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[waldron] 31/1/2018 18:07

Shell makes "Whale" of a discovery with Chevron in the Gulf of Mexico

Jordan Blum, Houston Chronicle Published 11:16 am, Wednesday, January 31, 2018

Royal Dutch Shell's Perdido deep water platform is set to begin oil production in early 2010. Credit: Royal Dutch Shell Photo: Royal Dutch Shell

Photo: Royal Dutch Shell
Royal Dutch Shell's Perdido deep water platform is set to begin oil production in early 2010. Credit: Royal Dutch Shell

Royal Dutch Shell said Wednesday it made a new discovery in the western Gulf of Mexico with Chevron.

The new "Whale" well struck a potentially major oil payload while drilling to about 23,000 feet in the deepwater Gulf about 200 miles southwest of Houston, Shell said. The area is about 10 miles form Shell's massive Perdido platform so the hope is Shell can develop the area and save money while using existing by connecting it to the existing platform and pipelines.

The discovery is within a block in the Alaminos Canyon portion of the Gulf. Shell owns 60 percent of the Whale well with Chevron holding the remaining 40 percent. It's located next to Shell's Silvertip field, which is one of the fields where the Perdido platform operates.

While most of the oil focus is on the onshore shale boom, especially in West Texas, the so-called Big Oil giants are emphasizing that they haven't given up on the deepwater Gulf. The offshore sector is showing signs of life, especially in areas where wells can be drilled and tied back into already developed areas and existing platforms.

"Deepwater is an important growth priority as we reshape Shell into a world-class investment case," said Andy Brown, Shell's upstream director. "Today's announcement shows how, through exploration, we are sustaining a strong pipeline of discoveries and future projects to sustain this deep-water growth."

Shell currently has three deepwater Gulf projects under construction – Appomattox, Kaikias, and Coulomb Phase 2 – as well as investment options for Vito, a potential new hub in the region.

[waldron] 31/1/2018 16:54

Shell A
2,460 -0.87%


Shell B
2,496.5 -1.23%

[uapatel] 30/1/2018 19:01

Is it me, or does that fast stochastic chart red line want to leave the page, lol.

Sorry not really any serious comment to add, await next results from RSD.

[waldron] 30/1/2018 18:19

Shell A
2,481.5 -1.61%



Shell B
2,527.5 -1.79%


premium 46p

[waldron] 30/1/2018 16:50

Shell A
2,488.5 -1.33%



Shell B
2,535.5 -1.48%

a dip before the slip up

[the grumpy old men] 30/1/2018 12:34

Shell B
2,557 -0.64%

[the grumpy old men] 30/1/2018 11:09

Home » Reports » Broker Ratings » Royal Dutch Shell Plc 7.5% Potential Upside Indicated by Societe Generale
broker ratings
Royal Dutch Shell Plc 7.5% Potential Upside Indicated by Societe Generale

Posted by: Amilia Stone 30th January 2018

Royal Dutch Shell Plc using EPIC/TICKER code (LON:RDSB) had its stock rating noted as ‘Retains’; with the recommendation being set at ‘HOLD’ this morning by analysts at Societe Generale. Royal Dutch Shell Plc are listed in the Oil & Gas sector within UK Main Market. Societe Generale have set their target price at 2750 GBX on its stock

[the grumpy old men] 30/1/2018 10:24

BHGE AM '18: Shell exec calls for greater energy renaissance
By Adrienne Blume, Executive Editor, Hydrocarbon Processing and Editor, Gas Processing on 1/29/2018
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Harry Brekelmans, Royal Dutch Shell PLC's Projects and Technology Director

FLORENCE -- Harry Brekelmans, Royal Dutch Shell PLC's Projects and Technology Director, shared his ideas about what has been accomplished—and how much more needs to be accomplished—in the ongoing energy renaissance, on day one of the BHGE Annual Meeting (BHGE AM).

"A real renaissance requires change," the Brekelmans said, in opening. "You could argue that the rebirth is well underway, but frankly, and personally, I think it's just beginning."

Speaking on the present state of the industry, he noted, "We are still in a time of market volatility. We see significant price uncertainty, and we are moving towards a lower-price energy system. That requires change to be ready for the future."

Shell's strategy builds on strengths. Shell is focused on remaining consistent with its aspirations to be a world-class organization, to thrive in the energy transition and to earn a strong societal license to operate, the Director noted.

With the company's February 2016 acquisition of BG Group, Shell was able to significantly expand in deep water and integrated gas. Shell also implemented a $30-billion divestment program of non-core assets, and streamlined its business operations.

The company continues to build on the strength of its oil, gas and chemicals business, and laying foundation for future growth, Brekelmans said. To this end, Shell in 2016 established its New Energies business.

Among the ongoing initiatives of this business, Shell is operating a second-generation biofuels plant in Brazil, and it acquired the largest provider of electrical vehicle charging facilities in Europe.

Optimization of GOM upstream projects. Shell has also made strides in improving capital efficiency in the upstream. The Director cited four Gulf of Mexico (GOM) deepwater projects where it has implemented performance improvements and/or reduced costs: Stones, Appomattox, Vito, and Kaikias.

Stones is the world's deepest oil and gas project. Shell improved the shape of the project in two ways. First, it focused on performance improvement in the construction of the FPSO and in the drilling components. With these improvements, initial wells that formerly took 150 days to drill now take only 60 days, Brekelmans said.

The Appomattox project, meanwhile, has seen a 25% improvement in costs, even after a final investment decision (FID) was taken.

At the Kaikias project, Shell implemented a 50% reduction in capital costs compared to initial estimates through operational improvements, supply chain savings, minimization of redundancies, simplification of subsea architecture and other initiatives.

Lastly, Shell is studying optimization options and capex streamlining for the Vito project, a potential new deepwater hub in the US GOM. FID has not yet been taken for the project.

Digitalization is key for advancement. On the subject of digitalization, Brekelmans noted, "We see it as one of the key drivers to improve capital efficiency, as well as operational excellence." Digitalization efforts yield huge volumes of data for critical, real-time analysis, he noted.

The director also touted the advantages of advanced manufacturing. "It's a mix of in-house development and leveraging the external ecosystem of the strategic suppliers and partners that we have," he explained.

In closing, Brekelmans emphasized the need for continued collaboration in the industry—a major theme of this year's BHGE AM.

"We need to co-innovate," he urged. "As Leonardo da Vinci said, 'Being willing is not enough; we must do.'"

The BHGE AM is taking place in Florence, Italy from Jan. 29—30, featuring technology demonstrations and a number of discussions by executives from BHGE and its operating partners.

[waldron] 29/1/2018 16:55

Shell A
2,522 +0.48%



Shell B
2,573.5 +0.76%

[florenceorbis] 29/1/2018 08:54

Oil & Gas
Shell shielded from Forties fallout by ‘internationalisation’, North Sea sales

Written by Mark Lammey - 29/01/2018 7:53 am

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Shell is performing “extremely well” at a time when Brent crude is at its highest price for three years, the oil giant’s upcoming fourth quarter results will show.

The Anglo-Dutch major is in its strongest position for many years in terms of its cash generation thanks to its upstream and LNG businesses, analysts said.

RBC Capital Markets anticipates Shell’s fourth-quarter adjusted net income will more than double year-on-year. The company recorded adjusted earnings of £1.3billion in Q4 2016.

Analysts said Shell, whose shares are up about 10% over the last 12 months, had been boosted by the sale of assets and disciplined spending.
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The company implemented a £21billion-plus divestment plan following its £47billion mega-merger with BG Group, which was completed in 2016.

As part of that programme, Shell sold about £3billion worth of North Sea assets to Chrysaor in 2017.

RBC analysts said the company would have cashed in £1.1billion in the fourth quarter from the proceeds of UK North Sea sales alone.

Total Q4 income from global asset divestments will have come to about £3billion.

Iain Armstrong, divisional director at Brewin Dolphin, said the disposal of North Sea assets would have shielded Shell from the worst effects of the Forties pipeline shutdown in December.

Mr Armstrong said Shell was one of the more internationally diversified oil majors, meaning its reliance on the North Sea is very limited.

He said Brazil was much more important to Shell following the takeover of BG Group, which added assets in the South American country to its portfolio.

Also in upstream, lower production from the Groningen gas field in the Netherlands should be offset by improved security in Nigeria.

Brent crude at $70 should let most majors increase their capital expenditure slightly, though higher prices tend to dent refining margins.

In Shell’s case, downstream performance should be better in the fourth quarter as its refining and chemicals business recovers from Hurricane Harvey.

Companies are still trying to gauge the precise impact of the drop in US corporate income tax. Shell said it would have incurred an estimated charge to earnings of £1.4billion to $1.8billion based on its third quarter performance.

The firm will publish its fourth quarter and full year results on Thursday.

Mr Armstrong said: “Shell is performing extremely well at the moment. People will be looking at their cash generation and what they’re going to do with that.”

Earlier this month, Shell revealed it would invest in a London-based blockchain start-up as part of its diversification drive.

Other recent investments include a sizeable stake in a US solar energy developer and the acquisition of a First Utility, a UK household energy and broadband provider.

Mr Armstrong said: “Shell does not want to be seen as an oil and gas company. They would love to diversify further into renewables but there aren’t enough big projects available.

“Also, everyone wants a piece of pie, so returns are not attractive while you’ve got a growing oil and gas business with good cost control.

“By 2030 you could see something like 20% of business coming from renewables at companies like Shell and BP, but it depends which projects come on market.”

[septimus quaid] 28/1/2018 12:21

Nice to see an increase in profits but, noting that the dividend cover has been seriously impaired over the previous two reporting years, I am interested to see the net effect of this “doubling̶1; on EPS?

[bargainbob] 28/1/2018 10:51

You can get some free PLUS1 from the faucet here:

[waldron] 28/1/2018 08:47

Thursday should certainly add support to the share price

A substantial move into the 2575 to 2675p BOX expected,THEN up further if no disappointments


Some are already pencilling in 2975p within 3 months

FREE CASH FLOW THE MOST IMPORTANT INDICATOR FOR ME

IT WILL BE INTERESTING TO SEE WHETHER CAP EX HAS AND WILL INCREASE AGAIN

AWAIT REPORT WITH IMPATIENCE

[oilretire] 28/1/2018 07:20

......is predicted to report adjusted earnings of $15.7 billion (£11bn) for 2017, from $7.2bn a year earlier.

[abbotslynn] 26/1/2018 19:54

Holding up well,good w/e folk

[waldron] 26/1/2018 17:10

Shell A
2,510 -0.04%


Shell B
2,554 -0.31%

PREMIUM 44p