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Posts on ‘January 5th, 2015’

Could Royal Dutch Shell buy BP?

Money Talks: Could Royal Dutch Shell Buy BP?

Screen Shot 2014-10-28 at 12.29.57Royal Dutch Shell’s rumoured takeover bid for BP is not as outlandish as first appears, according to Edmund Shing, global equity portfolio manager at BCS Asset Management.

Uploaded on YOUTUBE 9 DEC 2014

Since July, the collapse in world oil prices has been the talk of global financial markets. Brent crude oil, the global benchmark, has fallen from $115 per barrel to under $69 today, a price not seen since 2009.

This has been painful for investors holding oil & Gas stocks such as Royal Dutch Shell (RDS) or BP, with Royal Dutch Shell shareholders nursing losses of 10% since June, and BP shareholders an even more painful 15% loss since June.

There have been a number of consequences of this sharp oil price fall, one of which has been an increase in merger & acquisition activity in the global Oil & Gas sector. For instance in Oil Services, Halliburton is in the process of taking over US rival Baker Hughes for $35bn. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

BP hit by fall out from sanctions against Russia and oil price crash

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How BP Got Impacted From Exposure In Rosneft Oil Co (RNFTF) During Q4

Bidness Etc looks at how the western sanctions against Russia and the lower crude price have impacted BP during the fourth quarter due to its exposure in Rosneft Oil

By: MICHEAL KAUFMAN
Published: Jan 5, 2015 at 9:01 am EST

BP plc (ADR) (NYSE:BP) acquired a 20% stake in the Russian oil giant Rosneft Oil Co (OTCMKTS:RNFTF) in 2013. It was considered as one of the most important investments for BP as it was expected to deliver long-term value for the company. Russia is considered as the world’s largest oil producer; hence, BP was looking to exploit its investment in Rosneft to spread its scope in Russia.

However, things did not go as BP had planned. Following the annexation of Crimea, an autonomous region in Ukraine, the west imposed sanctions on Russia. The western sanctions made it impossible for the western companies to collaborate with Russian companies in shale, deepwater exploration, and to provide long-term financing. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

Shell and BP dividends at risk from oil price crash

Screen Shot 2015-01-05 at 16.43.46Extracts from CNBC Article by Katy Barnato published Mon 5 Jan 2015 under the headline: “BP, Shell dividends at risk from oil slump”

Screen Shot 2014-10-28 at 11.51.59“The risk is that given that these companies in the oil and gas sector account for 15 percent of the total payout, if the oil price remains low for a sustained period, this could become a risk…”

“At current levels the dividends (of BP and Shell) are not covered by free cash flow, meaning payouts need to be funded from debt…” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com

M&A implications arising from oil price collapse

Screen Shot 2015-01-02 at 23.58.26Extracts from a Reuters article published Mon Jan 5, 2015

“The uncertainty caused by the severe decline in oil prices during the final two months of 2014 nearly brought deal activity to a standstill,” said Christopher Sheehan, director of energy M&A research at IHS. “Buyers and sellers are having difficulty reaching a consensus because of the oil price tumble, which is causing significant uncertainty for the industry. However, transformative acquisition opportunities typically arise at the bottom of the crude price cycle… “Our IHS analysis of upstream companies indicates debt-laden oil and gas companies that are not well-hedged could increasingly become takeover targets in 2015,” Sheehan said. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, shell2004.com, shellshareholders.org, don-marketing.com and cybergriping.com are all owned by John Donovan. There is also a Wikipedia article: royaldutchshellplc.com
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