Royal Dutch Shell Group .com Rotating Header Image

Posts Tagged ‘China’

Shell claims low-carbon edge

On Monday, reports surfaced that some of Shell’s money circulating in Nigeria was used for payoffs.

April 12 (UPI) — One of the largest oil companies in the world, Royal Dutch Shell said Wednesday it was focused on a low-carbon strategy that was geared toward long-term growth.

Shell highlighted its movement through a changing energy landscape in a sustainability report on activities last year. Chief Executive Officer Ben van Buerden said in the report that lower crude oil prices and a global community coordinated around the U.N.-backed Paris climate agreement meant changes were necessary for the oil and gas business.

read more

Shell’s QGC to sell gas to Orica, Engie as trims LNG exports

Shell’s QGC to sell gas to Orica, Engie as trims LNG exports

Shell has signed two new deals to supply gas to east coast buyers in response to mounting pressure on the Queensland LNG exporters not to let industrial customers on the east coast go short.

The short-term agreements to supply gas to Orica and power producer Engie mean that Shell’s LNG venture in Gladstone will trim LNG exports to make more available for local users, said the oil major’s new Australia chair, Zoe Yujnovich.

However Shell wouldn’t disclose its revised forecasts for LNG exports from its $25 billion Queensland Curtis venture which typically ships about eight cargoes a month from its 8.5 million tonnes a year Curtis Island plant.

read more

Shell defies doubters by predicting boom for liquefied natural gas

The Telegraph: Shell defies doubters by predicting boom for liquefied natural gas

Jillian Ambrose20 FEBRUARY 2017 

Royal Dutch Shell has brushed off concern that the burgeoning market for liquefied natural gas is already oversupplied, after paying £36.5bn to buy market leader BG Group.

Shell’s first outlook report for LNG since the tie-up has predicted a market boom as demand from countries including China and India which will outpace the string of new project start-ups.

The market for LNG imports has already grown considerably in recent years but market commentators have raised fears that an explosion of new projects might flood the market. A deluge of LNG could push down prices just as Shell works to pay down the heavy cost of the tie-up.

read more

Shell says new LNG buyers want shorter, smaller contracts

Shell says new LNG buyers want shorter, smaller contracts

By Reuters20 February 2017

LONDON, Feb 20 (Reuters) – Royal Dutch Shell, the world’s biggest liquefied natural gas (LNG) trader following its takeover of BG Group last year, said new LNG customers that will drive demand are looking for shorter and smaller contracts.

Shell expects much of new LNG demand to come from countries that want to replace declining domestic gas production — which has already happened in Egypt and Pakistan — and those countries that are looking at LNG to complement pipeline and domestically produced gas, like China or Morocco.

read more

Opec outflanked

By Ed Crooks of the Finacial Times: January 13, 2017

In the 1930s many newspapers carried impressively detailed diagrams showing France’s defences along the German border, described by Popular Mechanix and Inventions magazine as the “world’s greatest underground fortifications”. By the end of May 1940, Hitler had demonstrated that while the Maginot Line might indeed be an engineering marvel, it was also irrelevant, as his panzer divisions swept past it through Belgium and into France. Last year’s agreement between leading oil-producing countries to curb their output had something of the same feel about it this week.

read more

Trump energised

screen-shot-2016-11-12-at-10-43-03

By Ed Crooks, November 11, 2016

“Between a battle lost and a battle won, the distance is immense and there stand empires,” said Napoleon. The same is true of elections.

Donald Trump may have come slightly behind Hillary Clinton in the popular vote for the presidency, but his convincing victory in the electoral college will give him the ability to reshape the energy industry in the US and around the world.

His hand will be strengthened by Republican control of Congress. Parts of Mr Trump’s agenda will face resistance in Congress, but his energy policy is unlikely to be one of those areas. His support for oil, gas and coal, his commitment to deregulation and his rejection of climate policy are all well aligned with mainstream Republican thinking.

read more

Big Oil Slowly Adapts to a Warming World

screen-shot-2016-11-03-at-12-09-13screen-shot-2016-11-03-at-12-06-52

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

The best historians Shell could buy

screen-shot-2016-10-24-at-14-26-11EBOOK BY JOHN DONOVAN: SIR HENRI DETERDING AND THE NAZI HISTORY OF ROYAL DUTCH SHELL

Chapter 1: The best historians Shell could buy

screen-shot-2016-10-24-at-17-37-35

Shell commissioned a group of eminent “independent” historians (above) mostly Dutch, to author a history of Royal Dutch Shell to mark the Group’s centenary in 2007.  The introduction in Volume 1 pledged independent research and “a proper and even-handed assessment of Deterding.” Something went amiss because the “history,” as published in regard to his dealings with Hitler, is simply untrue.

On 24 May 2015, a light-hearted story in the Prufrock column of The Sunday Times posed the question: “ARE corporate histories the new harbingers of doom?”  It cited the release of corporate histories of two multinational banks that proved embarrassing to the banks due to unforeseen developments.

read more

Shell Says While Gas Is the Future, It Won’t Be Traded Like Oil

Screen Shot 2016-08-15 at 17.50.25

Screen Shot 2016-08-30 at 21.16.58

At the moment, there is a global glut of natural gas…

Screen Shot 2016-08-29 at 22.18.50By Kelly Gilblom and Rakteem Katakey: August 30, 2016

Natural gas is rapidly becoming one of the most traded global commodities, but that doesn’t mean it will have a global price, according to Royal Dutch Shell Plc.

While the fuel can be transported anywhere on liquefied natural gas carriers, it will probably remain regionally priced for the time being, with some contracts continuing to track oil, said Roger Bounds, senior vice president for global gas at Shell. Prices will depend on location, regulation and infrastructure, as some countries replace coal in electricity generation to cut carbon emissions.

read more

The Future of Big Oil? At Shell, It’s Not Oil

Screen Shot 2016-06-07 at 10.26.02

Screen Shot 2016-07-20 at 07.36.57

Screen Shot 2016-07-20 at 07.42.44The energy giant is shifting to gas as the industry adapts to climate change.

By Matthew CampbellRakteem Katakey and James Paton: 20 July 2016

At Australia’s Curtis Island, you can see Big Oil morphing into Big Gas. Just off the continent’s rugged northeastern coast lies a 667-acre liquefied natural gas (LNG) terminal owned by Royal Dutch Shell, an engineering feat of staggering complexity. Gas from more than 2,500 wells travels hundreds of miles by pipeline to the island, where it’s chilled and pumped into 10-story-high tanks before being loaded onto massive ships. “We’re more a gas company than an oil company,” says Ben van Beurden, Shell’s chief executive officer. “If you have to place bets, which we have to, I’d rather place them there.”

read more

Bad news for fossil fuels

Screen Shot 2016-06-10 at 16.17.14

By Ed Crooks: June 10. 2016

Two of the most widely respected energy analysts – BP’s economics team and the International Energy Agency – published reports this week, and both brought bad news for fossil fuel producers. They differed, however, in the focus of their gloomy perspectives. For BP, publishing its 65th annual Statistical Review of World Energy, it was coal that came off worst. As Spencer Dale, BP’s chief economist, put it in his presentation, “2015 was undoubtedly an annus horribilis for coal”. The shift to natural gas for power generation in the US gathered pace, and there was a second consecutive year of declining consumption in China.

read more

Shell sidesteps electric bandwagon with petrol-powered concept car

Screen Shot 2016-04-22 at 11.55.13

BEIJING | BY JAKE SPRING: Fri Apr 22, 2016

Royal Dutch Shell PLC (RDSa.L) unveiled a high-efficiency petrol-burning concept car in China on Friday, to show the world’s biggest electric vehicle (EV) market that there is a lot of mileage left in conventional internal combustion engines.

Shell, one of the largest producers of automotive fuel, said it could take decades before EVs help arrest a rise in exhaust emissions, and that its concept car – which it has no intention of mass producing – demonstrates what can be done now.

read more

CNOOC and Shell take final investment decision to expand petrochemical complex in China

Screen Shot 2016-03-22 at 11.50.51

TUESDAY, MARCH 22, 2016

China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. today announce the final investment decision to expand CNOOC and Shell Petrochemical Company’s (CSPC) existing 50:50 joint venture (JV) in Huizhou, Guangdong Province, China. This decision follows the announcement of a Heads of Agreement in December 2015 between the two partners. Subject to regulatory approvals, CNOOC and Shell have agreed that CSPC should take over CNOOC’s ongoing project to build additional chemical facilities next to CSPC’s petrochemical complex.

read more

Shell’s credit rating cut from AA to AA- following £36bn takeover of gas giant BG Group

Screen Shot 2016-02-20 at 08.30.53

By RUPERT STEINER FOR THE DAILY MAIL19 February 2016

Royal Dutch Shell has seen its credit rating slashed following its £36billion takeover of gas giant BG Group.

The credit score of the FTSE 100 oil company – a barometer of its financial strength – was lowered by Fitch from AA to AA-.

Ratings agency Fitch said its outlook on Shell was ‘negative’ in a sign a further cut could follow.

Shell used some of its cash reserves to fund the takeover of BG. Following the completion of the mega-deal on Monday, Shell plans to sell £20billion of assets in the next three years.

However, Fitch warned it downgraded its view on the company because Shell (down 26.5p to 1560.5p) had ‘materially missed the targeted level’ of sell-offs so far. 

read more

Oil Prices Slide Again as Oversupply Fears Persist

Screen Shot 2016-01-20 at 08.50.17

Screen Shot 2016-02-08 at 22.30.14

Screen Shot 2016-01-16 at 10.15.56

By TIMOTHY PUKO and GEORGI KANTCHEV: Feb. 8, 2016 

Oil prices dropped back below $30 Monday amid continuing fears about the global oversupply of crude. A Sunday meeting between Saudi Arabia and Venezuela ended without any plans for production cuts, damaging hopes that the world’s major exporters will cooperate on output cuts. Data from Barclays also suggested softer demand from the world’s largest consumers, the U.S. and China.

read more

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

Screen Shot 2016-02-05 at 23.13.02

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

Screen Shot 2016-02-05 at 18.33.47

Screen Shot 2016-02-05 at 18.36.00

Screen Shot 2016-01-16 at 10.15.56

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

Shell Executives Try to Seal Deal for BG

Screen Shot 2015-12-30 at 22.00.45

Screen Shot 2016-01-07 at 22.40.29

Screen Shot 2015-12-23 at 09.03.45By SELINA WILLIAMS: Jan. 7, 2016 3:08 p.m. ET

The cash and shares deal, valued at around $51 billion, is important to both companies. If approved, the merger will give the Anglo-Dutch oil giant a dominant position in the growing liquefied natural-gas market as well as stakes in highly prized oil fields offshore Brazil. BG investors will receive a chunky premium for selling up if the deal goes through.

But the deal has been roiled by further declines in oil prices in recent weeks and turmoil in China’s stock market that has pulled down global equities. Investors are also still worried that Shell is paying too much for BG, which it proposed to buy when crude prices were about $55 a barrel in April—about 40% more than they are now.

read more

Will Royal Dutch Shell Plc’s Dividend Be Slashed In 2016?

Screen Shot 2015-12-09 at 09.32.15

Screen Shot 2015-12-24 at 15.04.44

By Alan Oscroft – Thursday, 24 December, 2015

When the oil price slumped, the saving grace for BP and Royal Dutch Shell (LSE: RDSB) was dividends – both had the ability to keep paying dividends from other sources should earnings fall for a few years.

Royal Dutch Shell shares have fallen by 42% since their recent peak in May 2014, but that’s been offset to some extent by a 5.7% dividend yield last year and there’s a massive 7.7% expected for 2015. It’s still not a great overall performance, but compared to the way some smaller non-dividend oil stocks have fared, it’s almost heavenly.

read more

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

Screen Shot 2015-12-19 at 14.11.52

Screen Shot 2015-12-21 at 23.02.46

By CITY & FINANCE REPORTER FOR THE DAILY MAILPUBLISHED: 21:55, 21 December 2015

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

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

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

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

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

read more

This Oil Giant Is Going to Slash Thousands of Jobs

Screen Shot 2015-11-05 at 22.24.07

Screen Shot 2015-12-14 at 19.59.24

Screen Shot 2015-10-31 at 15.47.13

Royal Dutch Shell expects to slash thousands more jobs to save costs if its takeover of BG Group goes through as planned early next year following a final green light from China.

The acquisition, which was announced on April 8 and is biggest in the sector in a decade, has been cleared by China’s Ministry of Commerce, Shell said on Monday, after earlier approvals from Australia, Brazil, and the European Union.

Shell RDS.A -1.32% and BG LON: BG will now send a merger prospectus to shareholders and hold special general meetings for votes on the deal. If approved, it will face a court hearing 10 days later and could be completed by early February.

read more

Shell Has Underperformed, But It Could Be The Only Oil Major That Emerges Bigger From The Downturn

Screen Shot 2015-12-07 at 05.03.19

Screen Shot 2015-12-06 at 08.56.47

Screen Shot 2015-11-20 at 08.55.47…the company’s profits plummeted 70% from last year to $1.77 billion…

Sarfaraz A. Khan: Sunday, Dec 6, 2015

Summary

  • The oil major Royal Dutch Shell is closing in on its biggest-ever merger with the UK based oil and gas producer BG Group.
  • Shell has been the worst performing stock in its peer group and now offers an above average yield of 7.8%.
  • But Shell is generating enough cash from operations and asset sales to cover its spending.
  • More importantly, Shell could be the only oil major that emerges even bigger from the downturn.

The oil major Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) is closing in on its biggest ever merger with the UK based oil and gas producer BG Group (OTCQX:BRGYY). On Wednesday, the Anglo-Dutch oil producer revealed that it has received a green signal from Australia’s Foreign Investment Review Board following an approval from the country’s anti-trust regulator received last month. The BG Group is one of the major players in Australia’s rising LNG sector where the company has invested more than $20 billion on developing the Queensland Curtis LNG plant.

read more

Gas Wars Down Under Finally Come To An End: Shell-BG Group Tie-Up Gets Green Light

Screen Shot 2015-09-18 at 12.13.40

Screen Shot 2015-12-04 at 20.11.53

Screen Shot 2015-12-04 at 10.05.05

Royal Dutch Shell CEO Ben Van Beurden addresses a keynote speech during the World Gas Conference in Paris on June 2, 2015. Photo Credit:  ERIC PIERMONT/AFP/Getty Images)

Tim Daiss, CONTRIBUTOR: DEC 4, 2015

The proposed $70 billion Shell-BG Group mega deal, one of the largest energy deals in a decade, is now a reality, at least in Australia.

On Thursday, the Australian Foreign Investment Review Board (FIRB) gave the green light to the energy tie-up. The deal has already received regulatory approval in the US, EU and Brazil, while regulatory approval from Chinese authorities is still pending, but expected to be granted. The FIRB approval comes just two weeks after the Australian Competition and Consumer Commission (ACCC), the country’s competition regulator, approved the deal.

read more

Shell seeks $7 bln credit facility ahead of BG deal -sources

Screen Shot 2015-11-05 at 22.24.07

Screen Shot 2015-12-03 at 19.21.53

Screen Shot 2015-10-31 at 15.47.13

LONDON | BY RON BOUSSO: Bonds | Thu Dec 3, 2015

Dec 3 Royal Dutch Shell is seeking to secure a $7 billion credit facility in north America as back-up for its $70 billion acquisition of BG Group, sources said on Thursday.

U.S. bank JP Morgan Chase is arranging the facility, which will involve up to 20 banks and institutional investors, according to sources close to the matter.

The facility will be used as a “back-up” for funds already raised to finance the deal, according to one source.

read more

Shell wins final Australian approval for BG Group takeover

Screen Shot 2015-10-26 at 21.33.57

Screen Shot 2015-12-03 at 10.56.28

Screen Shot 2015-12-03 at 10.53.31

By Ashley Armstrong: 03 Dec 2015

Shell’s £55bn takeover of BG has been cleared by Australia’s Foreign Investment Review Board, handing the deal its penultimate approval from global regulators.

The green light from FIRB for the deal comes after Australia’s competition authorities also approved the deal last month, and follows success with regulators in the US, EU and Brazil.

There has been mounting scrutiny of the rationale for pressing ahead with the takeover while oil prices remain so supressed.

read more

Screen Shot 2015-11-05 at 22.24.07

Screen Shot 2015-12-03 at 07.03.52

Screen Shot 2015-10-31 at 15.47.13

Markets | Thu Dec 3, 2015 1:11am EST

  • Deal still needs approval from China
  • Shell says deal on track to be completed in early 2016
  • Australia imposes condition to prevent tax disputes 

By Sonali Paul

MELBOURNE, Dec 3 Royal Dutch Shell on Thursday won approval from Australia’s Foreign Investment Review Board for the company’s proposed $70 billion takeover of BG Group Plc, leaving China as the last regulatory hurdle to the deal.

The approval included an unusual condition designed to prevent disputes with the Australian Taxation Office (ATO) with the merged group, amid Australia’s push to clamp down on profit shifting and tax avoidance by multinationals.

read more

Biggest Oil Deal’s Risk Narrows to Record as Shell Pushes Ahead

Screen Shot 2015-11-30 at 23.06.54

Screen Shot 2015-11-30 at 23.13.22

By Rakteem Katakey: 30 November 2015

  • BG’s shares are at smallest discount to Shell’s offer price

  • Takeover received Australia antitrust approval this month

BG Group Plc’s discount to Royal Dutch Shell Plc’s takeover offer is the narrowest since the transaction was announced in April as the likelihood increases that the biggest oil deal of the decade will go through.

BG shares were 7.8 percent lower Monday than the price implied by Shell’s offer to buy the company, about half the discount reached in August. Shell has received approvals for three of the five preconditions to the acquisition, including one this month from Australia’s antitrust authority, meaning the window for some investors to cash in on the discount is starting to close, according to William Hares, a London-based oil analyst with Bloomberg Intelligence. 

read more

Shell-BG deal to win green light

Screen Shot 2015-10-26 at 21.33.57

Screen Shot 2015-11-28 at 20.52.02

Questions have been raised about the growing gulf between the price of BG shares and Shell’s cash and stock offer, while some market sources have argued that the low oil price could force Shell to renegotiate the deal and reduce its bid.

Screen Shot 2015-11-14 at 21.16.11

Regulators in China and Australia likely to support move to create Britain’s biggest company

Chinese and Australian regulators are expected to give their blessing to Shell’s £55bn mega takeover of BG before Christmas, leaving the future of the deal resting squarely in shareholders’ hands.

The tie-up, which will create Britain’s biggest public company, has been under mounting scrutiny in recent weeks as the City questions whether Shell can justify pushing ahead, with oil prices remaining so suppressed.

However, the takeover will advance a major step towards completion in the coming weeks with the two sides anticipating clearance from China’s Mofcom regulator after the deal was passed into the final phase of its review process.

read more

Oil Majors Queue in Iran as $30 Billion of Projects in Play

Screen Shot 2015-11-28 at 15.20.09

Screen Shot 2015-11-23 at 13.15.00

by Golnar MotevalliAnthony Dipaola and Hashem Kalantari: November 28, 2015: Bloomberg.com

  • Shell, Total, Lukoil interested in specific Iranian fields

  • Iran seeks to sign first oil development deal in March, April

Total SA, Royal Dutch Shell Plc and Lukoil PJSC are among international companies that have selected oil and natural gas deposits to develop in Iran as the holder of the world’s fourth-largest crude reserves presents $30 billion worth of projects to investors.

Total is one of the companies that have been in the forefront of discussions and Eni SpA is also looking to invest, Oil Minister Bijan Namdar Zanganeh said. Shell, Total and Lukoil all specified fields they would be interested in developing in Iran, Ali Kardor, deputy director of investment and financing at National Iranian Oil Co. said in an interview in Tehran.

read more

Complications Grow For Shell-BG Deal

Screen Shot 2015-11-27 at 20.28.53

Screen Shot 2015-11-27 at 20.33.23

Trefis Team, CONTRIBUTOR: NOV 27, 2015

…the Chinese authorities reviewing the proposed Royal Dutch Shell – BG Group merger are reportedly urging Royal Dutch Shell to dole out concessions on long-term liquefied natural gas supply contracts with the country.

After getting an all-clear from the Australian completion authority last week, Shell now needs clearance from China and Australia’s Foreign Investment Review Board for the deal to close as planned in early 2016.

SOURCE

Royal Dutch Shell, Exxon Mobil and Glencore: Energy companies risk wasting trillions on uneconomic projects

Screen Shot 2015-11-25 at 12.13.31

Screen Shot 2015-11-25 at 12.17.24

Screen Shot 2015-10-26 at 21.23.40

By Jessica Morris: 25 November 2015

Energy companies risk wasting $2.2 trillion (£1.46 trillion) on uneconomic projects over the next 10 years, according to a new report.

Think tank the Carbon Tracker Initiative’s (CTI) report how fossil fuel firms risk destroying investor returns says energy companies’ focus on fossil fuels at the expense of emerging clean technologies could put them out of kilter with environmental regulation, which will eventually dampen demand.

It comes ahead of next week’s Paris Climate Change Conference (COP21) which is expected to result in, or at least pave the way for, more climate change legislation.

read more

China wants LNG supply concessions in return for BG merger approval, sources say

Screen Shot 2015-11-12 at 09.02.50

Screen Shot 2015-11-21 at 11.16.10

Beijing holding a “wonderful piece of leverage”

Screen Shot 2015-10-31 at 15.47.13

by Veselin ValchevFriday, 20 Nov 2015

Royal Dutch Shell Plc (LON:RDSA) might have to shell out in order to get regulatory approval from Chinese authorities for its proposed takeover of fellow UK energy giant BG Group.

According to unnamed sources cited by Reuters, the Chinese ministry of commerce has requested that Shell review liquefied natural gas (LNG) prices in long-term supply contracts with the nation’s top energy companies – CNPC, CNOOC and Sinopec.

“It’s a reasonable request given the premiums Chinese and other Asian buyers are paying for long-term LNG versus those for Europe and America. The market is oversupplied, and this situation may well last through the next five to 10 years,” said a gas official with one Chinese state energy firm.

read more

ACCC clears Shell’s $98b takeover of BG Group

Screen Shot 2015-11-19 at 07.08.52

Screen Shot 2015-11-19 at 07.07.36

To the relief of Shell, the Australian Competition and Consumer Commission waved through the mega-merger on Thursday…

Screen Shot 2015-10-31 at 15.47.13

Angela Macdonald-Smith: Energy Reporter

East coast gas buyers left disappointed by the competition regulator’s unconditional approval for Royal Dutch Shell’s $US70 billion ($98 billion) takeover of BG Group have turned their attention to the Foreign Investment Review Board as they look for conditions to be put around the deal.

To the relief of Shell, the Australian Competition and Consumer Commission waved through the mega-merger on Thursday, which will align the oil giant’s undeveloped gas in Queensland – held in the Arrow venture with PetroChina – with BG’s $28 billion LNG export project in Gladstone.

read more

Shell plans to retain four senior BG executives after merger – memo

Screen Shot 2015-11-05 at 22.24.07

Screen Shot 2015-11-16 at 19.09.40

Screen Shot 2015-10-31 at 15.47.13

Business News | London Mon Nov 16, 2015

Royal Dutch Shell plans to retain four members of BG Group’s executive team after the companies’ planned merger next year, according to an internal memo seen by Reuters on Monday.

The memo indicates that the planned $70 billion takeover of BG by Shell remains on track. Shell this month sought to ease investor concerns over the deal by announcing costs cuts and benefits that would make it work despite lower oil prices.

According to the Shell document, BG’s Chief Operating Officer Sami Iskander will become executive vice president for joint ventures. Executive Vice President for Global Energy Marketing and Shipping Steve Hill will be named executive vice president for gas and energy marketing and trading while BG General Counsel Tom Melbye Eide will become general counsel for upstream.

read more

Shell share price: Company’s problems extend beyond oil prices, analyst says

Screen Shot 2015-10-13 at 12.21.31

Screen Shot 2015-10-27 at 12.31.09

Screen Shot 2015-10-27 at 12.33.24Big bets on shale “destroyed huge amounts of capital” and the company has few growth assets…the firm is far more likely to remain a laggard than become a leader among the oil majors for the rest of this decade…

by Veselin Valchev: Tuesday, 27 Oct 2015

Royal Dutch Shell Plc (LON:RDSA) carries hefty baggage and even if oil prices were to recover back to $100 per barrel, it would not solve all the firm’s problems, argued senior Morningstar analyst Stephen Simko.

Big bets on shale “destroyed huge amounts of capital” and the company has few growth assets, Simko said.

The notable exception is the potential addition of BG Group’s Brazilian operations, should the proposed merger complete successfully. BG’s interests in the Santos Basin are estimated to hold more than three billion barrels of recoverable oil resources and are projected to break even at only $30-35 per barrel.

read more

Oil profits set to plummet by billions: BP and Shell hit as prices plunge and exploration venture collapses

Screen Shot 2015-10-26 at 22.21.51

Screen Shot 2015-10-26 at 22.22.29

Screen Shot 2015-10-26 at 22.28.18

Photo Credit: www.alamy.com: Dark days: The price of a barrel of Brent crude has plunged from more than $100 a barrel in the summer of last year to $48 a barrel today

By JON REES, FINANCIAL MAIL ON SUNDAY: 24 October 2015

BP and Shell will this week report billions of pounds wiped off their profits as the effect of the low oil price coupled with expensive exploration failures hammer two of Britain’s biggest companies.

The City expects BP, under chief executive Bob Dudley, to report an underlying profit fall of 60 per cent to £800 million on Tuesday when it unveils results for the three months to the end of September, compared with a profit of £2 billion for the same period last year.

read more

Shell-BG Deal Could Face Regulatory Sanctions, But Shell Will Do Everything It Can To Save Deal

Screen Shot 2015-09-18 at 12.13.40

Screen Shot 2015-10-03 at 14.08.40

Screen Shot 2015-08-24 at 20.16.26

Trefis Team, CONTRIBUTOR: 2 Oct 2015

Ever since announcing the $70 billion deal to acquire BG Group back in April, Royal Dutch Shell Plc. has been busy these last few months obtaining the required merger related approvals from various regulatory authorities. After obtaining the required clearances in Brazil, the U.S., and Europe, the process hit a snag in Australia. This is not surprising as Australia is significantly more affected by the deal in comparison to the other countries. We believe that the Australian competition authority could ask Shell to divest some of its holdings before giving the necessary clearance to the deal and the company could face similar demands from Chinese regulators as well. We also believe that Shell will agree to the conditions imposed (if any) as the company stands to benefit from the merger in the long run. The deal will allow Shell to consolidate its leadership position in the global Liquefied Natural Gas market and increase its exposure towards the exploration and development of deepwater hydrocarbon reserves, primarily the pre-salt reserves offshore Brazil.

read more

Here’s How Royal Dutch Shell plc And BP plc Will Be Impacted By A Weak Chinese Economy

Screen Shot 2015-09-25 at 22.42.43

Screen Shot 2015-09-25 at 22.43.53

Bidness Etc discusses how European oil majors are impacted by the slowdown in the Chinese economy

Screen Shot 2015-09-25 at 22.48.19

By: Micheal KaufmanSep 25, 2015

The slowing Chinese economy has impacted the overall world economy and various other sectors. According to a Moody’s Investor service report EMEA (Europe, Middle East, and Africa)’s mining sector is totally exposed to the economic crisis, followed by the oil and gas sector. Shipping, chemicals, and auto sector are considerably impacted while some other EMEA sectors including tobacco, telecoms, real estate, healthcare, and railways will be marginally impacted, since they are more regionally focused and their credit worthiness is not genuinely exposed.

read more

Shell CEO says only ‘something cataclysmic’ could stop BG deal

Screen Shot 2015-08-14 at 22.00.17

Screen Shot 2015-09-10 at 08.13.28

Screen Shot 2015-08-24 at 20.16.26

Sep 9 2015, 14:43 ET | By: Carl Surran, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) CEO Ben van Beurden has told investors privately that only “something cataclysmic” – i.e., “if people stopped using energy” – could derail the company’s planned takeover of BG Group (OTCPK:BRGXF, OTCQX:BRGYY), WSJ reports.

The episode is among the latest attempts by top Shell execs to sell investors worried that the deal may fall through; BG shares trade at a discount to the Shell cash and share offer, concerns that Australian and Chinese regulators could set high hurdles and, more broadly, that the persistently low oil prices could yet lead Shell to rethink the merger are dampening sentiment.

read more

BG says European Commission signs off on Shell bid

Screen Shot 2015-08-17 at 20.40.13

Screen Shot 2015-09-02 at 14.12.17

Screen Shot 2015-08-24 at 20.16.26

Wed Sep 2, 2015

BG Group Plc (BG.L) said the European Union’s antitrust regulators had approved Royal Dutch Shell Plc’s (RDSa.L) $70 billion takeover bid for the oil and gas producer.

The deal, which will help Shell compete better with world No. 1 oil major ExxonMobil (XOM.N), has already received the green light from regulators in the United States, Brazil and South Korea.

BG and Shell still require approvals from Australia’s anti-trust and foreign investment bodies and clearance from the anti-trust authority in China.

read more

BG Group share price: Gap between market valuation and Shell offer widens

Screen Shot 2015-08-27 at 10.02.48

Screen Shot 2015-08-27 at 10.03.35

Screen Shot 2015-08-24 at 20.16.26

…the growing gap between the offer value and the market value indicates increasing investor anxiety over the merger, thus markets are beginning to question the deal’s prospects of success…

by Veselin Valchev: 26 Aug 2015

BG Group Plc’s (LON:BG) share price is sliding further away from the proposed offer by larger London-listed energy peer Royal Dutch Shell, signalling fading investor confidence that the deal will complete as planned, the Financial Times reported earlier this week.

BG’s share price had slipped 1.38 percent to 947.30p as of 14:01 BST today, underperforming the FTSE 100 which was flat. This compares with Shell’s proposed price of about 1,106p (383p in cash plus 0.4454 Shell B shares per BG share), equating to a discount of about 14.4 percent. At one point on ‘Black Monday’, traders cited by FT said that the spread widened to as much as 17 percent.

read more

Royal Dutch Shell in framework LNG deal with private Chinese firm

Screen Shot 2015-08-17 at 20.40.13

Screen Shot 2015-08-18 at 12.23.43

Screen Shot 2015-07-31 at 19.22.0918 August 2015

BEIJING: Royal Dutch Shell has entered a framework deal with a Chinese energy firm to jointly purchase and distribute liquefied natural gas, Shell said on Tuesday, a rare cooperation between a global energy company and a local private player.

Shell signed the non-binding framework agreement with Guanghui Energy Co Ltd, which is building a gas receiving terminal in Qidong of Jiangsu province with a designed annual handling capacity of around 600,000 tonnes in its first phase.

read more

Oil price: five reasons why oil has re-entered a bear market

Screen Shot 2015-07-09 at 12.53.36

Screen Shot 2015-07-09 at 13.02.49

Screen Shot 2015-05-11 at 21.10.55The oil price has fallen by more than a fifth since it hit a year-high of $69.63 a barrel in May

Jul 8, 2015

Oil re-entered a bear market yesterday as the price for Brent Crude, the international benchmark, recorded its largest one-day loss since February.

On Monday, the oil price fell by six per cent and it has continued to dwindle, reaching $55.40 a barrel at around 8am BST today. The price of Brent has now fallen by more than a fifth since it hit a year-high of $69.63 a barrel in May. Bear markets are commonly defined as occurring when prices fall 20 per cent from their peak.

So what is causing the slide?

read more

BG-Shell takes first step towards Brazilian blessing

Screen Shot 2015-06-20 at 16.29.35

The £47bn blockbuster deal has been officially filed with competition regulators in Brazil, a key hurdle and strategic area for Shell’s interest

Screen Shot 2015-06-23 at 23.17.10

Shell’s £47bn plan to become the world’s biggest gas producer has moved a step closer to reality after the oil giant officially filed its takeover of BG Group with Brazilian competition regulators.

The second-biggest oil and gas deal ever on record still requires the blessing of a number of regulators across the world. Sources have already flagged potential hurdles could come from China’s notoriously opaque Ministry of Commerce (Mofcom) and Brazil’s beefed up authority, the Administrative Council of Economic Defence (CADE), as well as European regulators. The companies have indicated that they expect the deal to close by the first quarter of 2016.

read more

Exclusive – Gazprom building global alliance with expanded Shell

Screen Shot 2015-06-18 at 22.09.48 Screen Shot 2015-05-23 at 08.00.10

Exclusive – Gazprom building global alliance with expanded Shell

The deal with Shell is a coup for Gazprom at a time when many Western companies are reducing their exposure to Russia because of Western sanctions over Moscow’s actions in Ukraine. Gazprom, which is under U.S. but not EU sanctions…

Fri Jun 19, 2015

Gazprom (GAZP.MM) is building a global strategic alliance with energy major Royal Dutch Shell (RDSa.L) that will include asset swaps and allow the Russian gas giant to penetrate new markets, its chief executive told Reuters.

Gazprom, the world’s top gas producer, said on Thursday that Shell and its long-time gas buyers in Europe – Germany’s E.ON (EONGn.DE) and Austria’s OMV (OMVV.VI) – had agreed to build two new Nord Stream gas pipelines under the Baltic sea to Germany.

read more

U.S. Ousts Russia as Top World Oil, Gas Producer

Screen Shot 2015-06-10 at 23.10.08

Screen Shot 2015-06-10 at 23.24.56Article by Rakteem Katakey published 10 June 2015 by Bloomberg.com

The U.S. has taken Russia’s crown as the biggest oil and natural-gas producer in a demonstration of the seismic shifts in the world energy landscape emanating from America’s shale fields.

U.S. oil production rose to a record last year, gaining 1.6 million barrels a day, according to BP Plc’s Statistical Review of World Energy released on Wednesday. Gas output also climbed, putting America ahead of Russia as a producer of the hydrocarbons combined.

The data showing the U.S.’s emergence as the top driller confirms a trend that’s helped the world’s largest economy reduce imports, caused a slump in global energy prices and shifted the country’s foreign policy priorities.

read more

Will China’s Ministry Of Commerce Block Shell-BG Deal?

Screen Shot 2015-05-19 at 09.03.12

Screen Shot 2015-05-06 at 08.45.14

Jun. 4, 2015 3:15 PM ET

Will China’s Ministry Of Commerce Block Shell-BG Deal?

Summary

  • Shell-BG deal is likely to face most scrutiny in China.
  • MOFCOM is likely to approve the merger with conditions.
  • These conditions could involve both structural and behavioral remedies.

Ever since Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) announced to acquire BG Group’s (OTCPK:BRGXF) natural gas assets and deep-water oil fields in a $70 billion deal, there have been concerns that the deal may be delayed, if not blocked, due to prolonged scrutiny from regulators around the world. While the deal could face potential hurdles in EU, Australia, China, and Brazil, I think it is unlikely to be blocked by any country. However, I think China is likely to raise majority of the concerns and therefore, I’m going to focus on China in this article.

read more

Shell takeover deal may face local resistance

Screen Shot 2015-04-09 at 22.55.14

Article by Matt Chambers, published 3 June 2015 by The Australian Business Review under the headline:

Shell takeover deal may face local resistance

Australian regulators are shaping up as one of the major hurdles for Royal Dutch Shell’s friendly $91 billion takeover of BG Group, with analysts tipping coal-seam gas sales may be needed for Shell’s plan to create a world-dominating LNG business to get through.

Credit Suisse analysts said the transaction between the energy giants should clear regulators in Brazil, where Shell wants BG’s deepwater Santos Basin, and the European Union, where both companies are domiciled.

Instead, Australia and China will be the main hurdles, potentially with conflicting views on the best way to structure a deal for their respective national interests, the investment bank said yesterday.

read more

Prices Are Down, but Saudis Keep Oil Flowing

Screen Shot 2015-05-21 at 15.02.26Article by CLIFFORD KRAUSS and STANLEY REED published 1 June 2015 in the New York edition of The New York Times under the headline

Prices Are Down, but Saudis Keep Oil Flowing

HOUSTON — The international cartel of oil producers has long followed the same basic strategy. When the market was soft, the group slashed production to raise prices.

But Saudi Arabia, the heavyweight of the Organization of the Petroleum Exporting Countries, has a new agenda. It is now less concerned about the price of crude oil in the global markets and more concerned about delivering fuel to its growing economy.

The shift is upending the traditional market dynamics that have influenced the direction of oil prices for decades.

read more

Shell-BG Group Deal Faces Hurdle From Chinese ‘Black Box’ Regulator

Screen Shot 2015-05-26 at 22.57.51

Screen Shot 2015-05-30 at 10.07.18

By: MICHEAL KAUFMANPublished: May 29, 2015

Royal Dutch Shell Plc’s (ADR) (NYSE:RDS.A) deal to acquire the UK-based BG Group (OTCMKTS:BRGYY) that is already at a risk of facing numerous obstacles, including volatility in the crude oil prices and a risk of a competitor outbidding Shell’s bid.

Meanwhile, when the deal is already hovering around such sensitive issues, the Financial Times (FT) has reported the latest hurdle that might hinder the course of the deal. This one is considered to be the biggest of all hurdles, the entry of China’s Ministry of Commerce (MOFCOM), termed as ‘black box’ by one of the competition lawyer, to conduct a regulatory scrutiny of the deal.

read more

%d bloggers like this: