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November, 2015:

Shell’s boss fights to keep BG deal alive as he attempts to calm jittery investors

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By LAURA CHESTERS FOR DAILY MAIL: 3 November 2015

Royal Dutch Shell chief executive Ben van Beurden is the oil industry’s equivalent of a swan – below his calm demeanour he is furiously paddling to keep his planned £40billion mega-deal afloat.

Shell is buying rival BG Group and, to get the deal away and for it to make sense as the oil price plummets, van Beurden has taken the knife to Shell’s costs and projects.

Investors have been getting jittery as the price of oil has halved since summer 2014 and has stubbornly remained below $60 a barrel since the takeover was announced in April. Brent Crude continues to fluctuate but experts predict the price will stay ‘lower for longer’ than may have been expected.

However, van Beurden, who took on the top job last January and has a lot riding personally on the deal, promises it will still work with an oil price in the mid-$60s a barrel. Yesterday he insisted: ‘Although oil prices have fallen in 2015, the valuation case for the BG acquisition still looks compelling today for both sets of shareholders.’ read more

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Exposed: The fake recruitment boss who offered oil expert £10,000 a month job with Shell

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Fraudsters lure victims into paying upfront fees to cover supposed costs only to find out the employer has never heard of them

One Mirror reader who has just been targeted is out-of-work oil industry logistics expert Alan Winks.

It seemed that his years of experience in the North Sea had paid off when he was offered a job with Shell in Nigeria on more than £10,000 a month.

“Congratulations, you have been found suitable for the position,” emailed the supposed head of human resources, Charles Gbandi.

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Mr Gbandi also wrote to Alan on Shell letterhead and had a LinkedIn page apparently confirming his position at the company. read more

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Screen Shot 2015-11-04 at 07.57.03Angela Macdonald-Smith: November 4, 2015

Royal Dutch Shell remains unequivocally bullish on prospects for liquefied natural gas despite the current market glut, pointing to several options for new supply projects after its planned $US70 billion ($97 billion) takeover of BG Group and plenty of new markets opening up around the world.

“The fundamentals of this market look as robust now as in the past to us,” chief financial officer Simon Henry told investors overnight Australian time, spelling out Shell’s expectation that global LNG demand will expand at 5 per cent a year to 2030, only modestly lower than the 8 per cent annual growth seen since 2000. read more

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Shell carves more savings from BG Group deal, expects further job cuts

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Posted on November 3, 2015 | By Collin Eaton

HOUSTON — Shell has found another $1 billion in costs it could shake free after it buys BG Group, company officials said Tuesday, partly in response to critics of the huge acquisition Shell announced when crude was more expensive in the spring.

The cuts would mean more job losses on top of the 7,500 in layoffs Shell has announced this year, but officials declined to say how many jobs would be affected or lost.

The value of Shell’s original $70 billion offer for the British gas producer, which is known for its prized Brazilian deep-water fields and its big liquefied natural gas business, fell to $56 billion a month ago and edged back up to about $60 billion as Shell’s share price and crude prices have fallen. Shell had proposed to pay for the deal mostly with shares. read more

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Shell makes further cost cuts of £650m to keep BG takeover on track

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Screen Shot 2015-10-31 at 16.01.23Sean Farrell: Tuesday 3 November 2015 12.43 GMT

Investors have been nervous about Shell’s purchase of BG since it was announced in April. At the time, Shell suggested oil prices would recover to $90 a barrel by 2020. However, they have fallen from $115 a barrel last year to less than $50 and are predicted to stay low for some time.

FULL ARTICLE

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Shell describes Arctic drilling project as a good prospect that just didn’t work out

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Screen Shot 2015-11-03 at 08.42.45Associated Press: Nov. 3, 2015

LONDON (AP) — Royal Dutch Shell CEO Ben van Beurden says the company will reflect on its decision to consider drilling off the coast of Alaska but voiced his regret that the prospect couldn’t be made to work out.

Van Beurden told reporters Tuesday as Shell updated its strategy that it would examine the decision to pursue offshore drilling in Arctic waters. Shell reported a third-quarter loss of $7.4 billion last week as it re-organized and cancelled projects, including drilling in Alaska amid sharp drops in the price of oil. read more

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Shell Steams Ahead With BG Takeover With Promise of More Savings

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Rakteem Katakey: November 3, 2015: Bloomberg.com

  • Raises estimates of savings after combination to $3.5 billion

  • Gas business becomes stand-alone unit under Maarten Wetselaar

Royal Dutch Shell Plc said its record takeover of BG Group Plc will still deliver value to investors even in a prolonged oil-industry downturn and reshaped its business in preparation for the acquisition.

Europe’s biggest oil company will save an addition $1 billion in operating costs from the combination with BG, bringing the total estimate of synergies from the deal to $3.5 billion, Shell said in a statement on Tuesday. The takeover will still add to the company’s earnings per share and cash flow from operations even after the outlook for Brent crude prices to 2018 dropped by $10 to $15 a barrel since the deal was announced in April. read more

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Shell predicts $1bn more cost savings from BG takeover

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The collapse in oil prices over the past year has raised concerns among some investors that Shell may have overpaid for BG and the group has been seeking to turn round this shareholder scepticism.

FULL FT ARTICLE

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Appointment of Maarten Wetselaar as Integrated Gas Director

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Maarten Wetselaar, Integrated Gas Director, Royal Dutch Shell Plc

THE HAGUE, the Netherlands, November 3, 2015 /PRNewswire/ —

Royal Dutch Shell plc (“Shell”, NYSE: RDS.A, NYSE: RDS.B)) today announces the appointment of Maarten Wetselaar Integrated Gas Director with effect from January 1st, 2016.

Integrated Gas in Shell has grown into a business that generated $11 billion of cash flow per year average over the last three years, compared to $2 billion in 2009. Integrated Gas is now being established as stand-alone organisation in Shell, reflecting both its enlarged scale and investment potential. In this new role, Maarten will become a member of the Executive Committee of Shell. read more

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Shell Says Purchase of BG Group Would Allow Further Cost-Cutting

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By STANLEY REED: NOV. 3, 2015

LONDON — Royal Dutch Shell said on Tuesday that its planned acquisition of BG Group, the British oil and gas producer, would lead to major cost-cutting opportunities as well as sales of oil and gas properties.

As it prepares to complete the deal, expected early next year, Shell also said that it intended to carve out its own liquefied natural gas and related fuels unit into a separate business called Integrated Gas. One reason Shell agreed in April to buy BG for nearly $70 billion was to gain a world-leading position in producing and trading liquefied natural gas, known as L.N.G. read more

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BUZZ-BG up more than 1 pct as Shell backs deal

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Commodities | Tue Nov 3, 2015 10:17am GMT

** BG Group and Shell outperform the FTSE 100 in the wake of Shell’s recommitment to its planned $70 bln takeover of its smaller rival

** Shell announces plans for further benefits & cost cuts aimed at making deal work with oil at mid-$60s/barrel & says it now expects synergies to increase by $1 bln to $3.5 bln for combination

** BG up 1.3 pct, 3rd top gainer on FTSE-100 with c.40 pct of its 30-day avg volume traded through in first 2 hrs read more

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Shell Reorganizes Natural Gas Business as BG Takeover Approaches

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Rakteem Katakey: November 3, 2015: Bloomberg.com

  • Maarten Wetselaar to lead stand-alone Integrated Gas business

  • Marvin Odum to lead new Unconventional Resources unit

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Royal Dutch Shell Plc announced organizational changes in its business as it prepares for its biggest ever takeover amid what it expects to be a prolonged downturn in oil prices.

Europe’s biggest oil company will run its natural gas business as a “stand-alone organization” led by Maarten Wetselaar, who will become integrated gas director and a member of the executive committee, Shell said in a statement on Tuesday. Marvin Odum, currently director of the company’s Upstream Americas unit, will lead a new Unconventional Resources unit, including heavy oil and shale activities in the Americas. read more

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Niger Delta: Shell’s manifestly false claims about oil pollution exposed, again

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Claims by oil giant Shell that it has cleaned up heavily polluted areas of the Niger Delta are blatantly false, Amnesty International and the Centre for Environment, Human Rights and Development (CEHRD) said in a new report published today.

Clean it up: Shell’s false claims about oil spills in the Niger Delta documents ongoing contamination at four oil spill sites that Shell said it had cleaned up years ago. The report is being published to mark the 20th anniversary of the execution, on 10 November 1995, of the environmental activist and writer, Ken Saro-Wiwa, who campaigned tirelessly against the damage caused by the oil industry in the Niger Delta. read more

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Shell Fails to Clean Four Nigeria Oil Spill Sites, Amnesty Says

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Abandoned fishing boats in Ogoniland Photographer: Pius Utomi Ekpei/AFP via Getty Images

Chris Kay: November 3, 2015: Bloomberg.com

  • Nigerian regulator incorrectly said spill sites clean
  • Shell says oil theft, illegal refining a persistent challenge

Royal Dutch Shell Plc has failed to clean up four oil-spill sites in the crude-producing Niger River delta, three of which an under-resourced Nigerian regulator dealing with leakages said had been decontaminated, Amnesty International said in a report on Tuesday.

At Shell’s Bomu Well 11, Amnesty researchers found blackened soil and oil layers on the water 45 years after a spill took place, despite the company saying it cleaned the area in 1975 and 2012. At the three other sites, certified as clean by the National Oil Spill Detection and Response Agency, or NOSDRA, researchers also found soil and water contaminated close to where people lived, the rights group said. read more

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Amnesty report accuses Shell of failing to clean up Niger delta oil spills

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John Vidal: Tuesday 3 November 2015 00.01 GMT read more

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Shell leaves door open for future exploration in Alaska’s Arctic

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Jennifer A. Dlouhy | Houston Chronicle: November 2, 2015

Screen Shot 2015-11-03 at 08.42.45WASHINGTON — Shell is walking away from oil exploration in Arctic waters north of Alaska, but it isn’t ready to close the door completely.

Disappointing results from a critical test well at the company’s Burger prospect in the Chukchi Sea, combined with the high costs of developing the region and an “unpredictable regulatory environment,” have prompted Royal Dutch Shell to cease Alaska offshore exploration “for the foreseeable future,” CEO Ben van Beurden told reporters Thursday. read more

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Royal Dutch Shell plc Management Day November 2015

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LONDON, November 3, 2015 /PRNewswire/ —

NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISIDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.  

  • Competitive underlying performance in low oil prices – planning for prolonged downturn 
  • Both net investment and dividends have been covered by operating cash flow over the last year to Q3 2015, when oil prices have averaged $60 per barrel 
  • Delivering our commitments to reduce costs and spending – $11 billion reduction in 2015 
  • Reorganisation of Shell upstream increases accountability for performance and aligns us to deliver on the strategy  
  • Further analysis and Shell’s integration planning for the recommended combination with BG has enabled us to identify a $1 billion (40%) increase in pre-tax synergies to $3.5 billion 
  • BG transaction on track for completion in early 2016, leading to a simpler and more profitable Shell  

Royal Dutch Shell plc (Shell) (NYSE: RDS.A)(NYSE: RDS.B) today presents a strategic update to shareholders and investors in London. Speaking at the presentation, Shell’s CEO Ben van Beurden will say:

“Low oil prices are driving significant changes in our industry. I am determined that Shell will be at the forefront of that, and emerge as a more focused and more competitive company as a result.” read more

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Shell sees $70 billion BG deal working even with $60s/barrel oil

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Tue Nov 3, 2015 3:02am EST: LONDON

Royal Dutch Shell (RDSa.L) on Tuesday again sought to assuage investor concerns over its planned $70 billion takeover of BG Group (BG.L) as it announced plans for further synergies and cost cuts aimed at making the deal work with oil prices in the mid-$60s a barrel.

The Anglo-Dutch group, which hopes to complete the deal early next year, said it now expected synergies to increase by $1 billion to $3.5 billion for the combination which will make Shell a leader in liquefied natural gas (LNG) and offshore oil production in Brazil. read more

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Shell handed improvement notice over North Sea gas leak

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Screen Shot 2015-11-02 at 14.05.48Written by Niamh Forrest – 02/11/2015

Oil major Shell has been handed an improvement notice by the HSE (Health and Safety Executive) after a gas leak earlier this year.

The company launched an investigation in January this year after a suspected gas leak near to the Curlew FPSO(Floating, Production, Storage and Offloading) vessel in the North Sea.

Shell has now been ordered to make improvements by the HSE following the incident.

The operator had planned to evacuate more than 50 members of staff at the time but bad weather had prevented the safety measure.

Last year, Shell decided it was necessary to connect the Station Keeping Assist Vessel (SKAV), the Pacific Dolphin, to the Curlew FPSO because of concerns about its mooring lines. read more

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North Sea gas leak ‘could have caused explosion’ says safety watchdog

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By Chris Foote: 2 November 2015

Oil giant Shell has been ordered to make improvements following an undersea gas leak which could have caused an offshore explosion.

The leak happened when a ship’s towline snagged on a pipeline nearly 300ft below the Curlew floating production vessel.

The pipe ruptured and gas from the Fulmar Gas Line leaked out into the sea 130 miles south east of Aberdeen.

Shell planned to evacuate the Curlew’s 91 crew after the leak on January 19 but stormy weather prevented the operation.

The Health and Safety Executive (HSE) reported: “The towline […] snagged the gas export pipeline’s subsea isolation valve skid and applied increased tension […] until the pipeline ruptured and released its inventory of gas to the sea surface, exposing employees and others to a risk of fire or explosion.” read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Kola Aluko reveals why he paid rent for ex-minister’s mother

Screen Shot 2015-10-12 at 15.59.11Alison-Madueke was detained in London on October 2, 2015, by the United Kingdom’s National Crime Agency (NCA) over allegations that she laundered billions of dollars from her country’s treasury.

Nigerian oil tycoon, Kola Aluko has admitted paying rent for Mrs Beatrice Agama, the mother of former Petroleum Minister, Diezani Alison-Madueke.

Alison-Madueke was detained in London on October 2, 2015, by the United Kingdom’s National Crime Agency (NCA) over allegations that she laundered billions of dollars from her country’s treasury.

Aluko, who’s being investigated in connection with the case, admitted that he paid rent for Mrs Agama’s luxury home in Parkwood Point, St. Edmund’s Terrace, St. John’s Wood, London.

The businessman, who’s the founder of London-based Seven Energy, made the revelation to the UK’s Sunday Times. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell share price: Oil major sells downstream assets

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by Veselin Valchev: Monday, 02 Nov 2015

Royal Dutch Shell Plc (LON:RDSA) announced today that it has completed the sale of two assets from its downstream portfolio as part of its strategy to divest lower-margin businesses, as profits wane amid the depressed oil price.

The Hague-based oil major has completed the sale of its Butagaz liquefied petroleum gas (LPG) business in France to DCC Energy for €464 million (£332 million).

The sale follows a binding offer received by Shell in May, in addition to consultation with staff and regulatory approval, the company noted. read more

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Fugitive Oil Tycoon Kola Aluko Admits Paying UK Rent For Alison-Madueke’s Mother

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Screen Shot 2015-10-12 at 15.59.11BY SAHARAREPORTERS, NEW YORK: NOV 01, 2015

Kola Aluko, a Nigerian oil magnate now wanted in the UK for money laundering, has admitted that he paid rent for a high-end apartment for the mother of a former minister of Petroleum Resources, Diezani Alison-Madueke.

Mr. Aluko told the British Sunday Times newspaper that he was responsible for paying rent for Mrs. Beatrice Agama, the former minister’s mother. He also said he ensured that food was brought to the minister’s mother at the  St. John’s Wood property. Last month, a UK court approved the confiscation of funds belonging to Mrs. Agama. The court also authorized the seizure of funds belonging to Melanie Spencer, the wife of a Ghanaian oil tycoon, Kevin Okyere, implicated in the money laundering investigation involving the former minister.  read more

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Oil tycoon faces quiz over lost billions

Screen Shot 2015-09-17 at 07.55.40Article involving Diezani Alison-Madueke, former executive director of Shell in Nigeria read more

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Big Oil Gears Up For $60 Break-even Price As Profits Sink

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Gaurav Sharma: OCT 31, 2015

The latest quarterly results season is receding into the accounting archives, with BP, Royal Dutch Shell, Chevron and the keenly anticipated numbers of Exxon Mobil now with us.

That lower oil prices continue to dent profits at the world’s biggest oil companies is no longer news. Figures on their often unloved downstream operations performing well bring a few smiles and keep detractors of the integrated model quieter than usual.

Take big beast Exxon, which reported quarterly profits of $4.24bn, down 47% on an annualized basis from the same quarter last year. Its profits from refining doubled to about $2bn, but upstream takings fell 79% to $1.4bn. Prior to Exxon, smaller rivals (e.g. – BP, Shell and Chevron) had all posted declines in headline quarterly profits earlier in the week. Yet read between the lines of the profit declines, and a common message on how to cope seems to be emerging. read more

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