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Posts on ‘April 10th, 2015’

Shell Acquisition of BG Group to Create Giant Operator of LNG Ships

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LONDON –  Royal Dutch Shell PLC’s (RDS.A) planned $70 billion acquisition of BG Group PLC would create a giant operator of liquefied-natural-gas vessels, offering owners that charter the ships more opportunities for lucrative, long-term contracts in an otherwise-depressed shipping industry.

“The merger offers owners more flexibility and better utilization of their fleets, which could mean long-term leases offering steady income,” said Ted Petropoulos, head of Athens-based Petrofin Research. “It’s also a defensive move to secure market share as more players come into the market.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Royal Dutch Shell Could Eclipse Exxon Mobil Corporation As Largest Producer: Credit Suisse

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By: MICHEAL KAUFMANPublished: Apr 10, 2015 at 6:22 am EST

In a report published on Thursday, Credit Suisse commented on the aftermath of Royal Dutch Shell plc’s (ADR) (NYSE:RDS.A) announcement to acquire BG Group Plc (ADR) (OTCMKTS:BRGYY). The sell-side research firm deliberated that the transaction makes sound strategic sense and moves Shell down the cost curve. The firm reiterated an Outperform rating on the stock.

Although the announcement comes with a rich valuation, Credit Suisse does not expect any counter-bid unless someone uses Shell’s internal planning assumptions. The new company might eclipse Exxon Mobil Corporation (NYSE:XOM) as the largest publicly traded producer by 2018, and will be a less capital-intensive version “of its former self” with greater scale and scope around key focus areas. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Following the Shell-BG deal, could Exxon bid for BP?

Screen Shot 2015-04-09 at 00.19.50Article by Jim Armitage published by The Independent on Friday 10 April 2015

Following the Shell-BG deal, could Exxon bid for BP?

Another day, another tide of speculation sweeps through the City investment banks about oil industry takeovers following Shell’s £47 billion bid for BG, the UK’s third largest energy supplier.

Even that old saw about Exxon dispatching its galleons across the Channel to buy BP was being punted around by some brokers this morning. Forgive me if history proves me a fool, but, even taking Exxon’s recent chest beating about its appetite for deals, it seems unlikely.

For starters, monopoly regulators would force such a vast company to sell huge amounts of their combined assets, negating the whole point to a deal. Second, Exxon has just painfully extricated itself from its joint exploration project in Russia thanks to US sanctions. It’s hardly likely to jump back into bed with the biggest western operator there. Third, there’s the small matter of the ongoing Gulf of Mexico oil spill litigation. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Royal Dutch Shell’s £47bn swoop on BG Group faces potential stumble over asset ownership

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By LAURA CHESTERS FOR THE DAILY MAIL

Screen Shot 2015-04-08 at 08.12.04Royal Dutch Shell’s swoop on BG Group will face a series of hurdles including competition fears and questions over the ownership of some of its newly acquired assets.

The £47billion acquisition of BG will make Shell the largest foreign oil company in Brazil – but there are concerns about its assets in the South American nation.

One of Shell’s main reasons to pounce on BG was its large holdings in Brazil. But many of the assets there are owned through joint ventures, which gives the partners first refusal to buy BG’s share in the projects if it is taken over. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell complaint claims Greenpeace activists risk success of Arctic drill

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Adam VaughanFriday 10 April 2015 15.19 BST

Shell has warned it could miss a window to drill for oil in the Arctic this summer, if six Greenpeace activists occupying a rig under contract to the company are not removed, court filings by the oil company reveal.

“Left unsanctioned, Greenpeace USA’s illegal and tortious actions will, as Greenpeace USA intends, delay and/or prevent Shell from transporting vessels, facilities, supplies, and personnel to the Chukchi Sea, and from conducting federally permitted exploration drilling activities on Shell-owned United States OCS oil and gas leases, during the brief 2015 open water season in the Arctic Ocean.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Is Royal Dutch Shell Up For The Challenge?

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By: MICHEAL KAUFMANPublished: Apr 10, 2015 at 10:33 am EST

he energy sector’s mega deal between Royal Dutch Shell Plc (ADR) (NYSE:RDS.A) and BG Group Plc (ADR) (OTCMKTS:BRGYY) is now under close scrutiny by China and other countries, as well as by investors. When asked about the details of regulatory concerns, both parties refused to comment, says the Wall Street Journal. The merger has been valued at $70 billion.

The CEO of the Hague-based Anglo-Dutch company, Ben van Beurden and BG’s Chairman, Andrew Gould had claimed on Wednesday they didn’t expect any major regulatory issues, except from a few countries. Although they did they expected the completion to be delayed until early 2016 while regulatory matters were settled. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Royal Dutch Shell plc Shareholders Express Concern Over Dividends After BG Group Merger

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By: MICHEAL KAUFMANPublished: Apr 10, 2015 at 9:39 am EST

A $70 billion merger deal between Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and BG Group plc (ADR) (OTCMKTS: BRGYY) was finalized earlier during the week. Shell had paid a premium of 50% on BG Group’s share price on April 9. Many have commended the efforts of Shell CEO Ben van Beurden for going through with the deal.

The deal holds great benefits for Shell and will allow the company to access BG’s cash-rich assets to become the global leader in liquefied natural gas. The oil company had been finding it hard to replace its oil and gas reserves but the merger with BG would solve this problem. While the deal brings in benefits, it raises some concerns among the shareholders, who have expressed worries regarding dividend payouts. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell-BG takeover to test China’s pledge on antitrust transparency

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Screen Shot 2015-04-03 at 09.56.31Shell-BG takeover to test China’s pledge on antitrust transparency

HONG KONG | BY MICHELLE PRICE AND DENNY THOMASFri Apr 10, 2015

(Reuters) – Royal Dutch Shell’s $70 billion bid for BG Group Plc will put to the test a pledge by China’s antitrust regime to be more transparent, after it faced strong criticism last year from the United States and Europe.

China’s nascent competition law has become one of the biggest wildcards for large cross-border deals in recent years, particularly where natural resources are concerned.

In 2013, China’s Ministry of Commerce (MOFCOM) said miner Xstrata had to sell off a prized Peruvian copper project in order for its $35 billion merger with Glencore to proceed, despite neither company owning any assets in China at the time. The combined company’s share of China’s copper market was also not high enough to warrant concerns by international norms. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

An investment-grade lesson from the Shell-BG supermerger

Screen Shot 2015-04-08 at 08.12.04Article by Bengt Saelensminde published 10 April 2015 by MoneyWeek.com

An investment-grade lesson from the Shell-BG supermerger

This week’s mega-takeover deal between BG and Shell has got the City in somewhat of a tizz.

What a great windfall. The oil and gas sector is on fire right now. Which companies will be snapped up next?

The corporate spiel (as usual in takeover deals) is all about ‘corporate synergies’. Cost savings of £1.7bn each and every year.

But as I’ll show you, this deal has very little to do with any of that.

If you want to put yourself in the right place to profit from these takeover opportunities, then there’s a little trick you need to know. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell’s Huge Gas Bet Underscores Big Oil’s Push to Replace Coal

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Article by Javier Blas and Rakteem Katakey published 10 April 2015 by Bloomberg.com

BP Plc coined the slogan “Beyond Petroleum.” The new industry mantra might be “Beyond Oil and Into Gas.” Oh, and while we’re at it, “Down With Coal.”

Consider Royal Dutch Shell Plc’s recent $70 billion acquisition of BG Group Plc — clearly a huge bet that natural gas will prove to be its cash cow of the future.

The petroleum industry’s move toward gas is hardly new — the hydraulic fracturing shale revolution is in its second decade, after all. Still, Shell’s move is an emphatic confirmation that some among the Big Oil family firmly believe gas will play a growing role in meeting the energy demand of emerging countries such as China and India that are trying to move away from dirtier coal. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Royal Dutch Shell’s proposed $70 billion acquisition of BG could trigger pre-emption rights

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Extracts from an article by Daniel McCarthy published 9 April 2015 by Micro Cap Observer

Royal Dutch Shell’s proposed $70 billion acquisition of BG could trigger pre-emption rights

The proposed takeover of BG Group by Royal Dutch Shell in a $70 billion deal could be short-sighted, and capable of triggering pre-emption rights in gas and oil fields in a backlash that could undermine the value and integrity of the deal.

Anglo-Dutch oil giant, Shell revealed the main reason for its attempt to acquire BG Group was because of its position on gas prospects in Brazil, where BM-S-9 and BM-S-11, the two exploration oil blocks controlled by BG in Brazil.

However, BG revealed in its annual report published recently that: “In certain specific circumstances, it is possible that BG Group’s partners in BM-S-9 (Petrobras and Repsol Sinopec Brasil) have a right of first refusal to acquire BG Group’s interest…in the event of a change of control of BG Group Plc.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell May Need $100-per-Barrel Oil to Make BG Deal Work

Screen Shot 2015-04-08 at 08.12.04Article by Tim Mullaney published 9 April 2015 by TheStreet.com

Shell May Need $100-per-Barrel Oil to Make BG Deal Work

NEW YORK (TheStreet) — How aggressive was Royal Dutch Shell’s (RDS.AGet Report) $70 billion deal to buy British oil and gas producer BG Group (BRGYY)? So aggressive that oil may have to rebound all the way to $100 a barrel by 2020 to justify the price that Shell paid, according to an analysis by the Norwegian research firm Rystad Energy. 

The price can be taken as a measure of the pressure Shell faces to get its hands on new assets in an environment in which many offshore oil and gas assets are expensive to bring to market, and because Shell hasn’t been a major force in fracking in the United States, said Per Magnus Nysveen, head of analysis at Rystad. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.
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