we have a bigger position in that we can influence more,” Maarten Wetselaar, executive vice president, Integrated Gas, said in an interview… The London-listed oil major issued its first profit warning in a decade in January…

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Shell undergoing massive sell off to fix its balance sheet

Screen Shot 2014-02-18 at 18.34.00Extracts from an article poublished Monday 24 March 2014 by MarketWatch under the headline: Ghana’s Jubilee Points to Best Offshore Acreage in the World

LONDON / ACCESSWIRE / March 24, 2014 / The oil industry hasn’t started off 2014 with a bang. The oil majors – ExxonMobil, Royal Dutch Shell, Chevron, BP – all posted disappointing fourth quarter numbers. Shell in particular is undergoing a massive sell off to fix its balance sheet. Why are these companies struggling, and why all the gloom in the oil sector? Higher costs are the major reason. The oil majors are not looking all that great in terms of an investment opportunity.

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Shell exit from 600,000-acre stake in southern Kansas

Screen Shot 2013-12-22 at 19.09.52Extracts from an article by Dan Voorhis published on 21 March 2014 by The Wichita Eagle under the headline: SandRidge to let its oil leases expire on much of its acreage in Kansas

Land lease prices jumped in 2010 and 2011 from the $15 to $75 per acre range to $250 to $1,500 per acre, depending on location, when SandRidge, Shell Oil and other large out-of-state oil exploration companies rushed to accumulate large leaseholds. But the geology of the Mississippian layer proved more complex and less consistently profitable than expected. The mixed results led most of them to leave. SandRidge investors deposed company founder Tom Ward in 2013 because of low profits and low stock prices. Ward has since returned to Kansas with a new company, Tapstone Energy, which purchased Shell’s approximately 600,000-acre stake in southern Kansas.

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Shell in slashing mode

Ben van Beurden, Chief Executive Officer. Royal Dutch Shell Plc

Ben van Beurden, Chief Executive Officer. Royal Dutch Shell Plc

Extracts from an article by EDUARD GISMATULLIN published by Bloomberg News on 14 March 2014 under the headline: Shell in slashing mode: Cuts Americas spending by 20% after losses in shales

THE HAGUE (Bloomberg) — Royal Dutch Shell plans to lower spending in the Americas by a fifth as Europe’s largest oil producer focuses on more profitable operations. It’s “not acceptable” that Shell, now deploying about 36% or $80 billion of its capital in North America, has been losing money, Chief Executive Officer Ben van Beurden said. Van Beurden has pledged to shrink spending costs this year and speed up asset sales including refineries after The Hague-based company issued its first profit warning in a decade.

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Shell Oil fading

Screen Shot 2013-11-13 at 07.38.22Extracts from an article by Robert Magyar published 15 March 2014 by examiner.com under the headline: “Shell Oil fading in the Pennsylvania Marcellus”

A new analysis of the second half 2013 Pennsylvania Marcellus shale oil and gas production shows the vast majority of Royal Dutch Shell’s 630 wells are under performing compared to its peers. In northeast Tioga County, Shell’s wells are producing at less than half the rate of its area competitors. Its more bad news for Shell as its new CEO Ben Van Beurden announced on Thursday the company would cut its spending in onshore U.S. operations by 20% and begin selling off assets. Shell purchased its Marcellus shale holdings by buying Terry Pegula’s East Resources Inc. back in 2010 for $4.7 billion. By early 2013, Shell took a $2.1 billion write down on its U.S. shale operations.

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Shell cuts spending in U.S. to lower shale exposure

Screen Shot 2014-03-14 at 00.25.04Extracts from a Reuters article by Karolin Schaps and Dmitry Zhdannikov published 13 March 2014

LONDON, March 13 (Reuters) – Royal Dutch Shell will cut spending by a fifth and lay off staff at its American exploration and production business, the company said on Thursday, in another sign that oil majors are struggling to profit from the booming U.S. shale sector. The spending cuts announced on Thursday follow Shell’s decision in January to suspend its controversial Arctic drilling programme and pledge to cut capital expenditure and streamline operations worldwide after the company’s least profitable fourth quarter in five years. “I don’t think it is a matter of trying to reinvent the company in a fundamentally different way; it is a matter of tackling some of the issues that we know need tackling,” van Beurden told journalists on a conference call after Thursday’s strategy update.

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