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Posts Tagged ‘Oil’

Shell reluctant to part with California refinery amid asset sale

By Jessica Resnick-Ault and Ron Bousso | NEW YORK

Royal Dutch Shell (RDSa.L) is in talks with several potential buyers for its refinery outside of San Francisco, but the Anglo-Dutch oil giant is reluctant to part with its last asset in California, three people familiar with the process say.

The company is in the midst of a massive asset sale, shedding properties from Thailand to the North Sea to pay down debt following its $54 billion purchase of smaller British rival BG Group last year.

Shell, Europe’s largest oil company, has sold around $15 billion of assets over the past year as part of a planned $30 billion in asset sales to trim debt incurred from the transaction.

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Oil is going down but Royal Dutch Shell plc is on the up

Harvey Jones | Thursday, 23rd March, 2017

Brent crude is now only a splash above $50. West Texas Intermediate has dripped to around $48. Predictions that oil would hit $60 or $70 on last year’s OPEC and non-OPEC production cuts have been shown to be desperately optimistic, and oil looks a tough play right now.

Straight to Shell

The share price of Anglo-Dutch major Royal Dutch Shell (LSE: RDSB) flew upwards in the wake of the OPEC deal, hitting a 52-week high of 2,390p in early December. After management’s campaign of cost-cutting, non-core disposals and capex slashing, analysts reckoned it could break even at around $55-60, which would help to sustain its proud record of never having cut its dividend since the war.

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Shell leads more active Gulf of Mexico federal oil lease sale

Mar. 22, 2017 6:35 PM ET|By: Carl Surran, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) led the way in today’s federal offshore lease sale in the Gulf of Mexico, which drew $275M in high bids following years of declining offshore interest that dates back before the downturn in oil and gas prices.

Shell made 20 bids totaling $55.9M, including the single highest apparent bid of $24.1M on Atwater Valley Block 64; Statoil (NYSE:STO) counted 13 apparent high bids totaling $44.5M, and Hess (NYSE:HES) ranked third with 12 apparent high bids totaling $43.9M.

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Costs tumble as Shell masters ‘budget’ deepwater drilling


  • LYNN COOK, SARAH KENT
  • The Australian
  • 12:00AM March 22, 2017

Royal Dutch Shell is trying to ­reinvent its business with a concept that sounds oxymoronic: budget deepwater drilling.

On the Mars oil platform, a hulking steel behemoth 200km southeast of New Orleans, more than 170 roughnecks and engineers are working to quickly wring more oil out of a massive field — and keep it profitable even if oil sinks to $US15 a barrel.

Shell, the world’s second-largest publicly traded energy company, is making a high-stakes bet that it can take highly efficient technology and processes per­fected onshore and deploy them in deep-sea production.

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Big Oil’s Plan to Buy Into the Shale Boom

by Javier Blas: 21 March 2017, 10:26 GMT

Big Oil is muscling in on shale country.

Exxon Mobil Corp., Royal Dutch Shell Plc and Chevron Corp., are jumping into American shale with gusto, planning to spend a combined $10 billion this year, up from next to nothing only a few years ago.

The giants are gaining a foothold in West Texas with such projects as Bongo 76-43, a well which is being drilled 10,000 feet beneath the table-flat, sage-scented desert, and which then extends horizontally for a mile, blasting through rock to capture light crude from the sprawling Permian Basin.

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Fire extinguished at Motiva Convent refinery; no injuries

Saturday, March 18, 2017 9:26 p.m. EDT

HOUSTON (Reuters) – A fire was extinguished at Motiva Enterprises’ 235,000 barrel per day (bpd) Convent, Louisiana, refinery on Saturday with no injuries, a company spokeswoman said in a statement.

Two sources familiar with plant operations said the fire broke out shortly before noon on the 45,000 bpd heavy oil hydrocracker, called the H-Oil Unit, which was being restarted to full production for the first time since a fire last August.

Motiva’s spokeswoman, Angela Goodwin, did not identify the unit involved in the fire.

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Would you bet on a rapid rise in the oil price?

By Holly Black for the Daily Mail: PUBLISHED: 21:51, 17 March 2017 

Oil stocks took a knock this week as the price of the black stuff slipped to its lowest level since November.

Despite an agreement to cut production by 1.2m barrels a day by the oil cartel Opec being widely adhered to, supply is still outpacing demand.

Now some experts are concerned the deal could be derailed by a surge in the US, where a 55 per cent year-on-year jump in active rigs has driven production levels to record highs. 

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Shell adds hundreds of jobs in new unit focusing on alternative energy

LeAnne Graves

SINGAPORE // Shell has added hundreds of jobs to its New Energies division as it plans to expand further in alternative fuels, wind and solar, a company executive said.

The oil and gas giant created a new division last year that focuses on investing in hydrogen, biofuels, solar and wind. Mark Gainsborough, Shell’s executive vice president of new energies, said the division’s workforce has expanded to more than 200 staff as the company looks to invest in excess of US$1billion per year by 2020.

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BP Rallies on Possibilities of a Takeover by ExxonMobil

Zacks: March 14, 2017

Shares of BP plc BP rallied after a London-based newspaper claimed that ExxonMobil Corporation XOM is looking to place a takeover bid for the British energy group.

A bid for BP cannot be ignored as these rumors about ExxonMobil’s interest have been doing the rounds for years. However, analysts believe that such a deal is unlikely as it does not seem to be a strategic fit.

The merger would create a company too big and complex to be managed. The weak oil price environment has resulted in just one big deal – Royal Dutch Shell plc’s RDS.A $54 billion purchase of BG Group Plc in 2016. Other key oil players in the industry have embarked on smaller acquisitions as they intend to preserve cash and maintain their balance sheets. Though oil prices have increased from the 12-year lows of last year, companies are still uncertain if the recovery is sustainable.

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Nigerian court adjourns Shell, ENI dispute until March 17

By Camillus Eboh

ABUJA, March 13 (Reuters) – A Nigerian court case in which Royal Dutch Shell and Italy’s Eni are seeking to have a government seizure of a long-disputed oilfield lifted has been adjourned until March 17, a judge said on Monday.

The court in January ordered the temporary seizing of assets and the transfer of operations of the OPL 245 field owned by Shell and Eni, among others, to the federal government on request of the EFCC financial crime agency.

The inquiry is investigating whether the $1.3 billion purchase of OPL 245 involved “acts of conspiracy, bribery, official corruption and money laundering”, court papers seen by Reuters in January showed.

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The fossil fuel industry’s invisible colonization of academia

Benjamin Franta and Geoffrey SupranMonday 13 March 2017 

The event’s sponsor was Shell Oil Company. The producer of the film series was Shell. The film’s director is Vice President of a family-owned oil and gas company, and has taken approximately $300,000 from Shell. The host, Harvard Kennedy School, has received at least $3.75 million from Shell. And the event’s panel included a Shell Executive Vice President.

FULL ARTICLE

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Shell’s sale of dirty tar sands assets cleans up debt and spruces image

Adam VaughanSaturday 11 March 2017 15.59 GMT

hen Shell sold most of its Canadian tar sands operations last week, the Anglo-Dutch oil company took a modest step towards making good on its promise to be part of the solution on global warming, rather than the problem. But the $7.25bn (£6bn) sale of the majority of its tar sands assets to an independent Canadian oil company is less about the company cleaning up its image than about cleaning up its debt.

FULL ARTICLE

Despite sanctions relief, Shell still cool on Iranian oil buys

By Dmitry Zhdannikov | LONDON

Royal Dutch Shell has bought only three cargoes of Iranian oil since sanctions were eased a year ago, a small fraction of what it used to buy and an indication of the legal difficulties and high prices that still hamper the trade.

The Anglo-Dutch firm did not give a reason for the drop in purchases, which were disclosed in its annual report, and the company declined to comment further.

But oil trading sources say Iranian oil is often too expensive and in any case remaining sanctions make dealing with the Islamic Republic a legal minefield.

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Shell CEO’s plan for a smaller carbon footprint

Patti Domm: 9 March 2017

Royal Dutch Shell‘s announcement of the sale of $7.25 billion in Canadian oil sands assets Thursday is an important step to turning itself into a company of the future — with a broader mix of energy assets and a smaller carbon footprint.

Shell CEO Ben van Beurden said the company is committed to reshaping itself and believes that renewables and new energy will play a bigger role. The company is retaining just 10 percent of its Canadian sands assets.

“We are right in the middle of transforming the company into the company of the future,” he said at the CERAWeek conference in Houston, sponsored by IHS Markit.

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Shell CEO urges switch to clean energy as plans hefty renewable spending

The oil and gas industry risks losing public support if progress is not made in the transition to cleaner energy, Royal Dutch Shell Plc (RDSa.L) Chief Executive Ben van Beurden said on Thursday.

The world’s second largest publicly-traded oil company plans to increase its investment in renewable energy to $1 billion a year by the end of the decade, van Beurden said, although it is still a small part of its total annual spending of $25 billion.

The CEO said that the transition to a low carbon energy system will take decades and government policies including putting a price on carbon emissions will be essential to phase out the most polluting sources of energy such as coal and oil.

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Shell accelerates plan to boost U.S. shale output -exec

* Shell to boost shale output by 140,000 bpoed by 2020

* Shell shale output profitable at average oil price $40/bbl

* Argentina shale development decision in 18 months

By Ron Bousso and Ernest Scheyder HOUSTON, March 7 (Reuters) – Royal Dutch Shell is ramping its North American shale output earlier than planned to lock in quick returns from what has become one of its most profitable businesses, the head of Shell’s unconventional energy business said. The Anglo-Dutch company plans to make shale oil and gas in the United States, Canada and Argentina a key engine of growth in the next decade, targeting output of around 500,000 barrels of oil equivalent per day (boepd), Greg Guidry told Reuters in an interview.

A drive to cut the cost of producing oil and gas from U.S. shale deposits has proven so effective that Shell has accelerated development plans, Guidry said on the sidelines of the CERAWeek industry conference in Houston.

It aims to boost output by 140,000 boepd over the next three years in the Permian basin in West Texas and the Duvernay region in Canada, said Guidry, an executive vice president.

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Malabu Scandal: How Shell used former British spies to gather intelligence while negotiating purchase of OPL 245

Nicholas Ibekwe and Idris Akinbajo: 5 March 2017

Multinational oil giant, Shell, set up an Intelligence network made up of some of Europe’s top spies which gathered information on some of the top actors involved in the infamous Malabu oil scam during the negotiations leading to payment of $1.1 billion for OPL 245, an investigation by UK-based Finance Uncovered has revealed.

The network made up of former members of UK’s MI6 spy agency, including Guy Colegate and John Copleston, gathered information which they circulated within Shell.

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Shell Fears Reopening Twice-Bombed Nigerian Pipeline

By Zainab Calcuttawala – Mar 06, 2017, 4:40 PM CST

Royal Dutch Shell fears that reopening a pipeline in Nigeria will cause local separatist groups to re-bomb the facility for a third time, according to reports emerging from the area.

The Trans Forcados Pipeline, which takes 400,000 barrels to the Forcados export terminal every day, has been out-of-operation for all but three weeks in the past year, according to risk analysis published by SBM intelligence on Friday.

Previously, militants dove underwater to install bombs near the section of the pipeline in the Atlantic Ocean that they aimed to destroy. Shell brought in underwater engineers to repair the pipeline in an act of defiance against the militants and their most sophisticated attack to date.

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Saudi Aramco to Pay Shell $2.2 Billion in Refinery Breakup

by Javier Blas, Joe Carroll, and Margot Habiby: 7 March 2017

Saudi Arabian Oil Co. will pay Royal Dutch Shell Plc $2.2 billion including debt to finalize the breakup of a 19-year refining partnership known as Motiva Enterprises LLC.Saudi Aramco’s Saudi Refining unit will take full ownership of the Motiva Enterprises name and legal entity, including the largest refinery in the U.S. at Port Arthur in Texas, and 24 distribution terminals, according to a joint statement. Shell will take sole ownership of the Norco and Convent refineries in Louisiana and 11 distribution terminals.

Aramco will make a $2.2 billion balancing payment, split between debt and cash and subject to adjustments including working capital, Shell said in a separate statement. Aramco will assume almost all of Motiva’s $3.2 billion of net debt, including $1.5 billion of Shell’s share. A cash payment will cover the balance, Shell said. The arrangement will also take the Anglo-Dutch company closer to its target of selling $30 billion of assets in the three years to 2018.

“Motiva is a strong competitor among U.S. refiners, and we value this important link with the dynamic U.S. energy sector,” said Abdulaziz Al-Judaimi, senior vice president of Aramco’s downstream business. “Our intent is to continue providing Motiva with strong financial support as it transitions into a stand-alone downstream affiliate.”

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How Nigeria Created the Insecurity in Ogoniland and How to Deal with It

This post is the opinion of Fegalo Nsuke, Publicity Secretary of The Movement for the Survival of the Ogoni People (MOSOP).

The disharmony between Nigeria and the Ogoni people over oil may be a familiar terrain, the recent and heightened security situation in Ogoni may no longer be news. But what may not be well known is how the Nigerian government significantly contributed to the current insecurity involving armed bandits in Ogoni.

In the past one month, I have toured all parts of Ogoniland. From Nyokhana, to Ken-Khana, Gokana, Bori special area, Tai, Eleme and Ban Ogoi special area. Despite the largely inflated insecurity problem, it was glaring that there was little, insignificant Police presence in the Ogoni.

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Shell’s North Sea changing of the guard

Written by Jeremy Cresswell – 06/03/2017 8:50 am

Last month, it emerged that there’s a handover of the helm underway at Shell’s UK Continental Shelf and Ireland business based out of Aberdeen.

After pretty much two years in command, Paul Goodfellow is taking on a new challenge as Shell’s vice president wells based at Rijkswijk in the Netherlands, effective April 1.

Assuming command in Aberdeen is Steve Phimister, who has for the past year been UK “transition lead” for the integration of BG Group’s business into Shell following the successful £36.4billion ($52.6billion) takeover completed early last year.

That Goodfellow should be on the move surprised some in the North Sea community, but this has been a hectic period.

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Pawnee Nation Sues Oklahoma Oil Companies in Tribal Court Over Earthquake Damage

By THE ASSOCIATED PRESS: MARCH 4, 2017

OKLAHOMA CITY — A Native American tribe here has filed a lawsuit in its own tribal court system accusing several oil companies of causing an earthquake that damaged near-century-old tribal buildings.

The Pawnee Nation alleges in its lawsuit filed Friday that wastewater injected into wells operated by the defendants caused the 5.8-magnitude quake in September. The tribe is seeking compensation for damage to public and personal property and market value losses, as well as punitive damages.

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Shell and Eni face corruption charges over Nigerian deal

The companies are accused of a paying a Nigerian politician $801 million for a block that he was awarded for a token sum: DAVID BEBBER/THE TIMES

Emily Gosden, Energy Editor: March 4, 2017

Royal Dutch Shell and Eni have been charged with corruption over their $1.3 billion acquisition of a huge oil exploration block off the coast of Nigeria.

Prosecutors in the west African country allege that the companies corruptly gave $801 million to individuals including Dan Etete, a former Nigerian energy minister, and Malabu, a company linked to Mr Etete, to which he had awarded the block for a token sum while he was minister.

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Nigeria wants Shell to open major pipeline but attack feared

By MICHELLE FAULThe Associated Press: March 4, 2017

JOHANNESBURG (AP) — Nigeria wants Royal Dutch Shell to reopen one of its main pipelines but the oil multinational is resisting, analysts say, for fear it could once again be bombed by militants.

The Trans Forcados Pipeline, the main feed to the 400,000-barrel-a-day Forcados export terminal, has been shut for all but three weeks of the past year, Lagos-based SBM Intelligence said in its weekly risk analysis published Friday.

In their most sophisticated attack, militants used divers to blow up an underwater section of the pipeline in the Atlantic a year ago. Defying militant death threats, Shell flew in underwater engineers who took seven months to get the pipeline operational.

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Shell and Exxon Knew, Norway Knows Too

GREENPEACE: Activists protesting Shell.

Norway has made billions from fossil fuels. Our US$900 billion Sovereign Wealth Fund – the world’s largest – has been harvested from nearly two decades of careful management of its oil wealth. But it’s time for Norway to turn its back on its oil-fuelled past, and embrace a different future.

On 28 February, the fund’s manager published data showing it had increased its holdings in oil majors during 2016 – companies including Shell, Exxon and the tar sands company Suncor.

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Nigeria charges oil majors Shell, Eni with corruption

By AFPPUBLISHED: 22:33, 2 March 2017 

Nigeria’s anti-graft agency on Thursday filed corruption charges against oil majors Shell and Eni over a $1.3 billion offshore block deal.

The Economic and Financial Crimes Commission (EFCC) accused 11 defendants of “official corruption”, according to court documents.

Shell, Eni and Agip, Eni’s Nigerian subsidiary, are alleged to have corruptly given the “aggregate sum of $801 million” to Nigerian businessmen and politicians.

This is the latest probe into the controversial 2011 oil deal that highlights endemic corruption within the sector.

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Shell Oil accused of ignoring climate threat known in 1991

By Valerie Richardson – The Washington Times – Thursday, March 2, 2017

The #ExxonKnew campaign never quite panned out as climate change activists had hoped, unless their goal was to see Exxon Mobil CEO Rex W. Tillerson sworn in as secretary of state. But that failure wasn’t enough to stop #ShellKnew.

Shell Oil came under fire this week from environmentalists after a Dutch blogger unearthed a 1991 video, “Climate of Concern,” produced by Shell warning of the possible consequences of climate change, prompting accusations that the company chose to ignore the situation in order to maximize profits.

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Malabu: Why EFCC filed corruption charges against Shell, Eni, Adoke, others

Malabu: Why EFCC filed corruption charges against Shell, Eni, Adoke, others

Evelyn Okakwu: March 03, 2017

The Economic and Financial Crimes Commission, EFCC, on Thursday filed a three-count charge against two multinational oil firms, Shell and ENI, for their roles in the $1.1 billion Malabu oil scam.

The EFCC had in December filed related charges against two former Nigerian ministers, Mohammed Adoke and Dan Etete, and others after concluding investigations on the 2011 controversial‎ sale of OPL 245.

The alleged fraud committed by the ex-Nigerian officials and officials of the oil firms, has also led to investigations and charges in Italy.

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BP, Shell Investor Wants CEO Pay Policy Change After Revolt

by Rakteem Katakey:2 March 2017

The pay of bosses at Europe’s biggest oil companies is back in focus as shareholders prepare to scrutinize BP Plc’s new policy after rejecting Chief Executive Officer Bob Dudley’s remuneration last year.

Allianz Global Investors, among the top 25 holders of BP and Royal Dutch Shell Plc shares, wants the companies to base top executives’ pay and bonuses on per-share metrics rather than absolute numbers for cash flow and profit, said Rohan Murphy, an analyst at the investment firm. This will help align the management with shareholders’ interests and ensure profitability becomes more important, he said.

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Nigeria files new charges against Shell, Eni, others over 2011 oilfield purchase – court documents

Nigeria’s financial crime watchdog has filed new corruption charges against Royal Dutch Shell PLC, Eni SpA and others regarding the $1.3 billion purchase of a long-disputed oilfield in 2011, according to court documents released on Thursday.

The charges of conspiracy to commit a felony and official corruption were made after an investigation by Nigeria’s Economic and Financial Crimes Commission (EFCC) found new evidence, Jonson Ojogbane, an EFCC senior prosecutor named in the documents, told Reuters by telephone.

Shell and Eni did not immediately respond to requests for comment.

The case is the latest of several inquiries, following those by Dutch and Italian authorities, into the 2011 purchase of Nigerian oil prospecting licence OPL 245 block, which could hold up to 9.23 billion barrels of oil, according to industry figures.

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Shell “knew of climate change danger” since 1991 – Greenpeace response

Published by Greenpeace Southeast Asia: Thursday 2 March 2017

A film in 1991, produced by Shell, shows that the oil giant has long known about the catastrophic risks of climate change.

The film, titled Climate of Concern, was obtained by the Correspondent, a Dutch online journalism platform, and published in The Guardian’s article ‘Shell knew’: oil giant’s 1991 film warned of climate change danger.

In response, Desiree Llanos Dee, Climate Justice Campaigner for Greenpeace Philippines, said:

“Exxon knew. Shell knew. Now we must get to the bottom of what other fossil majors know and what they plan to do to avert catastrophic climate change. Shell’s empty rhetoric on climate is wholly contradicted by the core assumption underlying its business plans – global temperature increases in excess of 3°C and its lobbying against measures to mitigate climate change.

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In A 1991 Film, Shell Oil Issued A Stark Warning About Climate Change Risks

WASHINGTON — “Action now is seen as the only safe insurance.” 

That was among the many clear warnings that oil giant Shell issued in a film it produced about climate change more than 25 years ago. Many environmentalists, however, argue that the company has largely ignored its own alarm bells.

The 1991 film, “Climate of Concern,” resurfaced Tuesday on the Dutch online news outlet The Correspondent. It’s the latest in an ever-growing body of evidence that suggests the oil industry has long known about the climate risks associated with carbon dioxide emissions — and has actively worked to cover them up.

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Shell Shuns New Oil-Sands Projects as Low Prices Force Cost Control

by Rakteem Katakey: 27 February 2017, 14:52 GMT

Royal Dutch Shell Plc is unlikely to take on new oil-sands projects as it maintains a grip on costs after crude’s crash forced competitors to write down Canadian reserves.

While Shell’s existing oil-sands operations generate strong cash flows, the expense of developing new projects discourages additional investments, Chief Executive Officer Ben Van Beurden said in an interview.

Oil sands, the reserves of heavy crude found primarily in northern Alberta, lured investors in the past decade as oil’s surge above $100 a barrel made the difficult extraction process economic. But they’ve fallen out of favor following the subsequent market collapse as companies dump expensive projects amid fears that competition from low-cost crude could strand costlier assets.

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YPF, Shell sign deal for Vaca Muerta pilot project

Argentina’s state-run oil company YPF SA said it reached a preliminary deal with Royal Dutch Shell Plc on Thursday to develop oil and gas assets in the Vaca Muerta shale field, involving a $300 million investment from Shell.

Both companies will take a 50 percent stake in the Bajada de Añelo field to develop a pilot program, which will be operated by Shell, YPF said in a statement. The agreement is subject to approval by provincial authorities, and Shell’s investment will come in two phases, YPF said.

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Boss Of Royal Dutch Shell In The UK Describes Trump’s Clean Energy Stance As ‘Disappointing’

The Huffington Post: Boss Of Royal Dutch Shell In The UK Describes Trump’s Clean Energy Stance As ‘Disappointing’

George BowdenReporter, The Huffington Post UK

The boss of Shell in the UK has labelled President Donald Trump’s stance on new, cleaner forms of energy as “disappointing”.

Asked whether Trump had cast doubt the need for a global transition to green energy, Sinead Lynch, country chair of Shell in Britain, told The Huffington Post UK: “It’s disappointing. Obviously what we really want is a collaboration and alignment across all governments internationally, regionally, locally.”

As part of a renewed on focus on fossil fuels Trump’s administration has promised to open new coal mines, deleted references to climate change from White House websites, and pledged to scrap Barack Obama’s 2013 climate pact.

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Shell Shakes Up Oil Trading World With Brash Brent Buying Sprees

Laura Hurst and Javier Blas: 20 February 2017

The giant tankers anchored along the Scottish coast in the Firth of Forth weren’t going anywhere. They were just providing floating storage because there was no demand for their cargo, North Sea crude oil.

But the flickering computer screens in the world’s trading rooms told a different story. Prices through the month of April were jumping, showing someone was buying, stunning traders and leaving some with heavy losses. That wasn’t the only bizarre gyration last year in the market for Brent, whose price determines the cost of just about every petroleum-based product, from jet fuel to plastic spoons. Such unusual moves damaged confidence so much that some traders retreated from the market.

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Shell’s Paul Goodfellow to move on after £3billion sale

Written by Jeremy Cresswell – 17/02/2017 7:39 am

After roughly two years steering the unit through huge changes against a background of the third major oil price storm to rock the North Sea, Paul Goodfellow is taking on a new challenge as Shell’s executive vice president wells based at Rijkswijk in the Netherlands from April 1.

Assuming command in Aberdeen is Steve Phimister, who has for the past year been UK “transition lead” for the integration of BG Group’s business into Shell following the successful £36billion takeover completed early last year.

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Shell loses $254m court case

Written by Energy Reporter – 16/02/2017 6:02 am

Kuala Lumpur Regional Centre for Arbitration awarded MISC $254.4million in its ruling.

MISC had filed an arbitration proceeding against Sabah Shell in September last year. The firm sought resolution of contractual disputes covering claims for outstanding additional lease rates, payment for completed variation works and other associated costs.

“This adjudication decision is expected to have a positive impact on the earnings per share, gearing and net assets per share of MISC for the financial year ending 31 December 2017 onwards,” MISC said.

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Statoil joins Shell and other foreign companies exiting Canadian projects

Posted by Mark Young:15 Feb 2017

Norway’s oil and gas powerhouse Statoil ASA has finalised its exit from the Canadian oilsands and is by no means alone in a list of high-profile internationally-based operators to agree a sale of Canadian upstream assets during the past 12 months.

Statoil (Oslo:STL) is selling its interest in the Kai Kos Denseh project to Athabasca Oil Corp. (TSX:ATH) for an initial Cdn$578 million. Analysis of this transaction can be found here.

Other significant sales agreed upon in 2016 by non-Canadian companies include:

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Shell says receives indictment request in Nigeria oilfield dispute

Royal Dutch Shell (RDSa.L) said it received notice on Tuesday of a request for indictment related to a 2011 settlement of long-standing disputes over an offshore block in Nigeria (OPL 245) .

The tribunal of Milan has fixed the preliminary hearing for 20 April 2017, the company said in a statement. “We don’t believe a request for indictment is justified and we are confident that this will be determined in the next stages of the proceedings. We continue to take this matter seriously and co-operate with the authorities,” Shell added. Shell and Eni on Tuesday said they have asked a Nigerian court to lift a temporary forfeiture of assets and the transfer of operations of the OPL 245 field owned by Shell and Italy’s Eni (ENI.MI), among others, to the federal government.

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Can BP plc and Royal Dutch Shell plc survive the coming oil price crash?

By The Motley Fool  Feb 15, 2017

Last year’s surprise OPEC and non-OPEC oil production cuts were supposed to herald a new area of higher energy prices, but it hasn’t really happened. Oil bulls who predicted oil could hit $60 or $70 a barrel will have been disappointed, with the price stalling around $55. If the price can’t rise now, when will it rise? Or could it even crash?

Oil slip

Any further slippage would spell bad news for FTSE 100 giants (LSE: BP) and Royal Dutch Shell(LSE: RDSB). They are banking on a higher oil price to keep the cash flowing, and ensure their dividends are sustainable in the longer run.

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Shell Splashes $1B On Niger Delta Development

By Irina Slav – Feb 14, 2017, 12:46 PM CST

Shell’s Nigerian subsidiary has committed US$1 billion for the development of the Niger Delta, the Vice President of the federal government, Yemi Osinbajo, said. Osinbajo is on a tour in the Delta, aiming to appease through dialogue the militant groups that have crippled Nigeria’s oil industry over the last couple of years.

The money will be released in US$500-million annual installments, to be used to provide clean drinking water, conduct health impact assessments, and supply “remediation technologies” to local communities, who tried to sue Shell for failure to clean up an oil spill in the area. The case was heard by the London High Court, which ruled that it is outside its jurisdiction: Shell Petroleum Development Company is registered in Nigeria, so a Nigerian court should be the one to hear the case.

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Shell and ENI ask Nigerian court to lift forfeiture on oilfield: documents

Reuters: Shell and ENI ask Nigerian court to lift forfeiture on oilfield: documents

By Camillus Eboh

ABUJA, Feb 14 (Reuters) – Oil majors Royal Dutch Shell (LSE: 0LN9.Lnews) and ENI (LSE: 0N9S.Lnews) have asked a Nigerian court to lift a temporary forfeiture of a long-disputed oilfield, a copy of the court documents filed by the two firms showed on Tuesday.

Last month, a Nigerian court ordered the temporary forfeiture of assets and the transfer of operations of the OPL 245 field owned by Shell (LSE: RDSB.Lnews) and Eni, among others, to the federal government.

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Nigeria: Malabu $1.1 Billion Fraud – Shell, Eni Want Nigeria’s Richest Oil Block Back

Premium Times: Nigeria: Malabu $1.1 Billion Fraud – Shell, Eni Want Nigeria’s Richest Oil Block Back

Although Shell and ENI have repeatedly claimed they did not know the money was going to end up with Malabu, investigations in Nigeria and Italy as well as leaked documents revealed that claim to be false.

14 February 2017

By Evelyn Okakwu

Two multinational oil firms have challenged the propriety of the Nigerian government withdrawing a major oil block from them.

Shell and Eni, through their Nigerian subsidiaries, asked a Federal High Court to reverse an order that revoked the award of OPL 245 to them.

Justice John Tsoho of the Federal High Court had on January 26 granted an interim order directing the return of the block – Nigeria’s richest, estimated to contain over 9 billion barrels of crude – to the Nigerian government,

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3 big questions hanging over Royal Dutch Shell plc

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

By The Motley Fool  Feb 14, 2017

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

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

Shale producers returning

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

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

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Shell, Eni hit with Nigerian oil deal corruption charges

Shell, Eni hit with Nigerian oil deal corruption charges

Joe Sandler Clarke / Energydesk: 13th February 2017

Weeks after a major legal victory in London’s High Court over oil-polluted communities in Nigeria, writes Joe Sandler Clarke, Shell has suffered a dramatic reversal of fortunes as Italian prosecutors charge the company, and Italy’s Eni, on corruption charges over a $1.3 billion oil deal.

Italian prosecutors have charged oil giants Shell and Eni with international corruption offences, as the companies struggle with the fallout from their controversial 2011 purchase of an oil licence in Nigeria.

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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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Group under fire over plans to abandon North Sea structures

INVEZZ.Com: Group under fire over plans to abandon North Sea structures

Oil major sets out case for leaving concrete legs of Brent oil platforms

by Tsveta ZikolovaThursday, 09 Feb 2017

Royal Dutch Shell (LON:RDSA) has come under fire over its plans to decommission the Brent oil and gas field in the North Sea. The move would see the company leave several structures in place, with the oil major arguing that removing them would be risky as well as costly.

The Financial Times reported yesterday that environmental groups had accused Shell of cutting corners to save costs as a public consultation began on the biggest decommissioning project of its kind in the oil industry. The Anglo-Dutch oil major said yesterday that it had submitted plans to the UK government which include removing the upper parts of the group’s four Brent platforms in the North Sea. The company, however, wants to leave behind the concrete legs, as well as 64 subsea storage tanks, and drill cuttings contaminated with oil.

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Shell – Public consultation begins on Brent oil and gas field decommissioning programme

OilVoice.com: Shell – Public consultation begins on Brent oil and gas field decommissioning programme

Posted by OilVoice Press09-Feb-2017

An extended 60-day public consultation on recommendations to decommission the Brent oil and gas field in the North Sea has begun today following submission by Shell U.K. Limited (“Shell”), the field’s operator, of a comprehensive decommissioning programme to the Department for Business, Energy and Industrial Strategy (BEIS). The field, located 115 miles north-east of the Shetland Islands has produced around three billion barrels of oil equivalent since production commenced in 1976, which is almost 10% of UK production.

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Brent Spar legacy may slow Shell’s decommissioning plans

Royal Dutch Shell are likely to take their time over the Brent decommissioning process due to the controversial fallout from a previous disposal attempt, according to one industry analyst.

The energy giant hit the headlines back in 1995 when it first floated plans to dispose of the Brent Spar holding and loading platform by sinking it in the deep waters of the Atlantic.

After getting wind of the plans, environmental group Greenpeace mounted a large-scale media campaign against the dumping of the Shell-owned oil and tanker loading buoy.

Protesters managed to occupy the installation for nearly three weeks before being evicted.

Shell later said the Brent Spar had become of “symbolic significance out of all proportion to its environmental effect”.

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